Chinese demand for industrial fasteners is projected to see annual gains of 9.4 percent to 40.2 billion in 2010. 

The Chinese industrial fastener market will outpace growth in most other parts of the world, driven by rapid growth in manufacturing production, especially industrial machinery, motor vehicles, and electrical and electronic products. In addition, industrial fastener demand will also be driven by expansion and modernization of China¡¯s infrastructure and building construction activity.

Standard fasteners to remain the dominant type

Standard fasteners will continue to dominate the industrial fastener market through 2010, benefitting from increases in manufacturing production and construction activities.Nonthreaded sales will grow over ten percent annually through 2010, stimulated by rapid growth in durable goods, as well as by further technological innovations in nonthreaded fastener design. Externally threaded fasteners will remain the largest category of standard fasteners through 2010 as they are least likely to be replaced by joining methods like adhesives and welding.

Aerospace-grade fasteners to post outstanding gains

Aerospace-grade fastener demand will grow fastest at twelve percent per year through 2010. Demand will be spurred by government investment in nonbuilding construction and commercial and military aircrafts. In addition, aerospace projects such as China¡¯s first moon landing, scientific recoverable satellites, solar research and the aerospace shuttle Shenzhou VII will support demand for aerospace-grade fasteners through 2010.

OEM market to shift towards highly engineered and specialized fasteners

The OEM sector will remain the largest Chinese market with 9.5 percent annual growth through 2010. The shift toward more highly engineered and specialized fasteners, which are priced at a premium, is expected to support demand increases. Industrial machinery accounts for the largest segment in the OEM market, benefitting from strong increases in industrial machinery production. Motor vehicles is the second largest fastener segment behind industrial machinery. The motor vehicle production trend toward larger, more fastener-intensive luxury vehicles will support demand in this segment. In addition, the increased use of more engineered fasteners, potentially including intelligent design types, and continued adoption of more safety, entertainment and other accessory systems will provide opportunities for fastener suppliers. The electrical and electronic product market is expected to see the fastest demand increases through 2010 within the OEM sector, benefitting from rising income levels.

Construction to remain fastest growing market

Demand for fasteners in the construction market will increase nearly eleven percent per year through 2010, outpacing gains for all other markets. Demand will be driven by government funding for large-scale infrastructure construction and government promotion of private home ownership. In addition, improving quality and performance characteristics, such as the ability to endure temperature extremes, vibration and corrosive elements, will also stimulate demand in the construction market.