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The global hand tools market size was USD 22.29 billion in 2020 and is projected to grow from USD 22.97 billion in 2021 to USD 30.48 billion in 2028 at a CAGR of 4.1% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with hand tools witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a stellar growth rate of 4.1% in 2020 as compared to the average year-on-year growth during 2017-2019. The sudden fall in CAGR is attributable to this market’s growth and demand, returning to pre-pandemic levels once the pandemic is over.
The cost-effective product development of precise tools with advanced machinery is anticipated to drive the market across diverse regions. The development of industrial manufacturing clusters and increment in the establishment of heat treatment units in these facilities are anticipated to boost the growth of the market across the globe. The manufacturing of hand tools considering the country-specific standardizations for the products can increase the performance of manufacturers in diverse geographies. The development of hand tools using CNC-operated machines, Special Purpose Machines (SPM), and VMC machines provide high precision and dimensional accuracy in the manufacturing of these tools. Additionally, the substantial emergence of MSMEs operating as tool manufacturers in the emerging economy such as India will provide decent growth to the market.
Uncertain Scenario in Global Construction and Real Estate Development Sector to Obstruct Growth
COVID-19 has a major impact on economic activities and has caused problems for the manufacturing sector in the first quarter post-pandemic. The supply-side scenario may have witnessed a noticeable downturn due to shutdown manufacturing activities and numerous sanctions on cross-border trade of non-essential products. Additionally, the demand side of the market projected a somewhat similar demand for these products. Unplanned closure of the industrial activities, all the professional metalworking or woodworking were halted, which curbed a definite portion of the global market.
The disruption and complete breakdown of the supply chain of these tools at the beginning of the pandemic lowered development prospects in the first half of the fiscal year. However, distributors and retailers consumed balance inventories, and after the resumption of manufacturing activities in diverse economies, the market returned to positive growth projections. Thus, looking at long-term prospects, COVID-19 had a minimal effect on the market's progression.
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Development of More Durable and Easy to Operate Products Through Manufacturing Facility Upgrades to Scale Up Market Growth Opportunities
The massive investment in research and development activities by numerous key participants has encouraged the development of newer and advanced products in the global market. The companies are also investing efforts and money in the procurement and installation of modern machinery to develop and enhance manufacturing facilities to create more precise, durable, and multi-featured tools. The companies are also looking to have a certain government aid through respective governments to waive higher import duties and subsidiaries and reduce stamp duty to acquire land to create a sustainable manufacturing ecosystem.
Aiming at the high and intensive growth in the requirements of the hand-operated tools from numerous industries, such as automotive, industrial manufacturing, metalworking facilities, automotive & aerospace component manufacturing, and assembly units, several governments stepped into action and initiated coordinated efforts with manufacturers in receiving financial and legal aid in the procurement of cutting-edge technologies and technological upgrade of various germinating MSMEs in their respective jurisdiction.
Elevated Functionality and Time-efficient Secured Operation of Tools to Uplift Sales and Market Growth
The tool manufacturers emphasize the design and development of these tools, which are capable of not only high performance but also multi-functional in operation. The multi-functional tool can increase the efficiency of the operation by reducing the time required for the service and the entire operation. After identifying the problem with the product durability of multi-functional tools, the companies are engaged in developing and manufacturing high-quality and super durable tools to increase the influx of customers.
Additionally, the efforts to insinuate value through innovation in the complete market ecosystem by manufacturing innovative yet unique product designs through a keen interest in research and development operation to propel healthy market progress across the globe.
Application of Electrical Powered Tools with AI and IoT integrated Technology to Curb Potential Market Development
The ability of the power tools to perform the same task repeatedly with high precision and accuracy makes them more practical and economical for application during mass production. Power tools capable of performing similar and constant operations over a prolonged time period could also hinder hand-operated tools' sales over the forecast period. Moreover, the use of power tools eliminates the downtime, which can be termed as relaxation time due to the operator's muscle fatigue, which subsequently enables the operators to complete the task with high quality in a far lesser time span.
