The Asia Pacific industrial fasteners market size is expected to reach $45.54 billion by 2025, registering a 4.8% CAGR during the forecast period, according to a report by Research and Markets.

“Rising product demand as an integral bonding component for manufacturing vehicles, home appliances, industrial machinery, and aerospace structures is likely to drive industry growth,” the report noted.

China is the largest producer and exporter of industrial fasteners in the region, accounting for 44.1% of regional revenue in 2017 due to massive production volumes of vehicles, electronic goods, home appliances, and industrial machinery.

“Industry players are investing in R&D and production of plastic and specialty fasteners in order to cater to application-specific demand by end users and to sustain in the highly competitive market.”

Fluctuating metal and plastic prices, coupled with intense competition in terms of product costs, is expected to hamper profit margins.

“Metal fasteners are likely to face a challenge in terms of penetration, especially in the automotive sector, owing to rising demand for lightweight alternatives including plastic fasteners, adhesives, and sealants by OEMs. However, demand for high-grade products including titanium and brass, which offer excellent performance under vibration and high impact, is expected to grow.”

Other findings from the report:

– On the basis of raw material, the plastic fasteners segment in the region was valued at $2.03 billion in 2017 and is likely to grow at a higher pace than metal fasteners “on account of their light weight, improved mechanical properties, and low cost.”

– By product, aerospace grade fasteners are expected to witness the highest CAGR of 7.9% over the projected period owing to increasing investments in aircraft manufacturing and maintenance in China, Japan, and India.

– By way of application, automotive fasteners accounted for around 37.1% of the overall industry revenue in India in 2017, on account of high production volume of passenger cars and motorcycles in the country.

– Japan and South Korea together accounted for 35.6% of the Asian industrial fasteners market. However, the countries are expected to grow at a slower pace as compared to other countries primarily owing to their declining automotive production statistics.

– Mergers and acquisitions, focusing on manufacturing application specific products, gaining access to emerging markets, and strengthening synergies in terms of production volumes are expected to be key success factors for market players.

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