Analysis Development of power tools in China

In 1942, Shanghai Dawei electric machinery factory produced electric drills.

In 1954, the first professional power tool factory appeared in China.

In 1981, China's annual output was 600000 sets.

In 1989, China exported 270000 sets.

In 1992, China's annual output was 2.8 million sets.

In 2000, China's annual output was 90 million sets.

In 2004, the sales volume of electric tools has reached 205 million sets.

Made in China is increasingly synonymous with professionalism.

80% of the power tools all over the world are made in China.

China Is A Major Producer And Exporter Of Hardware Tools， China Has Become The World's Leading Power Tool Supplier.

The power tools top brand all made in CHINA.

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.

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.

Based on product, the China Power tools and hand tools market is segmented into power tools and hand tools. The power tools segment accounted for the largest market share of over 69% in 2020 and is expected to expand at a CAGR exceeding 7% over the forecast period. The rising popularity of Li-ion batteries replacing conventional batteries is expected to drive growth over the forecast period. The power tools segment is further categorized into drills, saws, wrenches, grinders, sanders, and others.

The rising popularity of power drills, notably hammer drills, is also expected to bode well for the market growth. The drills segment is expected to register the highest CAGR exceeding 8% over the forecast period. This can be attributed to their lightweight design and long battery life.

Based on application, the market has been bifurcated into industrial and residential.The industrial segment accounted for the larger market share of around 60% in 2020 and is estimated to reach USD 7 billion by 2028. The growth prospects of the segment can be ascribed to rapid industrialization and rising applications in commercial sectors, notably in construction and automotive. The industrial segment is further categorized into oil and gas, automotive, aerospace and defense, construction, rail, and others.