The Latin America industrial fasteners market size was valued at USD 7,534 million in 2022 and is projected to reach USD 8,198 million by 2030, registering a CAGR of 5.0% during the forecast period (2023-2030).
High-quality fasteners, referred to as "industrial fasteners," are employed in various projects and industries, such as the building and automotive industries. In many different industries, including construction, industrial fasteners are used. You must be familiar with the fundamentals of fasteners to choose the appropriate industrial fastener for any project.
People in the construction business mostly use industrial fasteners. As Latin America's population and cities grow, more people want to live in new homes and build new infrastructure. This is driving the need for industrial fasteners in the area. One of the most important parts of Mexico's economy is the construction industry, which will continue growing in the coming years. A report from the Mexican Chamber of Building Industry (CMIC) says that the building industry in Mexico will grow by 3% in 2021, even though the COVID-19 pandemic will cause some problems.
Latin American domestic producers have faced considerable difficulties due to the accessibility of inexpensive imported fasteners. China is a significant supplier of industrial fasteners to Latin America, providing various goods at affordable prices. For instance, according to data from the Brazilian Association of Fasteners and Fixing Systems (ABECE), Chinese imports of fasteners into Brazil increased by 26.7% in 2019 to reach $182 million. Brazilian manufacturers' market share has been impacted, and local manufacturers are now under greater price pressure.
Latin America's rapid urbanization and expanding population present the market potential for industrial fasteners. For instance, Brazil is one of the most urbanized nations in the region, with over 85% of its people living in cities, and the World Bank projects that number to rise to over 220 million by the year 2050. The demand for new infrastructure and construction, such as the creation of new buildings, roads, and bridges, is driven by rapid urbanization and expanding population. As a result, industrial fasteners are being used more frequently in construction applications. Along with Brazil, other nations in the region—including Mexico, Argentina, and Colombia—are seeing rapid population expansion and urbanization, boosting the need for industrial fasteners.
The Latin America industrial fasteners market is segmented based on product, type, bolt size, application, raw materials, and country.
The market is further segmented by product into Externally threaded, internally threaded and non-threaded
The Externally threaded segment domains segment dominates the market and is expected to grow at a CAGR of 5.9% during the forecast period.
By type, it is further segmented into Threaded fasteners, nuts, washers, and Rivets.
The Threaded fasteners dominated the market and are expected to register a CAGR of 5.2% over the forecast period.
The market is further segmented by bolt size into Less than ¼, ¼ to ¾, ¾ to 1, and More than 1.
The ¼ to ¾ segment dominates the market and is expected to grow at a CAGR of 4.4% during the forecast period.
The market is further segmented based on application into Oil and Gas, Automotive, Aerospace, construction, Industrial machinery, and others.
The automotive segment dominates the market and is expected to grow at a CAGR of 6.1% during the forecast period.
Raw materials are further segmented into steel, Aluminum, and others.
Steel dominated the market and is expected to register a CAGR of 6.1% over the forecast period.
The Latin America industrial fasteners market is segmented by country into Brazil and the Rest of Latin America. Brazil dominated the market with a CAGR of 5.3% during the forecast period.
Local and external forces are projected to limit Latin America's economic growth. Uncertainty about Brazil's economic policy and reforms, ongoing financial stress in Argentina, and recent social instability in Colombia, Chile, Bolivia, and Ecuador are projected to hurt the region's economy. Industrial fasteners have many applications in the above end-use industries, but in 2020, automotive manufacturing sites, construction sites, and furniture and plumbing product production were slowed or closed, affecting demand. The Economic Commission for Latin America and the Caribbean reported that the region's growth rate dropped 6.8% in 2020 due to the COVID-19 epidemic. However, in 2021, as vaccination rollouts increase, all factories and production sites reopen, supply and demand gaps narrow, and government actions help end-use industries thrive over the projection period. In 2021, the Economic Commission for Latin America and the Caribbean predicted 5.9% GDP growth.
Furniture makes up a tiny portion of product demand in Central and South America. However, consumer attention on construction activities to build attractive dwellings and commercial spaces is projected to increase furniture demand. The region's demand for industrial fasteners is expanding due to the production of tables, chairs, beds, and home appliances.
Industrial and specialty fasteners are needed for high-performance aircraft by Argentina Aircraft Factory and Embraer S. A., which make commercial, military, executive, and agricultural aircraft. Due to Argentina and Brazil's defense reforms, aerospace-grade fasteners will likely develop in this industry.
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