South Korea industrial hand tools market is projected to witness a CAGR of 4.20% during the forecast period 2024-2031, growing from USD 1.11 billion in 2023 to USD 1.54 billion in 2031. The growing construction industry in South Korea is driven by investments in residential and commercial projects, driving the demand for and hand tools used in building renovation. Due to the presence of major automakers such as Hyundai Motor Company and Kia Corporation, South Korea has a robust automotive manufacturing sector, which is driving the demand for hand tools used in car assembly and maintenance. Hand tool sales at hardware stores and online are increasing as more South Koreans follow worldwide trends and take on do-it-yourself home repair and renovation projects. The demand for hand tools in South Korea is mostly driven by the country’s continuing infrastructure projects and rapid urbanization. Reliable hand tools are becoming necessary for both personal and professional use as cities grow, and new constructions are built. With the help of government programs targeted at improving infrastructure, this tendency is anticipated to continue. Numerous exhibitions in the nation are helping the market to expand its boundaries.
For instance, in 2025, Korea Seoul Hand Tool Exhibition 2025 is going to be held in South Korea’s Seoul. The exhibition is projected to deliver information and spread awareness around latest trends, competitor dynamics, and market demand in the hand tools industry.
Thriving Automotive Sector to Fuel Market Growth
As the automotive sector continues to grow, the need for specialized hand tools used in vehicle maintenance and repair is expected to rise. Tools such as wrenches, screwdrivers, and pliers are essential for automotive technicians and DIY enthusiasts alike. The rising number of vehicles on the road drives the demand for these hand tools, as regular maintenance and repairs are necessary to ensure vehicle longevity and performance. South Korea is home to major automotive manufacturers, contributing to a robust hand tools ecosystem. The production of vehicles requires a wide range of hand tools for assembly, quality control, and maintenance. It creates a consistent demand for high-quality hand tools that can withstand the rigorous requirements of automotive manufacturing.
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Automotive companies tie up with hand tool manufacturers across the globe to deliver a better set of tools and fasteners. The major South Korean automotive giants adopt these tools to expand their market presence.
For instance, in April 2024, Sterling Tools Ltd., an automotive fastener manufacturer, signed a memorandum of Understanding (MoU) with South Korea’s Yongin Electronics. Yongin Electronics supplies components to Hyundai Motor Company and Kia Corporation. The MoU enhances Sterling’s capability to provide EV and hybrid space solutions.
Rising E-Commerce and Industrial Material Building to Garner Chinese Market
The automotive sector’s growth has spurred the expansion of e-commerce platforms for hand tools, making them more accessible to consumers. Online sales channels allow for a wider distribution of hand tools, catering to both professional mechanics and DIY enthusiasts. This shift in purchasing behavior is crucial for the hand tools market as it enhances visibility and availability. The higher presence of manufacturers and suppliers of industrial hand tools over e-commerce platforms is increasing online sales. However, international hand tool producers are expanding their distribution networks and launching new stores, supply channels, and warehouses. Companies focus on high-end research, involving local experts to design hand tools according to the native requirement for higher sales. Furthermore, the advanced research and development of industrial materials such as aluminum, steel, and others will likely cement the overall market growth.
Higher Consumption Fuel Industrial Segment Growth
Based on end-user, the industrial segment holds the major share in South Korea industrial hand tools market. Since 2023, there has been a notable shift in the manufacturing sector, and companies have strived to establish smart factories that match smart businesses. The rise of IoT and automation entails greater need for advanced equipment such as advanced industrial hand tools. With industries moving towards more complex machinery, the need for specialized hand tools that can work along these lines is increasing. The shift towards smart factories and integrating IoT and automation in manufacturing processes are increasing the need for sophisticated hand tools that can support these technologies. As industries adopt advanced machinery, the demand for specialized hand tools that complement these systems rises. In this sector, demand for hand tools mainly depends on business-to-business (B2B) spending, which accounts for over ninety percent of total spending in this sector. This implies that as manufacturing activities expand, enterprises’ procurement of hand tools is expected to facilitate their operations.
Future Market Scenario (2024 – 2031F)
1. Advancements in manufacturing technology and higher focus on precision and gripping is likely to shape South Korea industrial hand tools market.
2. The expansion of industries such as automotive, electronics, and industrial through new facilities are fueling the adoption of hand tools in the region.
3. The advent of e-commerce, easy shipping, and online presence of suppliers and manufacturers are anticipated to transform South Korea hand tools market.
Report Scope
“South Korea Industrial Hand Tools Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, that provides an in-depth analysis and qualitative and quantitative assessment of the current state of South Korea industrial hand tools market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.
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