A power tool is a tool that is driven by an additional power source and mechanism other than manual labor. The most commonly used power tools to use electric motors. There are different types of power tools including an electric screwdriver, hammer drills, etc. Typically, power tools are used in manufacturing, construction, and DIY activities. These tools are available in different sizes and shapes and are fairly easy to operate. Generally, there are two categories of power tools namely portable and stationary.
The global power tools market is estimated to account for US$ 30,000.8 Mn in terms of value in year 2019, and is expected to grow at CAGR of 5.1% for the period 2020-2027.
Market Dynamics- Drivers
Globally, the adoption of power tools has increased significantly in the recent past. This is owing to major advantages offered by cordless tools over corded tools such as portability, lightweight, and less equipment to carry. Corded power tools essentially bulky in handling and since they are connected to a power source, users find it difficult in maneuvering the tool. Furthermore, corded power tools are connected to an electric source and if there is no electricity offered, these tools cannot be used. This can pose a major challenge when construction begins. Besides, corded power tools require frequent replacement of cords since faulty cords can pose a potential safety hazard to uses. Cordless power tools can be maneuvered easily and are lightweight hence they are more convenient to operate. Therefore, these factors are expected to drive growth of the global power tools market during the forecast period.
The infrastructure sector is growing rapidly, especially in emerging economies such as China, India, South Africa, and Brazil. According to the India Brand Equity Foundation (IBEF), India is expected to become the third-largest construction market globally by 2022. According to the same source, India is expected to invest around US$ 1.4 trillion on infrastructure during 2019-2023 for the sustainable development of the country. Rapid infrastructure development has led to increased demand for various power tools such as electric drill machine, hammer drill, impact driver, electric screwdriver, rotary hammer, and many more. Thus, these factors are expected to propel the global power tools market growth over the forecast period.
Asia Pacific region dominated the global power tools market in 2019, accounting for 38.14% share in terms of value, followed by North America and Europe respectively.
Figure 1: Global Power Tools Market Share (%), in terms of Value, By Region, 2019
Market Dynamics- Restraints
Although power tools offer efficiency and speed in construction activities, it requires timely maintenance operations. The batteries in cordless power tools need to be inspected and changed routinely. Besides, power tools are significantly more expensive than a hand-operated tool and hence only construction companies and workers often purchase these tools instead of casual users. Therefore, these factors are expected to restrain growth of the global power tools market during the forecast period.
Another major impeding growth of the market is the constant fluctuations in the raw material prices. Raw materials used in power tools include steel, plastic, rubber, and copper. The prices of these raw materials have witnessed constant fluctuations in the recent past, owing to changing economical dynamics. Thus, these factors are expected to hinder the global power tools market growth over the forecast period.
|Base Year:||2019||Market Size in 2019:||USD 30,000.8 Mn|
|Historical Data for:||2017 to 2019||Forecast Period:||2020 to 2027|
|Forecast Period 2020 to 2027 CAGR:||5.1%||2027 Value Projection:||USD 44,697.1 Mn|
Apex Tool Group LLC, Atlas Copco AB, Emerson Electric, Co Techtronic Industries, Hilti Corporation, Stanley Black & Decker, Ingersoll-Rand plc, Robert Bosch, Koki Holdings Co., Ltd., and Makita Corporation.
|Restraints & Challenges:||
Wind energy sector is growing rapidly, with many countries massively endorsing renewable energy sources. Fastening tools such as riveters, rivets, staple guns, electric nailers, and hammer tackers are some of the most common fastening tools used in construction and manufacturing activities. There are different fastening tools in the energy industry including bolt tensioning cylinder type ES, foundation bolts (anchor bolts) ITH fasteners, and more. Moreover, novel tools such as torque multipliers are improving fastening performance and safety in wind turbine manufacturing.
Many key players are focused on integrating advanced technologies such as the Internet of Things (IoT) with power tools. Such connectivity can provide various advantages including inventory management, enhanced performance, theft deterrence, etc. For instance, DeWalt offers tool connect smartphone app that can help tool owner to monitor their performance and prevent the theft of expensive batteries from job sites. Furthermore, the Milwaukee Electric tool is offered One-Key digital platform, which offers a variety of features that can be accessed via web and mobile apps.
Figure 2: Global Power Tools Market Value (US$ Mn), 2017 - 2027
The global Power Tools market was valued at US$ 30,000.8 Mn in 2019 and is forecast to reach a value of US$ 44,697.1 Mn by 2027 at a CAGR of 5.1% between 2020 and 2027.
Previously, the majority of power tools were corded, which made it challenging to work in compact places. However, with cordless tools, it has become more convenient to work in any environment. Lithium-ion batteries are typically used in new cordless power tools, which are rapidly replacing NI-CD and NI-MH batteries. Li-ion batteries offer various advantages over NI-CD batteries including enhanced energy density, low maintenance, and easy replacement.
Do-it-yourself or DIY activities refer to the method of repairing, building, and modifying objects without direct help from professionals. The trend of DIY activities increasing, especially in terms of home gardening, carpentry, and other activities where people are using power tools such as electric drills and electric screwdrivers. Furthermore, as people were constrained at home due to COVID-19 pandemic and stringent laws related to public gatherings, DIY activities have gained a significant pace among people.
Power tools are equipment powered by additional power sources such as battery and electric motors. Power tools are used for various applications in various industries such as construction industry, manufacturing, and others. Moreover, power tools are used for various household applications such as cutting, shaping, grinding, and drilling. Power tools are available in different size and are easy to operate, which include hammer drills, electric screwdriver, and fast screw guns.
The growth for the power tools market is majorly attributed to the growing construction industry in the emerging economies such as China, India, across the globe. In the construction industry, power tools are used for number of applications such as woodcutting, drilling, welding, reshaping, which boosts demand. For instance, according to Invest India, by the year 2025, the construction industry is expected to be the third-largest market, globally, and construction output is expected to grow on average by 7.1% each year. In addition, cordless power tool is majorly getting adopted in various industries, as they are flexible, compact, and are easy to use.
Power tools are precision tools that require frequent maintenance, and need to be recalibrated after a regular interval of time. Motors, batteries, rotor that requires a frequent maintenance is expected to be a challenging factor for the power tools market growth.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.