Global Automotive Fastener Market is Anticipated to Witness High Growth Owing to Increasing Automobile Production

Global Automotive Fastener Market 

The global automotive fastener market is estimated to be valued at US$ 33.9 billion in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period from 2024 to 2031. Automotive fasteners are used extensively in the automobile industry for assembly purposes. The growing demand for passenger cars and commercial vehicles owing to rising disposable incomes and improved economic conditions has significantly contributed to the growth of the automotive fastener market.

The Global Automotive Fastener Market Share play a vital role in holding vehicle components together and ensure safety during vehicle operations. They offer design flexibility, part standardization, corrosion resistance, strength, and aesthetic appeal. The increasing complexity and sophistication of vehicle design has augmented the application of fasteners in modern automobiles. The global shift towards lightweight vehicles to improve fuel efficiency has also boosted the utilization of advanced fasteners made from high-strength materials. Rapid urbanization and rising investments in infrastructure development are positively impacting the automotive industry, thereby driving market growth.

Key Takeaways

Key players operating in the global automotive fastener market are Atotech Deutschland GmbH, Birmingham Fastener, Inc., Bulten AB, Jiangsu Xing Chang Jiang International Co., Ltd., KAMAX, KOVA Fasteners Private Limited, Lisi Group, PennEngineering, Permanent Technologies, Inc., Phillips screw company, SFS Group, Shamrock International Fasteners, Shanghai Prime Machinery Company, Shanghai Tianbao Fastener Manufacturing Co., Ltd., Stanley Black & Decker, Sundram Fasteners Limited, and Westfield Fasteners Limited. These players are focusing on new product development, mergers & acquisitions, and regional expansion to gain a competitive edge in the market.

The global automotive fastener market provides significant opportunities for product differentiation and technology upgrading. Manufacturers are investing in R&D to develop fasteners with improved performance characteristics including heat resistance, corrosion protection, and dimensional stability. The growing electric vehicle industry also presents promising growth prospects with the increased use of aluminum and magnesium fasteners.

Large automotive component suppliers and OEMs are strategically expanding their global footprint to serve international vehicle assembly plants. The rising automotive demand in emerging nations of Asia Pacific and Latin America along with developments in export hubs will support the global expansion of automotive fastener producers. Standardization of fastener designs across global supply chains enhances process efficiencies.

Market Drivers

One of the key drivers of the global automotive fastener market is the growing automobile production worldwide. As per industry estimates, global vehicle production has increased from around 85 million units in 2014 to over 93 million units in 2019. Emerging economies like China, India, Brazil, and Mexico have become major automobile manufacturing hubs. This high and growing production volume drives consistent demand for all vehicle component categories including fasteners.

Market Restraints

Stringent government regulations pertaining to material usage and product design can pose a challenge for automotive fastener manufacturers. Regulations aim to improve recyclability and restrict the use of hazardous substances. Compliance requires additional R&D investments and raises production costs. Additionally, price volatility of raw materials needed for fastener fabrication like steel can negatively impact profit margins of market players.

Segment Analysis

The automotive fastener market is dominated by the bolts segment. Bolts account for more than 50% of the total automotive fasteners used owing to their wide application scope in various vehicle components. They are used to fasten critical components such as engines, gearbox, drive shafts, suspension, wheels, seats, doors, and others. Bolts offer rigid and secure fastening of parts subjected to vibrations. Nuts are the second largest segment and are expected to witness significant growth during the forecast period. The increasing use of engineered nuts and specialty nuts for corrosion resistance, precision fitting, and higher loading capacity will drive the growth of the nuts segment.

Global Analysis

North America currently holds the largest share in the global automotive fastener market. The presence of major automakers in countries such as the US and Canada coupled with the rising automotive production in Mexico is fueling market growth in the region. Additionally, high per capita vehicle ownership and increasing demand for lightweight fasteners from the automotive industry drive the market in North America. Asia Pacific is projected to be the fastest growing region owing to the expanding automotive sector and rapid industrialization in China and India. Increasing investments by major companies and growing focus on R&D of innovative fastening technologies will aid regional market growth over the next few years.

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