Hand Tools Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Hand Tools Market Size

Hand Tools Market Trends & Growth Drivers

Woodwork and DIY Activities Are Key Trends

• The increasing popularity of DIY and woodwork activities, owing to the unavailability of skilled labor and high labor cost, are a key trend in the market. Individuals prefer this cost-effective approach for home improvement, interior decoration o, and furniture projects.
• This method allows them to spend more on quality materials, by saving on labor costs. Frsurther, the changing consumer lifestyles, rising preference for creative and fun activities, and easy availability of resources, such as video tutorials, DIY guides, and how-to articles, are supporting people in doing these activities.
• The surging global demand for wood products is one of the reasons for the growth in these trends.

Growing Online Sales a Reflection of People’s Changing Preferences

• The increasing product sales via mobile applications and e-commerce websites exemplify the growing acceptance of digital platforms in modern society.
• Customers can now acquire tools more easily online and obtain details about the features and specifications of products on these platforms.
• These platforms are also being used by businesses to increase client interaction and offer tailored product suggestions.

Growing Construction Industry Is a Major Driver

• The biggest driver for the hand tools market is the growing construction industry around the world. As per industry experts, infrastructure expansion programs in India, China, and the U.S. will take the worldwide construction industry beyond USD 15 trillion by 2030.
• Further, the population continues to shift to urban areas in search of employment, education, and a better overall life. This is one of the key reasons behind the rampant infrastructure development in both developing and developed countries around the world.
• This will propel the demand for an array of manually operated tools for tasks that do not require as much power and need human precision instead.
• Further, in developing countries, most of the construction contractors are small entities that do not have sufficient funds to purchase expensive power tools. Therefore, they rely on hand tools for most of the minor tasks, such as those related to wiring, furniture, and interior finishing.

Rising Preference for Cordless Power Tools Could Pose Challenges

• The ongoing advancements in battery technology, especially the shift from nickel–cadmium to lithium-ion batteries, cordless tools have become much more efficient. Compared to NiCad batteries, cordless power tools have received a higher uptime and better working efficiency.
• This advancement has brought cordless tools at par with their pneumatic and corded counterparts. Additionally, the advent of high-capacity batteries has facilitated the production of tools that were formerly powered by gasoline or pneumatics. Therefore, high-power jackhammers, chain saws, miter saws, and breakers have emerged. The key appealing features of cordless power tools for both professional and do-it-yourselfers are their portability, lightweight construction, simplicity of handling, extensive availability, and variety of options.
• With the increasing disposable income and size of construction projects in developing countries, an increasing number of contractors are buying cordless power tools, which would hamper the hand tools market growth over the forecast period to some extent.
• The increasing reliance on power and automated tools might further limit the need for traditional hand tools, particularly in sectors of the economy that have adopted automation to increase productivity.
• The appeal of tools with fast responses and accuracy increases when firms use more automated processes, and they might even make traditional hand tools obsolete. Businesses looking for increased efficiency and accuracy often use automated substitutes, which would reduce the need for the manually operated instruments.

Advancement in Production of Machinery and Equipment Is an Opportunity

• The production of machinery and equipment is experiencing significant advancements. Improvements in materials science and engineering have also increased the functioning and lifespan of machinery and equipment, enabling the production of stronger, lighter, and longer-lasting components.
• Moreover, advancements in materials science and engineering have led to the development of lighter, stronger, and more durable components, resulting in improved performance and longevity of machinery and equipment.

Hand Tools Industry Outlook

Type Insights

• In 2024, the category with the bigger market share, of 70%, was cutting tools. Their wide usage in general, industrial, and commercial settings drive their sales.
• The category with the highest predicted growth rate is likely to be general-purpose.

The types covered in the report include:

• General-Purpose Tools (Faster-Growing Category)
• Cutting Tools (Larger Category)

End User Insights

• The industrial category dominates the market in 2024 with 55% revenue, due to the growing aerospace, building and construction, manufacturing, and automotive industries.
• The residential category is expected to witness a high CAGR during the forecast period.
• Since the pandemic, driven by economic growth, home building and renovation have picked up around the world. A lot of the construction tasks in residential units can be accomplished by hand tools, such as hammering, wrenching, plying, sawing, cutting, and screwdriving, can be accomplished with manual tools, and they generally are.

The following end user are included in the report:

• Industrial (Largest Category)
• Commercial
• Residential (Faster-Growing Category)

Distribution Channel Insights

• The offline category held the majority revenue share in the market, of 75%, 2024. This distribution channel offers great flexibility in choosing different products after due comparison of their features, applications, and prices. Moreover, the salespersons present at physical stores are knowledgeable about these tools, which is why their advice can be sought while buying.
• The online category is projected to grow at the higher CAGR during the forecast period, of 6.5%. This can be ascribed to the surging sale of hand tools through e-commerce websites. With the increasing usage of smartphones and easy availability of the internet, online shopping has become accessible to a major chunk of the population.
• E-commerce platforms offer people the freedom to scour the entire product catalog at their pace, comparing features and reading reviews as they move from one company’s products to another’s. Additional convenience of online shopping includes discounted prices, electronic payment, and home delivery.

The distribution channels covered in the report include:

• Online (Faster-Growing Category)
• Offline (Larger Category)

APAC Is Largest Market

• Globally, the hand tools market is dominated by the APAC region, with an estimated share of 50%, in 2024, and this trend is likely to continue in the coming years as well. The market in the region is also projected to experience the highest growth rate during the forecast period.
• Its fast-growing population, increasing rate of urbanization, and rising purchasing power of consumers are the reasons behind this. Due to the high demand for these instruments from developing nations and the notable expansion of the region's end-use sectors, the regional market is growing.
• Governments of regional countries have initiated a large number of massive infrastructure projects to boost economy. This will continue to offer market players lucrative opportunities for sales and even encourage them to make these instruments more-user-friendly less physically straining on workers.
• In the APAC market in 2024, China's revenue share was the largest, due to the massive manufacturing, automotive, aerospace, shipbuilding, electronics, and construction industries in the nation. Thus, the nation's need for hand tools is still being met by the expanding industries.

The regions and countries analyzed in this report include:

• North America
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Largest and Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Hand Tools Market Share

• The hand tools industry is fragmented with the presence of several key players. Major players in the market have been frequently involved in facility expansions and product launches to gain a significant position. The growing competition from power tools is one of the main issues plaguing the market.
• The prices of power tools are declining; so, both professionals and do-it-yourselfers can afford them. Hence, manufacturers of hand tools are under pressure to distinguish their products and provide clients with special value propositions.
• The increasing material costs are also increasing the pressure on the hand tool industry and hurting manufacturers' profit margins. In order to maintain competitive rates for their products, manufacturers must figure out how to control these expenses.

Hand Tools Industry News

• In April 2022, Milwaukee Electric Tool Corporation announced the expansion of its mechanic's hand tools line to feature two new sets and four new hose picks.
• In August 2021, Milwaukee Electric Tool Corporation announced the expansion of a new manufacturing facility in Clinton, Mississippi.
• In June 2022, Klein Tools Inc. announced the launch of hybrid pliers with crimper, fish tape puller, and wire stripper.
• In October 2021, Milwaukee Electric Tool Corporation announced the launch of CHEATER aluminum adaptable pipe wrench for plumbing and mechanical trade professionals.
• March 2021, SK Professional Tools was acquired by Great Star USA to expand its sales and distribution network, while fortifying its production operations in the U.S.