Industrial Fasteners Market Trends

Growth Drivers

• Increase in automotive electrification: The aspect of electric vehicle battery enclosure, lightweight chassis, as well as safety-critical assemblies, needs innovative threaded fasteners, which positively impacts the industrial fasteners market. According to an article published by the IEA Organization in 2025, the battery demand in the energy industry for storage applications and electric batteries has effectively reached the historical milestone of 1 TWh as of 2024. In addition, the demand has largely been driven by growth in electric vehicle sales, since electric vehicle batteries significantly grew to more than 950 GWh, denoting a 25% rise in comparison to 2023. Moreover, electric cars continue to remain the principal factor behind the electric battery demand, accounting for more than 85%, thus positively impacting the market’s growth.
• Focus on aerospace modernization: The presence of defense investments and fleet renewal programs readily demands aerospace-based fasteners with traceability and certification, which is also fueling the market. As stated in an article published by the NASA Government in November 2023, over 873,000 Unmanned Aircraft Systems (UAS), which are also regarded as drones, have been registered to fly in the U.S. Besides, the National Airspace System (NAS) has been made up of over 29 million square miles, including landing areas, airports, air navigation facilities, and airspace. Besides, NASA has offered USD 7,000 to develop new designs for a wind tunnel facility, thereby denoting an increase in the demand for the market.
• Surge in chemical and industrial sector upgradation: The aspect of compliance with safety and environmental standards uplifts the adoption of corrosion-resistant fasteners in industrial machinery and chemical plants, which significantly boosts the market. As per an article published by the Arabian Journal of Chemistry in March 2024, the Organization of Petroleum Exporting Countries (OPEC) has aimed at demonstrating prices within the range of USD 20 to USD 22, which is considered the maximum price difference per barrel between the least expensive and most expensive crude oil. Besides, non-traditional heavy crude oils are a suitable energy source that represents a standard opportunity for fossil fuel organizations to offer an alternative option for depleting light oil resources.

Challenges

• Disruptions in supply chain: Global supply chains in the industrial fasteners market are complex, spanning raw material extraction, manufacturing, and distribution across multiple regions. Events such as the COVID-19 pandemic, port congestion, and geopolitical conflicts have exposed vulnerabilities. For instance, semiconductor shortages disrupted automotive production, indirectly reducing fastener demand. Similarly, shipping delays and rising freight costs increased lead times and inventory risks. Fasteners, though small components, are critical for assembly; any delay halts production lines. Companies are now localizing production and building regional hubs to reduce dependency on global logistics. Yet, fragmented supplier bases and reliance on Asia-Pacific manufacturing remain challenges.
• Extreme competition from substitutes: The market faces competition from adhesives, welding, and advanced bonding technologies. Automotive and aerospace industries increasingly adopt adhesives for lightweight assemblies, reducing reliance on traditional bolts and screws. Adhesives offer benefits such as weight reduction, corrosion resistance, and streamlined design. For instance, electric vehicle manufacturers use structural adhesives in battery enclosures to improve safety and efficiency. While fasteners remain indispensable for load-bearing and serviceable joints, substitutes erode market share in specific applications. This trend forces fastener manufacturers to innovate, thus developing hybrid fastening systems, coatings, and smart fasteners with embedded sensors.