Industry Focus

Analyzing the Post-pandemic

Chinese Construction
Fastener MarketTChina Fastener World no.68/2023

he COVID-19 pandemic hada significant impact on theglobal economy, and the Chineseconstruction fastener market was not
immune to this impact. However, withthe rollout of vaccines and the gradualreopening of Chinese economy, theconstruction fastener market in China
is poised to recover and grow.

Chinese Infrastructure
Projects and Its Relation
to Construction Fasteners
One of the key dr iver s of theChinese construction fastener market
is the country’s massive infrastructuredevelopment projects. Chinese government
has announced plans to spend trillionsof dollars on infrastructure (buildings,bridges, tunnels, and other infrastructureprojects) over the next few years, which
will create a huge demand for construction

080 惠達雜誌

分析疫後中國建築扣件市場

fasteners. Additionally, the increasing urbanization in China, coupled with rising
disposable incomes, is expected to drive demand for housing, which will further fuelthe construction fastener market. Some of the projects that improve the numbers in theconstruction fastener sector are:
Belt and Road Initiative: This is a massive infrastructure project that aims toconnect Asia, Europe, and Africa through a network of roads, railways, ports, and otherinfrastructure. The Chinese government has already committed over US$1 trillion tothis project, and it is expected to continue for many years.
High-speed rail: China has the world’s largest high-speed rail network, with over
22,000 miles of track. The government plans to continue expanding this network, witha target of 30,000 miles of high-speed rail by 2025.
Urbanization: China’s urbanization rate is expected to reach 70% by 2030, which
will require significant investments in urban infrastructure such as transportation,housing, and utilities.

Industry Focus
Renewable energy: China is the world’s largest producer ofrenewable energy, and the government plans to continue investingin this sector. In 2020, the government announced a plan to invest
over $360 billion in renewable energy by 2025. (The construction of5G infrastructure often involves the installation of small cell sites
on utility poles, streetlights, and other existing infrastructure. Thisrequires specialized fasteners that can securely attach the small cells
to the existing infrastructure without damaging it.)
5G network: China is also investing heavily in 5G networks, witha target of providing 5G coverage to all urban areas by 2025. This
will require significant investments in infrastructure such as basestations, fibre optic cables, and data centres. (The construction of 5G
infrastructure requires a variety of construction fasteners that support
the installation of 5G equipment. These fasteners are used in theinstallation of antennas, base stations, and other equipment that makeup the 5G network.)

E-commerce and Its Effect on Chinese
Consumption of Construction Fasteners
The COVID-19 pandemic has also accelerated the adoptionof e-commerce in the Chinese construction fastener market.
Online sales platforms have become increasingly popular,
providing customers with greater convenience and access to awider range of products. This trend is expected to continue postpandemic, with more companies embracing e-commerce as a key
channel for sales. According to a report by Technavio, the market
size of online sales of industrial fasteners in China was estimatedto be USD 1 billion in 2022 and is expected to grow at a compound
annual growth rate (CAGR) of approximately 10% between 2023
and 2027. This suggests that a significant portion of fastener trade
is now taking place online in China.

Airport expansion: China has the world’s largest aviation market
and plans to expand its airport network significantly. The government
has announced plans to build new airports and expand existing ones,
with a goal of having 450 airports by 2035.
Rural infrastructure: Chinese government is also investing ininfrastructure projects in rural areas, such as building new roads,bridges, and water supply systems. This is aimed at improving living
standards and reducing poverty in these areas. Chinese government
plans to invest CNY 1.2 trillion (approximately USD 183 billion) inrural infrastructure over the next three years.

The Chinese Consume Smart Fastenersin Their Construction Projects

Conclusion
In conclusion, the Chinese construction fastener market
is expected to recover and grow after the pandemic, driven
by massive infrastructure development projects, increasing
urbanization, rising disposable incomes, and the adoption ofsmart fasteners. The trend towards e-commerce is also expected
to continue, providing customers with greater convenience andaccess to a wider range of products. According to these changes,
the future of construction fasteners in China looks promising, withthe market expected to experience steady growth over the comingyears. According to a report by QYResearch, the construction
fastener market in China was valued at approximately USD
11.0 billion in 2022 and is expected to reach USD 12.8 billion
by the end of 2027, growing at a CAGR of 3.1% between 2022
and 2027.

Article by: Sharareh Shahidi Hamedani
Copyright owned by Fastener World
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China Fastener World no.68/2023

Another trend that is expected to drive the Chineseconstruction fastener market is the growing adoption of smart
fasteners. As the demand for safer and more durable structures
increases, smart fasteners are likely to become more widely adopted.
Chinese government has been promoting the use of smart fasteners invarious infrastructure projects as a way to improve the efficiency andsafety of these structures. Smart fasteners are designed to provide realtime monitoring of the performance of structures they are installed
in, by measuring factors such as stress, temperature, vibration, andstrain. Chinese government has recognized the potential benefits ofusing smart fasteners in various infrastructure projects, including
bridges, tunnels, highways, railways, and buildings. The use of smart
fasteners can help to detect potential problems early, prevent structural
failure or damage, and reduce maintenance costs over the longterm. In recent years, Chinese government has been investing in theresearch and development of smart fasteners and promoting their use
in infrastructure projects. For example, the government has launcheda Smart Fasteners Industrial Technology Innovation Strategic Allianceto coordinate research and development efforts in this area. Inaddition, Chinese government has included the use of smart fasteners
in several key infrastructure projects, including Hong Kong-ZhuhaiMacao Bridge and Beijing-Shanghai High-Speed Railway. As the useof smart fasteners becomes more widespread in China, it is expectedthat this technology will play an increasingly important role in thecountry’s infrastructure development plans. According to a recent
report by Grand View Research, the global smart fasteners market
was valued at USD 187.4 million in 2019 and is expected to reach USD
414.2 million by 2027, growing at a CAGR of 10.4% from 2020 to2027. China is the fastest growing country in the world in this sector.