The global hand tools market size was valued at USD 24.61 billion in 2022. It is estimated to reach USD 35.19 billion by 2031, growing at a CAGR of 4.2% during the forecast period (2023–2031).
Hand tools are among the equipment and tools that are not electrically powered. These tools are used in farming, gardening, and framing regularly. The tools can only be used for specific activities and abilities because they are manually operated. The construction industry's recovery, rapid industrialization, rising infrastructure spending, the unstable economic climate in Latin America, and the expansion of the machinery and equipment manufacturing sectors are significant factors influencing the global hand tool market. The need for hand tools is also anticipated to rise due to the expansion of non-residential projects in developing countries, such as hotels, schools, hospitals, and industrial structures. The expanding construction industry boosts global hand tool adoption in developing nations and technical improvements.
The budget for building residential infrastructure is expected to increase in the upcoming years. According to the Global Infrastructure Outlook, by 2040, the world's population is predicted to grow by almost 2 billion, with urban populations expected to increase by 46%. This would result in a huge demand for infrastructure support. Urbanization growth has caused the industrial sector to grow globally, which has boosted the demand for hand tools. Due to transportation improvements, increasing immigration, new technologies, and significant investment, mostly in Asia-Pacific, industrialization has increased. The need for machinery and other equipment has also increased due to increased building activity brought on by rising urbanization. As a direct consequence, there is a growing demand for hand tools.
Power tools boost output and efficiency, yet their high manufacturing costs directly result from the technology employed in their creation. Since their introduction, hand tools have gained appeal due to their low price compared to power tools. For instance, the combined cost of a DeWalt 20V Cordless 1/2-inch Impact Wrench Kit with a battery socket kit on internet shopping sites is about USD 219.0. On the other hand, Snap-on sells a wrench set on the same platform for just USD 192.0. This demonstrates the price disparity between power and hand tools, encouraging their utilization and contributing to their market expansion.
Consumer preferences for cordless power tools have significantly changed due to continual developments in battery technology. Since lithium-ion (Li-Ion) batteries have replaced the older nickel-cadmium (NiCad) batteries, cordless power tools are now more effective. An 18V lithium-ion battery has a longer runtime than an 18V nickel-cadmium battery. Both in terms of operational capacities and operating times, this is advantageous for cordless power tools. As a result, it has been established that cordless power tools are just as effective as their corded and pneumatic equivalents.
Additionally, high-capacity batteries have helped the development of tools like breakers, jackhammers, miter saws, chain saws, and others that were formerly gasoline or pneumatically powered due to their high-power requirements. The basic benefits that cordless power tools offer—portability, low weight, comfort in handling, ease of availability, and a wide range of tools—have made them popular with both professional and non-professional users, which hinders tool adoption and restrains market growth.
Hand tools make cutting, sawing, and other building tasks easier. The productivity of hand tools used for heavy-duty tasks carried out during building processes has also increased due to recent technological breakthroughs. By assisting in their respective applications, hand tools help save labor operation time, which boosts their popularity in the construction sector. The variety of goods in the hand tool portfolio, including screwdrivers, hammers, wrenches, and others, also contributes to the increase in reliance on these tools because they are portable, lightweight, and powerful enough to do jobs faster.
The biggest producers have also created specific goods aimed at different construction projects. As an illustration, in 2019, Techtronic Industries Co., Ltd. created hand tools for specialists in the construction industry for use in maintenance, infrastructure projects, plumbing, demolition, and other applications. Additionally, hand tool manufacturers have built technology like anti-vibration into their equipment to lessen user risks and facilitate labor. Such innovations are pushing the adoption of hand tools in the construction sector.
The machinery and equipment comprise storage, unit load formation, placement, and transport equipment. The manufacturing industry's rapid rise in automation capabilities and the increased adoption of new and cutting-edge technologies like RFID, IoT, and AI are predicted to drive the growth of the machinery and equipment market. Hand tools are frequently utilized to manufacture and repair machinery and equipment. With the increased preference for automated systems in certain industries, these hand tools are becoming more and more common. Additionally, these hand gadgets enable workers to support industries in overcoming obstacles and ensuring efficiency and profitability. It is expected that the growth of the industrial sector in developing nations like China and India will accelerate the expansion of the hand tool market.
The global hand tool market is bifurcated into products, distribution channels, and end-user.
Based on the product, the global hand tools market is bifurcated into wrenches, pliers, screwdrivers, hammers, cable cutters, and others.
