Fastners Market

Market Overview

The global fastners market size was valued at USD 80 billion in 2021. It is estimated to reach an expected value of USD 142 billion by 2030, at a CAGR of 6.4% during the forecast period (2022 – 2030). The substitution of metal fasteners with plastic fasteners is a great opportunity in the global market.

Utilizing materials capable of performing extreme and standard duty activities is necessary for the equipment or machines' crucial operations. Materials like titanium, brass, bronze, etc., which provide exceptional performance under various situations, including corrosion, vibration, and severe impact, are used to create specialty fasteners.

Modifying the current fastener designs allows for the production of non-standard fasteners. The other kinds of non-standard fasteners, which we refer to as specialty fasteners, on the other hand, differ from standard fasteners in terms of their designs, materials, and head styles. These fasteners are gaining high demand from the end-use industries, as the manufacturers are investing highly into the final product's appearance along with durability and superior performance.

The specialty fasteners segment is likely to grow at a higher rate than the standard fasteners because of their rising demand from the end-use industries. Rising demand for fasteners exhibiting the highest quality standards to meet the exact quality standards needed in the end-use sectors enables the demand for specialty fasteners over the forecast period.

Market Dynamics

Market Drivers

Increasing Automotive Production in Asia Pacific

Fasteners are an essential component of the automotive industry and are available in numerous shapes and sizes. The common fasteners used in this industry include nuts, bolts, screws, rivets, studs, bits, anchors, and panel fasteners. Automotive is the largest industrial fasteners market, and the automotive industry's production trends directly impact the industrial fasteners market. Automotive production is primarily concentrated in North America, Europe, and Asia Pacific, because of the availability of skilled labor, high investments in the manufacturing sector, technology know-how, and increased domestic demand. Asia Pacific has emerged as the most significant automotive-producing region in the world followed by Europe. Major economies in the Asia Pacific, including India, Japan, and China, witnessed high levels of car production from 2017 to 2019 owing to the growing population and rising incomes. China is one of the largest automotive manufacturers in the world. According to the Society of Indian Automobile Manufacturers, India produced around 45,160,17 vehicle units in 2019, decreasing to 33,944,46 units in 2020. The electric vehicle segment in India is gaining popularity from the end consumer, coupled with significant players initiating the production of electric cars and two-wheelers. The growth of the automobile manufacturing sector has helped drive the industrial fasteners market at a considerable rate in India. 

Rapid Developments in Building & Construction Sector

Infrastructure development is one of the critical parameters to be considered while tracking the regional growth of the market. The construction industry notably impacts the demand for industrial fasteners as they are extensively used in buildings, bridges, walls, and roofs. Unlike other sectors, fasteners used in construction are standardized and subject to stringent quality checks. Government intervention through a regulatory framework pressurizes manufacturers to offer standardized products with superior performance characteristics.

The overall construction industry in North American countries, including the U.S. and Canada, will likely witness growth over the forecast period. In Canada, the significant demand for construction is expected to come from the non-building and non-construction segments. Increasing GDP coupled with the growing trend of single-family houses in these countries is expected to propel construction activities in the region, thus influencing the demand for industrial fasteners. 

Market Restraint

Rising Market Share of Substitutes

Over the projection period, rising metal prices and the slowing growth of these fasteners due to their replacement by plastic fasteners, automotive tapes, and adhesives are anticipated to be significant obstacles for makers of metal fasteners. Due to the growing need for lightweight components from car manufacturers, plastic fastener producers should benefit. The market share for welding has expanded due to the adoption of laser welding in automobiles. Rising consumption of welds and rivets in various types of aircraft is anticipated to drive the welding market in aerospace and defense industries, posing a threat to fastener's market share. Welding is a cost-effective option in steel-intensive construction and is also a preferred choice as it ensures reliability and durability. Ascending utilization of various substitutes in the automotive, aerospace, and construction industries is projected to threaten the growth of the fasteners market in the coming years. The rising demand for adhesives in automotive, construction, and packaging applications for binding various materials together will likely hamper the need for fasteners over the forecast period.

Market Opportunities

Substitution of Metal Fasteners with Plastic Fasteners 

The evolution of lightweight automobile products has been significantly influenced by the current period of innovation and technology, which calls for more efficiency with fewer resources. Industrial fasteners are used most frequently in the automotive business, where there are numerous fastening requirements during product manufacturing. The cost and rising demand for lightweight components are linked to replacing metal fasteners with plastic ones. With injection molding technology, plastics can be molded into any shape and are an affordable alternative to metals.

Depending on the application, several fasteners with different sizes, designs, and specifications are needed in the automotive industry. Because they can be quickly formed into any shape and size required, unlike metal fasteners, which call for large machinery, this is why plastic fasteners are in demand. Because of this, plastic fasteners are increasingly being used instead of metal ones, opening up several potentials for success for international manufacturers.

Regional Analysis

On the basis of region, the global fastners market is segmented into North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa.

Asia Pacific accounted for the largest market share and is estimated to grow at a CAGR of 7.3% during the forecast period. The Asia Pacific is the fastest-growing region in the world, accounting for over two-thirds of the global economic growth. Asia has been a critical market for industrial fasteners, accounting for over 40% of the global market in 2020. The industrial fasteners industry in the region is primarily driven by automotive, industrial machinery, electronics, and construction applications. The region has recently been the world's largest industrial fastener supplier. Economic growth in Asia has increased the need for improved public infrastructure such as roads, harbors, airports, and rail transportation networks. A substantial increase in mergers & acquisitions, integration activities, and site relocations has boosted industrial development in the region. Increased construction of industrial and infrastructure activities in emerging nations such as India, Vietnam, Thailand, and Malaysia are likely to drive the market in the Asia Pacific.

