Tools Market Research, 2032
The Global Tools Market size was valued at $91.8 billion in 2022, and is projected to reach $153.2 billion by 2032, growing at a CAGR of 5.2% from 2023 to 2032. Tools encompass a wide range of manually and externally powered tools such as hand tools, and power tools, including garden tools. Hand tools are operated manually for cutting, gripping, and shaping metal, wood, or other materials. On the other hand, power tools are powered through electricity, or via pressurized air. Power tools make it easier for the operator to perform any task with less effort, thereby increasing productivity. Together these tools enable a range of tasks in woodworking, repair & renovation, and maintenance applications, along with various others.
Market Dynamics
The Tools Market is primarily driven by various factors such as rise in construction activities, rise in small-scale industries involved in metal fabrication, growth in demand for furniture and other wooden items, and rise in DIY culture along with home renovation and improvement trends. In these industries, tools are used for a variety of applications including drilling, hammering, sawing, grinding, and others.
According to UN forecasts, the world population is expected to increase from 8 billion in 2023 to 9.7 billion by 2050. Countries in the Asian and African continents are projected to play an important role in the global population growth and urbanization. This will lead to overcrowding of the cities in the world, which will require new buildings to be constructed along with other public infrastructure. For example, owing to overcrowding in the capital city Jakarta, Indonesia, government officials have planned to shift its capital to Nusantra, where several new buildings will be constructed. Similarly, in March 2023, the government of India considered a proposal to build eight new cities across the country, which may cost more than $360 million.
Furthermore, residential, and commercial buildings such as shopping malls, hospitals, schools, and others are also being constructed across the globe. For instance, as of January 2023, a well-known building developer ‘Triple Five Group’ has planned to construct American Dream Mall near Everglades National Park in Florida. Furthermore, during construction, different big and small power and manual tools such as drills, material removal, saws, wrenches, demolition, hammers, and others are used in large numbers. Moreover, once the building has been constructed and finished, garden tools such as shears and pruning tools, striking tools, digging tools, blowers, land mowers, and others are used for creating and maintaining gardens.
Thus, owing to an increase in demand for tools, major companies are expanding their production capabilities as well as opening new facilities in different parts of the world. For instance, in August 2022, Milwaukee Tool inaugurated its newest tool manufacturing plant in West Bend, Wisconsin, U.S. Thus, the rising number of buildings across the world is driving the growth of the global tools market. Moreover, demand for furniture is also increasing, as it is a primary need of any office and home.
Commonly used furniture such as chairs, beds, tables, cabinets, and others are widely made using wood as well as other materials such as metal, and plastic. However, furniture made with wood is in high demand owing to its various features such as durability, premium appeal, high resale value, environment friendliness, and many more. Since, hand and power tools are extensively used for making furniture, the growing demand for furniture is also expected to have a positive influence on the tools market growth.
However, fluctuating cost of raw materials used for making hand and power tools is expected to restrain the market growth. Fluctuations in the prices of raw materials can affect the sales of the tool market. Even if the manufacturer does not increase the price, it is expected to affect the profitability of the company involved in making tools and their components.
Moreover, technological advancement is a tools market opportunity which is expected to positively influence the growth of the key market players. For example, technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), cloud connectivity, and others are also being incorporated into the power tools. Milwaukee Tool, a major power tools manufacturer, offers tools having sensors, software, and AI modes, allowing those tools to be efficiently controlled and monitored using the smartphone app. Furthermore, in 2021, Hilti unveiled its Nuron battery technology, which allows for effective and productive use of the battery. Such factors are expected to positively influence the tools market overview.
The tools market is witnessing various obstructions in its regular operations due to COVID-19 pandemic and inflation. Earlier, the worldwide lockdowns resulted in reduced industrial activities, eventually leading to reduced demand for tools from various sectors such as construction and industrial . However, the COVID-19 has subsided, and the major manufacturers in 2023 are performing well. Contrarily, the rising global inflation, is a new major obstructing factor for the entire industry. The inflation, which is a direct result of the Ukraine-Russia war, and few long-term impacts of the coronavirus pandemic, has introduced volatility in the prices of raw materials used for manufacturing tools.
