POWER TOOLS MARKET SIZE & SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The global power tools market has accounted for US$ 27,680.9 Mn in terms of value in year 2022, and is expected to grow at CAGR of 8.36% for the period 2023-2030.

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, and others. 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.

Global Power Tools Market: Regional Insights

Asia Pacific is expected to dominate the global power tools market during the forecast period, owing to rise in use of power tools solutions in the end-user industries such as Construction and Infrastructure, manufacturing and others. Moreover, the region is witnessing substantial growth in these industries along with growing developments in infrastructure developments. Furthermore, the region has a strong presence of vendors, which is also expected to contribute in growth of the global Power tools market in the region.

Figure 1: Global Power Tools Market Share (%), By Region, 2022

Global Power Tools Market - Impact of Coronavirus (Covid-19) Pandemic

COVID-19 had a tremendous impact on various industries including automotive, infrastructure, and manufacturing. To combat the COVID-19 pandemic, various governments have declared lockdowns, resulting in a huge impact on pneumatic power tool manufacturing companies, since factories throughout the world have been temporarily shut down.

On the supply side, the business of power tools was severely hampered as most of the countries had announced lockdown. Due to the pandemic, output across industries has been constrained, resulting in a lack of raw materials for pneumatic power tools. The key reasons leading to a drop in production are the decline in exports and interruptions in the supply chain. However, in the long term, India pneumatic power tools is expected to grow significantly, as market players are focusing on boosting manufacturing activities to meet pneumatic power tools demand

Global Power Tools Market Drivers:

Growing adoption of cordless power tools 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. For instance, to avoid this kind of threats in October 2022, Panasonic, a manufacturer of electrical products launched their new Cordless Impact Driver EY1PD1 with a very short body length of only 98mm for high power impact tightening even in narrow areas. 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 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 2023. 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.

Global Power Tools Market Opportunities:

Need for standardized, simplified accounts receivable processes

Growing demand for power tools software due to various factors such as working capital of firms, more invoice disputes, less agent productivity among others is expected to create significant growth opportunities in the global power tools market during the forecast period. Increasing number of firms across industries are reviewing accounting automation systems, as companies cannot wait and manage manual accounting challenges. Other factors such as slower collections of deposits, and need for standardized, simplified accounts receivable processes is also creating demand for accountable receivable automation.  Thus, these factors will bring several growth opportunities in the market during the forecast period.

Growing adoption of artificial intelligence technology

Moreover, growing adoption of artificial intelligence technology is also anticipated to create lucrative environment for growth opportunities in the global power tools market during the forecast period. With increasing use of cloud-based technology, AI adoption continued at a stable pace in 2022, with more than a third of companies (35%) reporting the use of AI in their business, a four-point increase from 2021. A major driver of adoption was accessibility that made AI easier to implement across the organization, though companies are also looking to AI to help them increase automation of tasks and reduce costs. The gap in AI adoption between larger and smaller companies also grew significantly. Larger companies are now 100% more likely than smaller companies to have deployed AI in their organization, compared with only 69% in 2021.

Global Power Tools Market Trends:

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.

Global Power Tools Market Restraints:

High purchase and maintenance cost 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 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.      

Figure 2: Global Power Tools Market Share (%), By Region, 2022

Global Power Tools Market Segmentation:

The global power tools market report is segmented into Tool Type, Mode of Operation, and Application.

Based on Tool Type, the market is segmented into Drilling Solutions, Material Removal, Sawing, Wrenches, and Other Solutions. Out of which, Drilling Solution is expected to dominate the global market over the forecast period and this is attributed to the growing need for infrastructure development. This is also increasing the corresponding technical complexity required for implementing them. This acts as a major driver for increasing Power tools. Thus, the segment is likely to witness strong growth in the near future.

Based on Mode of Operation, the market is segmented into Electric (Corded, and Cordless), Pneumatic. Out of which, Electric (Cordless) is expected to dominate the global market over the forecast period and this is attributed to the various benefits. This option gives massive advantage because of it is portable, lightweight and less equipment.

Based on Application, the market is segmented into Industrial, and DIY. Out of which, Industrial is expected to dominate the global market over the forecast period and this is attributed to the growing number of infrastructure development. Thus, it is driving growth of the segment.

Global Power Tools Market: Key Developments

In February 6, 2023 DEWALT, a Stanley Black & Decker, which is a jobsite solutions company, announced its new DEWALT 20V MAX* Compact Press Tool (DCE210) for plumbers, pipefitters, and HVACR technicians. The new press tool provides broad press versatility in a compact design that allows for trouble-free pressing in small spaces.

Key companies are focused on product launches, in order to expand the product portfolio. For instance, in January 2023, Bosch Power Tools India, a supplier of power tools for the construction, woodworking, and metalworking industry, introduced the GWS 800 Professional, adding to its robust line of angle grinders.

In October, 2022 BLACK+DECKER(R) launched reviva (TM) the Brand's First Sustainably Led Power Tool Line, which is designed for DIYers to complete an array of do-it-yourself (DIY) projects.

For instance, in December 2022, DEWALT, a Stanley Black & Decker (NYSE: SWK) a brand engaged in total jobsite solutions, today announced the highly-anticipated 60V MAX* Brushless 12 in. Double Bevel Sliding Miter Saw (DCS781) that tackles demanding applications with 20% more power.

Global Power Tools Market: Key Companies Insights

The global power tools market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the 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.

*Definition: 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.