Market Trends of Automotive Fasteners Industry
Vehicle Sales to Fuel Iron Fastener Demand
Worldwide car sales grew to around 67.2 million automobiles in 2022, up from around 66.7 million units in 2021. In 2020 and 2021, a faltering global economy caused the industry to experience a downward trend. In 2022, COVID-19 and the Russian war in Ukraine contributed to shortages in the automotive semiconductor market and additional supply chain disruptions. Despite these challenges, 2023 sales growth is anticipated.
Factors such as growing vehicle production and major countries across regions opting for several government initiatives promoting e-mobility coupled with the manufacturing of vehicles across the country. However, the impact of the pandemic market has resulted in slow growth. Further, fastener manufacturers are aiming for key mobility partners like BMW, Volkswagen, Opel, Fiat, etc. for maintaining a strong supply of their fasteners during production.
The most usual kind of these fasteners is nuts, washers, and bolts. Among these, nuts will be the fastest-growing threaded fasteners registering significant growth through 2028 forecast period. Nuts are used in vehicle conjunctions in combination with bolts and sometimes with washers to fasten several parts collectively. These fasteners stay and adjoin together by grouping of their inner linings.
Further, increased demand for metal-to-metal fastening in vehicles has elevated the demand for detachable fasteners. This is attributed to the ease and flexibility offered by this fastener during their installation while attaching two metal pieces in vehicles. Moreover, this has helped automakers as well who are facing challenges with loosed bolts and fasteners fitting in the vehicles. These fasteners allow them to repair and replace the fitting in order to provide perfect fitting over the parts/components.
Moreover, growing demand for vehicles to provide lucrative opportunities for market players during forecast period. In addition, as manufacturers are also shifting from standard fasteners to customized fasteners, this new development to drive demand in market coupled with vehicles sales.
Asia-Pacific to Exhibit the Highest Growth Rate During the Forecast Period
Asia-Pacific is projected to account for a notable share of the automotive fasteners market due to an increase in sale of vehicles across the region. Rising demand for fuel-efficient vehicles across Asia Pacific is likely to drive the automotive fasteners market in the region. Increase in aftermarket sale of vehicles fasteners across the regions also to boost demand for the automotive fasteners market across the region.
The market growth in this region is also attributed to surging production of vehicles and increasing aftermarket sale of vehicle fasteners. Japan, China, and India are booming in the market due to presence of automobile giants like Toyota, Suzuki, Mahindra & Mahindra, Isuzu, Dongfeng, SAIC Motor, and TATA Motors.
Asia-Pacific has been the driving the demand for automotive fasteners on the rocks of economies of agglomeration. With presence of almost all top automotive manufacturer and service providers, region is supplying immense growth potential for new entrant as well.
India is one of the major automobile exporters, and strong export growth is expected in the near future seeing its present mobility expansion projects. The automotive sector received a cumulative FDI inflow of approximately USD 30.78 Million between April 2000 and September 2021. The Government of India expects the automotive sector to attract USD 810 Million in domestic and foreign investment by 2023.
During FY 2021-2022, In total, 3,069,499 passenger vehicles were sold overall, an increase from 2,711,457 in India. Comparing April 2021 to March 2022, Passenger Car sales fell from 1,541,866 to 1,467,056 units, while Utility Vehicle sales rose from 1,060,750 to 1,489,178 units. Company are witness potnetial order from the key OEM across India for the supply of parts and components inclding fasteners. For instnace:
- In January 2023, Chennai, India based largest fastener manufacturer Sundram has bagged an order worth USD 250 million from an EV OEM under six year long pruchase order.
Additionally, the advancing government guidelines for use of reduced vehicle weight has led to the improvements in technologies for producing durable and lightweight components in the region. Therefore, all these aforementioned factors likely to contribute for overall development of the market in Asia-Pacific region during the forecast period.