Even after all these benefits, higher operation costs involved in the power tools, frequent maintenance and repairs of mechanical or electrical parts, and high initial procurement cost are some of the downgrading factors, which provide hand-operated tools a wide array of target customers operating in multiple industries and professional cutting task operators.
Spanners Segment is Anticipated to Retain its Prominence Over Forecast Period
By product type, the market is classified into spanners, vices/clamps, pliers/pincers, household tools, grease guns, wrenches, screwdrivers, hammers/sledge hammers, chisel/gauges, metal working tools, and others. Due to the high application in industrial applications, spanners will hold a major chunk of the global market share. Furthermore, the aforementioned segment will show a steadfast growth pace during the entire forecast period.
The high demand for the products such as spanners/wrenches vices and pliers in manufacturing, automotive, and industrial applications aids for a promising share in the global market. The extensive availability of diverse and innovative products in the category is the main reason behind the staggering market share within different regional markets. Furthermore, the high demand for innovative products developed by hand tool manufacturers such as break over wrench, cross tire wrench, and double insulated products for electrical, chemical and related industries projects an optimistic growth overview for these segments across regions.
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Industrial Application to Emerge as a Better Performing Segment Over its Counterpart During Forecast Period
By application, the global market is classified into industrial, professional, and home use (do it yourself). The industrial segment is estimated to exhibit the lion’s share in the global market. However, in terms of market growth, the professional segment is set to progress with a swift market pace.
Substantial use of hand-operated tools in the industrial sector will provide a prominent market share over the entire period of market projections. The increasing application by the automotive repair and maintenance sector is bolstering the rapid industrial sector growth to a certain extent. Furthermore, developing highly durable tools coupled with application-specific features is a factor driving the hand tools market growth. Furthermore, in recent years, many customers are inclined toward procuring and keeping a professional tool kit at home, which is projecting the segment as the second fastest-growing segment in the global market.
Online Segment to Grow With a Swift Pace Due to Noticeable Shift of Customers Toward Online Shopping
By sales channel, the global market is classified into retail and online. Customers nowadays have developed a tendency to procure these tools from e-commerce websites rather than visiting retail shops, hardware outlets, or specialty stores. Multiple offers and special discounts available on these e-commerce websites further increase customers' traction toward online distribution channels. The customer gets to engage in a wide range of product brands and special featured products dedicated especially for a particular application. However, with massive fragmentation in the market and the presence of several local vendors or key players in this market are catering to a particular country has a substantial sales from the retail segment. The retail shop owners, distributors, and hardware outlets venture into an alliance with different market vendors based on healthy profit margin or credit procurement. The manufacturers capable of striking a deal with the local vendors or better yet prominent distributors have a strong market hold on retail segment sales.
In the developing or underdeveloped countries in Asia Pacific, South America and the Middle East & Africa majority of the target customer base still has limited exposure to e-commerce websites and relies on offline purchases, which reflects in the market assessment as the retail segment holds a healthy market share. Many global brands manufacturing hand-operated tools are extensively working on setting up exclusive retail outlets and have a strong and dedicated retail service in their regional stronghold, making the offline segment still a preferred choice of most customers in the market.
North America Hand Tools Market Size, 2020 (USD Billion)
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Region-wise, the market is classified into North America, Europe, South America, the Middle East & Africa, and Asia Pacific. Asia Pacific is expected to register notable growth prospects in the global market during the slated period of time. The growth is mainly attributed to high demand for industrial and professional tools in the region. Furthermore, the increasing number of local manufacturers in the market is leading to a healthy competitive landscape, supporting the market growth. However, the significant presence of a large chunk of established and reputed brands in the region makes North America the single largest market across the globe.