In addition to this, the cost of oil & gas has also increased substantially, and many countries;, especially, the countries in Europe, Latin America, and developing economies in Asia-Pacific are experiencing severe negative impacts in the industrial production, including the production of tools. However, India and China are performing relatively well. In addition, inflation is expected to worsen in the coming years, as the possibility of the ending of the war between Ukraine and Russia is less. Moreover, the cost of construction has risen substantially, discouraging builders from initiating new projects, which is also expected to negatively affect the tools market growth. However, with the continued talks between different countries, a peace agreement between Ukraine and Russia can be devised.
Segmental Overview
The Tools Market is segmented on the basis of category, distribution channel, end-user, and region. By category, the market is bifurcated into indoor hand tools and power tools. Furthermore, the hand tools segment is further categorized into striking tools, garden tools, and others. Depending upon the distribution channel, the market is categorized into in-store and online. On the basis of end user, it is divided into DIY (Do it Yourself), and industrial & commercial. Region wise, it is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, Italy, UK, and rest of Europe), Asia-Pacific (China, India, Japan, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
By Category:
The tools market is bifurcated into indoor hand tools and power tools. Furthermore, the hand tools segment is further categorized into striking tools, garden tools, and others. In 2022, the power tools segment dominated the tools market share, in terms of revenue, and the hand tools segment is expected to grow with a higher CAGR during the forecast period. Power tools are driven by external power sources such as electricity or compressed air, which enable an operator to give more output at a higher efficiency. On the other hand, the reason behind the higher CAGR of hand tools is attributed to its lower price, making it a primary choice for DIY individuals.
By Distribution Channel:
The Tools Market is divided into in-store and online. In 2022, the in-store segment dominated the tools market, in terms of revenue, and the online segment is expected to witness growth at a higher CAGR during the forecast period. Items purchased from a physical store can be properly inspected before buying; thus, customers can easily ensure the appropriate quality of the hand and power tools. In addition to this, the lead time from placing the order for tools and receiving them is effectively zero; thereby driving the growth of this segment. On the other hand, the high CAGR of the online segment is attributed to the availability of a large variety of tools along with a high volume of inventory. In addition, demand for large consignments can also be placed, which is not possible to buy from an offline store with a limited inventory.
By End User:
The tools market is divided between DIY, and industrial & commercial. The industrial & commercial segment accounted for a higher market share in 2022. This is attributed to growing demand for tools from tool furniture industries, metal fabrication industries, the construction sector, and repair and renovation, including others. However, the DIY segment is anticipated to register a higher growth rate throughout the forecast period, owing to the increasing cost of repairs and maintenance of home fixtures such as pipes, sinks, doors, electric points, and others. Furthermore, repairing own home brings a sense of attachment to the home, which is also a major emotional attribute driving the DIY culture.
By Region:
North America accounted for the highest market share in 2022 and Asia-Pacific is expected to grow with a higher CAGR throughout the projected period. North America is witnessing a rapid rise in construction activities in the major cities. For instance, according to the data from the U.S. Census Bureau, the spending in the construction sector increased from nearly $1,200 billion in January 2017, to nearly $1,600 billion in January 2023. The construction sector is a major user of power and hand tools, thus rise in the construction sector is expected to boost the tools market growth.
Moreover, the DIY culture in the U.S., and Canada is also positively affecting the market growth. According to the data published by Harvard Joint Center for Housing Studies in 2021, around $797 is spent each year on do-it-yourself (DIY) projects by an average homeowner in the U.S. On the other hand, this expansion of the tools market in Asia-Pacific is attributable to rapid economic growth, and population growth, in countries such as China, India, Vietnam, and Indonesia, which eventually is expected to drive demand in the construction sector.
