The “Benelux Power Tool Market, by End Use (Industrial Power Tools, Household Power Tools), by Mode of Operation (Electric, Pneumatic, Others), and by Country (Belgium, Netherlands, Luxembourg) - Forecast to 2027”,
is expected to be valued at US$ 1,306.2 million by 2027, witnessing a CAGR of 3.9% during the forecast period (2019-2027), as highlighted in a report published by .
Power tools are the tools that use an additional power source and mechanism to perform different types of maintenance and manufacturing jobs. Depending on the mode of actuation, power tools are classified as pneumatic tools, electric tools, and hydraulic tools. Pneumatic tools are those that are driving by compressed air, which is usually supplied through air compressor. These tools can also be powered by compressed carbon dioxide. Air ratchet, jackhammers, pneumatic drills, blow gun, air sander, etc. are some of the commonly used pneumatic power tools. Other power tools are chainsaw & long splitters, lawn mowers, leaf blowers, etc.
The Benelux power tool market is estimated to account for US$ 971.6 Million in terms of value by the end of 2019.
Increasing online retail sales in the region are expected to drive the Benelux power tool market growth over the forecast period
Benelux has witnessed significant growth in the online retail sales, regardless of existing economic downturn in the region. This is primarily due to increasing consumer confidence, online power tools sales, easy availability of diverse products, especially portable power tools for household applications. According to ’ analysis, the commerce industry in the Netherlands was valued at US$ 15 billion in 2014, and is expected to register CAGR of 15-20% in the near future. According to the same source, online sales in Luxembourg increased by 28-30% in 2013 and are expected to maintain the similar pace in the near future. Lucrative pricing strategy adopted by online vendors, in order to attract masses and shift their focus towards online purchases rather than conventional stores is expected to drive the Benelux power tool market growth over the forecast period.
Introduction of smart connectivity in power tools is expected to pose significant growth opportunities for market players in the near future
Several manufacturers in the market are introducing smart power tools, which are better than existing tools in terms of performance and efficiency. For instance, One-Key digital platform introduced by Milwaukee Electric Tool offers a number of features such as access via web and mobile apps. This system can be used to keep records of their tools and also aids in managing inventory. Moreover, Robert Bosch’s LED floodlight can be remotely controlled through an app and can be turned on and off according to preordained schedule. Such activities are expected to pose lucrative growth opportunities for market players over the forecast period.
Slow economic growth in the Netherlands and Belgium is expected to restrain Benelux power tool market growth during the forecast period
The Netherlands and Belgium hold dominant position in the Benelux power tool market though they have witness slowdown in economic growth in the recent past. According to International Monitoring Fund (IMF), Belgium’s GDP increased from 1.4% in 2018 to 1.2% in 2019. According to the same source, the Netherlands’ GDP declined from 2.6% in 2018 to 1.8% in 2019. Moreover, construction production volume growth in the Netherlands and Belgium declined 3.9% and 0.9% respectively in 2013 and expected to recover slowly over the forecast period. This, in turn, is expected to hinder the market growth over the forecast period.
- Increasing shift from corded tools to cordless tools
Cordless power tools with high-capacity lithium-ion batteries have witnessed significant adoption in the region. This is owing to ongoing housing investments, which has increased sales of power tools. For instance, in 2018, Hitachi Koki registered incremental sales of 5% in its power tools sales, owing to introduction of cordless tools. Moreover, cordless products continue to witness demand, owing benefits offered by these tools over corded products. Development of improved battery technology such as lithium-ion is encouraging consumers and professionals to adopt cordless power tools.
- Proactive initiatives for novel product developments
Companies are increasingly investing in research and development activities of new processes, products, and methodologies, in order to enhance tool strength, durability, and overall performance. For instance, in June 2018, Hitachi Koki Co. Ltd. launched a series of 36V cordless gardening tools along with highly energy efficient brushless motors.
Key players operating in the Benelux power tool market are
: Stanley Black and Decker, SKF, Atlas Copco, Hitachi Koki Co. Ltd., Snap-On Incorporated, Robert Bosch GmbH, Actuant Corporation, Techtronic Industries Co. Ltd., Makita Corporation, and Danaher Corporation.
: Metabowerke GmbH, FERM B.V., VIKING GmbH, and Einhell Germany AG.
- Key companies in the market are focused on entering into agreement, in order to enhance their market presence. For instance, in March 2016, SKF AB entered into contract with LORD Corporation, a technology provider in aerospace industry, to divest its fly-by-wire business.
- Key players in the market are focused on product launch, in order to expand their product portfolio. For instance, in March 2016, Metabo AG introduced LTX-Class, an 18-volt cordless drill featuring brushless motors.
- By End Use
- Industrial Power Tools
- Household Power Tools
- By Mode of Operation
- By Country