The LAMEA industrial fasteners market size is expected to reach a valuation of USD million by 2030, growing at a apporx. CAGR of 3.5% during the forecast period (2022–2030).
Stainless steel is the primary material used in the production of fasteners, which are then put to use in a wide variety of industries to join, attach, or connect two or more separate items. The most common types of steel used in their construction are carbon steel, alloy steel, and stainless steel. These are industries that make considerable use of these items, including the aerospace industry, industrial machinery, plumbing supplies, motors, and pumps, among others. They have a coating or paint that prevents corrosion being absorbed by the material.
In the automobile industry, the most important components are the fasteners. The automobile is a structure that is constructed by the attaching and connections of a number of different pieces being assembled together, which allows the automobile to work in the correct manner. The most important components of every vehicle, regardless of whether it is designed for passenger or commercial use, are the fasteners. Almost every portion of an automobile is secured, yet there is still some degree of mobility allowed for the many components that can move within the vehicle. Due to the fact that the automotive industry is one of the leading consumer-based sectors, the LAMEA industrial fasteners market is dominated by the automotive sector. The automobile industry makes extensive use of a variety of fasteners, including nuts, bolts, screws, rivets, studs, bits, as well as anchor and panel fasteners.
The employment of fasteners allows for the bonding or fastening of two or more items, or portions of a product or piece of equipment, to one another, resulting in the formation of a single product that is able to operate effectively when used in conjunction with other fasteners. These fasteners are capable of effectively fastening or bonding a wide variety of materials, including plastic, wood, and metal, among other things. In the most important sectors, such as automotive, electronics, aerospace, heavy equipment, marine, and industrial machinery, industrial fasteners are regarded as one of the most important elements.
Because they are essential to the production of a finished good that is both complete and operational, fasteners hold a large portion of the market, and they are one of the few types of industrial products that will never become outdated. Although there has been development in the field of fastening due to the emergence of procedures involving chemical bonding, the demand for fasteners has not decreased despite the resiliency of chemical bonding and the constraints it places on the industry.
The manufacturing sector in the Middle East is known as the second largest industry, after oil and gas, for the majority of the nations in the area, and it is continuing to develop as a result of its prominence in the region. Countries in the Middle East have recently been home to the establishment of a variety of new industries, including those pertaining to the production of metal, construction materials, machinery, automobiles, and electrical equipment.
The expansion of the manufacturing sector is one of the most important factors influencing the non-oil economies of nations in the Middle East area. For instance, in Abu Dhabi alone, manufacturing has contributed more than 12% to their non-oil GDP over the course of the past five years, as stated by the Industrial Development Bureau in Abu Dhabi. This figure comes from only Abu Dhabi.
In a nutshell, the enormous size of the oil and gas market in the Middle East has had a tremendously positive impact on the rate of economic expansion in the region. As a direct consequence of this, the countries in the region have been presented with a wealth of opportunities and substantial capital with which to diversify their investments beyond the oil and gas industry. In addition, the majority of the countries in the region, such as the UAE and Saudi Arabia, never had to experience the theoretical phases of development, during which they were short on capital. This is in contrast to the majority of the developed countries, which were forced to go through these phases.
The level of industrial activity in the area is increasing, and most nations in the Middle East are making concerted efforts to diversify their economies and their investment portfolios in order to lessen their reliance on the oil and gas industry. The government of the United Arab Emirates, for example, has plans to increase and extend the contribution of the manufacturing sector to the entire GDP of the country to 25% by the year 2025. The United Arab Emirates (UAE) manufacturing sector is now regarded as the second largest market in terms of revenue, behind only the oil and gas industry.
The primary obstacles that stand in the way of the expansion of the LAMEA industrial fasteners market are the rising costs of metal and the many alternative possibilities, which include plastic fasteners, automotive tapes, and adhesives. Some of the most important manufacturers are switching to plastic fasteners or adhesives in order to meet the growing need for lightweight components used in the construction of vehicles. This is being done in order to serve the need of the hour for the manufacturers. In addition to this, the implementation of the laser welding process in automotive production has resulted in an increase in the market share of the welding industry.
It is projected that the increase in the consumption of welds and rivets in aeroplanes will propel the welding industry ahead and present a significant barrier to the expansion of the industrial fasteners market. The fasteners are still utilised in significant quantities across a variety of business sectors. In spite of this, the current trend toward lightweight items presents some opportunities for the development of novel ways for attaching things, such as welds, adhesive joints, linkages, and other such things. In addition to this, innovative technologies using acrylic adhesives have the potential to present new challenges to the global industrial fasteners market.
Imports of a range of machinery, tools, and materials for fastener manufacture and a number of other sectors have hindered innovation in the region's majority of nations. Because the UAE and Saudi Arabia lack a substantial industrial history, there is a scarcity of appropriate machinery in these nations. Both nations are quite advanced in the building sector, but most industrial sectors, such as the fastener industry, are not up to the standards set in the construction industry. As a result, their fastener sector is too reliant on foreign technology, materials, and equipment.
In terms of finished goods, the UAE exported fasteners worth more than USD 217 million to the worldwide market. Around 70% of UAE fasteners were supplied to neighbouring nations such as Saudi Arabia, Oman, Kuwait, Bahrain, Iraq, and Iran last year. As a result, the UAE is the region's leading exporter of fastener goods, while other nations lag far behind. In 2018, KSA shipped less than USD 12 million in fasteners, accounting for around 5% of UAE's total exports. This might be sufficient proof that the UAE is a key export centre in the area. In 2018, the Kingdom of Saudi Arabia received more than 20% of the UAE's fastener exports.
Construction in the region, particularly in the UAE and Saudi Arabia, is likely to boost fastener demand, owing to increased government financing for large-scale infrastructural and residential projects.
While the UAE is the greatest exporter of fasteners in the area, it also has the highest import value in the region. Fasteners worth more than USD 356 million were imported by UAE last year, primarily from China, India, the United States, Germany, the United Kingdom, and Taiwan. Saudi Arabia, the region's second-largest market, imported fasteners worth USD 276 million last year.
China, the United States, India, Japan, the United Kingdom, Germany, and Taiwan are the top exporters to the Saudi Arabian market.
According to figures on fastening machinery imports, Saudi Arabia had a larger value of imports last year than the UAE. In 2018, Saudi Arabia imported more than USD 30 million worth of machinery whereas the UAE imported less than USD 16 million. The UAE's export value was merely USD 2.5 million, whereas KSA's was USD 1.7 million.
In summary, physical capital investment, increased trade exposure, manufacturing sector competitiveness, and aggressive promotion through multiple media are all elements influencing this market's growth in the Middle East. The establishment of big industrial parks in the area, particularly in the UAE and Saudi Arabia, is on the increase, promoting the expansion of manufacturing in those nations.
All of these reasons may present strong chances for investors and manufacturers looking to launch a business in the Middle East or expand their operations there to tap into this lucrative market.
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