India to Exhibit Promising Growth with Increasing Development of Smart Cities
Over the coming years, India is estimated to develop with a promising CAGR in the global market. The strong interest of the government of India in scaling up the manufacturing sector in India and its different initiatives, such as Aatmanirbhar Bharat, Vocal for Local, and Make in India, which aid in spurring the growth of the hand-operated tools market. Furthermore, extensive development and establishment of hand tool manufacturing clusters in Rajasthan and Punjab paves a way for the smart and hefty emergence of India in the market. As of now, India has sufficient production to cater to the domestic demand across the entire country. However, to increase net export statistics, India aims to bolster the export performance of its manufacturers. The demand for cutting-edge products from the United States, Germany, the U.K., and Brazil operates as a prominent industrial power in the global market. India is also aiming to have a favorable export market in Asia, Africa, and parts of South America to increase cross-border trade and enhance market performance over the slated course of time.
The presence of global manufacturers in North America is the main reason behind such a performance of the market. However, the established and developed nature of the market limits the region's growth prospects. Moreover, heavy contribution in the country's export trade provides a decent share to the regional market. Additionally, the use of hand-operated tools by unprofessional individuals for minor works at home. This culture found more influx in North America, contributing to sustainable market share.
In South America, Brazil is expected to spearhead the development prospects in the regional market. The availability of hand-operated tools at a comparatively affordable price, when compared with alternative power tools is expected to provide new growth horizons for the market in South America. The use of these tools by woodworking professionals and repair work operators in different industries also directly affects market development. Also, Brazil is identified as a major importer of tools from India, China, and the ASEAN region. These border trades and sales of foreign tools at a cheaper price reinforce the market's growth prospects.
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Europe is expected to progress with a registered healthy share in the global market. The increasing participation of Germany-based manufacturers in this optimistic market and their efforts in the research and development division increase the contribution of the region in the market. The increasing product procurement for home use in minor decoration and refurbishment activities in Germany, the U.K., and France should also be taken into consideration for the noteworthy performance of the market.
Collaborations and Joint Ventures by Prominent Players are Anticipated to Limit Market Fragmentation
Key manufacturers in this market are focusing on developing advanced products and are striving to achieve technological superiority to propel their growth prospects in the global market. The companies are also engaged in venturing into strategic mergers and acquisitions to cement their sales footprints beyond their regional or domestic market. The global players often try to acquire smaller entities operating decently in different regional markets.
Installation of modern and more equipped manufacturing facilities to meet the -increasing needs of its products in the market can be identified as a prominent growth strategy. Due to excessive competition, the major market players also need to work on their speed to the market and increase direct customer engagement by making their products easily accessible across the market. The market is considered extremely fragmented, with local vendors holding a major share in the global market. However, with product development growth strategy and efforts to bolster global presence, established players are also trying to capture a significant market share. Stanley Black & Decker, Inc., Knipex, Klein Tools, Inc., and Snap-on Incorporated are the major market players operating in the market.
An Infographic Representation of Hand Tools Market
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The market research report provides an in-depth analysis of the industry dynamics and competitive landscape. The report also provides market estimation and forecast based on product type, application, sales channel, and region. It provides various key insights, including recent hand tools industry developments in the market such as mergers & acquisitions, macro and microeconomic factors, SWOT analysis, and company profiles.
Value (USD Billion)
By Product Type, Application, Sales Channel, and Region
By Product Type
By Sales Channel
Fortune Business Insights says that the global market size was USD 22.29 billion in 2020 and is projected to reach USD 30.48 billion by 2028.
In 2020, the North America market value stood at USD 7.12 billion.
Registering a CAGR of 4.1%, the market will exhibit steady growth during the forecast period (2021-2028).
By application, the industrial segment is expected to lead this market during the forecast period.
Elevated functionality and time-efficient secured operation of hand operated tools are the key factors driving the market.
Stanley Black & Decker, Inc., Knipex, Klein Tools, Inc., and Wera are the major players in the global market.
North America dominated the market in terms of share in 2020.
Application of electrical-powered tools with AI and IoT integrated technology will curb the adoption of the product.
Retail store is expected to drive the adoption of the product during the forecast period.
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