Indian Industrial Fasteners market will reach USD 7.49 billion by 2025

The Indian Industrial Fasteners Market was valued at USD 4.32 billion in the year 2019 and is estimated to reach USD 4.73 billion by the year 2020.

It is expected to grow at the CAGR of 9.6% within the time horizon of 2020-2025 because of growing automobile manufacturing industry, favorable governmental regulations and programs, growing demand for fasteners in aerospace industry, and rising number of construction activities.

However, increasing price rate of raw materials used for the manufacture of fasteners and issues of accident from counterfeit fastener might restrain the growth and development of its market.

Its market value will reach USD 7.49 billion by the end of the year 2025.

Definition / Scope
Market Overview
Market Risks
Top Market Opportunities
Market Drivers
Market Restraints
Industry Challenges
Technology Trends
Pricing Trends
Regulatory Trends
Market Size and Forecast
Market Outlook
Technology Roadmap
Distribution Chain Analysis
Competitive Factors
Key Market Players
Strategic Conclusion
References
Appendix

Definition / Scope

A fastener is a device that is used to create non-permanent joints by placing two or more than two objects together mechanically.

The raw materials used in industrial fasteners are Stainless Steel, Iron, Brass, Aluminium, Nickel, plastics, and composites. The major fasteners are exhaust bolts, balance wheel bolts, standard hexagon screws, socket head cap screws, socket shoulder screws, weld nuts, square nuts, etc. These fasteners are used in the sector of construction, engineering, manufacturing automobiles, etc.

The Indian Industrial Fasteners Market is concerned with the manufacture, distribution, and sale of the industrial fasteners.

Based on the raw materials and application, the Indian Industrial Fasteners market is categorized into the following types:

Market Overview

Globally, the Asia Pacific region is leading the industrial fasteners market with a market share of almost 34.42% of the total global industrial fasteners market.

Here, India is one of the largest industrial fastener-importing countries, which accounts for a market share of almost 1.5%of the global industrial fastener imports.

The total market size of the Indian Industrial Fasteners market is valued at USD 4.32 billion in the year 2019 and is expected to reach USD 4.73 billion in the year 2020. Its market value is expected to grow at a CAGR of 9.6% within the forecasted time horizon of 2020-2025.

Its market value is expected to reach USD 7.49 billion by the end of the year 2025.

Based on the raw materials, the metal segment is leading the market with a market share of almost 90% of the Indian Industrial Fasteners market. The market size of this segment is valued at USD 3.89 billion in the year 2019.

Based on the application, the automotive segment is leading the market with a market share of almost 35.71% of the Indian Industrial Fasteners market.

The market size of this segment is valued at USD 1.54 billion in the year 2019. The growing automobile manufacturing industry, favorable government regulations and programs, growing demand for fasteners in the aerospace industry, and rising number of construction activities are the factors responsible for the growth and development of the Indian industrial fasteners market.

However, increasing the price rate of raw materials used for the manufacture of fasteners and issues of accident from counterfeit fastener might restrain the growth and development of this market.

The key market players engaged in the operation of its market are Lakshmi Precision Screws limited, Sundram Fasteners Limited, Sterling tools limited, ACME fasteners private limited, Kundan Industries Limited, Nifco India Private Limited, KOVA Fasteners Private Limited, Precision Castparts Corporation Fasteners, RBM Industries, etc.

Market Risks

Issues of accident from the counterfeit fastener

In the context of India, the number of industrial accidental accidents is in increasing trend. Within the time interval of the past three years, almost 8,004 industrial accidents have occurred in India.

It has killed almost 6,368 employees and most of these industrial accidents have occurred while operating machinery. Along with this, road traffic accidents are also increasing with an average of almost 1,280 accidents and 415 deaths every day.

According to FICCI CASCADE, almost 20% of the road accidents are caused due to the counterfeit automobile parts in India.

A study conducted by the Automotive Manufacturing Association of India stated that almost 36% of the market is accounted for by the fake automotive components.

The increased rate of industrial from the use of counterfeit fastener and other automobile parts might restrain the growth and development of the Indian Industrial Fasteners market.

Top Market Opportunities

Growing automobile manufacturing industry

India is the world’s fourth-largest manufacturer of cars and has the world’s fourth-largest automobile industry in the year 2019. The domestic production of automobiles in India is expected to grow at a CAGR of 2.36% within the forecasted time horizon of 2020-2025.

The market value of the Indian automobile industry is expected to reach USD 251.4 billion by the end of the year 2026. The government of India has made the provision of the additional income tax deduction, Faster Adoption and Manufacturing of Hybrid and Electric Vehicles Scheme, and Foreign Direct Investment for the promotion of the automobile manufacturing industry.

Automotive is one of the leading application segment of the Indian industrial fasteners market, which accounts for a market share of almost 35.71% of the total Indian industrial fasteners market.

The growing automobile manufacturing industry is creating a significant opportunity for the growth and development of the Indian industrial fasteners market.

