Global Power Tools Market 2024–2033

Reports Description

As per the current market research conducted by Custom Market Insight Market Research Team, the global Power Tools market is expected to record a CAGR of 7.2% from 2023 to 2030. In 2023, the market size is projected to reach a valuation of USD 31.78 billion. By 2030, the valuation is anticipated to reach US$ 54.39 billion.

The power tools market refers to the industry that produces and sells electric, battery-operated, and pneumatic tools for various applications such as construction, woodworking, metalworking, gardening, and others. These tools are designed to provide power and convenience to users, enabling them to complete tasks more efficiently and effectively. The power tools market includes a wide range of products, including drills, saws, sanders, grinders, routers, impact wrenches, and many more. The market is driven by factors such as the growth of the construction industry, DIY trends, and technological advancements in power tool design.

Power Tools Market – Significant Growth Factors

The power tools market is experiencing significant growth due to various factors. Some of the significant growth factors driving the power tools market are:

• Increasing demand from the construction industry: The construction industry is a significant driver of the power tools market. Power tools are widely used in construction activities such as drilling, cutting, grinding, and polishing. The rising demand for power tools in the construction industry is due to their ability to enhance the efficiency and effectiveness of various construction processes.

• Technological advancements: Advancements in technology have led to the development of more efficient, safe, and user-friendly power tools. Newer technologies such as brushless motors, wireless charging, and smart sensors have significantly improved the performance and functionality of power tools.

• Growing DIY trends: The growing trend of DIY activities among consumers has led to an increase in demand for power tools. The availability of online tutorials and video guides has made it easier for consumers to undertake DIY projects.

• Increased adoption of cordless power tools: The demand for cordless power tools is increasing due to their ease of use, portability, and flexibility. Cordless power tools are widely used in outdoor applications such as gardening, landscaping, and construction.

• The emergence of the automotive industry: The emergence of the automotive industry has led to an increase in demand for power tools. Power tools are used in the manufacturing, repair, and maintenance of automotive components and equipment.

Power Tools Market – Mergers and Acquisitions

The power tools market has witnessed several mergers and acquisitions in recent years. Some notable examples include:

1. Stanley Black & Decker’s acquisition of the Craftsman brand from Sears Holdings in 2017 for $900 million. This acquisition helped Stanley Black & Decker expand its product portfolio and strengthen its position in the power tools market.

2. In 2018, Techtronic Industries Co. Ltd. (TTI) acquired the power tools business of the German vacuum cleaner maker Vorwerk & Co. KG. This acquisition helped TTI expand its presence in the European market.

3. In 2020, Bosch Power Tools acquired the U.S.-based custom tooling and machining company, AMT Machine Systems. This acquisition helped Bosch Power Tools expand its product portfolio and strengthen its position in the North American market.

4. In 2021, Atlas Copco acquired the German-based company, MEYCO Anlagentechnik GmbH, which specializes in manufacturing and selling equipment for the construction industry. This acquisition helped Atlas Copco strengthen its position in the underground construction market.

These mergers and acquisitions have helped companies to expand their product portfolios, strengthen their positions in regional and international markets, and gain a competitive edge over their rivals.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Power Tools Market – Significant Threats

There are several significant threats to the power tools market, including:

• Increasing competition: The power tools market is highly competitive, with many global and regional players offering a wide range of products. This intense competition can lead to pricing pressures and reduced profit margins.

• Economic downturns: During economic downturns, consumers and businesses tend to cut back on spending, including on power tools. This can lead to a decline in demand and revenue for power tool manufacturers.

• Regulatory challenges: Power tools are subject to various regulations and standards related to safety, emissions, and noise levels. Compliance with these regulations can be costly and time-consuming for manufacturers.

• Counterfeit products: The power tools market is also plagued by counterfeit products, which can not only harm the reputation of legitimate manufacturers but also pose safety risks to consumers.

• Shift towards electric vehicles: The global trend towards electric vehicles is expected to impact the power tools market as well, as electric vehicles require different types of tools and equipment for maintenance and repair. This could lead to a shift in demand away from traditional power tools towards newer types of equipment.

Report Scope

Category-Wise Insights

Product Insights:

The drills segment held the largest market share of 33.52% in 2022 and is expected to maintain its dominance during the forecast period due to its user-friendly nature, affordability, and widespread use in various industries and households for basic repair and maintenance.

The power tools market is categorized into several products, including saws, wrenches, grinders, sanders, and others. The wrenches segment is predicted to grow at a CAGR of 8.5% during the forecast period due to the significant time and manual effort reduction offered by power wrenches compared to traditional ones. Wrenches are widely utilized in production plants, resulting in improved work efficiency. The segment’s growth is also attributed to the increasing automation of production facilities.

