Any portable instrument capable of performing/assisting in work/tasks or facilitating mechanical operations is termed as a tool. A power tool is any tool that is triggered with additional power sources other than manual power. Depending upon the mode of actuation power tools are classified as electric, pneumatic, and hydraulic. Key electric power tools include a cordless drill, corded drill, hammer drills, rotary hammer, band saw, circular saw, pendulum action reciprocating saw, jigsaw, cordless saw, router, heat gun, table saw, miter saw, dust extractors, etc.
The India power tools market is estimated to be valued at US$ 5,209.0 million in 2021 and is expected to exhibit a CAGR of 8.9% over the forecast period (2021-2028).
South India held dominant position in the India power tools market in 2020, accounting for 10.3% share in terms of volume, followed by West India and North India, respectively.
Figure 1. India Power Tools Market Value (US$ 1802.21Mn), by Region, 2020
Market Dynamics- Drivers
High growth of the industrial sector is expected to drive growth of the India power tool market during the forecast period. The Indian economy has witnessed massive growth in the recent past and is expected to witness robust growth during the forecast period. According to the World Bank’s Global Economic Prospects, June 2016, the Indian economy is expected to witness growth rate between 7.6% and 7.7% by 2018. Moreover, the industrial sector accounts for around one-fourth of total GDP, this share is expected to increase significantly over the forecast period. According to Coherent Market Insights’ analysis, the industrial sector in India is growing at 6–10% and is further expected to increase at a robust pace, owing to increasing FDI equity inflows in automotive, construction, drugs & pharmaceuticals, among other sectors. Furthermore, proactive initiatives by the Government of India such as ‘Make in India’, which in turn, is expected to propel the India power tool market growth over the forecast period.
Growing automotive sales is expected to propel the India power tool market growth over the forecast period. Power tools find major applications in automobile manufacturing. According to Coherent Market Insights’ analysis, automotive sales in India increased by 7.8% in 2015 and reached 4,125,744 vehicles as compared to 3,844,857 in 2014. Numerous electric power tools are used in automobile manufacturing including adjustable jacks, screw jacks, heat guns, cordless saw, cordless drill, etc.
Increasing popularity of DIY projects can present lucrative growth opportunities. Unavailability of skilled labor and high costs involved in hiring professionals for basic services in major cities across the country for emergency household repair and maintenance is a major concern for most household consumers. Such emerging issues are turning consumers' focus on the concept of ‘Do-it-yourself’ or DIY. With growing disposable personal income and consumer confidence index, significant growth opportunities exist for cordless and portable power tools segments in the India market.
Smart connectivity in power tools can provide major business opportunities. Major manufacturers in the market have started incorporating advanced technologies into power tools. Novel technologies such as the Internet of Things (IoT) are integrated with these power tools to make them more efficient and effective. Key players in the market can capitalize on these opportunities by providing novel solutions and enhance market presence.
|Base Year:||2020||Market Size in 2021:||US$ 5,209.0 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||8.9%||2028 Value Projection:||US$ 9,864.1 Mn|
SKF AB, Stanley Black & Decker, Inc., Actuant Corporation, Hitachi Koki Co. Ltd., Danaher Corporation, Makita Corporation, Robert Bosch GmbH, Atlas Copco AB, and Kulkarni Power Tools Ltd.
|Restraints & Challenges:||
In order to gain a competitive edge in the market and for product differentiation, companies are investing substantially in research and development of energy-efficient and environmentally friendly power tools. For instance, Hitachi Koki Co. Ltd offers the series 36V cordless gardening tools along with highly energy-efficient brushless motors. Makita is focused on developing safe products with reduced dust emissions featuring low noise and vibration capabilities to meet stringent environmental regulations, especially in Europe.
Lithium-ion battery technology is gaining prominence due to the following features: lightweight increased productivity with more power and twice the run time compared to the 18 Volt Ni-Cd battery-operated tools. Lithium-ion is best suited for use in power tools for professionals, as they need powerful, efficient, and comfortable tools to work with. Lithium-ion has been the most significant innovation in tool technology over the last 10 years. Lithium-ion batteries provide maximum performance during the entire battery charge cycle without the gradual decrease in power as happens with Ni-Cd batteries.
Figure 2. Indian Power Tools Market Share, By Electric, 2020
Key Takeaways of the Graph:
Market Dynamics- Restraints
Growing share of Chinese imports is expected to hinder the India power tool market growth over the forecast period. Chinese power tools hold a major share in the India power tool market, owing to low cost of Chinese products. According to Coherent Market Insights’ analysis, as of 2015, China-made power tools constitute 18–22% of the total India power tools market. Substantial upsurge in imports of power tools from China has been witnessed in the recent past. According to CMI’s analysis, Total imports of power tools from China increased by 32.0% in 2014 and was valued at INR 446.6 Crore, the imports further increased by 5.2% in 2015 and reached INR 469.8 Crore.
Constant price fluctuations of raw materials are expected to restrain growth of the India power tool market during the forecast period. Different materials are used in manufacturing of power tools including steel, wrought iron, copper, plastic, and more. The prices of these materials fluctuate constantly and hence selling price of these power tools remains high.
Key players involved in the India power tool market are SKF AB, Stanley Black & Decker, Inc., Actuant Corporation, Hitachi Koki Co. Ltd., Danaher Corporation, Makita Corporation, Robert Bosch GmbH, Atlas Copco AB, and Kulkarni Power Tools Ltd.
A power tool also called a power instrument, is a useful tool that is activated by an external force and mechanism other than just manual labor utilized by hand tools. The most popular kinds of power tools utilize electrical motors to provide the action. Internal combustion motors and gas-powered compressors are also used. Most modern power tools have lithium batteries which are recharged by plugging into an electric outlet. Lithium-ion and lithium polymer batteries are often used in power tools. These are rechargeable and have a high energy density. Although they do have minor issues such as shorter charge life and increased wear and tear, they're still very much usable. One of the most common types of power tools is band saws or grinders. These are primarily used for cutting materials as well as sanding surfaces. There are many types of band saws and grinders, each with its own specifications and characteristics.
Rapid growth of the construction industry in India is expected to boost the India power tool market growth over the forecast period. With rapid urbanization and industrialization, the domestic construction industry has witnessed rapid growth over the years. According to the India Brand Equity Foundation (IBEF), India is expected to become the world’s third-largest construction market by 2022. This, in turn, has increased the demand for dynamic and advanced power tools in numerous construction activities across the country.
Furthermore, a growing preference for DIY activities is expected to accelerate growth of the India power tool market in the near future.
Key features of the study: