Downstream Demand Restructuring: Fastener Segments Diverge

Demand structure in profound change

As downstream manufacturing upgrades, the demand structure of the fastener industry is changing profoundly, and different segments are developing in very different ways. Traditional demand sectors such as the automotive industry, new energy equipment, construction and electronics are growing at diverging rates, while emerging fields such as aerospace, semiconductors and medical equipment are growing fast. The result is a shift toward higher-end, customized fasteners, widening gaps between segments, leading companies concentrating on high-growth tracks, and steadily rising industry concentration.

Automotive: electrification drives the upgrade

As the largest demand sector for fasteners, the automotive industry continues to optimize its demand structure. Data shows annual fastener demand from the automotive industry has exceeded 2.2 million tonnes, 35% of total industry demand, with new energy vehicles the growth core. A new energy vehicle uses more than 30% more fasteners per unit than a conventional combustion car and needs high-strength, lightweight, corrosion-resistant parts in volume; the spread of 800V high-voltage platforms is further driving demand for hydrogen-embrittlement-resistant fasteners. In 2025 the fastener market in the new energy vehicle segment exceeded RMB 30 billion, with a compound annual growth rate of 9.2%. Demand in the conventional combustion segment remains stable and is mainly replacement driven, with upgrades concentrated on locking, noise reduction and lightweighting, pushing the industry toward higher-end products.

New energy equipment: wind and solar surge

Demand in the new energy equipment segment is growing explosively and has become a new growth engine for the industry. Installed capacity of wind, solar and other renewable energy is rising 9% a year, stimulating the development of dedicated fastening systems. The fastener market in the wind segment is growing at 8.2% a year, and offshore wind, with its complex operating conditions, demands higher corrosion and fatigue resistance, pulling high-end products upward; the need for photovoltaic plants to run stably across extreme temperature swings is pushing purchases of weather-resistant fasteners up 25% a year, a market already worth RMB 2.8 billion in 2023. As the new energy industry keeps expanding, fasteners for new energy equipment are expected to rise from 12% of demand today to more than 20% by 2030.

Construction: prefabricated buildings as the driver

Demand from the construction industry continues to grow steadily, with the spread of prefabricated buildings the core driver. Construction accounts for 20% of fastener demand, and as prefabricated building takes off, the use of steel structure connectors is growing 15% a year; in the first half of 2023 alone, prefabricated building projects nationwide used more than 500,000 tonnes of fasteners. Prefabricated construction sets higher requirements on strength, durability and ease of installation, driving demand for high-strength bolts and anti-corrosion fasteners and pulling the industry toward standardization and scale.

Electronics and electricals: the precision trend

Demand from electronics and electricals is growing steadily, with precision the core trend. The sector accounts for 10% of fastener demand, and at the peak of 5G base station construction a single station requires stainless steel fasteners, pushing annual purchases of that category past 80,000 tonnes. As consumer electronics and semiconductor equipment move toward miniaturization and high precision, demand for micro precision fasteners keeps growing, with dimensional tolerances held to the micron level and special requirements on cleanliness and electromagnetic immunity. This is pushing the industry toward precision manufacturing, and the added value of high-end micro fasteners is more than 50% above that of conventional products.

Aerospace and medical: high-barrier emerging fields

Demand from emerging fields such as aerospace and medical equipment is growing quickly and the technical barriers are high. Aerospace sets extreme requirements on fastener reliability and safety, demand for superalloy and titanium alloy fasteners keeps rising and there is large room for import substitution; the domestic sourcing rate for aerospace fasteners is expected to rise from 35% today to 60% in 2025. Medical equipment sets strict requirements on cleanliness and biocompatibility, and the use of 3D printing is driving demand for customized medical fasteners, making the field a new profit growth point for the industry.

Segment divergence intensifies

The reshaping of demand is widening the gaps between fastener segments, and companies with technical strengths in a given segment will find more room to grow. Going forward, companies need to read downstream trends accurately, focus on high-growth tracks, invest more in segment-specific technology and improve customization capability to hold an advantageous position in fierce competition.