China Power Tools & Hand Tools Market Global Analysis & Forecast Report 2028

Posted on 2022-09-14 by researchinsights in Internet & Online // 0 Comments

China Power Tools & Hand Tools Industry Overview

The China power tools and hand tools market size was valued at USD 7.53 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 6.7% from 2021 to 2028.

In terms of volume, the market is projected to reach 224.7 million units by 2028. The growth can be attributed to growing domestic consumer spending on construction, the rising popularity of Do-It-Yourself (DIY) and Do-It-for-Me (DIFM) for home improvement, and a notable rise in infrastructure development projects under the One Belt One Route (OBOR) initiative. Additionally, rapid industrialization and the surge in the number of construction projects in Guangdong, Jiangsu, and Zhejiang provinces could also bode well for the market growth over the assessment period.

Gather more insights about the market drivers, restrains and growth of the China Power Tools & Hand Tools Market

The Chinese power tools and hand tools market faced a decline in sales in Q1/2020 in the wake of the COVID-19 pandemic. However, the market gradually recovered over the rest of the year. The resumption of construction activities, expansion of the rail network, and the announcement of a fiscal package by the Chinese government to develop public infrastructure were some of the factors that offset the impact of the pandemic. Moreover, the increased purchase of power and hand tools through e-commerce platforms has helped the market recover from the impact of the pandemic to a certain extent.

China is a global manufacturing hub and presents an enormous demand for power tools to cater to the market’s mass production requirements. Power tools offer several benefits over hand tools, including the simplification of heavy workloads and increased operational efficiency, ensuring that they are extensively used in both industrial and residential environments. Newer technologies are also being incorporated to improve the efficiency of power tools. For instance, the shift from Nickel-Cadmium (NiCad) to Lithium-Ion (Li-ion) batteries is extensively capitalized by tool manufacturers to produce and commercialize products for domestic and international markets.

The rising popularity of cordless power tools is also expected to favor market growth over the next few years. This can be ascribed to an increase in demand for miniaturized products. Technological advancements in chip-making and battery technology are expected to reduce the need for corded power tools and hand tools. Though foreign brands dominate the country’s power and hand tools market, regional companies are slowly moving from OEMs to self-governed brands in the cordless space.

The ongoing trade tensions between the U.S. and China are likely to impact the prices of power and hand tools in the market. The prices of hand tools prices have declined in the last few years; however, the imposition of tariffs on raw materials such as steel and aluminum led to an increase in prices globally, which was eventually reflected in the China market. In early 2018, U.S. President Trump declared tariffs on billions of dollars worth of Chinese imports citing that unfair trade practices affect U.S.-based manufacturers. Due to these tariffs, prices of products such as power tools increased by about 10 to 25% in 2019, a trend that is expected to continue over the next two to three years.

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