Asia Pacific Power Tools & Hand Tools Market Size, Share & Trends Analysis Report By Product (Power Tools, Hand Tools), By Application (Industrial, Residential), By Mode Of Operation, By Country And Segment Forecasts, 2024 - 2030

Market Size & Trends

The Asia Pacific power tools & hand tools market size was estimated at USD 20.71 billion in 2023 and is expected to grow a compound annual growth rate (CAGR) of 6.3% from 2024 to 2030. The market growth is attributed to the increasing government investments in construction projects for infrastructure development of industries such as automotive, railways, oil & gas, and aerospace & defense, which are expected to drive the market growth in Asia Pacific.

China has several manufacturing companies that are attracted to establishing their facilities in the country on account of various factors, such as low labor costs, robust business environment, low customs & taxes, and lack of regulatory compliance. This has resulted in the presence of a well-established manufacturing sector in the country with production facilities for several industries, such as electronics, machinery & equipment, automotive, chemicals, energy, medical, and aerospace. This, in turn, has increased the demand for power & hand tools in the country.

Power & hand tools are manufactured using different technologies. The manufacturers of these products typically use large milling machines, lathes, jig borers, grinding machines, and others, to produce hand & power tools. Several manufacturers utilize computer-aided designing (CAD) and computer-aided manufacturing to complete their production processes to develop efficient hand & power tools with enhanced functionalities. In addition, manufacturers offer Original Equipment Manufacturer (OEM) & Original Design Manufacturer (ODM) services to customize these products according to customers' specifications.

A decline in average prices of hand tools is expected to drive the adoption of hand tools in both industrial and residential sectors. Moreover, the rising popularity of lithium-ion battery-based devices is anticipated to favor the market of power tools in Asia Pacific over the forecast period.

However, the lifespan of power tools depends on the frequency of use, the type of operations carried out by them, and their exposure to outdoor environments. Extensive usage, heavy-duty operations, and dust exposure can potentially lead to excessive wear and tear of power tools. In such circumstances, the maintenance costs of these tools may even exceed 50% of their replacement value. This acts as a restraint to the adoption of power tools in Asia Pacific.

Application Insights

Based on application, the industrial segment accounted for the revenue share of 59.5% in 2023. Segment growth is attributed to the increasing demand for power & hand tools across aerospace, automobile, energy and power, and construction sectors. Power & hand tools have significant applications in the automotive industry to create, shape, maintain, and assemble different components to produce automobiles.

Hand and power tools are used in various construction projects for drilling, shaping, cutting, heating, painting, routing, grinding, and sanding. Government initiatives to modernize aging infrastructure along with transit, commercial retrofit buildings, and the transportation sector are anticipated to drive the segment growth over the forecast period.

Residential segment is expected to witness the fastest CAGR of 6.7% from 2024-2030. The residential segment includes residential buildings, apartments, complexes, and small houses. Power & hand tools are essential components of many residential projects where they are used by professionals and homeowners alike to improve and upgrade homes. From a small DIY project to a large-scale renovation, power tools provide individuals with the ability to complete a wide range of tasks around the house. One of the primary advantages of power tools in the residential industry is their efficiency. Power tools significantly reduce the amount of time and effort required to complete a task, from drilling holes to cutting wood. By improving the speed and accuracy of work, professionals can complete projects more quickly.

Market Dynamics

The demand for power tools & hand tools is anticipated to witness notable growth in Asia Pacific during the forecast period owing to the flourishing construction industry across the region. These products typically include power drills, impact wrenches, saws, hammers, screwdrivers, wrenches, grinders, and others, which are used for cutting, drilling, and plumbing operations, as well as for polishing materials. Power & hand tools simplify heavy-load tasks with enhanced operational efficiency. Hence, they are extensively used in industrial, residential, and commercial applications.

Do-it-yourself (DIY) projects facilitate individuals of all age groups, including residents, hobbyists, enthusiasts, and professionals, to maintain, repair, and remodel their homes and household appliances for home improvement. The changing behavior of consumers toward the purchase of high-technology tools and their growing preference for DIY projects are further fueling the growth of the market in Asia Pacific.

Product Insights

Power tools segment dominated the market with a revenue share of 61.3% in 2023 and are further expected to grow at the fastest CAGR of 6.5% over the forecast period. Power tools are used for many purposes, including driving fasteners, cutting, grinding, sanding, drilling, painting, polishing, routing, shaping, and heating. It is used in various industries, such as construction, gardening, housework, automotive, aerospace & defense, oil & gas, and railways, to perform all the above tasks. They are considered highly powerful and help complete tasks much faster than hand tools. This is fueling their demand in the Asia Pacific. In addition, the tool provides exceptional accuracy for recurring tasks like drilling and cutting.

Power tools & hand tools accessories include many products such as drill bits, saws, sandpapers, router bits, grinding wheels, saw blades, power tool stands, jig saw blades, and battery packs & chargers. Companies such as Robert Bosch Tool Corporation, Ingersoll Rand, Inc. (Gardner Denver), Positecgroup.com, and Techtronic Industries Co. Ltd. are offering various power & hand tools accessories to their customers in Asia Pacific.

Every tool includes a range of attachments that work together to complete specific tasks, whether it is used for drilling, hammering, cleaning, or polishing. These components are interchangeable, attachable, and designed to improve the overall usefulness of power or hand tools.

Mode Of Operation Insights

Based on mode of operation, the electric segment accounted for the largest revenue share of 66.1% and is projected to grow at the fastest CAGR of 6.7% from 2024 to 2030. Electric power tools are the most common types of power tools used in a wide range of industries. These tools are incorporated with electric motors and are convenient and easy to use.

Surging usage of electric power tools in industrial settings as they are environment friendly is fueling the market growth for them. Moreover, development of new battery technologies has allowed the production of highly efficient cord and cordless electric power tools, resulting in increased demand for them in various industries.

Other segments of the power tools market include hydraulic and pneumatic power tools. Hydraulic power tools use hydraulic power for their operations. They are designed to carry out high-performance cutting, drilling, or bending processes while offering ease of use and high durability. In addition, they use hydraulic systems, which comprise fluids, reservoirs, hydraulic pumps, electric motors, valves, and hydraulic cylinders, for their operations.

Pneumatic power tools use compressed air for their operations. They are commonly used in various industries and include air-powered drills, grinders, sanders, staplers, and nail guns. The use of compressed air by pneumatic power tools for their operations leads to their lightweight, easy handling, and durability.

Country Insights

China dominated the market with a revenue share of 45.7% in 2023 and is further expected to grow at a CAGR of 6.5% over the forecast period. The Chinese construction industry has contributed to the growth of the manufacturing sector owing to the growing need for industrial and commercial spaces on account of rapid urbanization and increased population. This is expected to propel the demand for power & hand tools in a country over the forecast period.

India is anticipated to grow at the fastest CAGR of 7.0% over the period. The Indian market serves as a central manufacturing hub for many industries, such as automotive, consumer goods, textiles, and electronics, which maintains the demand for power & hand tools in the country. In addition, the country’s aim of becoming self-sufficient and being less reliant on imports is also boosting the establishment of more industries, therefore increasing production and requirement of commercial spaces, which is expected to affect the Indian power tool & hand tool market positively.

Rise of the oil & gas, automotive, rail, aerospace & defense, and construction industries is expected to drive the product demand in Malaysia. According to an article published in the New Straits Times, the local upstream oil and gas sector in Malaysia is expected to rise owing to increasing oil prices. In January 2023, oil prices were at an average of USD 88 per barrel (bbl), which encourages oil companies to maintain capital expenditure (capex) and operating expenditure (opex) plans.

Japan’s aerospace industrial market is highly globalized and experienced in Asia and a major manufacturer of parts, components, and systems for the international commercial aviation sector. In addition, the government of Japan is focusing on encouraging various small- and medium-sized aircraft manufacturers to develop business and commercial aircraft to ensure the technical and economic development of the country. This is anticipated to result in increased production of aircraft in Japan, thereby leading to the growth of the market in the coming years.

Key Companies & Market Share Insights

The key players operating in the Asia Pacific power tools & hand tools industry include Makita Corporation, Emerson Electric Co., Hilti Corporation, Stanley Black & Decker, Koki Holdings Co., Ltd., Apex Tool Group, and Tapariatools.

The market is highly competitive with the presence of international players. Besides these, domestic manufacturers are also gradually shifting their business model from OEM to independent brand production. The market participants are engaged in product enhancements, partnerships, and mergers & acquisitions to gain a competitive edge in the highly competitive market.

In October 2023, Apex Tool Group announced the launch of new products under the SATA beryllium bronze explosion-proof tool series. This development would attract more customers from industries such as chemicals, petroleum, oil & gas, coal, military, nuclear power, aviation, pharmaceuticals, and explosive disposal.

Asia Pacific Power Tools & Hand Tools Market Report Scope

Asia Pacific Power Tools & Hand Tools Market Report Segmentation

This report forecasts revenue growth at regional & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the Asia Pacific power tools & hand tools market report based on product, mode of operation, application, and country:

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Power Tools

    • Drills

    • Saws

    • Wrenches

    • Grinders

    • Sanders

    • Others

  • Hand Tools

    • Wrenches

    • Screwdrivers

    • Other hand tools

  • Power Tools & Hand Tools Accessories

• Mode of Operation Outlook (Revenue, USD Billion, 2018 - 2030)

  • Electric

    • Corded

    • Cordless

  • Others

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Industrial

    • Oil & Gas

    • Automotive

    • Rail

    • Aerospace & Defense

    • Construction

    • Others

  • Residential

• Country Outlook (Revenue, USD Billion, 2018 - 2030)

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Singapore

    • Malaysia

    • Thailand

    • Indonesia

    • Philippines

    • Vietnam