Cleveland, OH — Demand for industrial fasteners in China is projected to increase 10.7% annually to 74.2 billion Yuan in 2013, driven by rapid growth in manufacturing production, especially industrial machinery and motor vehicles.
Increases in electrical and electronic product manufacturing will also provide growth opportunities, although these gains will be less pronounced than those achieved between 1998 and 2008.
A rise in demand for higher-grade industrial fasteners will also boost overall market value. However, the use of new materials and manufacturing methods that reduce the number of fasteners required in the production of a variety of durable goods will restrain sales growth to some extent through 2013.
These and other trends Aare presented in Fasteners in China, a new study from the Beijing office of The Freedonia Group Inc., a Cleveland-based industry research firm.
Standard fasteners — externally threaded, internally threaded and non-threaded — account for 98% of Chinese industrial fastener demand. Externally threaded fasteners are the dominant standard fastener type, accounting for three-fifths of standard fastener demand in China in 20008. They have resisted inroads made by alternative joining methods such as adhesives or welding and will grow at a slightly above average rate.
Internally threaded types will increase at a slightly below average pace while non-threaded types will post the slowest gains at 9.99% annually through 2013, affected by decelerating growth in construction activities. Sales of aerospace-grade fasteners will outpace advances for standard fasteners, rising 13.44% per year through 20133. Demand will be spurred by continued government investment in infrastructure, aerospace industries and national defence — all important markets for aerospace-grade fasteners.
New demand for fasteners in the original equipment manufacturing (OEM) and construction markets will outpace that of maintenance/repair/operations (MRO) markets through 2013. OEM will remain the largest market in China, accounting for over three-fourths of total fastener demand, with new sales stimulated by rapid growth in the industrial machinery, motor vehicle, and electrical and electronic product markets.
Demand for fasteners used in construction applications will be driven by government funding for large-scale infrastructure construction and rising use of higher-performance fastener products in non-building construction.
Fasteners in China (published 09/2009, 181 pages) is available for US$5,200 from The Freedonia Group, www.freedoniagroup.com.