Engineered Fastener Market

The engineered fastener are type of hardware devices or tools which are used to connect parts or objects together permanently, semi permanently or non-permanently. The most common types of fasteners used in various industries include nuts, nails, bolts, screws, studs, rivets among others. The engineered fastener market is segmented into by material, by product, by type, by industry, and by region. Engineered fasteners are used in almost every type of machine or motor to fix the part of the machines accurately and safely. These fasteners also find their use in consumer electronics such as mobile phones, laptops among others. The use of fastener in the aerospace industry is critical and hence, strict standards are to be followed by the manufacturers for the fasteners used in the aerospace industry. Fasteners are also widely used in automobiles and their spare parts. The rise in EV vehicles market will support and strengthen the engineered fastener market in the forecast period. The alternatives such as clinching is the restraining factors of the market. The substitutes such as adhesives and bonding also restrict the use of fasteners in certain specific application.

Market Dynamics

DRIVER: Positive demand from thriving automotive industry

The automotive industry is continuously evolving with some key technological changes such as autonomous driving, electrification, and connectivity. The vehicles designed and developed today have complex designs and include more electronic parts for better durability and performance. The engineered fasteners are an important part of automotive development, as they give the unit compactness and strength. Hence, as the manufacturing of the vehicles is increasing, the demand for engineered fastener will also increase. Moreover, every part of the whole model of automotive is fixed, joint, and placed using various types of engineered fasteners. These fasteners can be standard, or custom made according to the automotive manufacturer’s needs. Besides, the global market for electric vehicles is growing rapidly as many countries are now adopting sustainable means of transport. According to an article published in Feb 2022, by Economic Times, the global electric vehicle (EV) sales saw a tremendous rise in 2021, as compared to earlier years, wherein around 6.5 million units of EV’s were sold globally. The number of units sold is anticipated to rise in coming years. The EV market is growing worldwide, which will also support the growth of engineered fastener market.

RESTRAINT: Availability of alternatives could hamper the market growth

In recent years, an increased use of substitute products such as tapes, adhesives is seen, which can hamper the engineered fastener market growth. Besides, metal fasteners can be replaced by welding, in industries such as aerospace and automotives which can degrade the growth of fastener market in the industry. The plastic fasteners are replaced by tapes and adhesive in applications such as home appliances and construction. However, to overcome this situation some of the fastener manufacturers are providing customization solutions which will significantly contribute to the growth of the market.

OPPORTUNITY: Customized fastener for aerospace and automotive industry

The aerospace and automotive designs are complex, and the manufacturing of these designs is time consuming. The aircraft constitutes of aircraft engines, landing gears, supercharges apart from the overall hardware construction, which needs superior quality engineered fasteners. The increasing research and development of commercial aircrafts along with defense aircrafts are attributing to the increased use of customized engineered fastener in the industry. The complex joints and fixing in the aircraft design need different grade of fasteners which are customized and specially built for the aerospace industry. Besides, the constant design developments in the automotive industry and custom designs especially used in the sports edition and special editions are driving the demand for custom engineered fasteners. Hence, the market opportunity for customized fasteners in these two industries is wide and can be captured by the manufacturers.

CHALLENGE: Shortage of raw materials

The fasteners are built with different materials such as steel, chrome, aluminum among others. Due to the increased use of these metals in various industries and impact of COVID-19 on global supply chains, there is a shortage of such materials. Steel is used in making of every tool, device, cars, automobiles, spare parts, home appliances, among others, which results in the demand and supply gap. The demand for steel is always rising due to its nature of non-corrosiveness and robustness. The increased demand for steel, often leads to the shortage globally, which could affect the manufacturing of engineered fasteners.

“Metal Fasteners to dominate the engineered fastener market”

Metal fasteners can find their applications in almost all industries such as construction, automotive, aerospace, industrial machinery, manufacturing, and home appliances among others. The metal fasteners are made up of metals such as steel, aluminum, chrome, brass, copper, nickel, and titanium. The metal used in the fastener depends upon the application and the properties required by respective fastener. For instance, the titanium fasteners are used in aerospace industry, similarly copper is used for marine industry due to its high resistance to saltwater corrosion. Moreover, the metal fasteners provide better resistance and mechanical strength to the equipment used in industries such as construction, manufacturing, power and oil and gas. All these factors are driving the demand of metal fasteners worldwide.

“Aerospace industry to register the highest CAGR in the forecast period”

The aerospace industry application is expected to register the highest CAGR during the forecast period. The fasteners in aerospace industry are majorly used for aircraft assembly and manufacturing processes of the aircraft carriers. The fasteners used in the aircraft require high-strength materials with high-impact resistance. These fasteners are also required to be lightweight, hence, metal fasteners are used which are made of titanium metal. The expected growth of global aerospace industry is expected to fuel the engineered fastener market in the forecast period.

“Engineered fastener market in Asia Pacific to grow at the highest CAGR”

The growing population, rising urbanization, rising income level, and expanding construction industry in emerging economies such as China and India are the key factors driving the growth of the Asia Pacific engineered fastener market. Moreover, increased government investments in commercial and residential construction sector will boost the engineered fastener market in the region. Besides, the standard of living in the region is improving and thus attributed to the economic developments in the region, which is driving the demand for industries like automotive and construction in the region. Additionally, China and India are the major manufacturing hubs, which further drives the market growth in the region.

Key Market Players

Stanley Black & Decker, Inc. (US), LISI GROUP (France), Nifco Inc. (Japan), Würth Group (Germany), Illinois Tool Works Inc. (US), and Alcoa Corporation (US) are a few key players in engineered fastener market.