The wrench segment dominates the global market and is expected to grow at a CAGR of 4.3% over the forecast period. A wrench offers the mechanical power and grip necessary to turn items, which is important for applying torque to turn the objects. Nuts and bolts are objects requiring a wrench to be rotated. Steel and various alloys, such as chromium-vanadium, are used in making these wrenches. Many factors contribute to the rise in demand for wrenches, one of which is the expansion of manufacturing and automotive industries in developing nations. In addition, an increase in the emphasis placed on application-specific tools and equipment in manufacturing processes is anticipated to be a significant driver during the forecast period. This is because application-specific tools and equipment are more efficient.
Based on distribution channels, the global hand tools market is segmented into online and retail.
The retail segment owns the highest market share and is expected to grow at a CAGR of 3.9% during the forecast period. Retail refers to selling hand tools to end users through various distribution channels to make a profit. In most cases, "retailers" refers to an expansive selection of stores, shopping malls, supermarkets, and other ancillary services. The number of transactions involving purchases and sales done through retail distribution channels in the manufacturing and processing industries has increased since the start of the previous decade. This can be due to increased demand for hand tools in various industries, including the automotive and industrial industries. Furthermore, the makers of hand tools are extending their presence as their primary developmental strategy to withstand the tough rivalry and strengthen their product catalog, which offers attractive growth potential for the market players over the projection period.
Based on end-user, the global hand tools market is divided into DIY, commercial, and industrial.
The DIY segment is the highest contributor to the market and is estimated to exhibit a CAGR of 2.51% over the forecast period. "Do it yourself" is referred to as DIY. It is a way of making repairs, modifications, and constructions without the assistance of professionals or specialists. In other words, the individual end user is involved in transformation, production, and rebuilding by employing raw and semi-raw resources. "do it yourself" refers to the maintenance and home renovation tasks. Due to cost savings, there is an emerging trend in industrialized nations like the UK, the U.S., Germany, and others to engage in tasks like machine and vehicle maintenance, electronic device troubleshooting, house remodeling, and various other operations. This is anticipated to fuel the market expansion for hand tools.
Additionally, the shortage of inexpensive labor for residential house repairs has increased do-it-yourself projects for jobs like roof repair, gardening, plumbing, and others, which has boosted market growth. The development of effective hand tools has lowered the required work, cut labor hours, and lessened the tiredness associated with using electrical tools, all of which will contribute to the market's expansion over the projection period.
North America Dominates the Global Market
Based on region, the global hand tools market is bifurcated into North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific is the most significant global hand tools market shareholder and is estimated to exhibit a CAGR of 5.1% over the forecast period. The region is experiencing significant urbanization and infrastructural growth, increasing construction activity and hand tool demand. The need for hand tools in the area is driven by infrastructure projects such as residential and commercial construction, transportation systems, and industrial facilities. This expansion increases the demand for hand tools for maintenance, repair, and assembly work across many industries. In addition, the expansion of the hand tool market is attributed to the emergence of DIY culture and rising disposable income levels in Asia-Pacific. DIY enthusiasts and people working on modest projects drive the need for hand tools in the area.
LAMEA is expected to exhibit a CAGR of 4.6% over the forecast period. The LAMEA region now owns a sizeable portion of the hand tool industry and is anticipated to develop steadily over the forecast period. The LAMEA region is experiencing significant infrastructure development, particularly in construction projects, transit networks, and industrial facilities. As a result, there is a growing need for hand tools for various construction and maintenance tasks. Economic development and industrialization exist in LAMEA nations, including Brazil, South Africa, and the United Arab Emirates. The growth of the construction, automotive, and manufacturing sectors drives the demand for hand tools. In addition, the LAMEA region is likewise witnessing a growing DIY culture, similar to other regions. As more people engage in DIY chores, small-scale repairs, and home improvement projects, the need for hand tools is rising.
In North America, the leading hand tool manufacturers are consolidating their operations because of the rapid product acceptance rate. For several large corporations, like Stanley Black & Decker, Techtronic Industries Co., Ltd., and others, the United States is a primary hand tool production epicenter. Various market players are opening their regional facilities and offering various products, driving market growth. For instance, the majority of Stanley Black & Decker's tools are made in its production facilities, which are spread throughout several states in the U.S. Similarly, the German-based Robert Bosch GmbH wants to offer a vast selection of hand tools for non-professional uses through its consumer goods sector in North America, which includes household appliances and hand tools.
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