Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
A hand tool is any tool that is powered by hand instead of a motor. Different tools include hand tool categories such as pliers, cutters, wrenches, striking tools, screwdrivers, hammered tools, vises, clamps, saws, knives, drills, and more. Moreover, outdoor tools include rakes, garden forks, and pruning shakes. Layout and measuring tools comprise tapes, laser measurers, etc. Taps and dies are tools used to create threads
The global hand tools market is estimated to account for US$ 21,929.0Mn in terms of value by the end of 2027.
Market Dynamics- Drivers
- Rising industrial expansion worldwide is expected to drive growth of the global hand tools market during the forecast period
The number of major manufacturing plants and industries has increased significantly in the recent past where hand tools are majorly utilized for maintenance purposes. High demand for professional hand tools is increasing among industry personnel thereby increase the use of hand tools by workers and laborers. According to Coherent Market Insights’ analysis, among end-use industries account for a 40% share of the global hand tools markets, while professionals such as carpenters, plumbers, automotive maintenance mechanics, and farmers account for the remaining 60% market share. Thus, these factors are expected to drive growth of the global hand tools market in the near future.
- Increasing number of new construction and renovation activities is expected to propel the global hand tools market growth over the forecast period
Small hand tools are mainly used for interior finishing although a large number of hand tools and hand tool kits are deployed in ceiling tiles, flooring and interior, electrical, mechanical, and plumbing fixtures. Recent spurt in renovation activities of old constructions is also driving demand for hand tools. Hence, these factors are expected to propel the global hand tools market growth over the forecast period.
Europe held dominant position in the global hand tools market in 2019, accounting for 35.5% share in terms of value, followed by North America and Asia Pacific, respectively
Figure 1: Global Hand Tools Market Share (%), in terms of Value, By Region, 2019
Market Dynamics- Restraint
- Growing preference for power tools over hand tools is expected to restrain growth of the global hand tools market during the forecast period
Many end users are preferring power tools over hand tools since they are relatively easier to operate and help save on time. For instance, power tools account for 57% share of the global tools market whereas hand tools account for 43% of the global tools market currently in 2015. Thus, power tools are superseding hand tools by 14% presently. According to Coherent Market Insights’ analysis, global power tools market was valued at US$ 38.8 Bn in 2013 and US$ 40.6 Bn in 2014, while global hand tools market accounted for US$ 13.9 Bn in 2013 and US$ 14.3 Bn in 2014. Hence, these factors are expected to restrain growth of the global hand tools market in the near future.
- Increasing prices of raw materials are expected to hamper the global hand tools market growth over the forecast period
Rising prices of raw materials such as aluminum and iron used in the manufacturing of hand tools are leading to high pricing of the end product. According to Coherent Market Insights’ analysis, iron ore prices witnessed a 34% rise in April 2015 as compared to May 2014. According to the source, aluminum prices witnessed a growth of 0.4% in 2015 as compared to that in the previous year. Hence, these factors expected to hinder the global hand tools market in the near future.
- Rising DIY activities can present major business opportunities
Growing consumer preference for leisure and recreational activities with growing disposable income is leading to a rise in DIY activities. This, in turn, offers tremendous potential for manufacturers of hand tools to introduce new and innovative products in the market. For instance, DIY activities accounted for US$ 5,495.7 Mn of the global hand tools market in 2013 and increased to US$ 5,668.9 Mn in 2014.
- A massive increase in technical jobs and employment can offer significant business opportunities
Increase in technical jobs and employment offer excellent opportunities in terms of quality and pricing, as professionals use high end tools and are willing to pay more for such products. According to Coherent Market Insights’ analysis construction industry witnessed an increase of 20% in employment opportunities in 2015 as compared to 2014.
Figure 2: Global Hand Tools Market Value (US$ Mn), 2017 - 2027
The global hand tools market was valued at US$ 16,123.3 Mn in 2019 and is forecast to reach a value of US$ 21,929.0Mn by 2027 at a CAGR of 3.9%% between 2020 and 2027.
- Advent of multi-featured hand tools for various applications
Many companies in the market are focused on designing many-in-one tools, in order to reduce tool kit size, weight, and maintenance that can be used for multiple applications in various industries. For instance, in 2014, JK Files (India) Limited introduced a new Hammer Tough screwdriver that can be used as hammer as well as a screwdriver. Furthermore, in 2015, Klein Tools introduced a new set of screwdrivers, namely multi-bit screwdrivers and screwdrivers with built-in wire connector wrenches.
- Hand tools kit instead of individual tools
Consumers from the industrial sub-segment are more inclined towards the purchase of hand tools kits as opposed to individual hand tools. For instance, in 2014, Channellock Inc. introduced a 171-piece mechanic’s tools set. Moreover, in 2013, Bosch launched Skil F002 hand tool kit, with 81 tools, including wrenches, clutches, screwdrivers, etc.
Major companies involved in the global hand tools market are Kennametal Inc., Apex Tools Group, Akar Tools Ltd., Channellock, Inc., JK Files (India) Limited, Stanley Black Decker, Sears, Wera Tools, Snap-On, Irwin Industrial Tools, and Klein Tools.
- Major companies in the market are focused on capacity and business expansion, in order to gain a competitive advantage in the market. For instance, in June 2019, Channellock, Inc. announced a 35,000-square foot expansion of its finished goods warehouse.
- Key players in the market are involved in product launches, in order to expand the product portfolio. For instance, in September 2018, Craftsman, a subsidiary of Stanley Black Decker, introduced new generation tools, equipment, and accessories.