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1. Overview of hardware tools
Hardware tools refer to the general term for various metal devices made of iron, steel, aluminum and other metals through physical processing such as forging, rolling, and cutting. There are many types of hardware tools. According to the use of the products, they can be divided into tool hardware, construction hardware, daily hardware, lock grinding tools, kitchen and bathroom hardware, household hardware and hardware parts.
Hand tools and power tools are the most important components of hardware tools. Hand tools, also known as hand tools and hand tools, refer to tools that are used to twist or apply force with the help of hands. They mainly include the following categories of products: wrenches, pliers, hammers, screwdrivers (screwdrivers), files, and saws. , cut etc. Power tools refer to tools driven by a power source. According to the power source, power tools can be divided into electric tools, pneumatic tools, fuel tools, hydraulic tools, etc. Power tools are mainly divided into metal cutting, grinding, assembly and railway power tools according to their uses. Common power tools include electric drills, electric grinders, electric wrenches, electric screwdrivers, electric hammers, electric drills, concrete vibrators, electric planers, etc. Hand tools and power tools are the two most widely used and valuable hardware tools.
Tool hardware classification
Tool hardware classification
Data source: Compilation of public information
2. Hardware tools industry chain
From the perspective of the industrial chain, the upstream of hand tools (including power tools) is mainly steel, non-ferrous metals, plastics and other raw materials, and the midstream is measuring tools, saws, wrenches, drilling, gardening tools and many other subcategories (according to power source , can be divided into hand tools and power tools), the downstream mainly targets construction, automobile repair, house maintenance, manufacturing and processing, etc.
Hardware tools industry chain
Hardware tools industry chain
Data source: Compilation of public information
From the upstream of the industrial chain, in recent years, the steel industry has developed rapidly driven by sufficient supply of upstream raw materials and continued growth in downstream demand, and the output of its products has also increased year by year. According to data, my country’s pig iron production in 2021 was 868.57 million tons, a decrease of 2.3% year-on-year in 2020; crude steel production was 1,032.79 million tons, a decrease of 3% year-on-year in 2020; steel production was 1,336.67 million tons, an increase of 0.9% year-on-year.
Output of main products in China’s steel industry from 2016 to 2021
Output of main products in China’s steel industry from 2016 to 2021
Data source: National Bureau of Statistics, compiled by Huajing Industrial Research Institute
Related reports: “2022-2027 China Hardware Tools Industry Market Panoramic Assessment and Development Strategic Planning Report” released by Huajing Industrial Research Institute
3. Analysis of the current situation of the hardware tool industry
1. Global market
Judging from the scale of the global hardware tool market, according to statistics, the global tool market space will reach 67 billion U.S. dollars in 2021, of which the power tool market space will be approximately 41.5 billion U.S. dollars, accounting for approximately 62%; the hand tools and other market space will be approximately 25.5 billion U.S. dollars. Yuan.
Market size of major products in the global hardware tools market from 2016 to 2022
Market size of major products in the global hardware tools market from 2016 to 2022
Data source: Compilation of public information
Asia-Pacific is the largest consumer of hardware tools, and residents of North America and Europe are the main consumer groups of high-end hardware tools. Global demand for hardware tools is mainly concentrated in North America, Europe and the Asia-Pacific region. Among them, demand in the Asia-Pacific region is mainly concentrated in countries such as China and Japan. According to statistics, in 2020, hardware demand in North America accounted for 29%, Europe accounted for 25.8%, and the Asia-Pacific region accounted for 38.6%.
Regional demand proportion of global hardware tools industry in 2020
Regional demand proportion of global hardware tools industry in 2020
Data source: Compilation of public information
2. Chinese market
As far as the domestic hardware tool market is concerned, according to relevant statistics, the domestic hardware tool market will exceed 250 billion yuan in 2021, of which the power tool market will be 187.3 billion yuan, and the power tool market will account for a relatively large proportion.
Market size and growth rate of China’s power tool industry from 2017 to 2022
Market size and growth rate of China’s power tool industry from 2017 to 2022
Data source: Compilation of public information
In terms of export status, the main export areas of Chinese products are the Belt and Road Initiative, the United States and the 28 EU countries, with the highest proportion being the Belt and Road Initiative, accounting for 28%. In the export product structure of hardware tools, the top three categories are manual products and storage, professional power tools and power tool accessories, accounting for 65% in total, with manual products and storage accounting for the highest proportion of 26%.
