3 Key Reasons the Mature Industrial Fasteners Market will Continue to Grow
CLEVELAND, Sept. 18, 2019 /PRNewswire/ -- According to Industrial Fasteners, a new study from The Freedonia Group, the industrial fasteners market in the US is mature but still growing, at a rate of nearly 3% per year through 2023. Here are a few important reasons why.
1. Pricing Growth
As a largely mature market, most year-over-year sales growth in industrial fasteners can be directly attributed to rising prices. In general, prices vary by fastener type, material, intended application, and performance properties. However, the Freedonia report asserts that there are a few common factors impacting growth in this area:
- A rise in demand for new, higher value components
- Rising demand in original equipment manufacturing (OEM) markets
- Modest (but uncertain) growth in metal prices, including the impact of the Trump administration's steel and aluminum tariffs for as long as they are in effect
2. Rising Durable Goods Manufacturing
According to Freedonia data, the OEM sector – which includes any fastener installed as a component in a durable good during the manufacturing process – is by far the largest end-use market for industrial fasteners. As a result, an improvement in durable goods manufacturing ought to help drive demand gains, particularly in the motor vehicle, aerospace, and machinery markets.
3. Tapering Competition
Though competition will have some impact on the industrial fasteners market, most manufacturers have completed the shift toward lightweight alternative joining technologies to the extent that they are easily able, barring major technological advancements. As a result, these technologies – which include adhesives and welding – should not present a significant threat to mechanical fastener use over the coming years, nor will they measurably impact sales growth.
Find Out More about Industrial Fasteners
The Freedonia Group's Industrial Fasteners study analyzes the $14.4 billion US industrial fasteners market, presenting historical demand (2008, 2013, 2018) and forecasts for 2023 by product (standard-grade, aerospace-grade), physical design (externally threaded, internally threaded, nonthreaded), and market (OEM, maintenance and repair operations, construction). This study also breaks out company market share and analyzes industry participants like Arconic, Berkshire Hathaway, Hilti, Illinois Tool Works, Stanley Black & Decker, TriMas, and more. For related titles see the Industrial Components category page. https://www.freedoniagroup.com/industry-category/comp/industrial-components.htm
About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, and market share information. Studies can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE The Freedonia Group
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