Power Tools Market By Product Type (Drilling Tool, Fastening Tool, Heat Gun), Technology (Electric, Corded, Cordless, Pneumatic) & Region – Forecast 2021-2031
Power Tools Market - Analysis, Outlook, Growth, Trends, Forecasts
- January 2021
- 298 pages
- Industrial Automation
Power Tools Market Snapshot
[298 Pages Report] The global power tools market size is expected to reach US$ 33.36 Bn in 2021. Increasing sales of cordless power tools will drive growth in the power tools demand by 5.1% CAGR between 2021 and 2031.
As per the latest Future Market Insights (FMI) analysis, demand for electric power tools and portable power tools will rise exponentially in the coming years. Soaring application in automotive, construction, aerospace, and other industries also will create demand for handheld and pneumatic power tools.
The report also predicts power tools sales to constitute nearly 7% to 8% of the global tooling industry.
Estimated Power Tools Market Size (2021E)
US$ 33.36 Bn
Projected Power Tools Market Size (2031F)
US$ 51.2 Bn
Value CAGR (2021-2031)
How Will Power Tools Market Sales in 2021-2031 Fare in Comparison to 2016-2020?
Scope for application is expected to rise across diverse industries as manufacturers offer intelligent solutions for corded and non-corded power tools. As per FMI, rapid expansion in end-use industries including aerospace, automotive, furniture, and others is positively fuelling the demand for power tools. With features such as electric motors, power tools applications have been surging to eliminate strenuous manual labor across industries.
According to the study, the power tools market had registered growth of 3.7% between 2016 and 2020 in comparison to 5.1% CAGR predicted between 2021 and 2031. Increasing sales of rechargeable power tools, household power tools, handheld power tools, and others via online channels will remain a chief growth driver during forecast period.
Leading power tool manufacturers are focusing on developing technologically advanced products with higher efficiency and improved performance especially for cordless power tools market. This is projected to give tailwinds to the power tools market growth through 2031.
For instance, power tools market players such as Robert Bosch, Stanley Black & Decker, and others are developing cordless power tools in-built with Li-ion batteries to offer enhanced performance. These advancements have been crucial in fuelling demand for power tools globally.
What is the Commercial Potential of Power Tools?
The portability and easy maneuverability of power tools have been fuelling their demand at a higher rate than conventional hand tools. Demand from manufacturing assembly units, fabrication as well as service sectors are expected to fuel the demand of power tools. Construction sector is expected to be a crucial end user aiding the market growth.
Spurred by these factors, commercial opportunities are likely to soar for power tool manufacturers. Especially with innovation of cordless power tools leading to the launch of advanced versions of impact wrenches, circular saws, and hammer drills among others, sales prospects have improved.
Consequently, there is immense focus towards launching flexible, mobile, and compact tools to keep pace with dynamic consumer preferences. Moreover, nickel-metal hydride (Ni-MH) and nickel-cadmium (Ni-Cd) power tools are increasingly being replaced with lithium ion batteries. For instance, in 2019 Bosch launched cordless power tools, fitted with lithium-ion batteries to offer improved power and efficiency. These advances have been crucial in improving commercial potential of power tools.
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How Are Innovations Resulting in Power Tools Market Sales?
Professionals around the world are seeking out solutions to make their jobs easier and ultimately save time and resources. As a matter of fact, they are looking for a good mix of solutions to increase productivity. While their evolving needs led to advancements in cordless technologies including motors, electronics, and batteries, the demand for productivity solutions has been encouraging innovations in the power tools market.
For example, there is immense focus on going green. Market players looking to carve a niche amid rising competition, have been consciously introducing eco-friendly alternatives to popular technologies. An increasing number of power tools manufacturers are therefore ruling out fossil fuel models to offer more energy-saving power solutions.
With the world struggling with massive storms, chaotic heat waves, and wildfires, the need to move away from pollutants is more than ever before. Catering to changing consumer preferences, Santa Monica, Calif.-based start-up Graze Mowing announced a next-generation autonomous robot for lawn mowing at a commercial scale in September 2020. While the company hopes to use solar power in the near future, currently it has been working with swappable batteries that promise to save significantly on the cost incurred on fuel and electricity.
How is the Price Sensitivity in the Market?
