The Africa Power Tools Market, By Category (Power Tools, Hand Tools), By Mode of Operation (Electric, Pneumatic and Others), By End-Use Sector (Industrial and Household), By Country (Africa and GCC) - Africa Forecast to 2027, is expected to be valued at US$ 7322.2 million by 2027, exhibiting a CAGR of 6.3% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
Overview
A power tool is any tool that utilizes a power source for functioning instead of manual power. Depending upon the mode of actuation power tools are classified as electric, pneumatic and hydraulic, however, most common types of power tools are powered by electric motors. Power tools are used for construction, painting, grinding, sanding, shaping, drilling, household tasks, gardening, etc. As compared to conventional hand tools, power tools are far more sophisticated, efficient, and easier to use.
The Africa power tools market is estimated to account for US$ 7322.2 Mn in terms of value by the end of 2027.
Market Driver
Rapid industrialization in emerging markets is expected to boost the Africa power tools market growth over the forecast period
Emerging markets in Africa region are witnessing rapid industrialization and economic growth. These countries are playing a crucial role in creating demand for power tools since they have become manufacturing hubs. Furthermore, in emerging economies, labor costs are usually low fuelling industrialization in these regions. According to Coherent Market Insights’ analysis, the Africa Power Tools industry is projected to be valued at US$ 28 Bn due to increasing demand from emerging markets, specifically due to rapidly growing residential construction work in China and India in the near future. Thus, these factors are expected to support growth of the Africa power tools market over the forecast period.
Market Opportunity
High growth of semiconductor industry can present lucrative growth opportunities
High demand for consumer electronics with enhanced functionalities, extended operating times, higher performance is encoring semiconductor manufacturers to lay emphasis on finding rapid ways to deliver products. Power tools play a significant role in meeting these objectives. Accurate and stable measurement devices enable close control of the microenvironments surrounding semiconductor tools.
Market Restraint
Strict regulatory policies are expected to hamper the Africa power tools market growth over the forecast period
Every year, a number of accidents occur while using tools and machinery. As a result of this, governments of various countries have enforced stringent safety regulations that are to be practiced by both manufacturers and end users. ‘Provision and Use of Work Equipment Regulations 1998’ is aimed at employers, duty holders and anyone responsible for the safe use of work equipment, such as managers and supervisors. Therefore, such regulations are expected to hamper the Africa power tools market growth in the near future.
Market Trends
- Rising competition from Chinese vendors is a major trend
Chinese vendors are increasingly penetrating various markets including African market with enhanced product offerings at competitive prices as compared to local vendors. China is a major established exporter of products to the U.S. Electric tools production in the U.S. has reduced significantly as a result of the outsourcing of power tool production to lower-cost economies. According to Coherent Market Insights’ analysis, China holds the dominant position in power tools production, accounting for 80% globally. As a result of this, Chinese vendors are providing strong completion, local vendors.
- Growing adoption of lithium-ion batteries over Ni-Cd batteries
Ni-Cd technology has been deployed in cordless tools for years, though it is currently losing its leading position with the advent of lithium-ion battery technology. Lithium-ion battery technology is gaining major traction, owing to features such as increased productivity, durability, and lightweight as compared to 18-volt battery-operated tools. Moreover, Lithium-ion batteries provide maximum performance during the entire battery charge cycle without a gradual decrease as it is observed with Ni-Cd batteries. Milwaukee Electric Tool’s V28 line of power tools using lightweight lithium-ion batteries, which in turn is expected to boost the demand for cordless-tool technology.
Competitive Section
Key companies involved in the Africa power tools market are Stanley Black & Decker, Inc., SKF, Atlas Copco AB, Hitachi Koki Co. Ltd, Robert Bosch GmbH, Snap-on Incorporated, Techtronic Industries Company Limited, Makita Corporation, and Danaher Corporation.
Key Developments
- Major companies in the market are focused on product launches, in order to enhance the product portfolio. For instance, in February 2020, Milwaukee Electric Tool, a subsidiary of Techtronic Industries Company Limited, introduced first cordless 8” metal cutting circular saw.
- Key players in the market are involved in product launches, in order to expand market presence. For instance, in April 2020, Milwaukee Electric Tool, a subsidiary of Techtronic Industries Company Limited, introduced next-generation electric rough-in M18 Fuel Hole HAWG Right Angle Drill.
Segmentation
Market Taxonomy:
- By Category
- Power Tools
- Hand Tools
- By Mode of Operation
- Electric
- Pneumatic
- Others
- By End-Use Sector
- Industrial
- Household
- By Region
- Africa
- GCC
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