Fasteners
Market, Supplier, Risk and
Competitive Intelligence

Industry Outlook & Drivers

Global Fasteners Market Outlook

• Expected investment construction and industrial activity across major demand regions are expected to drive the growth in the fasteners market
• APAC is likely to remain the fastest growing region for fastener demand, followed by North America
• Covid-19 outbreak in major manufacturing bases is expected to lead to production cuts and reduced industrial demand during 2020.

• Top global industrial fasteners suppliers: ITW, PRECISION CASTPARTS, ALCOA |LISI, NIFCO.
• Impactful cost components in the fasteners market: raw material: 60–70 percent, labor: 15–20 percent.
• Key fasteners market drivers - Increase in automotive and construction industries.
• Global Fasteners Market Size –$98.9 Billion (2019 E) and expected to grow at a CAGR of 5.0–6.0 percent to $110.2 Billion by 2021.
• Fasteners industry overview shows that the major end-users are automotive: 27 percent, MRO/construction: 26 percent, aerospace: 18 percent.

Market Size and Trend

• Global Market Outlook:The global market for industrial fasteners is estimated at $80 billion in 2016 and the same is expected to grow at a CAGR of 5–6 percent to reach $95 billion by 2019
• Key Market Drivers: The global market for industrial fasteners is expected to be driven by the increased activities in automotive, electrical and electronics, aerospace and industrial machineries markets
• Regional Outlook: The APAC will have the highest demand for standard fasteners in the coming years, due to an increase in demand for maintenance and repairs activities, increased construction activities, and automotive industry growth. However, regions, such as the EU and North America, will witness a comparatively higher demand for aerospace grade fasteners

Industry Drivers and Constraints

• Growth in the automotive and construction industry acts as a major driver for this sector
• Growth in the heavy engineering sector will add fuel to the market

Drivers

Increase in automotive and construction industry:

• The increase in industrialization and urbanization, especially in the emerging markets, will drive the fasteners industry. Construction industry, along with the automotive sector, will progress, primarily driven by the industrialization and urbanization, this will drive the demand for fasteners in these sectors

• China, India, South Korea, Brazil, Thailand and Saudi Arabia are expected to be the key demand areas supporting the overall growth in the fasteners market

Constraints

Increase in commodity demand/price

• Commodity demand is a result of the global economic situation. The average commodity price is expected to grow between 5 and 6 percent until 2017
• An increase in commodity demand will drive up the market for industrial fasteners

Supplier Market Share

• The market is moderately capital-intensive, which poses as a stiff barrier to the local or domestic fasteners manufacturers
• ITW, Precision Castparts, Alcoa, LISI, NIFCO, and Stanley Black & Decker occupy around 13.6 percent of market share at a global level

Industrial Fasteners: Product-wise Market Share (2017)

• The market is moderately capital-intensive, which poses as a stiff barrier to the local or domestic fastener manufacturers
• The six biggest fastener suppliers occupy around 13.6 percent of the market share at a global level, followed by small to medium-sized manufacturers. Hence, the competition among local manufacturers in a country and the competition among different countries in a region are fierce 

Industrial Fasteners: News Updates 

• In Q1 2017, Stanley Black & Decker, a global diversified industrial company, has completed its acquisition of tools business of Newell Brands for $1.95 billion in cash
• The US Court of International Trade has upheld the decision-making and methodology used by the US Department of Commerce in determining that Stanley Black & Decker and a related entity should pay anti-dumping duties on nails originating from China

Fasteners Industry Overview

Fasteners industry is raw material intensive. The industrial fasteners cannot be replaced, due to the specific nature of operations. However, the use of them may be reduced. Therefore, the threat of substitutes determined to be medium. Major clients prefer to engage directly with a fastener manufacturer or through their sales offices for screws, bolts/nuts/washers, and anchors. These industrial fasteners suppliers have multiple sales offices in various countries around the world. The fasteners demand is driven, primarily by the volatility of commodity prices, including prices for coal, copper and iron ore, product lifecycle, competitive pressures and other economic factors, affecting the construction and equipment industry. Labor accounts for about 20 percent of the fastener manufacturing cost and increasing labor costs, and unionized labor environments are a risk to fastener manufacturers.