Raw materials predominantly used in power tools are steel and aluminum. With fluctuating costs of aluminum and steel, the cost of raw material is also bound to increase or decrease. This will have a significant impact on the power tools market in the near term which is set to witness a marginal downturn. In order to sustain through the slowdown, manufacturers will look at stabilizing the pricing of power tools through diversification and newer pricing strategies.
What are Leading Technology Developments in Power Tools Market?
A newer realm is being witnessed in charging technology for high-end electronic devices. Companies such as Bosch and Milwaukee have innovated on novel battery platforms that have solutions for myriad problems faced by end users in terms of charging and durability. Inductive charging, based on wireless transmission of alternating magnetic fields is a new technology that is currently only being offered by Bosch. Through inductive charging the battery can stay in the tool whilst being charged thus obviating the need to remove batteries. This has proved to be a boon for front line industrial workers who are working on tight schedules and time constraints.
How big is the Opportunity in the U.S.?
FMI has projected North America to remain one of the most lucrative markets throughout the course of the forecast period. Growth within this region is expected to be spearheaded by the U.S. One of the key factors supporting expansion in the country is the substantial growth in commercial and residential construction. As per the U.S. Census Bureau, construction spending recorded by the country stood at US$ 1,459.4 Bn in November 2020. With both private and public spending on construction activities surging, power tools manufacturers will have lucrative prospects to capitalize on in the near future.
Besides this, prospects for growth will rise as the demand for MRO services rises within the automotive sector. SelectUSA has predicted automotive sales in the U.S. to gradually recover post-COVID-19, which will present attractive opportunities for power tool sales within the U.S. in the coming years.
How Lucrative Are Opportunities in the U.K.?
The remarkable growth in infrastructure development and construction activities in the U.K. is driving power tools Market sales within the country. The refined projections for the construction industry growth in the U.K. have been paving way for power tools Market sales. The gradually reviving construction sector is expected to offset a sharp decline in sales witnessed on account of COVID-19. According to the Office of National Statistics, U.K., construction output has improved marginally by 1% in October 2020.
Besides this, Britain is identified as one of the leading manufacturers in the world, which places it as a lucrative market for power tools globally. Make UK has reported annual output worth £192 billion, as manufacturing continues to drive exports and R&D in the country. Against this backdrop, power tools manufacturers are likely to find the country as a lucrative pocket for sales.
How Are Construction Activities Driving German Market?
FMI has identified Germany as the leading for power tools market within Europe. The growth outlook continues to be positive for the country, especially as demand is expected to soar amid improving construction activities. The upbeat performance exhibited by Germany’s construction sector will continue aiding power tools sales.
According to the Federal Statistics Office, Destatis, construction sector turnover in Germany was up by 2.2% in October 2020 in comparison to the corresponding month of the previous year. Consistently rising spending towards construction will remain a chief driver, since the constructions sector will continue to be one of the leading end-users of power tools.
How Will China Market Ride-on Recovery Post COVID-19?
China has been among the few nations to have been exhibiting recovery post-COVID-19 at an impressive rate. Despite encountering a temporary slowdown amid COVID-19, China’s rapid pace of economic recovery has bode well for the power tools market. According to the National Bureau of Statistics, exports and imports have significantly grown in the country from September 2020 onwards, with imports increasing by 13.2% and exports surging 9.9% in comparison to the previous year.
The aforementioned figures are indicative of improving industrial activities, which will present attractive opportunities for power tools Market sales. Also, China’s unique response to COVID-19 to ensure an unhindered food supply amid COVID-19 has been aiding the steady growth of the power tools market. Their efforts have also been discussed by the Food and Agricultural Organization (FAO) of the United Nations.
How Is Expanding Agricultural Sector Supporting Growth in Brazil?
According to a United States Department of Agriculture (USDA) report, the agriculture sector in Brazil has transformed from one that includes indigenous systems of production with limited use of modern technologies to a global leader in agriculture. Macro-economic reforms undertaken by the country have been a key enabler of the growth of Brazil's agriculture sector. The report also mentioned that the country’s value-added surged an average of 3.4% annually over the past two decades, with agricultural output nearly doubling during the time.
The rising investment towards technology has been a key enabler of the expansion of the agricultural sector in Brazil, which also is indicative of lucrative opportunities for power tools sales Market within the region.
Which Product is highly Sought-after?
