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Tool Manufacturing in Germany - Market Research Report (2015-2030)

Nina Koefler Nina Koefler Frankfurt, Germany Last Updated: September 2025 WZ C25.73DE

Revenue

€15.1bn

2025

€15.1bn

Past 5-Year Growth

Profit

€XXX.Xm

Employees

85,942

Businesses

2,808

Wages

€X.Xbn

Tool Manufacturing in Germany industry analysis

The tool manufacturing industry has been very volatile over the past five years. Its turnover has fallen by an average of 0.4% per year since 2020. In the current year, they are likely to fall by a further 0.3% compared to the previous year to €15.1 billion. This is partly due to the continuing decline in construction activity in Germany, which is keeping demand for industry products at a low level, and partly due to the competitive disadvantage on the US market caused by the newly introduced US tariffs. The 50% tariffs on steel and aluminium imports are also hitting the tool industry hard, especially as the USA is the industry's largest export market. In addition to the construction industry, the main customers for tools are primarily found in the manufacturing sector. For example, the steel, automotive and chemical industries are among the sector's largest sales markets. Economic changes and fluctuations in the prices of raw materials required for tool production are some of the key factors that influence the development of the industry.

Although the industry is predominantly made up of small and medium-sized companies, it is characterised by a high degree of internationalisation thanks to a large number of foreign subsidiaries. Foreign trade is of great importance to the players. There is also intense competition in the industry. German manufacturers are exposed to strong competitive pressure, particularly from suppliers from Asian countries such as China. As labour costs there are significantly lower than in Germany, companies from these countries can offer the tools they manufacture at lower prices and flood the German market with products. Another current problem for industry players is that they have to contend with high import duties in their largest export market. Weakening demand at home is unlikely to compensate for sales losses on the US market.

The barriers to market entry can be categorised as high due to strong competition, regulations and the high technical demands placed on the production of high-quality tools. However, rising demand in the manufacturing and construction sectors will provide growth impetus. Industry turnover is likely to increase at an average annual rate of 3% during this period, meaning that turnover is expected to reach €17.5 billion by 2030.

Trends and Insights

  • According to the German Tool Industry Association, around 15% of global tool sales are attributable to counterfeit products. It is therefore particularly important that innovative products are protected by good brand visibility.
  • The US tariffs imposed in April 2025 will have a negative impact on the competitiveness of tool exports. The tool industry is heavily export-orientated and generates around 70% of industry turnover from exports. Companies that export tools to the USA must expect a significant decline in order volumes.
  • Baden-Württemberg accounts for a particularly large share of the industry companies in the Süd region. The Mapal Fabrik für Prüzisionswerkzeuge Dr. Kress KG, for example, is one of the companies based in this federal state.
  • Internal competition in the industry is at a moderate level. The industry players are aiming for cost leadership as a competitive strategy, as the product range is very homogeneous.
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has declined at a CAGR of 0.4 % over the past five years, to reach an estimated €15.1bn in 2025.

Trends and Insights

Competition in the construction industry has intensified for industry players

  • Tools are the foundation of work in the construction industry and in skilled trades such as carpentry, metalworking and electrical engineering. These include simple hand tools such as hammers, screwdrivers and pliers. The German tool industry is therefore strongly affected by economic fluctuations in the construction industry.
  • Additional trends and insights available with purchase
Tool Manufacturing in Germany
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

Improved construction activity should drive growth in the sector

  • In June 2024, the European key interest rate was lowered again for the first time since 2022. The main refinancing rate of the European Central Bank has been at 2.15% since June 2025. This is a sharp drop from the high of 4.5% in 2023 and signals an improved financing situation for future construction projects. The special fund of up to €500 billion, which is mainly earmarked for investments in infrastructure and the expansion of rail networks and roads, is also likely to support construction projects in the coming years. According to its own trend analyses, the Central Association of the German Construction Industry therefore expects the construction industry to recover from 2026 onwards.

Biggest companies in the Tool Manufacturing in Germany

Company
Market Share (%)
2025
Revenue (€m)
2025
Gühring KG
494.8
Mapal Fabrik für Präzisionswerkzeuge Dr. Kress KG
406.7
Franz Hoffmann GmbH & Co. Verwaltungs KG
262.6

To view the market share and analysis for all 5 top companies in this industry, view purchase options.

Products & Services Segmentation

Tool Manufacturing in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Tools for processing metals and other materials, Moulds and foundry mould boxes and Interchangeable tools. Tools for processing metals and other materials is the largest segment of the Tool Manufacturing in Germany.

