Global Hand Tools Market Development
The current situation of the hand tool market:
In 2019, the global hand tools market was worth US$22.2 billion and is expected to reach US$30.381 billion by 2027, with a compound annual growth rate of 4.1% from 2020 to 2027.
Hand tools are tools and equipment that are not powered by electricity. These tools are used in daily gardening, agriculture, and framing. Because these tools are manually operated, their application is limited to certain tasks and skills. In addition, the main factors driving the growth of the manual tool market include increased demand in the automotive maintenance and repair industry and advances in manual tool production technology. In addition, the increase in the use of hand tools in industrial applications is another factor driving the overall market growth. However, low-profit margins due to fierce competition and lack of skilled professionals are some of the key challenges limiting the growth of the global hand tools market. In addition, the popularity of power tools and the growth of multifunctional applications are expected to hinder the growth of this market during the forecast period. In addition, the recovery of the construction industry is expected to also drive the demand for hand tools.
In addition, the growth of the aerospace industry is an important opportunity for market growth, especially in Germany, where the German aerospace industry generated more than $44.5 billion in revenue in 2018. The aerospace industry is also a major consumer of hand tools, thus driving the growth of the European hand tools market.
The advanced industrial growth in developed countries such as the United States and Germany has attracted the attention of manufacturers of hand tools and accessories worldwide. The stable footholds of various brands in the German market have strengthened the reliance on hand tools in the production and assembly of automobiles, aerospace, and other products, which has prompted hand tool manufacturers to introduce advanced and efficient tools and accessories.
Due to the increase in labor costs in developed countries such as the United States, Canada, and the United Kingdom, more users are inclined to DIY culture, increasing the demand for household hand tools, and more and more consumers are adopting self-service methods for assembly and maintenance at home. In addition, through the emergence of technology, manufacturers can manufacture simple and convenient home devices to provide consumers with a better user interface experience.
The rise of the DIY culture has further enhanced the influence of expert repair tutorials and promoted consumers' preference for household tools and equipment for repair and modification. Increasing demand for convenient furniture and hand tools with easy assembly and disassembly functions has also been a driving force for the growth of the hand tool market in recent years.
In addition, in developing countries including India and China, the use of hand tools has increased, among which traditional equipment is used. This change in consumer preferences is due to the influence of Western culture and the increased costs of repairing things at home, as well as repairs and modifications. In addition, the shortage of skilled labor in developing countries has increased the use of hand tools in the household sector.
It is expected that in the next few years, the availability of various multi-function tools that can meet a variety of customer needs will also increase the demand for household hand tools. In addition, with the advancement of technology, manufacturers can use different raw materials, such as iron, wood, black metal, and steel, to develop durable string tools. Manufacturers are focusing on developing practical tools that are easy to carry to meet the greatest needs of customers.Hand tool product insights
General hand tools, such as screwdrivers, chisels, pliers, drilling, various gardening equipment, and others account for more than 30.0% of the market share. The global market demand for these hand tools in 2018 has been increasing. It is expected that general hand tools will appear during the forecast period. The fastest growth. To cater to small-scale maintenance and repairs in their own homes, single women will also create market demand. In addition, the increasing popularity of home gardening as a hobby is expected to drive product demand.
Compared with a few years ago, today’s feature-rich hand tools enable electricians to work more efficiently, comfortably, and safely, thereby increasing productivity, improving work quality, reducing fatigue, and reducing joint and muscle wear. Today's electricians need ergonomically designed tools with padded handles that can be held comfortably in their hands and maximize the transfer of muscle power to their work. They need tools that are lightweight, strong, and durable. They also need tools that can provide them with a wide range of security close to hotlines and connections.
The development trend of Taiwan hand tools
- Trend 1: To create an international channel
Since hand tool products have the characteristics of low unit price and high brand recognition, and Taiwan’s domestic demand market is small, the only way to expand outward is to master international channels. In the future, we can combine the application of IoT and App, introduce smart management, and create more diversified sales channels for the hand tool industry.
- Trend 2: Meets Consumer Needs
From "manufacturing" to "consumer needs" as the core thinking. To expand the hand tool market, it is not only necessary to know the OEM production technology, but also to be consumer-oriented, to establish differentiation and uniqueness to open new markets such as the youth and female hand tool market, which can strengthen brand marketing and design aesthetics. Carry out industrial transformation and upgrading.
- Trend 3: Team battle strategy layout
Hand tools are the most difficult item to establish a brand among all industrial products. To compete with well-known European and American companies, it is necessary to integrate industry resources and adopt a strategy of team warfare.
- Trend 4: High value towards the professional market
Since Taiwan’s traditional hand tool manufacturing capabilities are quite mature and there is limited room for improvement, the industry must first strengthen its physical fitness and advance into the professional market before developing high-quality products or entering the industry 4.0 manufacturing process. In the current era of global competition and meager profits, product cycles are shortened, and the demand for customization is greatly increased. The living conditions of enterprises are more stringent, and the use of ICT technology has become the first choice of many businesses for value-added transformation. In response to the specialized needs of the market, including medical equipment, aerospace, digital, 3C, gardening, vehicles, and construction special tools, there are great business opportunities. These fields have high requirements for products such as lightweight, precision, and composite functions, and the unit price and profit are also high. Higher is the direction that the industry can deepen in the future.