Market Trends of Automotive Fasteners Industry
Vehicle Sales to Fuel the Demand for Iron Fasteners
Car sales across the world increased 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 Russia-Ukraine War contributed to shortages in the automotive semiconductor market and additional supply chain disruptions. Despite these challenges, sales growth was anticipated in 2023.
Factors such as growing vehicle production and major countries across the world opting for several government initiatives promoting e-mobility are facilitating the growth of the market. However, the impact of the pandemic has resulted in slow growth. Further, fastener manufacturers are aiming for key mobility partners like BMW, Volkswagen, Opel, Fiat, etc., to maintain a strong supply of their fasteners during production.
The most usual kind of fasteners include nuts, washers, and bolts. Among these, nuts are expected to be the fastest-growing threaded fasteners, registering significant growth over the 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 their inner linings.
Furthermore, 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 to 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 to provide perfect fitting over the parts/components.
Moreover, the growing demand for vehicles may provide lucrative opportunities for market players during the forecast period. In addition, as manufacturers shift from standard fasteners to customized fasteners, this new development may drive vehicle sales and market demand.
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 the sales 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. An increase in the aftermarket sales of vehicle fasteners across the world may also boost demand for the automotive fasteners market in the region.
The market growth in this region is also attributed to the surging production of vehicles and increasing aftermarket sales of vehicle fasteners. Japan, China, and India are booming in the market due to the presence of automobile giants like Toyota, Suzuki, Mahindra & Mahindra, Isuzu, Dongfeng, SAIC Motor, and TATA Motors.
Asia-Pacific has been driving the demand for automotive fasteners on the rocks of economies of agglomeration. With the presence of almost all top automotive manufacturers and service providers, the region is also supplying immense growth potential for new entrants.
India is one of the major automobile exporters, and strong export growth is expected in the near future, as seen in its present mobility expansion projects. The automotive industry received a cumulative FDI inflow of approximately USD 30.78 million between April 2000 and September 2021. The Government of India expected the industry to attract USD 810 million in domestic and foreign investment by 2023.
During FY 2021-2022, a total of 3,069,499 passenger vehicles were sold in India, an increase from 2,711,457 in the previous years. 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. Companies are witnessing orders from key OEMs across India for the supply of parts and components, including fasteners. For instance:
In January 2023, Sundram Fasteners Ltd, a Chennai-based fastener manufacturer, bagged an order worth USD 250 million from an EV OEM under a six-year-long purchase order.
Additionally, the advancing government guidelines for the use of reduced vehicle weight have led to improvements in technologies for producing durable and lightweight components in the region. Therefore, all these aforementioned factors are likely to contribute to the overall development of the market in Asia-Pacific during the forecast period.
