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The global hand tools market was valued at US$ 11,246.46 Mn in 2021 and is predicted to reach US$ 14,991.73 Mn by 2030, registering a CAGR of 3.4% during the forecast period 2022 - 2030. The market growth is attributed to factors such as the rising number of commercial and infrastructure projects and the increasing adoption of multi-utility tools.
Hand tools have wide applications ranging from residential to commercial purposes, across a range of industries. However, these tools can cause severe injuries when used carelessly and attention to hand tool safety is necessary to eliminate accidents.
Factors affecting the growth of competitors in the hand tools market are as follows:
Rise in new commercial and infrastructure projects and opportunities
The increasing number of construction projects globally, owing to the rising number of smart city projects, is expected to boost the demand for hand tools. Since these projects employ a large number of laborers working across numerous activities, they require a variety of hand tools.
Hand tools are also purchased by individual construction workers who are usually expected to provide their own tools and equipment. It is estimated that plumbing contractors spend an average of US$ 5,000-US$ 6,000 on hand tools annually. Good quality products and devices also find extensive demand for construction activities in rural areas.
Growing adoption of multi-utility tools
Hand tools are highly versatile and are one of the most sought-after hand tools in large construction projects where tools are required in bulk. Hand tools such as multiutility hammer knives, pliers, and all-in-one tool kits help reduce the burden of construction workers. Highly flexible powered hand tools can perform several tasks to meet the required industrial standards. Moreover, as electronic devices get smaller, tool manufacturers are acing up their hand tool products to meet the precision requirement of repairing these devices.
Key trends in the hand tools market
Growing adoption of DIY culture among people
Improved discretionary spending boosted the adoption of DIY activities in urban areas in recent years. An increasing number of people are using hand tools to do easy repairing tasks, maintenance hacks, and other beautification tasks on their own. The DΙY culture has been welcomed as an innovative pedagogical shift, with playful engagement and high-risk capacity. Instructible and YouTube have millions of DIY tutorials on topics ranging from repairing leak taps to renovating entire homes.
Factors restraining market growth
Need for regular maintenance of hand tools and shortage of labor
Tools and devices not functioning properly are one of the major reasons for work delays and reduced profitability on a construction site. Therefore, regular maintenance of hand tools is essential for their optimum use. Moreover, labor shortages on construction sites can negatively impact the market.
COVID-19 impact on Global Hand Tools Market
The demand for hand tools in the commercial sector has increased steadily despite the COVID-19 pandemic. The market has grown significantly in recent years due to steady demand from professional end users. Professional consumers such as construction contractors are more ready to pay a premium price for high-quality tools than homeowners and tend to replace tools more frequently than average consumers. Therefore, professional sales dominate the hand tool industry. Hand tool products are used in all end-use industries and are largely unaffected by the COVID-19 pandemic.
Based on type, the screwdrivers segment accounted for the highest market share of 10% in 2021 and is expected to register the highest CAGR of 5.3% over the forecast period. The growth of the segment can be attributed to the rapid growth of the consumer electronics industry in the past few years. The rising number of small- and medium-scale screwdriver manufacturers is also expected to fuel the screwdriver market. Moreover, the rise of a DIY (do it yourself) culture among people who repair and improve their own appliances, tools, and homes has also fueled the demand for screwdrivers. Electric screwdrivers are expected to see technological advancements, which will open new growth opportunities.
Distribution Channel Analysis
In terms of distribution channels, the offline segment accounted for a 65% share of the global market share in 2021. The online segment is expected to register the highest CAGR of 4.4% over the forecast period. Distributors, suppliers, wholesalers, and dealers are among the leading players in this channel. Customers prefer to see the products they wish to buy, check the quality of their purchase, and compare it to other products in offline locations such as hardware and machinery stores. In developed as well as developing regions like North America and Europe, sales through online channels are becoming more prevalent. Product prices and market structure have been influenced significantly by e-commerce platforms in the retail distribution sector in recent years and the trend is expected to remain strong over the period.
End User Analysis
Based on end users, the industrial segment held the highest share of 45% in 2021. The residential segment is also expected to offer promising growth opportunities, due to increased disposable incomes and rising consumer tendency towards leisure and recreational activities. Increased demand from DIY end users is further aided by easy access to a variety of tools on e-commerce platforms. Big brands in the market benefit from their strong brand images, resulting in excellent reach in industries such as automotive manufacturing and assembling, aerospace, and construction.
List of Key Companies Profiled:
The leading five companies in the market collectively accounted for nearly 60% of the share in the global hand tools market in 2021.
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The global hand tools market is sub-segmented into:
By Distribution Channel
By End User
|Market Size Value in 2021||US$ 11,246.46 Million|
|Expected Revenue in 2030||US$ 14,991.73 Million|
|Unit||Value (USD Mn)|
|Segments covered||By Type, By Distribution, By End-User, By Region|
|Key Companies||Stanley Black and Decker, Robert Bosch GmbH, MISUMI Group Inc, Milwaukee Tool Corporation, Snap-On Inc, Klein Tools, Fluke Corporation, KNIPEX Group, Weidmuller Interface GmbH and Co. KG, Emil Lux GmbH & Co. KG, Sathlwille Tools, Gedore GmbH, KS Tools Werkzeuge and Maschinen GmbH, Taparia Tools, Akar Tools Limited, Techtronic Industries Co. Ltd., Wera Tools, Apex Tool Group, Channellock, Inc., JCBL India, Emerson Electric Co., Other Prominent Players|
|Customization Scope||Get your customized report as per your preference. Ask for customization|
A hand tool is a type of tool which can be operated manually rather than a motor. Types of hand tools include wrenches, pliers, cutters, files, striking tools, struck or hammered tools, screwdrivers, vises, clamps, snips, hacksaws, drills, and knives.
The main advantages of hand tools are lighter, quieter, safer and easier to transport as compared to power tools.
Growth in construction activities in industrial, commercial, and residential projects is the major reason for the growing demand for hand tools.
Top suppliers in the hand tools market include Robert Bosch, 3M, Koki Holdings, and Metabo.
The Global hand tools market is projected to grow at a CAGR of 3.4% during the forecast period 2022-2030 and is expected to reach US$ 14,991.73 Million by 2030.
The available mediums to purchase hand tools are offline and online. These mediums can be further divided into e-marketplace & brand websites for online and supermarkets/hypermarkets for offline.
The offline segment holds the largest CAGR of 65% in the global hand tools market during the forecast period.
Asia-Pacific region is growing with the fastest CAGR during the forecast period.
Hand tools require regular maintenance which results in loss of time during construction activity which obstructs the growth of the hand tools market.
The US holds the major share in terms of revenue in the North America hand tools market.
High demand for hand tools in the manufacturing and construction sector provides a lucrative growth opportunity in the hand tools market.
Type, distribution channel, end user, and region are the different segments in the global hand tools market.