Global Hand Tools Market Forecast and Analysis For 2023 and Beyond
Updated: Sep 2, 2022
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Hand tools are equipment that are only used and powered manually by “hand”. They come in all shapes, sizes, and functions; the most common types include hammers, wrenches, pliers, and screw drivers.
They continue to be an important part of any DIY repairs, maintenance, and construction. The efficiency hand-tools offer makes them perfect when you need quick results at low cost - no matter what industry you are working within.
The Hand Tools Market Overview: Key Drivers and Trends
In 2020, the market for hand tools was valued at USD 22.29 billion. The market is anticipated to expand at a CAGR of 4.1% between 2021 and 2028, rising from USD 22.97 billion in 2021 to USD 30.48 billion in 2028.
The COVID-19 global health crisis has had a startling and unprecedented worldwide impact. Post-pandemic, the hand tools and accessories market is experiencing a period of rapid growth due in large part to increasing applications within the household sector as well as strong growth in industrial and commercial settings as things get back to normal.
The Spread of DIY Household Maintenance Culture
DIY culture can be one of the major drivers for the household hand tools market in the coming years with a higher scope for penetration in growing economies. Additionally, heavy tools such as demolition hammers are also used for repair and maintenance works in commercial and residential spaces. The DIY trend was earlier popular only in Western countries but is now being rapidly adopted in APAC and Latin America.
The increased usage of hand tools in all aspects of automotive repair, in the home garage or even industry, for vehicle maintenance is assisting the market’s growth. Because car repair necessitates the use of equipment in confined locations, hand tools are becoming more popular due to their mobility and ease. Furthermore, hand tool manufacturers are expected to create hand tools that are specially designed for automotive repair and maintenance.
Additionally, the widespread use of hand tools for building, maintaining, and repairing at home has increased as a result of the do-it-yourself (DIY) ongoing trend, particularly during the global outbreak of the COVID-19 pandemic and the subsequent implementation of mandatory lockdowns. This has all assisted the hand tool market's expansion.
These kinds of factors are expected to drive market expansion for hand tools throughout the forecast period.
Online Distribution and Retail is Growing At The Fastest Rate
Customers', including businesses, shopping habits are shifting as a result of online distribution platforms. They offer several extra services such as doorstep delivery and an online display of a wide range of items and brands to pick from via their e-commerce platforms.
On the internet, many third-party distributors sell hand tools. This allows consumers to compare, assess, research, and choose the most suitable hand tool for their purposes and budgets. Many hand tool makers have been able to offer their items directly to end-users, wholesalers, and retailers thanks to the development of e-commerce platforms and online distribution channels.
Check out our guide on private label trends in retail for 2023
Building and Construction
The growth of the hand tools market is largely driven by the expansion of building activities as well as the increased need for repair and maintenance work across establishments.
Rapid urbanization, particularly in emerging economies, and the adoption of various policies by governments of various nations favoring the construction of infrastructures, such as roads, airports, and energy utilities, provide additional support for this.
In urban regions of countries like India and China, where owning a new house is a need and the cost of expert labor is actually rising, DIY tool kits are becoming more and more popular. As a result, more people are using hand tools for household chores, home improvement projects, repairs, carpentry, and gardening.
Production and Assembly
In keeping with this, the expanding need for portable and light-weight tools for all types of vehicles and engines has helped the widespread use of several hand tools in the automotive industry. This in turn serves as another component that promotes development.
The aviation industry is expected to experience rapid growth during the next few years. This will be due in large part to an increasing demand for aircraft, alongside expansion efforts, which all but guarantees the demand for a wide assortment of high-quality manual tools.
The next several years are anticipated to see substantial expansion in the aviation sector. This will be mostly because of attempts to expand the industry and an increase in the demand for airplanes, which almost certainly means that there will be a need for a wide range of premium manual tools.
Product Technology Evolution
The market for replacing and repurchasing improved hand tools is growing as a result of ongoing technical improvements, such as the introduction of efficient and modern tool kits with rust-preventive coatings.
