Neat Cutting Oil Market: Overview and Dynamics
Neat cutting oils find large scale applications in numerous industries for manufacturing applications such as grinding, drilling, cutting and more. Neat cutting oils are particularly designed for improving the longevity of the machinery and tools and help in reducing wear and tear. The major function of neat cutting oil is anti-wear properties, substantially for increased machine life along with achieving and retaining superior surface finish.
Composition of neat cutting oil usually depends on the type of process being followed. Neat cutting oil is generally produced from natural or synthetic oils. There is a constant change in the composition of these products due to oscillating regulations and formulation along with the pressure from government authorities across the world.
Increasing demand for neat cutting oils in various machining applications is expected to expand the neat cutting oil market during the anticipated period across the globe. Technological up-gradation in the tools and equipment used in various industries like automobile, aerospace, construction and electrical, marine, rail and power, telecommunication and healthcare are assumed to raise the demand for the neat cutting oil market in the anticipated period.
Expansion in Industrialization and the growing automotive sector are predicted to drive the global neat cutting oil market. The manufacturing and automotive sector use neat cutting oil in larger quantities because of its high-quality fabrication.
Increasing production of specialized machinery and amplifying adaption of upgraded technology and innovative processes drive the demand for the neat cutting oil market. Furthermore, introduction of bio-based neat cutting oils is expected to provide massive opportunities to the global neat cutting oil market in the coming future as manufactures are constantly working on mass production of bio based neat cutting oils.
The recovery of automobile industry, especially in North America is expected to boost the growth of the neat cutting oil market. Furthermore, emerging economies such as India and China have observed significant growth in the automotive, manufacturing and transportation industries. Increasing automotive production is the severe factor affecting the demand for these products. Keeping aside automotive and manufacturing industries, railways, marine and defense industries are also donating to the growth of the neat cutting oil market. The major intention of government authorities is to protect the environment, people, and workers from hazards.
COVID-19 Impact Insights
The COVID-19 pandemic has forced countries to impose lockdowns and strict social distancing measures across the globe. Strict action is taken to control the spread of coronavirus. This has affected and disrupted several industries which include automotive, building and construction, and production units of various manufacturing plants, due to this neat cutting oil market has also been affected largely. The effect of the COVID-19 pandemic was so severe that the automotive industry was growing at a rate of -50% which is remarkably less than in 2019. The closing down of plants in North America, Asia and Europe in the second quarter of 2020 has reduced the production scale of leading industries. The pandemic has resulted in an immense demand-supply gap and it is directly affecting the production chain of the industries.
Neat cutting oil is used in several industries for cutting, machining and grinding and for other different processes. Labor Unavailability and supply chain disturbance and a slowdown in logistics and goods movements, has reduced the demand for any industrial activity, that highly dependent on neat cutting oil. These factors are expected to affect the global market. At the beginning of the lockdown, it’s not just the neat cutting oil market which got affected because of the pandemic, markets of all the automobile and industrial equipment suffered loose. Manufacturing and automobile industry being amongst the potential end-user get approval for getting back to work with minimum workers in few regions at the earliest, raised the hope for the neat cutting oil market to get back on the track.
Segmentation Analysis of Neat Cutting Oil Market
The global neat cutting oil market is bifurcated into major segments: product type, application and region.
On the basis of product type, neat cutting oil market has been segmented as follows:
- Gear Hobbing Oils
- Broaching Oils
- Honing Oils
- Gun Drilling Oils
- Carbide Grinding Oils
- Tapping Oils
On the basis of application, neat cutting oil market has been segmented as follows:
- Chemical & Petrochemical
- Heavy Metal Fabrication
Of the above mentioned applications, automotive and heavy metal fabrication together account for dominant shares owing to huge demand in hundreds of processes. These industries are the ones providing shape to neat cutting oil consumption through dealing in mass procurement. Further, substantial demand from marine and aerospace industries are also observed over the past half-decade.
On the basis of region, neat cutting oil market has been segmented as follows:
- North America
- Latin America
- East Asia
- South Asia and Oceania
- Middle East & Africa
Neat Cutting Oil Market: Regional Outlook
Keeping in view the regional classification, the report "Neat Cutting Oil" carries out graded studies on six major regions which include North America, Europe, Latin America, South Asia and Oceania, East Asia and Middle East and Africa. The Asia Pacific region accounts for a dominant share in the market (~40%) due to increasing demand from the automotive, manufacturing and transportation industries. This is further backed up by strong manufacturing and industrial base in India and China. Positive government stance towards manufacturing and associated services is helping the region dominate in terms of market share of neat cutting oil. Asia, in the meantime is expected rise with the highest CAGR in the global clean cutting oil market Expected duration.
Developing economies such as China and Southeast Asian countries have seen significant growth in their production and manufacturing sectors. The increase in consumption and ancillary regulation is attracting the market. In addition, growth in demand from the automotive sector is expected to boost demand in the sector over the expected period.
North America holds remarkable position in terms of automotive production. Europe is additionally positioned to observe developments in the global Neat Cutting Oil market. A strong automotive manufacturing base in Germany is the major factor driving the neat cutting oil market in Europe. Africa, Middle East and Latin America exhibit low growth in this market.
Neat Cutting Oil Market: Key Players
The market structure of neat cutting oil is consolidated as only a few of the major players meet the demand for neat cutting oil. These include ExxonMobil, Houghton International Inc., Total, Chevron, Indian Oil, Quaker Chemical Corporation, Fuchs, Eni Oil Products, Blaser Swisslube, Growel, Midlands Lunricants, Pro oil, Veedol India, Castrol, Eastern Petroleum. Although local manufacturers claim a minimum share in the global market, the major players collectively hold more than 70% of the total neat cutting oil market.
Various large-scale producers are inhabited in Europe, whereas demand is high from the Asia Pacific region which leads to an explosion market. Producers and manufacturers from Europe and North America are constantly engaged in mergers and acquisitions with the aim of building their market share and handling business growth. The major players in this market have developed a strong presence in that region and distribution channels.
The research report presents a comprehensive assessment of the Neat Cutting Oil market and contains thoughtful insights, facts, historical data, and statistically supported and industry-validated market data. It also contains projections using a suitable set of assumptions and methodologies. The Neat Cutting Oil market report provides analysis and information, according to market segments such as geographies, product type, material type and end-use.
The Neat Cutting Oil Market Report Covers Exhaustive Analysis On:
- Market Segments
- Market Dynamics
- Market Size & Demand
- Current Trends/Issues/Challenges
- Competition & Companies involved
- Value Chain
The Neat Cutting Oil Market Regional Analysis Includes:
- North America (U.S., Canada)
- Latin America (Mexico, Brazil, Argentina, Chile, Peru)
- Europe (UK, Germany, Spain, France, BENELUX, Italy, Rest of Europe)
- East Asia (China, Japan, South Korea)
- South Asia & Oceania (India, ASEAN, Australia and New Zealand, Rest of South Asia & Oceania)
- The Middle East and Africa (GCC Countries, South Africa, Northern Africa, Turkey, Rest of MEA)
The Neat Cutting Oil 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 Neat Cutting Oil report provides an in-depth analysis of parent market trends, macroeconomic indicators, and governing factors along with market attractiveness as per segments. The Neat Cutting Oil report also maps the qualitative impact of various market factors on market segments and geographies.
The Neat Cutting Oil Market Report Highlights:
- A detailed overview of the 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
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