Favorable governmental regulations and programs

In the context of India, the government has launched multiple numbers of programs and regulations to promote the manufacturing sector. The government of India has launched the ‘Make in India’ program to establish India as a manufacturing hub in the world map.

It has aimed to increase the GDP share of manufacturing from 16% to 25% by the end of the year 2022. It has been expected that India will become the fifth largest manufacturing country in the world by the end of the year 2020.

It is estimated that the market value of the manufacturing sector will reach USD 1 trillion by the end of the year 2025. Along with this, it has implemented the Goods and Services Tax, which is making a common market for investment.

The government of India has developed Automotive Mission Plan 2016-2026 to promote the automobile industry.

These governmental regulations and programs for the promotion of the manufacturing industry is creating a significant opportunity for the growth and development of the Indian Industrial Fasteners market.

Market Drivers

The factors driving the growth and development of the Indian Industrial Fasteners are increasing spending for the construction of apartments & homes, the launch of innovative fasteners such as lightweight, miniature & hybrid fasteners, increasing sales of automobiles, increasing industrialization, and rising number of construction activities.

The major driving factors of the Indian industrial fasteners market are discussed as follows:

Growing demand for fasteners in the aerospace industry

The adoption of a wide range of fasteners in the commercial & military aircraft, rockets, and missiles is in increasing trend.

The demand for the fasteners in the aerospace market is expected to grow at a rate of 7% within the forecasted time horizon of 2020-2025 because of the increasing demand from commercial aircraft.

The major fasteners used in this aerospace industry are bolts, nuts, screws, rivets, pins, and hi-locks. The growing demand for the fasteners in the aerospace industry is driving the growth and development of the Indian Industrial Fasteners market.

Rising number of construction activities

In the context of India, there are almost 200 business entities engaged in the corporate sector and almost 1,20,000 registered class A contractors in the government construction bodies.

The construction industry is the second largest industry accounting for almost 11% of the GDP of India. Construction activities account for almost 40% to 50% of the capital expenditure of the government of India on highways, roads, railways, energy, airports, irrigation, and other projects.

The construction industry of India is expected to grow at a CAGR of 20% within the forecasted time horizon of 2020-2025.

The increasing investment and activities in the construction industry are creating a significant opportunity for the growth and development of the Indian Industrial Fasteners market.

Market Restraints

Increasing the price of raw materials

The major raw materials used for the production of the fasteners are steel, aluminum, brass, copper, nickel, Monel, Inconel, etc.

The price of these raw materials for fasteners manufacture is in increasing trend in the context of India. For instance, the price of steel has increased by almost USD 67.87 per tonne within a month from July 2020 to August 2020.

The price of steel has reached USD 530 per tonne. Along with this, the price of the iron core has also been raised by almost USD 6.79 per tonne and reached USD 40.04 per tonne in August 2020.

The increasing prices of the raw materials that are used in the manufacture of the fasteners might restrain the growth and development of the Indian Industrial Fasteners market.

Industry Challenges

Substitution available for metal fasteners

Adhesives and tapes are the major substitutions available for the replacement of the metal fastener to join the objects in the automotive industry.

The use of the adhesives and tapes in the automotive industry is in increasing trend. For instance, the global market for automotive adhesives is expected to grow at a CAGR of 5.7% within the forecasted time horizon of 2020-2025.

It is quite challenging for the market players to develop the metal fasteners product with impact resistance to limit the risk of the substitution of the fasteners with the adhesives and tapes.

Technology Trends

The adoption of new and advanced technologies is creating a favorable environment for the growth and development of the Indian industrial fasteners market. Some of the key technological trends in this market are discussed as follows:

Hybrid fasteners: These fasteners are the less expensive and lightweight fasteners which are manufactured from the combination of metal and injection molded plastic elements.

Miniature clinch fasteners: These types of fasteners offer strong, permanent, and reusable threaded solutions with very thin and ultra-thin metal sheets. It has optimized the use of the fasteners in minimal space.

Self-contained in-die fastening systems: It is a new technology that is used to install fasteners during the stamping process. Its use increase productivity, quality, and savings of the fastener’s installation process.

Pricing Trends

The price of the fasteners in India depends upon the type of product, raw materials, application, brand names, and size of fasteners.

For instance, the price of the APS 6*19 mm Philip bugle heads fine thread drywall screw is about USD 3.30 per piece while the price of the same APS screws with 6*38 mm size is about USD 5.7 per piece.

The price of the Praracayitr technologies 1.2mm stainless steel plain washer is about USD 28.81 per box while the price of the APS 10*75mm Achor bolt pin is about USD 9.93 per piece.

The price of the lovely 16*75mm Nylon Sleeve wall plug is about USD 22.75 per 50 pieces while the price of the Fischer M12*160mm FTR threaded rods is about USD 13.23 per 1 box.

Regulatory Trends

In the context of India, the Bureau of Indian Standards on the recommendation of the Bolts, Nuts and Fasteners Accessories Sectional Committee and approval of the Light Mechanical Engineering Division Council has adopted Threaded Fasteners-Axial Load Fatigue Testing- Test methods and evaluation of results, which was issued by the International Organization for Standardization.

