EXPANSION OF THE AUTOMOTIVE INDUSTRY DRIVING THE ADOPTION OF INDUSTRIAL FASTENERS
The automotive industry is by far the largest recipient of industrial fasteners, accounting for more than a third of the fasteners market across the world. Rising demand for automobiles - because of increasing income levels in countries like India and China - will give a significant boost to the demand for industrial fasteners. In India, a growing automotive industry implies that the auto ancillary market in the country will also thrive, generating demand for automobile sector-specific fasteners. Fasteners are crucial to the auto ancillary industry, which typically deals with the manufacturing and selling of intermediate parts, and automobile equipment.
Impact of the automotive industry on demand for fasteners
The automotive industry in India is one of the largest in the world, with more than 30% of small cars sold across the world being manufactured in India. Analysts at Research on Global Markets believe that there is no stopping the growth of the Indian automotive industry. According to a Research on Global Markets report, the production of passenger vehicles is set to expand at a compound annual growth rate (CAGR) of 8.7% from 2015 to 2023, driven by an increase in the number of exports, and aggressive pricing strategies of market players. The domestic sale of passenger vehicles is expected to expand at a CAGR of 16.8% during the same period. The Indian government is also aggressively promoting eco-friendly cars in the country to increase the production and adoption of CNG-based, hybrid, and electric vehicles. Owing to the strong outlook of the automotive sector in India, the adoption of fasteners for manufacturing automotive parts such as engines, chassis, molding, suspension systems, and wheels, among others, is expected to be high.
What’s in store for the industrial fastener market
With the growth of the automotive sector having a positive impact on the adoption of industrial fasteners, its market, both globally and in India, is poised for significant expansion till 2023. The global industrial fasteners market is expected to reach a value of INR 7,706 Bn by 2023, expanding at a CAGR of 6.5% during the forecasted period. In India, the market is expected to reach a value of INR 460 Bn by 2023, expanding at a CAGR of 9.6%. Notwithstanding the automotive sector, the demand for industrial fasteners is also high in the construction and manufacturing sector. An increase in construction and manufacturing activities in emerging countries like China, Brazil, Saudi Arabia, Australia, Indonesia, and India, is driving the adoption of industrial fasteners considerably. Even the mature markets of Europe and North America are witnessing increased restructuring and renovation activities, which in turn is driving the demand for industrial fasteners.