Competition Analysis
Competitive analysis and profiles of the major players in the tools market are provided in the report. Major companies in the report include Makita Corporation, Armstrong tools Inc., Snap-on Incorporated, Koki Holdings Co. Ltd., Hilti Corporation, Falcon Garden Tools, Bully Tools, Husqvarna Group, Robert Bosch GmbH, and Stanley Black and Decker Inc. Major players to remain competitive adopt development strategies such as product launch, business expansion, acquisition, and others. For instance, in December 2021, Makita UK, a power tool manufacturer launched a new cordless angle drill and a cordless earth auger.
Key Benefits for Stakeholders
- The report provides an extensive analysis of the current and emerging tools market trends and dynamics.
- In-depth tools market analysis is conducted by constructing market estimations for key market segments between 2022 and 2032.
- Extensive analysis of the tools market is conducted by following key product positioning and monitoring of top competitors within the market framework.
- A comprehensive analysis of all the regions is provided to determine the prevailing opportunities.
- The tools market forecast analysis from 2023 to 2032 is included in the report.
- The key players within the tools market are profiled in this report and their strategies are analyzed thoroughly, which helps understand the competitive outlook of the tools industry.
Tools Market Report Highlights
| Aspects | Details |
 Market Size By 2032 | USD 153.2 billion |
 Growth Rate | CAGR of 5.2% |
 Forecast period | 2022 - 2032 |
 Report Pages | 253 |
 By Category |
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 By Distribution Channel |
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 By End User |
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 By Region |
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 Key Market Players | Falcon Garden Tools Ltd., Snap-on Incorported, Hilti Corporation, Stanley Black and Decker Inc., Makita Corporation, Robert Bosch GmbH., Husqvarna AB, Armstrong Tools Inc, Bully Tools, KOKI HOLDINGS Co., Ltd. |
Analyst Review
The tools market has witnessed significant growth in the past few years owing to increase in construction activities, home renovation activities, the rise in culture of do-it-yourself, the rise in small-scale industries, and the rise in other end-users.
Hand tools are being made for centuries and have been the only option available to the professionals such as carpenters, gardeners, metal fabricators and others However, with the advent of technology, powered tools were introduced to the world, which were more efficient and productive. Yet, it is crucial to mention that the place of hand tools is still reserved, and powered tools are not going to replace them soon, both tool types have their pros and cons.
Moreover, key players are constantly innovating their products by incorporating new technologies; however, they must do so in a gradual manner, as majority of professionals find it difficult to accommodate the newer technology. For instance, Steve Matson, Director of Product for Milwaukee Tool One-Key, was skeptical of bringing wireless connectivity to the powered tools. He thought it will only introduce more complexity to the existing machinery. In addition, the project did witness some difficulties, which gradually subsided. Thus, companies must be careful during the introduction of new technologies in their products.
The global tools market is highly fragmented and competitive, as a large number of small and big firms are involved in offering tools of various kinds. Specialized tools such as drills, demolition tools, leaf blowers, and others are made by large firms, however, their cheap alternatives with relatively lower quality are easily available in the market. This highly competitive nature of the market makes it difficult for new entrants to find a place for them in the market. This is expected to have a negative impact on market growth.
The rise in the number of small-scale industries, the rise in the trend of home and building renovation, and the rise in construction are expected to be the upcoming trends of the tools market.
Tools are extensively used for various applications in the construction sector, industrial sector, and others.
North America is the largest regional market for tools in 2022.
Asia-Pacific is expected to grow with a higher CAGR.
The global tools market was valued at $91,834.3 million in 2022.
The global tools market is projected to reach $1,53,186.6 million by 2032, registering a CAGR of 5.2% from 2023 to 2032.
Major companies in the tools market are Makita Corporation, Armstrong tools Inc., Snap-on Incorporated, Koki Holdings Co. Ltd., Hilti Corporation, Falcon Garden Tools, Bully Tools, Husqvarna Group, Robert Bosch GmbH, and Stanley Black and Decker Inc.
The company profile has been selected on factors such as geographical presence, market dominance (in terms of revenue and volume sales), various strategies and recent developments.
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