Increase in Construction Activities is Boosting the Demand in the Hand Tool Industry

05 November 2020

Rapid industrialization and increasing applications in the household and commercial sectors are primarily driving the global hand tool market. Hand tools are primarily used in industries such as automobile, aerospace, construction, electronics, and shipbuilding. The hand tool industry landscape is moving towards more sophistication and customization of products that can determine market leadership in a competitive scenario. Advancements in technology and the extensive usage of battery-driven tools have fueled the adoption of cordless power tools and related accessories are light and durable. The rising number of innovative and cutting-edge solutions in the hand tool industry is enabling the customers who rely on these products for personal and DIY activities. They are also influenced by the advertisements and marketing efforts made the leading vendors in the market. The spread of COVID-19 across the globe in early 2020 has majorly reduced the demand from end-user industries, especially construction, automotive, and electronics, which are estimated to be the major drivers for hand tool market. APAC is the fastest growing market for hand tools and is expected to grow at a CAGR of over 5% during the forecast period. The hand tools industry is expected to revive and exhibit additional demand at the end of Q2 2020. Vendors can accordingly prepare to cater the sudden onset of high demand to prevent a demand-supply gap in the coming months. The global hand tools industry size to reach USD 30 billion by 2025, growing at a CAGR of 4% during the forecast period.

Some Key of the Hand Tool Market Includes:

  1. The industrial segment accounted for over 70% of the market share in 2019, which is estimated to grow over 4% during the forecast period.
  2. Pliers dominated the general-purpose tools segment which is expected to pose an absolute growth of 29% with extensive usage in construction, automotive, and electronics sector.
  3. The construction hand tools segment is expected to contribute around $5.5 billion by 2025 as the activities are expected to rise in China, India, the US, and Indonesia.
  4. The preference for DIY and home improvement activities is propelling the market for residential hand tools that is expected to account for around 10% of the market share by 2025.

Read: Hand Tools Market Global Outlook and Forecast 2020-2025 

Rising Timber Construction

Wood being a common and traditional material for buildings that has been prioritized in the modern construction for multi-storey buildings and was earlier limited for residential single-family housings in most of the major economies. The timber industry is also witnessing higher growth in the recent past owing to the higher production of cross-laminated timber, glulam, and laminated veneer lumber. Great sustainability and comparatively lower costs of timber have propelled to the growing demand in the hand tools industry. This surge in demand is also supported by favorable government policies and associated initiatives. Timber-based constructions are also preferred to their climate-friendly nature, which promotes environmental benefits. The lightweight and flexible nature of wood is also enhancing its usage during earthquakes and natural calamities. Going forward, the requirement for skilled woodworkers and proximity to the materials can be a challenging factor for timber-based construction. Europe is considered as a forerunner in the segment, the US is fast emerging as a major market for timber-based construction, showing the strongest potential in recent years.

Impact of COVID-19

Due to COVID-19 the practice of social distancing, the government has recommended lockdown across various sectors including industries such as the automotive, electronics, and precision manufacturing, which significantly affected the demand in the hand tools industry. The curfew and lockdown procedures prevented the extensive application of hand tools by workers and contractors, thereby affecting the overall revenue generation for the market during the period. The lockdown also kickstarted the trend of DIY and crafting activities as consumers were forced to isolate themselves in their households. People also found more time to get involved with pending home repairs and other improvement activities has significantly contributed to the growth of the residential end-user segment in the global hand tools industry. The operational efforts from certain major vendors with high restrictions, supply chain disturbances, and distribution through retail and e-commerce sites were highly challenging for vendors to function optimally.

Read: Cordless Power Tools Market Global Outlook and Forecast 2020-2025

 FAQs about Hand Tools Market:

Q. What is the market size of the hand tools Industry?

A. The hand tools market size will reach revenues of approximately USD 30 billion by 2025.

Q. What is the market growth of hand tools market?

A. The hand tools market is projected to grow at a CAGR of over 4% during the forecast period.

Q. What is the global market segmentation of the hand tools industry?

A. The hand tools market is segmented by product, end-users, and geography

Q. What is the market insight of the hand tools market?

A. The hand tools market in India is projected to reach a revenue share of USD 1.60 billion by 2025 due to a steady demand from construction and automotive along with aerospace, defense, energy, shipbuilding sectors and manufacturing industries.

Q. What are the major regions in the global hand tools industry?

A. The leading regions in the hand tools market include North America, Europe, APAC, Latin America, and Middle East and Africa.

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