GLOBAL AUTOMOTIVE FASTENER MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Global Automotive Fastener Market Size and Trends

Global automotive fastener market is estimated to be valued at USD 33.9 billion in 2024 and is expected to reach USD 46.88 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031.

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Global automotive fastener market is expected to witness significant growth over the forecast period due to rising automobile production globally along with implementation of more stringent fuel efficiency and emission norms which is encouraging use of light weighting components and materials in vehicles. Growing demand for electric vehicles worldwide is another factor that boosts need for more fasteners in auto industry as EVs contain a greater number of fasteners compared to conventional vehicles. Furthermore, development of self-driving vehicles equipped with advanced electronics and sensors is expected to drive the market growth in the near future. However, emergence of 3D printing technology for manufacturing of fasteners acts as a potential threat to convention fastener manufacturers.

Growing Automobile Production

With rising disposable incomes and improving economic conditions across various markets, automobile sales have experienced significant growth over the past few years. This increase in automobile production acts as a key driver for the automotive fastener market. As more vehicles are manufactured by the automakers and their tier 1 suppliers on a continuous basis, it leads to higher consumption of various fasteners that are an integral component of automobiles. Different types of fasteners such as nuts, bolts, screws, pins, and others are heavily utilized in the manufacturing of engine, transmission, chassis, interior and exterior body parts of automobiles. With assembly operations becoming more complex involving tighter manufacturing tolerances, the usage of fasteners per vehicle has also risen over time. Therefore, the projected increase in worldwide automobile production volumes directly correlates to the rising need for original equipment based automotive fasteners, there by propelling market growth.

Global car sales increased to approximately 67.2 million vehicles in 2022, increase  from about 66.7 million units in 2021. The industry faced difficulties in the preceding years due to economic slowdowns, but in 2022, challenges like COVID-19 and the conflict in Ukraine led to semiconductor shortages and supply chain disruptions. However, despite these obstacles, sales are expected to grow in 2023.

During the fiscal year 2021-2022, a total of 3,069,499 passenger vehicles were sold in India, indicating an increase from the 2020-2021 sales of 2,711,457. Comparing the period from April 2021 to March 2022, sales of passenger cars decreased from 1,541,866 to 1,467,056 units, while utility vehicle sales increased from 1,060,750 to 1,489,178 units. Companies are receiving significant interest from major automotive manufacturers across India for the supply of parts and components, including fasteners.

For example, in January 2023, Sundram, an India-based fastener manufacturer, secured a substantial order worth USD 250 million from an electric vehicle (EV) original equipment manufacturer (OEM) under a six-year purchase agreement

Rising complexity and technology enhancement of modern vehicle designs are expected to drive the market growth. Automakers are consistently striving to develop lighter, more durable and fuel-efficient vehicles with advanced features without compromising on performance. This has prompted OEMs as well as their supply chains to adopt novel engineering and manufacturing techniques. The widespread utilization of high strength steels and aluminum alloys in automobile manufacturing requires the application of specialized fasteners that can effectively join dissimilar materials. The integration of cutting-edge technologies including hybrid-electric powertrains, ADAS systems and connectivity solutions has added to the intricacy of automobile assembly processes. To cope up with such intricate designs, OEMs demand fasteners with exacting specifications interims of load bearing capacity, shear strength, temperature resistance and corrosion protection. This has boosted innovation and R&D investments by fastener manufacturers towards developing novel fastening solutions through new materials, surface treatments and assemblies. The rising complexity of automotive structures and systems acts as a key driver for the industry by stimulating higher demand for technologically advanced fasteners.