Aerospace Fasteners Market

Market Overview

The global aerospace fasteners market revenue was valued at USD 6.8 billion in 2023 and is projected to reach USD 11.7 billion by 2032, registering a CAGR of 6.3% during the forecast period (2024-2032).

Aerospace fasteners are critical components used in constructing and maintaining aircraft and spacecraft. These fasteners, which comprise nuts, bolts, screws, rivets, washers, and pins, are engineered to suit the aerospace industry's strict requirements for high strength, durability to extreme temperatures, and corrosion resistance. Aerospace fasteners are vital because they can assure aircraft structural integrity and safety by holding essential sections and components together.

Rapid expansion in worldwide air travel due to rising living standards and tourism are essential drivers of industry growth. Additionally, relief from import duties in some countries for manufacturers fuels the expansion of the aircraft fasteners industry. Furthermore, several countries are working to bolster their defense systems by incorporating fighter planes, military helicopters, and other specialized aircraft into their military air force. These factors act to propel the aircraft fasteners market forward. 

However, 3D printing technology in aviation production performs structural functions within the aircraft. For example, 3D printing creates panels, ducts, wings, and more. 3D printing creates lightweight components and reduces the number of components by combining two neighboring pieces into a single component. This is expected to minimize the demand for aircraft fasteners because fewer assemblies will exist. This operates as a barrier to market growth. 

Top 3 Key Highlights

• Aluminum generates the highest revenue share by material.
• Rivets dominate the market by products.
• Commercial Aviation influenced the market growth by application.

Market Dynamics

Market Drivers

Growing Military Aviation Sector

The growth of the military aviation industry primarily drives the global aerospace fasteners market. The need for complex aerospace fasteners has risen due to modernization activities in the military aviation industry, which have grown as countries prioritize defence capabilities. These key features are critical in military and civilian applications because they ensure the aircraft's structural integrity and safety. 

Furthermore, several countries are increasing defence spending to modernize and increase their military capabilities. For example, the US Department of Defense's (DoD) budget for 2024 is expected to be over USD 842 billion, with significant allocations for new aircraft and fleet modifications. In 2023, most European NATO nations boosted their military spending. Their combined proportion of the NATO total was 28%, the highest in a decade.

Additionally, modernization initiatives involve upgrading older aircraft with contemporary technologies, frequently replacing old fasteners with sophisticated, high-strength, corrosion-resistant fasteners. The F-35 Joint Strike Fighter program reached full-rate production in March 2024, demonstrating good dependability and performance. However, the program has continued production delays, with contractors delivering nearly all aircraft and engines late in 2023. In May 2024, the Government Accountability Office (GAO) indicated that the program could face additional delays due to the late arrival of essential aeroplane components. 

On the other hand, Lockheed Martin stated that they intend to commence deliveries in the third quarter of 2024 after testing the most recent version of the TR-3. As a result, increased defence budgets, continuous modernization initiatives, and new military aircraft create demand for high-performance fasteners, ensuring the sector's growth and technological innovation.

Market Restraints

Fluctuating Raw Material Prices

The global aerospace fasteners market relies heavily on high-performance materials such as titanium, aluminium, and speciality alloys. Therefore, fluctuating raw material costs have a substantial impact. These materials were chosen because of their strength, weight, and tolerance to severe temperatures, which are important attributes for aeronautical applications. However, geopolitical concerns, supply-demand imbalances, and mining circumstances contribute to price volatility.

Titanium is commonly used in aircraft fasteners due to its high strength-to-weight ratio and corrosion resistance. In 2023, the price of titanium sponge metal in the United States is expected to be USD 12 per kilogram, up 12% from 2018. However, in the first quarter of 2023, the construction industry's demand for titanium sponges fell, which may have influenced costs.

Further, the price of titanium dioxide in China in 2023 was unpredictable, with prices shifting yearly. In January 2023, LinkedIn predicted that the average price of sulfate-based rutile titanium dioxide would be 15,743 yuan per ton for the year, an 11.99% decrease from 2022. By February 24, 2023, SMM rutile titanium dioxide was priced at 15,000-16,000 yuan per metric ton, while anatase titanium dioxide was priced at 14,000-14,500 yuan per ton.

