Solar Wafer Cutting Fluid Market - Forecast(2023 - 2028)

Solar Wafer Cutting Fluid Market Overview

The solar wafer cutting fluid market size is forecast to reach US$1.2 billion by 2027, after growing at a CAGR of 8.3% during 2022-2027. Globally, solar wafer cutting fluid is extensively utilized in electrical and electronics industry to remove the heat generated during the metal cutting and other processes; and reduce the cutting force, that drives the market growth. Polyethylene glycol is a solar wafer cutting fluid which is utilized for cutting and cooling purposes. It is non-toxic, inert, odorless, non-volatile, and colorless. PEG is a form of gel that is soluble in water and organic solvents such as benzene, chloroform and carbon tetrachloride. Wet silicon carbide sand aggregate is also used in solar wafer cutting applications. PEG is manufactured from petroleum and can be utilized in several industries such as automotive, pharmaceutical, personal care, plastics and chemical. Moreover, the rise in demand for solar wafer cutting fluid from the semiconductor and photovoltaic industries is estimated to surge the demand for the solar wafer cutting fluid market.

Solar Wafer Cutting Fluid Market COVID-19 Impact

The COVID-19 impacted various end-use industries. The manufacturing process of various products declined due to the non-functioning of the manufacturing plants during pandemic lockdown norms. The sales of solar wafer cutting fluid have also witnessed a halt during this period. The lockdown norms declined the solar wafer cutting fluid market with the declining production and sales of automobiles, since PEG is utilized in the automotive industry. For instance, according to the Organization Internationale des Constructeurs d'Automobiles (OICA), the total motor vehicle production declined by 12% from 2019 to 2021. However, the global production increased by 29% from 2020 to 2021. Thus, with the growing automobile production and post lockdown reuse of automotive, the demand for solar wafer cutting fluid has increased and is further estimated to incline in the years to come.

Report Coverage

The report: "Solar Wafer Cutting Fluid Market Report – Forecast (2022 - 2027)” by IndustryARC, covers an in-depth analysis of the following segments in the solar wafer cutting fluid industry.

Key Takeaways

• The Asia-Pacific region dominates the solar wafer cutting fluid market owing to the rising growth and increasing investments in the electronics industry. For instance, according to the Indian Brand Equity Foundation, by 2021-22, the government has set a target to get US$ 2.4 billion investments in the electronics manufacturing segment.
• Rapidly rising demand for the solar wafer cutting fluid in the photovoltaic sector; for cooling application during manufacturing process; has driven the growth of the solar wafer cutting fluid market.
• The increasing demand for solar wafer cutting fluid in semiconductor industry; due to its usage in the cutting process; has been a critical factor driving the growth of the solar wafer cutting fluid market in the upcoming years.
• However, the environmental and health problems associated with the solar wafer cutting fluid can hinder the growth of the solar wafer cutting fluid market.

Solar Wafer Cutting Fluid Market Segment Analysis – By Product Type

The PEG-300 segment held the largest share in the solar wafer cutting fluid market in 2021. Polyethylene glycol 300 (PEG300) is a water-miscible polyether extensively used in structural biology, medicine and biochemistry, along with the pharmaceutical and chemical industries. PEG-300 is utilized as a solubilizer, lubricant, chemical reagent and excipient. It is soluble in benzene, chloroform and carbon tetrachloride and is applied as a base for skin creams and other personal care products. Also used as a solvent and viscosity modifier in soaps and detergents. Moreover, PEG-300 is applied to process rubber, textiles and plastics as an additive in lubricants and grease, as a dye carrier, humectant and binder in paints and inks. Thus, the wide applicability of polyethylene glycol 300 (PEG-300) is driving the solar wafer cutting fluid market growth.

Solar Wafer Cutting Fluid Market Segment Analysis – By Application

The semiconductor segment held the largest share in the solar wafer cutting fluid market in 2021 and is estimated to grow with a CAGR of 8.8% during 2022-2027. The manufacture of semiconductor requires solar wafer cutting fluid to reduce friction during cutting process, by providing lubrication between the workpiece and the tool. Acquisition of new technologies and capabilities, innovations, launch of new products and services, and establishment of new companies has boosted the growth of the semiconductor industry. For instance, according to the Semiconductor Industry Association (SIA), in 2020, more than 22,800 new semiconductor companies were established in China, which is 195% more than 2019. Thus, with the rising growth of the semiconductor sector, the need for the solar wafer cutting fluid market is further anticipated to rise during the aforesaid forecast period.