The saws segment generated a market value of USD 7,991.7 million in 2022, with the construction industry being a significant consumer of saws for cutting and shaping materials like concrete, metal, and wood. The construction industry’s growth has led to increased demand for saws, and the trend is expected to continue during the forecast period.

The surge in DIY projects has contributed to the rise in demand for sanders. Sanders is used for sanding down surfaces like walls, furniture, and floors, which are common in home renovation and improvement projects. Advancements in sanding technology have made sanders more efficient, versatile, and easier to use. For instance, random orbital sanders can sand in circular patterns, minimizing the risk of leaving scratches or marks on the surface being sanded.

Mode Of Operation Insights:

In 2022, the electric mode of operation category garnered the highest revenue share, comprising approximately 64.35% of the total. This surge in revenue can be attributed to the growing preference for electric power tools, which are lauded for their efficiency, safety, durability, cost-effectiveness, technological advancements, and convenience. With an increasing number of individuals engaging in do-it-yourself (DIY) projects and home improvements, and as the construction and manufacturing sectors continue to expand, the demand for electric power tools is projected to rise continuously.

In 2022, the global market revenue for power tools saw the pneumatic mode of operation accounting for a share of 25.77%. This was driven by the increasing demand for pneumatic power tools due to their versatility, safety, cost-effectiveness, durability, and high power and torque. As the automotive, construction, and manufacturing sectors continue to expand, the market demand for pneumatic power tools is projected to increase steadily.

Meanwhile, the cordless electric mode of operation held a significant market share in 2022 and is expected to dominate the power tools market throughout the forecast period. In response, several power tool manufacturers are modifying their product portfolio to include more cordless power tool offerings for their customers. Additionally, the cordless tools’ ease of use and user-friendly nature makes them suitable for both household and industrial applications.

Power Tools Market – Regional Analysis

The power tools market is analyzed regionally, taking into account factors such as market size, growth potential, and market trends across various regions of the world. The regions typically considered in the analysis include North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

• North America is a significant market for power tools, primarily due to the growth in the construction and automotive industries. The market’s growth is driven by the region’s increasing investment in the construction and manufacturing sectors, coupled with the growth of the DIY culture. The United States is the major contributor to the North American power tools market.
• In Europe, the market growth is primarily driven by the increasing demand for power tools in the automotive and construction sectors. Germany, France, and the United Kingdom are the major contributors to the European power tools market.
• The Asia Pacific region is projected to see the highest growth rate during the forecast period, primarily due to the increasing adoption of power tools in the manufacturing, construction, and automotive industries. The presence of several emerging economies such as China, India, and Japan makes the Asia Pacific a major market for power tools.
• Latin America and the Middle East and Africa are expected to witness significant growth in the power tools market, primarily driven by the increasing investment in the construction and manufacturing sectors. The market’s growth in these regions is driven by the development of infrastructure and the growth of the DIY culture.

In conclusion, the power tools market is witnessing growth in all regions of the world, driven by increasing investment in the construction, manufacturing, and automotive industries. While North America and Europe remain significant markets, the Asia Pacific region is projected to see the highest growth rate during the forecast period.

Competitive Landscape – Power Tools Market

The power tools market is highly competitive, with several established players dominating the market. Some of the key players in the market include Emerson Electric, Co.; Hilti Corporation; Ingersoll-Rand PLC; Koki Holdings Co., Ltd.; Makita Corporation; Robert Bosch; Stanley Black & Decker; Techtronic Industries

These companies focus on various strategies such as product innovation, mergers and acquisitions, partnerships, and collaborations to maintain their market position and gain a competitive edge. For instance, in 2021, Stanley Black & Decker launched a new cordless power tool system called STANLEY® VERSASTACK™. Similarly, in 2020, Robert Bosch GmbH launched a new cordless power tool system called the Bosch Professional 18V System.

In addition to established players, several new entrants are also emerging in the power tools market, primarily in developing regions such as the Asia Pacific and the Middle East and Africa. These new entrants are focused on offering cost-effective and innovative power tools to gain market share.

Overall, the power tools market is highly competitive, with established players and new entrants alike focused on innovation and cost-effectiveness to maintain their market position and gain a competitive edge.

The Power Tools Market is segmented as follows:

By Product

• Drills
• Saws
• Wrenches
• Grinders
• Sanders
• Others

By Mode Of Operation

• Electric
• Pneumatic
• Others

By Application

• Industrial
• Residential

By Region

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America