U.S. Hand Tools Market - Industry Outlook and Forecast 2022-2027

U.S. Hand Tools Market - Industry Outlook and Forecast 2022-2027

The US hand tools market is expected to grow at a CAGR of 3.59% during the forecast period 2022-2027

Hand tools are the most conventional and inevitable equipment in the tools industry even today amid the surge in competition with the power tools market. Despite the prominence of sophistication and technological impact, hand tools play a crucial role in every household and industrial activity. The consistent growth in the adoption of hand tools over the past few years owing to their performance and productivity signifies the niche probability of them being completely replaceable. The affordability, widespread presence, and proven efficiency ratio fuel the US hand tools demand. Rising home renovations and DIY activities are expected to surge the demand for hand tools in the United States.

Key Winning Imperatives in the U.S. Hand Tools Market

• Home Depot, Lowes, and Amazon nearly account for 50% of U.S. hand tool sales.
• The United States is the biggest importer of hand tools.
• The US construction industry is expected to grow at a CAGR of 4.7% between 2021 and 2025. Hence, the demand for hand tools can be high in the construction sector.
• With normalizing cases of COVID-19 in several countries, the opening of manufacturing and commercial activities resulted in a gradually increasing demand for hand tools.

MARKET DYNAMICS: KEY TRENDS, DRIVERS, AND RESTRAINTS

Rising Home Renovation and DIY Activities

In the US, most adults indulge in creative and purposeful leisure activities. Some consumers also invest in home improvement and maintenance activities based on their interests. In the US, consumers consider DIY activities a significant hobby. This has driven the growth in hand tools like chisels, hammers, and screwdrivers for domestic household activities, home improvement, repairs, woodwork, and gardening work.

Increasing Wind and Solar Energy Installations

Hand tools are one of the major components required to assemble and maintain solar units and wind turbine installations. The drive towards more carbon-free power generation means that wind turbine manufacturers, installers, and maintenance crews will witness an increasing workload and a growing need for hand tools and equipment.

Growing Demand from Construction Industry

The world is witnessing new developments and market trends in the construction industry. The global construction market is expected to grow to $15.21 trillion by 2030, where more than 55% of the growth is contributed by the US, China, and India. This, in turn, reflects the high growth potential for sales growth in these countries. The growing population, rising demand for public construction activities, and growing foreign investments in construction sectors are expected to fuel the development of the US hand tools during the forecast period.

The rise in Automation to Affect the Market

Conventional hand tools face the threat of being extensively replaced by power tools across geographies. This can be more prominent in developed economies. While the dominance of power tools has been more predominant in the recent past, the venture of cordless power tools has reshaped the face of the power tools industry. One of the most prominent growth enhancers for the cordless power tool segment is associated with the development of Li-ion batteries over the past decade.

SEGMENTATION ANALYSIS

The general-purpose tools industry is expected to dominate the U.S. hand tools market. The type of hand tools being used is highly dependent on power tools and the nature of the work being carried out. For instance, fastening tools like drivers, riveters, and wrenches are utilized for personal and professional purposes, which, in turn, is driving consistent new and replacement demands. The volume of work carried out by fastening tools, striking tools, and pry bars has even penetrated DIY enthusiasts and home improvement activities, which can fuel the replacement demand depending on the intensity of the workload. Further, they tend to be the essential tool kits required for renovation and industrial works. General-purpose tools are frequently bought in tools sets and kits extensively utilized by plumbers, electricians, and mechanics.

The industrial end-user segment was the most significant revenue contributor to the U.S. hand tools market in 2021, and this trend is likely to continue throughout the forecast period. Hand tools are widely used in automotive, aerospace, electronics, energy, construction, shipbuilding, and other industries. The construction sector is estimated to be the highest revenue generator due to the rising construction and renovation activities across the region, followed by the automotive sector, involving high-precision parts assembly.

The Southern US holds a significant share in the US hand tools market due to the most extensive population base, which has resulted in a higher number of housing units and growth in the real estate, tourism, and hospitality sectors. Also, the considerable surge in disposable income in the region has created a high demand for hand tools in the Southern region. The Southern part accounts for the highest population in the US and is further rising continuously. The number of residential housing units is increasing rapidly insignificant states such as Texas, Florida, Georgia, Carolina, Arizona, and Oklahoma. Therefore, it drives the demand for various types of hand tools products in the region, owing to the new construction in the residential sector.

• General Purpose Tools
• Pilers
• Wrenches
• Screwdrivers & Nutdrivers
• Hammers
• Wrecking Bars
• Riveters
• Clamps & Vises
• Rachets & Sockets
• Cutting Tools
• Saws
• Chisel & Files
• Knives & Blades
• Cable & Wire Cutting Tools
• Taps & Dies and Layout & Measuring Tools
• End-User
• Industrial

 Construction

 Automotive

 Aerospace

 Electronics

 Energy

 Shipbuilding

 Others

• Commercial
• Residential
• Geography
• US

 South

 West

 Northeast

 Midwest

COMPANY & STRATEGIES

The U.S. hand tools market is characterized by low market concentration and high competition among the major players. The present scenario drives vendors to alter and refine their unique value propositions to achieve a strong industry presence. Many other vendors provide products with similar specifications like length, width, TPI, and cutting techniques at low prices. This will likely intensify the price war among vendors during the forecast period. The industry is characterized by the presence of diversified global and regional vendors. As international players increase their footprint in the market, regional vendors are likely to find it increasingly difficult to compete with these global players. The competition will be based solely on durability, safety, lifespan, tool performance, price, and customization.

Key Vendors

• Stanley Black & Decker
• Techtronic Industries Company
• Snap-on
• Apex Tool Group
• Emerson

Other Prominent Vendors

• Robert Bosch GmbH
• Klein Tools
• JCBL India
• Channellock
• Kennametal
• IDEAL INDUSTRIES
• Leatherman
• Ningbo Great Wall Precision Industrial
• PILANINA
• Wurth
• Tajima
• PHOENIX CONTACT
• Stiletto
• Vaughan Manufacturing
• Estwing
• Lowell Corporation
• Bojo
• Wiha
• Daniels Manufacturing Company
• Mac Tools

KEY QUESTIONS ANSWERED

1. HOW BIG IS THE U.S. HAND TOOLS MARKET?

2. WHAT IS THE GROWTH RATE OF THE U.S. HAND TOOLS MARKET?

3. WHICH REGION IN THE US HOLDS THE LARGEST SHARE IN THE U.S HAND TOOLS MARKET?

4. WHO ARE THE KEY PLAYERS IN THE U.S. HAND TOOLS MARKET?

5. WHAT ARE THE GROWTH FACTORS DRIVING THE MARKET DEMAND?