Market Opportunity

Expansion of Commercial Aviation

The rise of the commercial aviation sector is a major driver of the worldwide aerospace fasteners industry. The rising demand for air travel, particularly in emerging economies, drives the need for new aircraft, increasing the demand for aerospace fasteners. These fasteners are critical components in aeroplane assembly and maintenance, ensuring structural integrity and safety.

According to the latest predictions from the International Air Transport Association (IATA), global passenger traffic might quadruple to 8.2 billion by 2037. Asia Pacific will be the fastest-growing area, accounting for more than half of all new passengers during the next two decades. Strong economic development, rising household incomes, and favourable population and demographic characteristics drive development. The increase in air travel demand necessitates the expansion of airline fleets and the development of new aircraft.

Major aircraft manufacturers like Boeing and Airbus have large order backlogs, implying high future demand for aerospace fasteners. Boeing's order backlog stood at over 4,000 aircraft as of 2023, while Airbus's backlog was approximately 7,000. These backlogs are a multi-year pipeline of aircraft production, each requiring thousands of fasteners for assembly. 

Furthermore, Boeing predicts that China will require over 8,000 new aircraft by 2040. This massive demand for new aeroplanes in China alone highlights the vital importance of aerospace fasteners in achieving manufacturing requirements. Similarly, India is experiencing considerable increases in air travel, with domestic air traffic predicted to grow at a CAGR of 6.2% over the next 20 years. This expansion results in significant orders for new aircraft, increasing demand for aerospace fasteners.

Regional Analysis

The global aerospace fasteners market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the most significant global aerospace fasteners market shareholder, estimated to grow at a CAGR of 3.6% over the forecast period. North America accounts for a considerable chunk of the global aerospace fastener market, owing to the region's strong military sectors and large aerospace manufacturers. Aerospace fasteners are in high demand from major American aerospace businesses such as Lockheed Martin and Boeing. The increased demand for high-performance fasteners might be ascribed to the region's emphasis on technological innovation and developments in aircraft technology.

In addition, North America is the leading region in the aerospace industry, with the United States playing a pivotal role. Companies such as American-based Boeing are at the forefront of the aerospace sector. For example, Boeing's 737 MAX series, one of the world's best-selling commercial aircraft, requires various aerospace fasteners to maintain its structural integrity and safety. The need for these fasteners is driven by the region's thriving defense industry, which accounts for a sizable component of the market, as well as commercial aircraft.

Asia-Pacific is anticipated to exhibit a CAGR of 7.2% over the forecast period. The Asia-Pacific aerospace fasteners market is quickly increasing as the aviation industry grows in countries such as China and India. The rising disposable affluence of the middle class and increased passenger traffic has resulted in a surge in aircraft orders. This expansion raises the demand for aeronautical fasteners.

Additionally, China and India are becoming increasingly significant players in the global aviation business. The Commercial Aircraft Corporation of China (COMAC) is developing the C919, a narrow-body aircraft competing with popular models such as the Boeing 737 and Airbus A320. Aerospace fasteners are widely employed in the production of these aircraft. India contributes to the industry by developing a regional jet and the HAL Tejas light combat aircraft, which are part of the country's defense and civil aviation efforts. These activities are propelling the market for innovative aerospace fasteners in APAC.

Europe is another important player in the aerospace fasteners sector, with notable contributions including France, Germany, and the United Kingdom. The European aerospace sector strongly emphasizes research and development, which results in the manufacture of revolutionary aircraft. As a result, the need for complicated aeronautical fasteners is expanding. Similarly, the region's focus on sustainability and aircraft fuel efficiency encourages using lightweight materials, necessitating specific fasteners.

Furthermore, European nations such as France, Germany, and the United Kingdom have a lengthy history of flying. Airbus, a significant player in the sector, is based in Toulouse, France. The Airbus A380, the world's largest passenger airliner, is an excellent example of a sophisticated aircraft that requires a wide range of aerospace fasteners. The European aerospace sector has prioritized sustainability, as indicated by the construction of the Airbus A350, which increases fuel efficiency through lightweight materials and cutting-edge fastening technologies.

Segmental Analysis

The global aerospace fasteners market is segmented based on material, product, and application.

The market is further segmented by material into aluminum, titanium, and alloy steel.

Aluminum is the dominant segment in the aerospace fasteners market and is expected to rise at a CAGR of 4.1% over the forecast period. Aluminum's supremacy can be ascribed to its superior qualities, including lightweight, high strength-to-weight ratio, and corrosion resistance, which make it an ideal material for aerospace applications. These traits reduce the aircraft's weight, boost fuel efficiency, and lower operational expenses. 