Europe is the second largest. It is estimated to reach an expected USD 28440 million by 2030, at a CAGR of 6.2%. Europe is one of the largest industrial fasteners markets because of considerable product demand from the developed economies of Germany, the U.K., Russia, Italy, and France. However, in January 2020, with the exit of the U.K. from the European Union, the industrial fasteners industry is expected to have a significant impact on the growth. In the region, the automotive sector accounts for a substantial share of the revenue generated by the industrial fasteners market. According to the European Automobile Manufacturers' Association, The European auto industry is a global player, delivering quality 'Made in Europe' products around the world, and generating USD 85.50 billion trade surplus for the E.U. Moreover, E.U. automotive investment in R&D has increased by 6.1% to reach USD 70.37 billion annually. Several major automotive manufacturers, including Mercedes-Benz, Fiat, Renault, Volkswagen, and Ford, are present in Europe. These major players are increasingly investing and focusing on producing lightweight and strong vehicles. As a result, the demand for automotive fasteners in Europe is expected to grow faster.

North America is the third largest region. In North America, the U.S. has been dominating the fasteners industry in terms of consumption owing to the presence of a wide manufacturing base of automotive, electronics, and aerospace companies. The country is among the biggest markets for aerospace manufacturing and MRO, with the presence of major industry players, including Boeing, Lockheed Martin, and G.E. Aviation. The aforementioned factor has resulted in high demand for industrial fasteners in the region. The United States is also one of the world's largest automotive producers, making it a critical consumer of automotive fasteners. The presence of many automotive companies, including General Motors, Ford Motor, Fiat, Chrysler Automobiles, Toyota Motor Corporation, Tesla Motors, and AM General, in the region is expected to impact the market growth over the forecast period positively. Increasing metal prices and growing demand for lightweight automotive components are expected to be the key factors affecting the need for metal fasteners over the forecast period. The demand for plastic fasteners is expected to grow significantly due to the rising demand for low-cost and lightweight substitutes for metal fasteners. In terms of production, the region's automotive industry has increased substantially over the past two years, positively impacting the demand for fasteners.

Segmental Analysis

The global fastners market is segmented by type, application, raw material, and region.

Based on Type, the global fastners market is segmented into externally threaded, internally threaded, and non-threaded. The externally threaded segment accounted for the largest market share and is estimated to grow at a CAGR of 7.3% during the forecast period. Externally threaded fasteners include bolts, screws, studs, tie rods, and pins. These fasteners are widely utilized in automotive, electronics, shipbuilding, railway, and heavy equipment manufacturing industries. Bolts and screws are the most commonly used type of externally threaded fasteners. The fastener is considered a fundamental component in several structural and non-structural applications as they help secure two or more components. Hex, square, and socket caps are the most commonly used product types among the several varieties of screws and bolts available in the market. Metal bolts are manufactured using cast iron, carbon steel, and carbon alloy steel. These fasteners are coated using various finishes, including zinc and chromate coatings. The most commonly used screw finishes include black oxide, zinc, and chrome. The external coating on bolts and screws offers them additional moisture and chemical resistance, enhancing their performance in various end-user applications. All such factors drive segment growth. 

Based on Application, the global fastners market is segmented into oil & gas, automotive, aerospace, construction, industrial machinery, and others. The automotive segment accounted for the largest market share and is estimated to grow at a CAGR of 7.5% during the forecast period. High production volumes of automotive vehicles across the Asia Pacific have been a critical factor driving the industry growth over the past few years. The industry is dominated by metal fasteners, both in terms of volume and value, as of 2020. However, the rising popularity of plastic fasteners owing to their lightweight and low cost is expected to drive the industry growth over the forecast period. In the automotive industry, fasteners are used for two essential functions: bonding and noise, vibration, and harshness (NVH). The parts of passenger cars and LCVs are manufactured separately and then assembled to manufacture a unit in the automotive industry. The process requires bonding components such as adhesives, tapes, sealants, and fasteners. Metal fasteners have been dominating the segment over the past few decades.

The construction segment is the second largest. Metal fasteners dominate the overall industry, in terms of volume and application, owing to their high corrosion resistance and superior strength properties over plastics. In building and construction, application fasteners are primarily used for bonding/attaching and cable management applications. The existing buildings and new structures have enormous cables installed. Keeping track of these cables is becoming a severe problem, which has resulted in the need for cable management. Cable ties are expected to be the prime solution for cable management as they are inexpensive and easy to use. In addition, different cable ties in various colors and designs can be used to mark other cable bundles, which makes it easy to differentiate them.

Based on Raw Materials, the global fastners market is segmented into steel, aluminum, and others. The steel segment accounted for the largest market share and is estimated to grow at a CAGR of 7.4% during the forecast period. A majority of the fasteners are made of steel owing to their resilient mechanical properties. Stainless steel fasteners are mainly used in applications where the primary requirements include high tensile strength, temperature resistance, and corrosion resistance. Martensitic, ferritic, and austenitic grades of stainless steel are used for industrial fasteners. Products such as carbon steel are used across a wide range of applications in the automotive body and in the building & construction industry because of superior workability. Additionally, cast iron flanged piping systems that require flanged joints can employ the material to make strong hex bolts and studs—such elements fuel segment expansion.

Recent Developments

• September 2022 - In the first eight months of 2022, the Hilti Group increased sales by 6.1 percent to CHF 4108 million. The operating result declined by 36 percent due to global supply chain disruptions, the Russian invasion in Ukraine, negative currency effects, and significant investments into building the software business. In addition, the results are impacted by strong negative base effects that will level out until year-end.  
• June 2022 - This year, the iF and the Red Dot juries honored four new Hilti products for design quality and innovation. No less than two of them emerged as Red Dot, "Best of the Best" category winners.