Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
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
- Growing adoption of cordless power tools is expected to drive growth of the global power tools market during the forecast period
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.
- Rapid growth of the infrastructure sector, especially in emerging economies is expected to propel the global power tools market growth over 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
- High purchase and maintenance cost is expected to restrain growth of the global power tools market during the forecast period
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.
- Constant fluctuations in raw material prices are expected to hamper the global power tools market growth over 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.
Power Tools Market Report Coverage
||Market Size in 2019:
||USD 30,000.8 Mn
|Historical Data for:
||2017 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||USD 44,697.1 Mn
- North America: U.S., Canada
- Latin America: Brazil, Argentina, Mexico, Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific
- Middle East and Africa: South Africa, North Africa, Central Africa
- By Tool Type: (Drilling Solutions, Material Removal, Sawing, Wrenches, Other Solutions)
- By Mode of Operation: (Electric (Corded, and Cordless), Pneumatic))
- By Application: (Industrial, and DIY)
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.
- Growing adoption of cordless power tools
- Rapid growth of the infrastructure sector
|Restraints & Challenges:
- High purchase and maintenance cost
- Increasing adoption of fastening tools in the wind energy industry can present lucrative growth opportunities in the global power tools market
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.
- Advent of smart connectivity in power tools can provide major business opportunities in the global power tools market
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.
- Lithium-ion batteries replacing NI-CD and NI-MH batteries
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.
- Rising DIY activities is another key trend in the market
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.
- Key players operating in the global power tools market are 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.
- Major market players are involved in mergers and acquisitions, in order to enhance the market presence. For instance, in April 2019, Ingersoll-Rand plc merged its industrial pumps and power tools business with Gardner Denver Holdings Inc., creating a company valued at around US$ 15 billion.
- Key companies are focused on product launches, in order to expand the product portfolio. For instance, in June 2019, Robert Bosch introduced cordless power tools such as wireless screwdriver powered by Li-ion batteries, high power impact wrenches, drill drivers, hammer drills, and high-speed impact drills.