Drilling tools are highly sought-after power tools due to their increasing application across diverse industries, including construction, manufacturing, and others. In fact drilling tools also are used in various do-it-yourself projects, which has been fuelling their demand in commercial and household applications besides their increasing adoption across industries. The drilling tools segment is expected to account for above 17% of the market by the end of 2031 and is expected to remain dominant through the forecast period.
Why do Construction Applications Hold Higher % Share?
Accounting for nearly 30% of the overall share through the forecast period, construction applications drives continue to account for the bulk of demand for power tools Market. Growth in the segment is primarily due to the rapid development of the construction industry along with the bulk deployment of power tools in construction projects. Increasing construction spending in countries such as the U.S., the U.K., and China will continue aiding the expansion of the market.
Increasing do-it-yourself (DIY) activities and high capita spending on DIY tools in developed countries from North America and Europe are driving the consumer inclination towards DIY activities e.g. interior home renovation, plumbing, gardening, and others. The footprint of DIY tools is also expected to expand in developing regions. The use of DIY products lowers long-term costs than work outsourced to hired labor resulting in increased demand for power tools for DIY and household applications. Additionally, the advent of e-commerce has enabled easy access and discounts for consumers. These factors are expected to ascend the demand for power tools in DIY applications.
Why is Electric Technology More in Demand?
Electric and pneumatic are currently the leading technologies available, of which the demand for the former has been surging at a higher pace. The advent of cordless technology is expected to fuel growth opportunities within the market. Some of the leading players such as Bosch, Milwaukee, Hitachi, and others include cordless power tools in their portfolios.
Also driven by surging demand, they are increasingly investing in the launch of advanced technologies, which will ultimately fuel demand within the electric category. For instance, Bosch has recently launched cordless power tools in-built with lithium-ion batteries in June 2019. According to FMI, over 6 out of 10 power tools sold will be from the electric category in 2021.
What Supports Continuing Dominance of Offline Sales Channels?
According to FMI, offline sales channels will continue dominating through the forecast period. By 2021, offline sales are expected to account for 64.3% of the overall share. Offline sales offer instant gratification, which continues to be a key driver. However, the COVID-19 outbreak has exposed the vulnerabilities of this medium. As a result, there is an increasing focus on diversification. Market players are exploring opportunities across online sales channels. According to FMI, online channels will report growth at a higher pace than their offline counterparts.
The power tools market is a highly competitive market, led by global players offering cost-competitive products. Some of the players are focusing to carve a niche for specific demography. Market players have left an indelible impact with their astute business expansion strategies and robust product offerings. Many of these players are focusing on product launches.
- In January 2019, DEWALT, which is a Stanley Black & Decker launched FLEXVOLT 60V MAX* 2-Inch Brushless SDS MAX Combination Hammer (DCH773), which featured an e-clutch system and advanced technologies
- Makita U.S.A., Inc., one of the well-known manufacturers of accessories and high-quality professional tools launched 18V X2 LXT® Cordless/Corded Upright L.E.D. Area Light (DML810, tool only) in July 2020
- Milwaukee also unveiled Cordless 1” D-Handle High Torque Impact Wrench in 2020
Some of the leading companies operating in the market are:
- Robert Bosch Power Tools GmbH
- Stanley Black & Decker, Inc.
- Makita Corporation
- Hilti Corporation
- Atlas Copco AB
- Techtronic Industries Company Limited
- Snap-on Incorporated
- Actuant Corporation
- Husqvarna AB
- Illinois Tool Works
- Panasonic Corporation
- Hitachi Corporation
- Ingersoll Rand, Inc.
- Enerpac Tool Group
- Kyocera Corporation
- Apex Tool Group
- Ridgid Tools
- Koki Holdings Co., Ltd.
*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis is available in the report.
Scope of the Report
Historical Data Available for
USD Million for value and Units for Volume
Key Regions Covered
North America, Latin America, Europe, East Asia, South Asia & Pacific, Middle East & Africa
Key Countries Covered
US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Vietnam, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, South Africa
Key Segments Covered
Product Type, Technology, Application, Sales Channel, and Region
Key Companies Profiled
Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives
Customization & Pricing
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- Drilling Tool
- Fastening Tool
- Heat Gun
- Angle Grinder
- Chain Saw
- Orbital Sander
- Impact Wrench
- Circular Saw
- Metal Fabrication
- MRO Services
- Facility Management
- Other Industrial
- North America
- Latin America
- East Asia
- South Asia & Pacific
- Middle East and Africa (MEA)