Solar Wafer Cutting Fluid Market Segment Analysis – By Geography

The Asia-Pacific region dominated the solar wafer cutting fluid market with a share of 42.5% in 2021. APAC region is one of the leading solar wafer cutting fluid manufacturers, with China and India being the key consumers and suppliers of the solar wafer cutting fluid. The solar wafer cutting fluid is used in electrical and electronics industry, to be applied in semiconductor, chips, photovoltaic and other products’ cutting, cooling and manufacturing purposes. The rising growth of electrical and electronics industry has uplifted the development of the solar wafer cutting fluid market. For instance, according to the IPC Economic outlook December 2021, the electronics industry, which includes categories such as components, loaded boards, computers, communications equipment and consumer electronics; is being increased by 2.6% in November 2021. The electrical and electronic sector sales have been increased by 30.6% as compared to 2019 and 12.8% in 2019-2021. Additionally, according to the Invest India, the global electronics market is estimated to be over US$2 trillion in 2019; and India’s share in global electronics manufacturing has increased from 1.3% in 2012 to 3.6% in 2019. The Electronics manufacturing industry is estimated to reach US$300 billion in revenue by 2025-2026 and the electronics market is estimated to reach US$400 billion by 2025. Therefore, the growing electronic manufacturing will increase the demand for cutting fluids during the forecast period and thereafter, drives the demand for the solar wafer cutting fluid market.

Solar Wafer Cutting Fluid Market Drivers

Increasing Adoption of the Photovoltaic Cells will Drive the Market Growth

Rapid urbanization is the important factor for the rise in the adoption of photovoltaic cells due to the awareness of the advantage of the technology, social influence, complexity of the innovation and knowledge about the grants. The cost factor of the photovoltaic system is the primary element responsible for its wide adoption. The solar wafer cutting fluid is used in photovoltaic cells during the manufacturing process, to remove the heat generated from the cutting zone through the cooling effect. The rising consumption and generation of photovoltaic energy is driving the market growth. For instance, according to the Australian Energy Association, solar photovoltaic power plant consumption has been increased by 41.7% in 2020 as compared to 2019. Additionally, according to the US Energy Information Administration, 42.8% of solar thermal and photovoltaic net generation and consumption has been increased in the US by September 2021 as compared to September 2019. Thus, the rising growth in the PV sector is driving the solar wafer cutting fluid market growth during the forecast period.

Surging Demand for the Solar Wafer Cutting Fluid in the Electrical and Electronics Industry

The electrical and electronics industry uses solar wafer cutting fluids to remove the heat produced during the metal cutting and other machining processes. Therefore, solar wafer cutting fluids have proven thermal management of metal to be chopped using liquid immersion technology. The rising growth of the electrical and electronics industry is surging the demand for solar wafer cutting fluids. For instance, according to the Indian Brand Equity Foundation (IBEF), the Indian electronics manufacturing industry is projected to reach US$520 billion by 2025. Thus, the growing electrical and electronics industry will require more solar wafers, which would drive the solar wafer cutting fluids market growth during the aforementioned forecast period.

Solar Wafer Cutting Fluid Market Challenges

Environmental and Health Problems Associated with the Solar Wafer Cutting Fluid Will Hamper the Market Growth

The manufacturing process of the solar wafer cutting fluid is based on the principle of ethoxylation, which is potentially damaging to the environment. Since ethylene oxide is one of the raw materials that is used in the production and is classified as flammable, sensitising, toxic, mutagenic, reprotoxic and carcinogenic. These solar wafer cutting fluids are low biodegradable and remain untreated by wastewater treatment plants. So, these end up in waterbodies. They are known to cause allergies and dermatitis. These fluids are irritating to the mucous membranes and the skin; and possess reprotoxic effects when remain undiluted or only slightly diluted. Thus, the environmental and health problems associated with the solar wafer cutting fluid will hinder the market growth.

Solar Wafer Cutting Fluid Market Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies, players adopt in the solar wafer cutting fluid markets. The top 10 companies in the solar wafer cutting fluid industry include the following:

1. Dow Chemical
2. NKNK
3. HPC
4. BASF
5. Shell
6. Kiilto
7. Pacc
8. SIC-Processing
9. Liaoning Oxiranchem
10. Liaoning Kelongchem

Recent Developments

• In September 2019, Kiilto launched a plant-based and environmentally-friendlier Easycool Futura cutting fluids. The new products are made from renewable raw materials, hence safer to use, with better cooling and lubrication characteristics.
• In April 2020, Fuchs launched a new cutting and grinding fluid. Fuchs Lubricants’ water-miscible cooling lubricants in the ECOCOOL range are exceptionally durable and economical in terms of consumption.
• In July 2020, Global leader in metalworking fluids, Master Fluid Solutions, launched HyperSol 888NXT, which is a formula that was created specifically for machining hard metals like titanium, stainless steel and nickel-based alloys.

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