Industrial application segment to witness significant increase in market share over the forecast period
Industrial use of hand tools includes hand tools deployed in the manufacturing of products and construction and renovation activities. In 2017, the industrial segment by application is estimated to account for more than 55% share of the global hand tools market, while by the end of 2027 the segment is expected to account for a little more than 60% share of the global hand tools market. The industrial segment is projected to witness an increase in Y-o-Y growth from 2017 to 2020, due to increase in construction and renovation activities globally. The segment is anticipated to account for a market value of more than US$ 9,000 Mn in 2017 and is anticipated to be valued in excess of US$ 12 Bn by 2027 end, expanding at a CAGR of 3.9% during the projected period.
Increasing number of new construction and renovation activities worldwide likely to fuel the development of the industrial segment
There has been a rise in the number of major manufacturing plants and industries wherein hand tools are widely used for maintenance purposes. Increased demand for professional hand tool kits among industrial professionals is leading to a growth in the industrial segment. Industrial expansion across the globe is expected to create a positive impact on the industrial application segment of the global hand tools market. Emerging demand for hand tools in the automotive repair and maintenance sector is further expected to fuel the progress of the industrial segment in the global hand tools market. With the rapid growth of the global automobile market, the development of the industrial segment has also been augmented. The growth of the segment is not restricted to a particular region, as the automobile industry is flourishing across the world. Increasing consumer spending ability and per capita, disposable income is also creating a positive impact on the industrial segment. The increase in technical jobs and employment is a great opportunity for the hand tools market to expand in terms of quality and pricing, as professionals use high-end tools and are willing to pay more for such products. This factor is driving the growth of the industrial segment.
Industrial segment is expected to witness a rise in the growth rate in the MEA hand tools market during the predicted period
From a regional perspective, the industrial segment by application is expected to reach a market value of more than US$ 2,000 Mn in 2017 in the North America hand tools market. The region continues to be a good market at present and the trend is expected to continue over the projected period. Among the various countries in the Asia Pacific, India and China are predicted to play an important role in driving the progress of the industrial segment due to various factors such as rapid technological advancement and low labour and operational costs. The industrial segment is likely to expand at the highest CAGR of 5% during the forecast period in the MEA region, due to the expansion of industries. Industrial expansion witnessed in the emerging economies of Eastern Europe is anticipated to drive the growth of the industrial segment between 2017 and 2027. The industrial segment is expected to emerge as the most attractive segment over the period of assessment in Japan. In APEJ, the industrial segment is projected to expand at a higher CAGR primarily due to increase in construction activities and the rise of the automobile repair and maintenance sector in the region.