Industry Focus

Market Watch:
The Aerospace FastenerMarket in China

Introduction(The Soaring Aerospace Industry)

estimated market size of over US$25 billion. This
includes the production and launch of various typesof satellites for communication, navigation, Earthobservation, and other purposes.

China's aerospace industry has been soaring to new heights,
and it's not just about expanding commercial aviation. The country
has made significant strides in developing its aerospace capabilities,
including the production of military aircraft, satellites, and space
exploration missions. As China continues to assert itself as a major
player in the global aerospace sector, the demand for aerospacefasteners has never been higher. For example:

4. Military Aerospace: China's aerospace industry
extends to military applications, with the developmentof advanced fighter jets like the J-20 and J-31. These
aircraft showcase China's efforts to modernize its
military capabilities. The market size for China's
military aerospace industry is not publicly
disclosed, but it is a significant part of the country's
overall defence budget, which was approximately
US$230 billion in 2023.

China Fastener World no.69/2023

1. Commercial Aircraf t Manufacturing: China's
aerospace industry has witnessed significant growthin commercial aircraft manufacturing. Companies like
COMAC (Commercial Aircraft Corporation of China) havedeveloped and produced advanced commercial aircraftmodels such as the C919, which aim at competing withestablished global players like Boeing and Airbus. China's
commercial aircraft market was growing rapidly, withthe market size projected to be around US$1.2 trillion by2035, driven by the production and sale of commercial
aircraft like the COMAC C919.
2. Space Exploration: China has made remarkable strides inspace exploration. The successful missions of Chang'e lunar
landers and the Tianzhou-2 cargo spacecraft demonstrate
China's growing capabilities in space technology andexploration. China's space exploration sector has beensteadily increasing its budget and activities. In 2023,
China allocated approximately US$12 billion to its spaceprogram.
3. Satellite Technology: China has become a key player inthe global satellite industry. It has launched a wide range ofsatellites for various purposes, including communication,navigation, Earth observation, and scientific research.
China's satellite industry is substantial, with an058 惠達雜誌

5. Commercial Space Sector: China's commercial
space sector, including launch services and satellite
technology, has seen substantial growth. The exact
market size can vary from year to year, but isestimated to be in billions of dollars.

In a simple word China is the 2nd main players in
the aerospace industry after USA, therefore; China'saerospace industry has demonstrated a commitment toglobal cooperation through its active participation in
prestigious ventures like the International Space Station(ISS) and strategic partnerships with various countries forspace missions. Beyond its contributions to international
space endeavours, China's aerospace industry plays apivotal role in shaping the nation's economy. This impact ismultifaceted, fostering job creation, spurring technologicaladvancements, and facilitating lucrative export opportunities.
Consequently, China's economic trajectory is significantlybolstered. Remarkably, China's aerospace industry has now
emerged as a formidable global competitor, challenging theestablished giants in the sector. This newfound competitivespirit has injected fresh vitality into the aerospace domain,
fostering heightened innovation and driving unprecedentedcompetition within the industry.

Industry Focus
While the aerospace fastener market in China is poised forsignificant growth, it also faces some challenges:

A Key Component:
Aerospace Fasteners
Aerospace fasteners are often-overlooked but criticalcomponents of a ny aircraft or spacecraft. These small,yet essential, pieces of hardware hold together the various
components and structures of an aerospace vehicle. They are
subjected to extreme conditions, including high temperatures,vibrations, and forces, making their reliability and performanceparamount. The global aerospace fasteners market size wasvalued at US$ 5.3 billion in 2022 and is projected to growfrom US$6.09 billion in 2023 to US$9.88 billion in 2030, at a
CAGR of 7.16%.
The aerospace fastener market in China has been expanding
rapidly. While precise figures can be hard to come by, industry
experts estimate that China’s market is more than 8% of thisnumber (in 2023 it is more than US$ 480 million) and themarket has been growing at an annual rate of approximately
10%.

1. Quality and Certification: The aerospace industry
demands the highest levels of quality and safety.
Chi nese fastener ma nufact u rers must ad here tostringent international standards and obtain necessary
certifications to compete in the global market.
2. Competition: The global aerospace fastener market
is highly competitive, with established players from
Europe and the United States. Chinese companies must
differentiate themselves through quality, innovation,and cost-effectiveness.
3. Supply Chain Disruptions: As seen during theCOVI D -19 pa ndemic, disr uptions i n t he supply
chain can have a significant impact on aerospace
manufacturing. Ensuring a resilient supply chain iscrucial.
4. Intellec t ual Proper t y: Developi ng adva nced
aerospace fasteners often i nvolves cutti ng-edge
technology and intellectual property considerations.
Protecting IP and avoiding infringement are essential.

Conclusion
Several key factors are driving the growth of theaerospace fastener market in China:
1. Rapid Expansion of Civil Aviation: China's domestic
aviation market is one of the fastest-growing in theworld. With a rising middle class and increased air travel,airlines are expanding their fleets, creating a continuous
demand for aircraft and aerospace fasteners.
2. Space Exploration: China's ambitious space programs,
including missions to the moon and Mars, have boosted
the demand for specialized aerospace fasteners designed
for spacecraft. These missions require fasteners that canwithstand the harsh conditions of space.

China Fastener World no.69/2023

3. Defence Modernization: China's ongoing efforts tomodernize its military have led to increased production ofmilitary aircraft and equipment. This, in turn, has driven
up the demand for aerospace fasteners used in military
applications.
4. Technological Advancements: Chinese aerospace
manufacturers are investing heavily in research anddevelopment to produce more advanced and lightweightaircraft and spacecraft. This requires innovative aerospacefasteners that can meet the stringent performance criteria.
5. Global Trade and Partnerships: China's aerospacei ndust r y has been actively seek i ng i nter nationa lpartnerships and collaboration. This has opened up
new oppor tunities for Chinese aerospace fastener
manufacturers to enter the global market.

With all these challenges and opportunities, it must besaid that the aerospace fastener market in China is on asteady ascent, driven by a confluence of factors including
a booming civil aviation industry, space exploration
ambitions, and technological advancements. W hile
challenges such as competition and quality control persist,
Chinese aerospace fastener companies are poised for growth
as they innovate and expand their global footprint. As theaerospace industry continues to evolve, China's role as a major
player in this sector is set to solidify, making it an exciting
market to watch.

Article by Sharareh Shahidi Hamedani / Copyright owned by Fastener World060 惠達雜誌