Trends and Insights

Tools for processing metals and other materials are associated with low capital investment for customers

  • This product segment comprises a large number of different tools that are used in a wide variety of applications. Within this segment, pressing, stamping, deep-drawing, die forging, punching and perforating tools account for the largest share of sales. These tools are primarily used in the metalworking industry for sheet metal forming. This product segment also includes various knives and cutting blades for the food industry.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Companies in this sector manufacture hand tools such as knives and pincers as well as tools for wood and metalworking. Forging tools such as anvils are also manufactured by industry players. The industry definition does not include the production of hand-held tools with motorised drives or knives and cutting blades for machines or mechanical devices.

What's included in this industry?

Products and services covered in the Tool Manufacturing industry in Germany include Tools for processing metals and other materials, Moulds and foundry mould boxes, Interchangeable tools and Hand tools.

Companies

Companies covered in the Tool Manufacturing industry in Germany include Gühring KG, Mapal Fabrik für Präzisionswerkzeuge Dr. Kress KG and Franz Hoffmann GmbH & Co. Verwaltungs KG.

Purchase this report to view all 5 major companies in this industry.

Related Terms

Related terms covered in the Tool Manufacturing industry in Germany include 3-d printing, big data and precision tool.

Industry Code

WZ 2008

WZ 25.73 - Tool Manufacturing in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

According to the German Tool Industry Association, around 15% of global tool sales are attributable to counterfeit products. It is therefore particularly important that innov...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

The US tariffs imposed in April 2025 will have a negative impact on the competitiveness of tool exports. The tool industry is heavily export-orientated and generates around 7...

In this chapter

  • Products & Services
  • Major Markets
  • International Trade

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level
  • Total imports, level and trend
  • Total exports, level and trend
  • Trade Balance

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025
  • International trade, including imports by country and exports by country

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services
  • Recent trends in import and export volumes, country of origin or destination, and expected future trends

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Baden-Württemberg accounts for a particularly large share of the industry companies in the Süd region. The Mapal Fabrik für Prüzisionswerkzeuge Dr. Kress KG, for example, is ...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Internal competition in the industry is at a moderate level. The industry players are aiming for cost leadership as a competitive strategy, as the product range is very homog...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

There are no major players in this industry It is likely that none of the players will be able to gain significant market share in the next five years either.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of Gühring KG's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Mapal Fabrik für Präzisionswerkzeuge Dr. Kress KG's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Franz Hoffmann GmbH & Co. Verwaltungs KG's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • Description and key data for Gühring KG, and factors influencing its performance in the industry
  • Description and key data for Mapal Fabrik für Präzisionswerkzeuge Dr. Kress KG, and factors influencing its performance in the industry
  • Description and key data for Franz Hoffmann GmbH & Co. Verwaltungs KG, and factors influencing its performance in the industry
  • Description, key data and performance trends for 2 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Building construction companies require a variety of tools for their activities. Their sales development can serve as an indicator of the level of demand.

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

In the last five years, industry players have succeeded in increasing their profit margins. This was primarily made possible by the fact that cost increases in purchasing cou...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Tool Manufacturing industry in Germany in 2025?

The market size of the Tool Manufacturing industry in Germany is €15.1bn in 2025.

How many businesses are there in the Tool Manufacturing industry in Germany in 2025?

There are 2,808 businesses in the Tool Manufacturing industry in Germany, which has declined at a CAGR of 1.6 % between 2020 and 2025.

How may import tariffs affect the Tool Manufacturing industry in Germany?

The Tool Manufacturing industry in Germany is likely to be significantly impacted by import tariffs with imports accounting for a high share of industry revenue.

How may export tariffs affect the Tool Manufacturing industry in Germany?

The Tool Manufacturing industry in Germany is likely to be significantly impacted by export tariffs with exports accounting for a high share of industry revenue.

Has the Tool Manufacturing industry in Germany grown or declined over the past 5 years?

The market size of the Tool Manufacturing industry in Germany has been declining at a CAGR of 0.4 % between 2020 and 2025.

What is the forecast growth of the Tool Manufacturing industry in Germany over the next 5 years?

Over the next five years, the Tool Manufacturing industry in Germany is expected to grow.

What are the biggest companies in the Tool Manufacturing industry in Germany?

The biggest companies operating in the Tool Manufacturing industry in Germany are Gühring KG, Mapal Fabrik für Präzisionswerkzeuge Dr. Kress KG and Franz Hoffmann GmbH & Co. Verwaltungs KG

What does the Tool Manufacturing industry in Germany include?

Tools for processing metals and other materials and Moulds and foundry mould boxes are part of the Tool Manufacturing industry in Germany.

Which companies have the highest market share in the Tool Manufacturing industry in Germany?

The company holding the most market share in the Tool Manufacturing industry in Germany is Gühring KG.

How competitive is the Tool Manufacturing industry in Germany?

The level of competition is high and increasing in the Tool Manufacturing industry in Germany.

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.

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