All the industrial fastener products should be certified under this standard.

Market Size and Forecast

Globally, India is one of the largest industrial fastener-importing countries, which accounts for a market share of almost 1.5%of the global industrial fastener imports.

The total market size of the Indian Industrial Fasteners market is valued at USD 4.32 billion in the year 2019 and is expected to reach USD 4.73 billion in the year 2020.

Its market value is expected to grow at a CAGR of 9.6% within the forecasted time horizon of 2020-2025.

Its market value is expected to reach USD 7.49 billion by the end of the year 2025.

Based on the raw materials

The metal segment is leading the market with a market share of almost 90% of the Indian Industrial Fasteners market. The market size of this segment is valued at USD 3.89 billion in the year 2019.
The plastic segment accounts for the market share of almost 10% of the Indian industrial fasteners market. The market size of this segment is valued at USD 0.43 billion in the year 2019.

Based on the application

The automotive segment is leading the market with a market share of almost 35.71% of the Indian Industrial Fasteners market. The market size of this segment is valued at USD 1.54 billion in the year 2019.
The Industrial Machinery segment accounts for the market share of almost 16.66% of the Indian industrial fasteners market. The market size of this segment is valued at USD 0.72 billion in the year 2019.
The Construction segment accounts for the market share of almost 11.90% of the Indian industrial fasteners market. The market size of this segment is valued at USD 0.51 billion in the year 2019.
The home appliances segment accounts for the market share of almost 4.76% of the Indian industrial fasteners market. The market size of this segment is valued at USD 0.20 billion in the year 2019.
The aerospace segment accounts for the market share of almost 6.19% of the Indian industrial fasteners market. The market size of this segment is valued at USD 0.26 billion in the year 2019.

Market Outlook

The Indian industrial fasteners market is expected to grow at the CAGR of 9.6% within the forecasted time horizon of 2020-2025 because of the growing automobile manufacturing industry, favorable government regulations and programs, growing demand for fasteners in the aerospace industry, and rising number of construction activities.

Its market value will reach USD 7.49 billion by the year 2025.

Technology Roadmap

The major technological trends occurring in this Indian Industrial Fasteners market are hybrid fasteners, use of the new alloys, miniature clinch fasteners, self-contained in-die fastening system, innovative delivery systems, and automation, etc.

The adoption of new and advanced technologies are enhancing the productivity, quality, and savings of the installation process of the fasteners. Along with this, the use of the miniature fasteners is offering strong, permanent, and reusable threaded solutions to be installed in minimal space.

The launch of innovative solutions and its adoption is driving the growth and development of the Indian Industrial Fasteners market.

Distribution Chain Analysis

The key stakeholders involved in the operation of this Indian Industrial Fasteners Market are raw materials suppliers, fasteners manufacturers, distributors, online & retail sales, and end-users.

At first, manufacturing companies produce fasteners from the supplied raw materials and are distributed for online & retail sales.

The major distribution channels of the Indian industrial fasteners market are direct dealers, online channels, and industrial events.

Competitive Factors

The key market players engaged in this Indian Industrial Fasteners market are focused on the product portfolio expansion, mergers & acquisitions, and collaborations.

Along with this, they are competing for the price and new product development in the sector of fasteners.

Key Market Players

The key market players engaged in the operation of this Indian industrial fasteners market are Lakshmi Precision Screws limited, Sundram Fasteners Limited, Sterling tools limited, ACME fasteners private limited, Kundan Industries Limited, Nifco India Private Limited, KOVA Fasteners Private Limited, Precision Castparts Corporation Fasteners, RBM Industries, etc.

Short profile of the key market players engaged in this market are discussed as follows:

Lakshmi Precision Screws Limited: It is the Indian manufacturing company engaged in the provision of fastening technology, license agreements, and alliances with different fastening companies.

Sundram Fasteners Limited: It is the global leading company engaged in the manufacture of high precision parts for the automotive, infrastructure, windmill, and aviation sectors.

Sterling Tools Limited: It is the Indian company engaged in the manufacture of high-tensile cold forged fasteners. Its major products are special fasteners, standard fasteners, surface treatment, coatings, nuts, and engine fasteners.

ACME fasteners Private Limited: It is one of the largest high tensile socket fasteners company in India engaged in the sector of earthmoving equipment, construction, machinery, capital goods, and hydraulics.

Kundan Industries Limited: It is the Indian company engaged in the manufacture, distribution, and supplier of fasteners and sophisticated machines all across the world.

Nifco India Private Limited: It is the company engaged in the production of fasteners, dampers, buckles, household equipment, consumer electronics, household equipment, and other automotive products.

KOVA Fasteners Private Limited: It is the company engaged in the manufacture of the structural bolts, and high-quality automotive fasteners using advanced technology and time-tested process.

Strategic Conclusion

However, increasing the price rate of raw materials used for the manufacture of fasteners and issues of accident from counterfeit fastener might restrain the growth and development of this market.

References

Appendix

GDP= Gross Domestic Product
USD= United States Dollar
CAGR= Compound Annual Growth Rate