Additionally, aluminum fasteners are widely utilized in commercial and military aircraft because of their low cost and ease of manufacture. Furthermore, the material is highly recyclable, consistent with the aerospace industry's rising emphasis on sustainability. The widespread use of aluminum fasteners is also fueled by developments in aluminum alloys, which improve mechanical qualities and performance under harsh situations. The continued research and development in aluminum metallurgy and the advent of innovative manufacturing techniques such as additive manufacturing and precision forging are helping to increase the usage of aluminum fasteners in the aerospace sector.

Titanium is the fastest-growing category in the aerospace fasteners market, owing to its exceptional qualities such as high strength, low density, great corrosion resistance, and ability to endure high temperatures. Titanium is a great material for essential aerospace applications that require high performance and reliability. 

Furthermore, titanium fasteners are in high demand in high-performance and next-generation aircraft, including commercial jets such as the Boeing 787 Dreamliner and Airbus A350 and military aircraft like the F-35 Lightning II. These aircraft require fasteners that can withstand the strains of high-speed flight and extreme operational conditions. Thus, titanium is a vital material.

Based on products, the market is fragmented into Nuts and Bolts, Rivets, and Screws.

Rivets lead the aerospace fasteners market, with a predicted CAGR of 4.4% for the forecast period. Rivets are essential in the aerospace industry because of their dependability, strength, and ability to make permanent, solid connections. They are especially important in aeroplane building, where structural integrity is critical to safety and performance. 

In addition, rivets are commonly employed to assemble aircraft fuselages, wings, and other essential components. Rivets' dominance in the aerospace sector is also due to their adaptability and ability to evenly distribute loads, which reduces the danger of material fatigue and failure. Advances in riveting technology, including automated riveting systems and improved rivet designs, have increased the efficiency and precision of aircraft assembly operations, driving up rivet usage.

Screws are the fastest-growing segment of the aircraft fasteners industry. This expansion is fueled by their adaptability, ease of installation and removal, and ability to offer strong, dependable joints. Screws, unlike rivets, may be easily tightened or loosened, allowing for maintenance, repair, and modification, all of which are critical components of aircraft functioning. 

Moreover, screws are widely utilized in both commercial and military aircraft for a variety of purposes, including fastening interior panels, avionics components, access panels, and other vital systems that require regular maintenance or replacement. Screws are an essential component in continuing aircraft maintenance and improvements since they can be removed and reinstalled without causing structural damage.

The market can be bifurcated by application into Military, Commercial, and Civil Aviation.

Commercial aviation dominates the aerospace fastener market, with a predicted CAGR of 4.5% throughout the forecast period. A high demand for new aircraft primarily drives this dominance as global air traffic grows, fleets expand, and older aircraft need to be replaced. The constant increase in passenger and freight traffic necessitates the development of new commercial aircraft, which drives demand for aerospace fasteners. Furthermore, the growing emphasis on fuel efficiency and the push for newer, more efficient aircraft models drive demand for lightweight, high-strength fasteners, particularly those constructed of aluminium and titanium.

Military aviation is the fastest-growing section of the aerospace fasteners industry. Rising defense budgets, modernization plans, and numerous countries' acquisition of advanced military aircraft are driving this expansion. The demand for cutting-edge fighter planes, transport aircraft, helicopters, and unmanned aerial vehicles (UAVs) necessitates the employment of high-performance fasteners that can resist the harsh conditions of military operations. 

Additionally, the military aviation industry requires fasteners that are exceptionally strong, durable, and resistant to extreme rapid speeds, huge loads, and hostile environments. Titanium and high-strength alloy fasteners are particularly popular in this category due to their exceptional qualities.

Recent Developments

• May 2024- Boeing [NYSE] announced its intention to invest in multiple Quebec-based companies, including a USD 110 million anchor investment for an Aerospace Development Centre in the new Espace Aéro Innovation Zone. The investments are part of Boeing's Industrial and Technological Benefits promise to Canada, which chose Boeing's P-8A Poseidon to fulfil its long-term multi-mission aircraft role.
• May 2024- LISI Group and Watch-Out have been working together for about 20 years, first in high-precision machining and then in creating a disruptive AI solution for completely autonomous machining, which is already operational.