Asia Pacific Industrial Fasteners Market Analysis Report By Product, By Raw Material (Plastic, Metal), By Application (Aerospace, Automotive, Industrial Machinery), And Segment Forecasts, 2018 - 2025

Industry Insights

The Asia Pacific industrial fasteners market size was estimated at USD 31.22 billion in 2017. The product plays a vital role in most major industries, including automotive, aerospace, shipbuilding, and industrial machinery. Rapid growth of these industries on account of increasing mechanization in residential and industrial construction is expected to propel product demand.

The market is undergoing a transition from manufacturing standard metal products to producing superior quality plastic and specialty fasteners to meet the rising demand for application-specific products. Fluctuating raw material prices, intense market competition, and subsequent price war are expected to hamper profit margins for industry players.

India is one of the top 20 industrial fastener-importing countries in the world, accounting for a share of 1.5% in global imports. Major players from developed countries like the U.S., Germany, U.K., and France are inclined toward investing in India owing to favorable market conditions, untapped customer base, and lucrative opportunities.

Asia Pacific has been a key exporter, with China, Taiwan, and Japan emerging as leading manufacturing countries. The market presents low barriers to new entrants in terms of technology and raw material supply. However, these players face the challenge of sustaining in a highly competitive environment formed by well-established existing players with a large customer base.

The selection of appropriate raw material is an essential factor for manufacturers, as the product needs to comply with standards including SAE, JIS, ISO, ASTM, and ASME. Furthermore, players are prone to compensation for accidents attributable to fasteners, especially in automotive and aerospace applications. Thus, product quality is an essential factor for industry players.

Miniature fasteners is one of the latest trends in the industry. Compact designs, structural requirements, installed hardware, and restriction in the area available are factors that favor this trend. Smaller sized products fit easily in the area and facilitate the equipment to work effectively particularly in electronics, aerospace, and marine applications.

Raw Material Insights

The metal segment dominated the industry in 2017, accounting for over 90% of the overall market. However, the product is expected to witness sluggish growth as compared to its counterpart owing to the increasing penetration of plastic fasteners in applications such as aerospace and automotive. This is on account of their high corrosion resistance and lightweight characteristics.

Metal fasteners offer greater mechanical strength and are less susceptible to harsh conditions such as extreme temperature and pressure. However, they tend to corrode when exposed to water, which hampers their performance and durability, especially in applications such as home appliances.

The plastic fasteners segment is likely to exhibit a CAGR of 5.6% over the projected period, on account of their rising application scope in the automotive industry. Application of these products in automotive manufacturing reduces the overall vehicle production cost and weight, thereby improving performance and reducing the carbon footprint.

Lightweight, excellent moisture resistance, and chemical inertia offered by plastic fasteners are likely to propel their demand in electronics and automotive applications. However, the metal variants are likely to retain their larger share on account of their superior impact resistance and ductility, which is an essential factor for industries such as railways, industrial machinery, and shipbuilding.

Product Insights

Externally threaded products, including bolts and screws, accounted for 54.2% of the overall market in 2017. These products are considered a fundamental component in several structural and non-structural applications and high demand for automotive, electronics, shipbuilding, railway, and heavy equipment manufacturing industries.

Internally threaded fasteners primarily include nuts and inserts. These products are generally used in combination with bolts in order to stack two or more parts of the structure together. Commercially, there are several product types available in the market, such as cap nuts, hex finish nuts, flange serrated nuts, square nuts, T-nuts, tri-groove nuts, and wing nuts.

Non-threaded fasteners include pins, washers, rivets, hooks, grommets, O-rings, and cable ties. This segment is likely to expand at a CAGR of 4.0% over the projected period. They are primarily used for cable management and wire harnessing in automotive and construction applications. The segment is expected to witness high demand owing to the products’ low cost and lightweight.

Aerospace-grade fasteners are classified as a separate grade from their industrial counterparts owing to their high quality, performance, raw material, price, and other technical specifications. The aerospace maintenance, repair, and overhaul (MRO) segment primarily determines the demand for these fasteners in Asia Pacific as the region has a limited aircraft manufacturing base compared to its maintenance capabilities.

Application Insights

In 2017, the automotive application accounted for 34.6% of the overall market. In the automotive industry, it is used for bonding and noise, vibration, and harshness (NVH) control. Plastic, especially nylon fasteners, are expected to witness the highest growth in this application on account of lightweight, high corrosion resistance, high thermal, and electrical insulation properties.

Aerospace is expected to be the fastest-growing application segment in the Asia Pacific industrial fasteners market over the forecast period. The most commonly used raw materials for manufacturing these products include stainless steel, alloy steel, Ti-alloys, and aluminum alloys. At present, titanium and aluminum alloy dominate the market for aerospace-grade fasteners.

The home appliances segment was valued at USD 2.38 billion in 2017. Plastic hose clamps, screws, and bolts, O-rings, and grommets are becoming popular choices for manufacturing appliances such as washing machines, tumble dryers, and dishwashers on account of their corrosion resistance and durability.

Bolts, nuts, and nails are the most widely used products for construction applications. Product selection in construction depends on the surface it is going to bind/attach together. Metal rivets offer significantly higher strength against concrete construction.

Country Insights

Demand for automotive fasteners in India is expected to expand at a CAGR of 6.0% over the forecast period. The Government of India has announced “Automotive Mission Plan 2016-2026 (AMP 2026)” to foster the growth of its automobile industry, which in turn, is expected to have a positive impact on the market for automotive fasteners over the forecast period.

Product demand in Japan for industrial machinery was valued at USD 1.04 billion in 2017. The country comprises over 200 industrial machinery manufacturers, including world-famous brands such as Okuma, DMG Mori Seiki, Fanuc, and Yamazaki Mazak, driving product demand in the country.

Indonesia is one of the major importers of fasteners in the world, with key imports coming from Thailand, Taiwan, Japan, and Singapore. Import revenue is much higher than exports from the economy, indicating a high local demand for industrial fasteners in the country.

Product demand in Thailand is likely to rise on account of the growth of end-use industries such as automotive, construction, and industrial equipment. Small and medium-scale product manufacturers in the country usually fulfill demand within the country. However, inadequate capacities of industry players have resulted in high imports in recent years.

Asia Pacific Industrial Fasteners Market Share Insights

Major manufacturers are often engaged in long-term contracts with users, hampering market penetration of new players. Prominent suppliers are focusing on achieving optimal operational costs, maximizing the efficiency of production facilities, attaining shortened lead times, and enhancing the quality of products to maintain their dominance in the market.

A major percentage of manufacturers based in Asia is involved in manufacturing standard fasteners, which are widely accepted by end-use industries, particularly industrial machinery, and construction. However, these players often face challenges when the consumer demands application-specific products, thus impacting their market share in the international market.

Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the Asia Pacific industrial fasteners market report based on raw material, product, application, and country:

• Raw Material Outlook (Revenue, USD Million, 2014 - 2025)

  • Plastic

  • Metal

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Externally threaded

  • Internally threaded

  • Non threaded

  • Aerospace grade

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Automotive

  • Aerospace

  • Construction

  • Industrial Machinery

  • Home Appliances

  • Lawn and Garden

  • Motors and Pumps

  • Furniture

  • Plumbing Products

  • Others

• Country Outlook (Revenue, USD Million, 2014 - 2025)

  • China

  • India

  • Japan

  • South Korea

  • Malaysia

  • Indonesia

  • Thailand