Another example is the cooperation of major companies in the production of unified multi-functional hand tools, which allow a single tool to carry out many tasks. These tools are also easily accessible through various distribution channels, which is producing a bright outlook for the market.
The Hand Tool Market Segmentation
1. The End-User
This segment consists of Industrial, Construction, Automotive, Aerospace, Electronics, Energy, Shipbuilding, Commercial and Residential.
In 2021, the industrial and construction end-user sector accounted for the greatest share of the worldwide hand tools market, and this trend is expected to continue during the forecast period. Mass township and urbanizations projects all over the world are also driving the demand for hand tools in the forecast period.
2. The Tool Type
This segment consists of general-purpose tools eg. hammers, screwdrivers, pliers etc. Cutting tools eg. saws, chisels etc and specialist tools for like tap and die set or measuring instruments.
There is a growing need for all kinds of specialist screwdrivers in the consumer electronics industry for laptops, phones, drones, tablets etc. Pocket and utility knives can be used for a variety of tasks, so they're also finding favour in the DIY market, thanks to their high level of safety and ease of use. Pocket knives that are small, efficient, and light are in high demand.
3. The Region
Essentially the mass geographic grouping of nations eg. North America, the Middle East, APAC, the EU etc.
The United States will continue to be a lucrative market, accounting for 80% of hand tool sales in North America. Within Europe, the United Kingdom will emerge as a significant market, with a Y-o-Y increase of just over 3% in 2021. Throughout the projected period, demand for hand tools will continue to rise in Germany and France. In East Asia, South Korea and Japan will emerge as important areas for sales.
4. Distribution Channel
Basically, offline bricks and mortar retail or online e-commerce.
Online distribution platforms offer a number of extra services, such as doorstep delivery and an easy display of a wide range of items and brands. However, high-street retailers still have a massive presence, especially with people wanting to get outdoor. Retail shop owners, distributors, and hardware outlets are venturing into profitable alliances with different market vendors.
Who are the Major Hand Tool Vendors and Manufacturers Out There?
The leading manufacturers in this market are concentrating on creating cutting-edge items and working to become technologically superior in order to increase their chances of success in the international market.
Additionally, businesses are engaging in smart mergers and acquisitions to expand their sales footprints outside of their local or regional markets. The big players frequently want to buy smaller companies that are doing well in various geographical marketplaces.
Stanley Black & Decker, Techtronic Industries Company, Snap-on, Apex Tool Group (ATG), and Emerson are the major participants in the hand tool industry.
Stanley Black & Decker, for example, is known for its industry-leading fastening solutions. They acquired Consolidated Aerospace Manufacturing LLC (CAM) for improved support for aerospace customers.
In a time when people are looking for easy ways to improve their homes, vendors have responded by creating custom and branded tools that will make the process much simpler.
Diversitech Global Manufacturing is a hand and power tool designing, manufacturing and assembling supplier resources. With over 20 years of designing and manufacturing tools and working closely with vetted and established sub-component suppliers, they have delivered customised OEM tool kits for well-known high street and online retailers, including Fortune 500 companies
Frequently Asked Questions
1. What is the estimated valuation for the global hand tools market by 2027?
In 2021, the hand tools market was worth USD 22.07 billion, and by 2027, it is predicted to be worth USD 28.74 billion.
2. What are the major industry drivers?
The growth in remodelling and home improvement activities, infrastructure projects, as well as the solid expansion of the automotive industry, are propelling the market forward.
3. Where are the key markets for hand tools?
The US, China, Germany, Japan and the UK.
4. Which hand tool type is the most popular?
The major types of hand tools in the industry are wrenches, pliers, screwdrivers, hammers, and cable cutters, among others. The manual hand wrench type dominates the hand tool market.
5. What are the key industry trends of the global hand tools market?
The development of cost-effective and high-quality hand tools with strong branding, the rise in DIY activities, and the manufacture of hand tools utilizing cutting-edge technology are projected to boost the market
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