Tools & Hardware

The Tools & Hardware industry is a dynamic sector encompassing a wide range of products, serving construction, manufacturing, automotive, DIY, and home improvement markets. The global hardware tools market is projected to reach USD 29.65 billion by 2032, with a CAGR of 5.2% from 2025. The global tools market is expected to grow at a CAGR of 5.7% from 2024 to 2030.

The Tools & Hardware industry is influenced by economic indicators such as construction and infrastructure growth, consumer behavior with a rising interest in DIY activities, and technological developments like cordless tools and smart technologies. Regulatory changes related to safety and environmental concerns, as well as tariffs on raw materials, also impact the industry.

The Tools & Hardware industry serves construction & infrastructure, automotive & transportation, industrial manufacturing, and DIY & home improvement sectors. The power tool market is concentrated with key players like Stanley Black & Decker, Robert Bosch GmbH, Techtronic Industries (TTI), Makita Corporation, and Hilti Corporation, while the hand tool market includes brands like Bahco, Knipex, Stanley, Irwin, Craftsman, Husky, and Klein Tools. Business models involve distribution to retailers and end-use industries, often leveraging digital platforms.

The US tool and hardware wholesaling industry has grown at a CAGR of 2.6% between 2020 and 2025, reaching an estimated $104.8 billion in 2025. The global hardware tools market is projected to grow at a CAGR of 5.2% from 2025 to 2032, and the global tools market is expected to grow at a CAGR of 5.7% from 2024 to 2030. Power tool sales have been sluggish recently, but the market is expected to recover in 2026. The industry's outlook remains positive, driven by urbanization, industrialization, and the adoption of cordless and smart tools, with Asia Pacific expected to exhibit the fastest growth.

The Tools & Hardware industry faces risks including sensitivity to economic cycles, commodity price volatility, and geopolitical factors affecting supply chains. Tariffs and trade disputes can disrupt access to components and increase costs. Other challenges include intense price competition, short product life cycles, and the need for significant R&D investments.