Electro-Erosion Fluids Market Forecast and CAGR
According to latest research by Fact.MR, the global electro-erosion fluids market is anticipated to grow at a CAGR of over 5.5%. The demand from the end-use industries such as metal working, automotive and aerospace is likely drive the sales of erosion fluids owing to extensive usage of EDM machines in complex parts manufacturing. In the coming year’s adoption of smart wire EDM machines by the manufacturing industries will support the erosion fluids sales. During 2021-31, the electro-erosion fluids business is anticipated to grow at 1.7X.
What is Driving Demand for Electro-Erosion Fluids?
The EDM (Electric Discharge Machines) is one of the non-conventional machine used to manufacture complex metals parts. It is significantly used in aerospace and automotive industry where complexity of the parts is higher. For the EDM machines to work the need of electro erosion fluids also called as spark fluids are required. These fluids acts as dielectric between the workpiece and the electrode. Also, it acts as flushing agent in washing the debris produced during the manufacturing process.
The demand for EDM is never-ending and the machinery is still evolving from the technological front. Such a demand for EDM is also driving the sales of electro-erosion fluids. The EDM user’s requirement for erosion fluids is evolving owing to changing EDM specifications.
The need of high flash and low viscous erosion fluid is increasing in the end-use industry. As liquids with such a property possess greater debris flushing power. In addition, the requirement of erosion liquid with low aromatic content, high dielectric strength and low evaporation rate is driving the demand for these fluids. It is anticipated that with such an evolving needs of end-users the sales of the product will be high in the coming years.
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North America Electro-Erosion Fluids Market Outlook
North America is one of the prominent region for electro-erosion fluids business. From 2016-20, the region accounted for over 25% of the market share, projecting a CAGR of over 5.7%. This is due to significant growth of automotive industry in the region.
From the past decade the regions automotive industry grew at a CAGR of over 7%. Such a growth is due to higher demand for commercial vehicles from the logistics industry. The need of fast manufacturing machineries in automotive and metal working industry has led to introduction of CNC based smart EDM machines.
The smart EDM machines has eliminated the number of technical operators involving in the product manufacturing and thus, significantly reduced the overall machining cost. This has led to higher adoption of smart EDM by the end-users. Such a high adoption rate of the smart EDM has also projected higher sales of erosion fluids in the market.
The sales of smart EDM is anticipated to grow at a rate of 2X during 2021-31. This will significantly affect the demand of spark erosion fluids demand in the coming years and create lucrative opportunities for the manufacturers of the product.
The automotive industry is a key end-user for EDM machines and so the demand for spark-erosion fluids is higher from them.
People in the US and Canada are inclining towards adopting electric vehicles. It has been observed the sales of electric vehicle in the US is jumping on higher side year on year. Such a growth is anticipated to create high demand for the erosion fluids in the coming years. Owing to the above facts the regional business of erosion fluids is anticipated to grow at a rate of 1.5X projecting a CAGR of over 5.6% by the end of 2031.
Asia Pacific Demand Outlook for Electro-Erosion Fluids
Asia Pacific is one of the key manufacturers and end-user of electro discharge machines (EDM). In 2020, the region accounted for more than 40% of the overall sales of electro-erosion fluids across the globe. This is attributed to the fact that the region has presence of numerous manufacturing and metal working units practicing non-conventional manufacturing machines such as EDM.
Owing to which the sales of EDM fluids/electro-erosion fluids is always at a higher side. In addition, the increasing adoption of smart EDM machines from the automotive and aerospace & defense industry is set to create demand for electro-erosion fluids with high flash points in the coming years. During the forecast period the sales of the product is expected to grow at a rate of 5.3%.
The COVID-19 had a significant impact on the regional business of electro-erosion fluids. Most of the manufacturing units were closed due to imposed lockdown by the regulatory authorities in the first three quarters of 2020. This has led to lowering in demand for the products and so the sales has dropped.
The manufacturing units have been allowed to resume their work at full pace owing to decline in COVID-19 cases and increasing vaccination drives. Currently the regional business is recovering and will be on its track by the end of Q4 2022. Factors such as further lockdowns, disruption in trade and availability of raw materials to affect the sales in market.
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Who are the Key Manufacturers and Suppliers of Electro-Erosion Fluids?
Some of the leading manufacturers and suppliers of Electro-Erosion Fluids include
- DNR Corporation
- Eastern Petroleum Private Limited
- Gandhar Oil Refinery (India) Limited
- Kocak Petroleum
- Lubrall Industries Private Limited
- MOLYTRON Synthetics Pvt. Ltd.
- Pennine Lubricants
- New Material Technology Co. Ltd
- Suzhou Baoma Numerical Control Equipment Co. Ltd.
The competitive landscape of electro-erosion fluids business is partially consolidated in nature. The competition is at higher level in this business with players involved in practicing several marketing strategies. The top players in this business are focusing on establishing long-term partnerships with the manufacturers and resellers of the electro discharge machines (EDM).
On the other hand small scale players are collaborating with the EDM service and maintenance providers for selling their products. For new comers in this business room is still available. During the initial years of business the entrants should focus on providing their product at a discounted rates this will allow them to gain customer base easily in shorter time span.
Electro-Erosion Fluids Market Report Highlights:
- Detailed overview of parent market
- Changing market dynamics in the industry
- In-depth market segmentation
- Historical, current and projected market size in terms of volume and value
- Recent industry trends and developments
- Competitive landscape
- Strategies of key players and products offered
- Potential and niche segments, geographical regions exhibiting promising growth
- A neutral perspective on market performance
- Must-have information for market players to sustain and enhance their market footprint
An Adaptive Approach to Modern-day Research Needs
- EDM Fluid
- Wire EDM Fluid
By End-Use Industry
- Tool and Die Industry
- Aerospace & Defense
By Sales Channel
- EDM Resellers
- Specialty Stores
- Super and Hyper Markets
- Company websites
- Third Party E-Commerce Sales
- North America
- US & Canada
- Latin America
- Brazil, Mexico, Argentina & Rest of Latin America
- Germany, France, Italy, Spain, U.K., Benelux, Russia, and Rest of Europe
- East Asia
- China, Japan, South Korea
- South Asia
- India, Thailand, Malaysia, Indonesia and Rest of South Asia
- Australia and New Zealand
- Middle East and Africa
- GCC Countries, Turkey, South Africa, and Rest of Middle East & Africa
- North America
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.
NOTE: Although care has been taken to maintain the highest levels of accuracy in reports, recent market/vendor-specific changes may time to reflect in the analysis.
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