Distribution of China’s hardware tools export structure (unit: %)
Distribution of China’s hardware tools export structure (unit: %)
Source: China Customs, compiled by Huajing Industrial Research Institute
4. Competitive landscape of hardware tools industry
1. Market competition pattern
From the perspective of the competition pattern of the global hardware tools market, according to relevant statistics, the top five companies in global tool revenue in 2021 are Stanley Black & Decker, TTI, Bosch, Makita, Snap-on ( Snap-on), the top five will have a market share of approximately 67% in 2021, and Superstar Technology will have a market share of approximately 2.6%.
The market competition landscape of the global hardware tools industry in 2021
The market competition landscape of the global hardware tools industry in 2021
Data source: Compilation of public information
As far as the market competition landscape of the hand tool industry is concerned, there are currently more than 500 hand tool products on the market designed for different types of needs such as maintenance, repair and industrial operations. Low product manufacturing thresholds and diversified product types have also resulted in a fragmented market in the hand tool industry. The current CR3 of global hand tool manufacturers is 32.3%, of which the domestic enterprise Superstar Technology accounts for 6.2% of the market.
The market competition landscape of the global hand tools industry in 2021
The market competition landscape of the global hand tools industry in 2021
Data source: Compilation of public information
2. Operation status of Superstar Technology
Star Technology has grown into the largest hand tool company in Asia and the third largest in the world. The company’s main products include four categories: hand tools, power tools, laser measuring instruments, and storage cabinets. Judging from the company’s operating conditions, according to annual report data, Superstar Technology achieved total operating income of 10.92 billion yuan and net profit of 1.27 billion yuan in 2021. Among them, the hand tools and power tools business achieved revenue of 6.541 billion yuan and 1.021 billion yuan respectively, accounting for 59.90% and 9.35% of the revenue respectively.
Superstar Technology’s total operating income and net profit from 2013 to 2021
Superstar Technology’s total operating income and net profit from 2013 to 2021
Source: Company announcement, compiled by Huajing Industrial Research Institute
5. Future development trends of the hardware tool industry
1. The emergence and adoption of advanced and intelligent technologies drive market demand
The increasing emphasis by major power tools and OPE market players on innovation and new product development to increase differentiation and maintain competitive advantage is expected to drive further incremental growth of the industry in the future. Major market players have been launching new products equipped with advanced technologies to cater to the diverse needs and preferences of end-users. In addition, IoT, sensor or AI-enabled products are potential future growth areas due to their ability to enhance user experience. This technological advancement has the potential to increase productivity and drive demand for power tools and outdoor power equipment in a variety of usage scenarios.
2. Increased demand for professional-grade power tools
Market demand for power tools and OPE products is also expected to increase on account of growth in infrastructure and commercial construction activities, residential construction and increase in new home sales in the US market, while increasing demand for power tools from industrial projects is aiding market growth.
3. The demand for power tools in the Asia-Pacific region has increased significantly.
Global demand for hardware tools is mainly concentrated in North America, Europe and the Asia-Pacific region. Among them, demand in the Asia-Pacific region is mainly concentrated in countries such as China and Japan. From the perspective of market segments, the hand tool markets in North America, Europe, Asia, and Latin America accounted for 35%, 30%, 8%, and 6% of the global market in 2018. North America and Europe together accounted for 65% of the market. In 2020, the power tool market in Asia-Pacific, North America and Europe accounted for 33%, 26% and 30% of the global market. Compared with hand tools, the demand for power tools in the Asia-Pacific region has increased significantly. The main consumer groups of high-end products are located in developed countries such as Europe and the United States. Take the tool industry leaders Stanley Black & Decker and Chuangke Industrial as examples. In 2020, the United States and Europe together contributed 79% of the revenue of the tool & storage business segment of the former, and 92% of the latter. % of turnover is achieved in North America and Europe.
Huajing Industrial Research Institute conducted a detailed analysis of the development status of China’s hardware tool industry, market supply and demand, etc., and conducted an in-depth analysis of the industry’s upstream and downstream industry chains, corporate competition patterns, etc., to minimize corporate investment risks and operating costs, and improve Enterprise competitiveness; and uses a variety of data analysis technologies to predict industry development trends so that enterprises can seize market opportunities in a timely manner; for more details, please pay attention to “China Hardware Tools 2022-2027” published by Huajing Industrial Research Institute Industry market research and future development trend forecast report.