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Global power tools market is projected to witness a rise in revenue from US$ 33,487.7 Mn in 2022 to US$ 52,329 Mn by 2031. The market is registering a CAGR of 5.9% over the forecast period 2023-2031.
Power tools are a crucial component of many industries, including construction, automotive, aerospace, energy, and shipbuilding, among others. They are designed to make work easier and faster by using an external power source and mechanism rather than relying solely on manual labor. The increasing demand for power tools is primarily attributed to the growing application of these tools in the construction industry, coupled with the rising adoption of cordless power tools globally.
The construction industry is constantly evolving, and as a result, the demand for advanced tools and equipment has increased worldwide. Power tools such as drills, sanders, wrenches, and other tools are widely used in the construction industry, augmenting the demand for these tools. Additionally, the growing demand for construction activities, coupled with the increasing usage of innovative and energy-efficient tools, has resulted in the introduction of more efficient power tools.
Cordless power tools, in particular, are gaining widespread acceptance and implementation in both homes and workplaces. These tools include a wide range of battery-powered tools, such as hammer drills, impact wrenches, circular saws, nailers, and staplers, and are ideal for sanding, welding, metalworking, cutting, and other applications. This is propelling the growth of the power tools market.
However, the high maintenance costs, along with regular price fluctuations in raw materials, are limiting the growth of the power tools market globally. To overcome these limitations, manufacturers must focus on developing cost-effective and energy-efficient power tools that require minimal maintenance. Additionally, they should explore innovative technologies to create new and more efficient power tools that meet the changing demands of the industry.
Growing Demand from the Construction Industry:
The construction industry is a significant driver of the power tools market. Power tools are essential in various construction activities, such as drilling, cutting, and fastening. With the increasing demand for infrastructure and housing development globally, the construction industry is expected to continue to drive the growth of the power tools market.
Increasing DIY Activities:
The DIY trend is gaining popularity worldwide, especially among millennials. The growing interest in DIY projects is due to the availability of information on the internet and social media platforms. Additionally, the COVID-19 pandemic has accelerated the trend, as people spend more time at home and seek to improve their living spaces. As a result, the demand for power tools for DIY projects is expected to rise significantly.
High Cost of Power Tools:
The high cost of power tools can act as a restraint for the market. Power tools are often seen as a significant investment, and the cost can deter some potential customers. Additionally, power tools require regular maintenance, and the cost of repairs can be high. As a result, some customers may opt for cheaper alternatives or delay purchases, affecting the growth of the power tools market.
Adoption of Lithium-ion Battery Technology:
The adoption of lithium-ion battery technology is a significant trend in the power tools market. Lithium-ion batteries offer several advantages over traditional batteries, including faster charging times, longer run times, and lower weight. Additionally, lithium-ion batteries have a longer lifespan and are more environmentally friendly. As a result, power tool manufacturers are increasingly incorporating lithium-ion batteries into their products, which is expected to drive the growth of the power tools market.
Segmental Analysis of Global Power Tools Market
By Tool Type:
In terms of tool type, the power tools market is segmented into drilling and fastening tools, sawing and cutting tools, material removal tools, routing tools, and others. Among these, the drilling and fastening tools segment is estimated to have the highest market share in 2022 and is projected to continue its dominance over the forecast period. The rising demand for drilling and fastening tools from various end-use industries such as automotive and aerospace manufacturing plants is driving the market share of power tools in the global market. The sawing and cutting tools segment is also expected to witness significant growth due to the increasing demand for precision cutting and the use of sawing and cutting tools in various industries, such as woodworking, construction, and metalworking.
By Mode of Operation:
Based on the mode of operation, the power tools market is segmented into electric, pneumatic, and hydraulic. Among these, the electric segment holds the highest share in the power tools market in 2022. This is due to the rise in demand for power tools from a wide range of industries, including construction, automotive, aerospace, energy, and shipbuilding, coupled with the growing adoption of cordless tools among industrial and residential users.
Furthermore, the advent of powerful battery packs has resulted in the increased power of electric tools, making them more efficient and convenient to use. The pneumatic and hydraulic segments are also expected to witness significant growth due to their high power and durability, which makes them ideal for heavy-duty applications in industries such as manufacturing and construction.
By Industrial Application:
The power tools market is segmented into industrial and residential applications. The industrial application segment has the highest share of the power tools market in 2022. The increased technological innovation and adoption of advanced technologies in industries such as construction, aerospace, automotive, and energy, among others, is expected to drive the industrial application segment in the power tools market. The residential segment is also expected to witness significant growth due to the growing popularity of DIY activities and the increasing number of households engaged in home improvement projects. Additionally, the availability of affordable power tools and the rise in disposable income among consumers are driving the growth of the residential segment in the power tools market.
Geographically, the power tools market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. Asia-Pacific is expected to remain the fastest growing region in the global power tools market. The growth of the power tools market in the region is primarily attributed to the rising demand for power tools from industries such as construction, automotive, and aerospace. Additionally, the increasing adoption of cordless power tools and the growing popularity of DIY activities in countries such as China and India are driving the growth of the power tools market in the region.
North America and Europe are also expected to witness significant growth in the power tools market due to the increasing demand for power tools from various end-use industries and the growing popularity of DIY activities in these regions.
List of Key Companies Profiled:
Strategies Adopted by Key Market Players
The following are the different segments of the Global Power Tools Market:
By Tool Type:
By Mode of Operation:
|Market Size Value in 2022||US$ 33,487.7 Mn|
|Expected Revenue in 2031||US$ 52,329 Mn|
|Unit||Value (USD Mn)|
|Segments covered||By Tool Type, By Mode of Operation, By Application, By Region|
|Key Companies||3M, ANDREAS STIHL AG & Co. KG, APEX Tool Group, LLC, Atlas Copco AB, C. & E. FEIN GmbH, Delta Power Equipment Corporation, Emerson Electric Co., Ferm International B.V., Festool GmbH, Hilti Corporation, Husqvarna AB, Ingersoll-Rand, Interskol, KOKI Holdings Co. Ltd., Kyocera Corporation, Makita Corporation, Panasonic Corporation, Robert Bosch GmbH, Snap-On, Stanley, Black & Decker, Inc., Techtronic Industries (TTI), Positec Tool Group, Uryu Seisaku, Ltd., CS Unitec, Fortive Corporation, Other Prominent Players|
|Customization Scope||Get your customized report as per your preference. Ask for customization|
Power tools are primarily used to cut, wrench, saw drill and polish materials.
Power tools are used by various industries such as construction, automotive, aerospace, energy, and shipbuilding among others.
Global Power Tools Market was valued at US$ 33,487.7 Mn in 2022.
Global Power Tools Market is estimated to witness a compounded annual growth rate of 5.9% over the forecast period 2023-2031.
The growth of power tools market is attributed to factors such as growing application of power tools in construction industry and rising adoption of cordless power tools globally.
The growing use of drills, sanders, wrenches, and other tools in the construction industry is augmenting the demand for power tools.
The high maintenance cost along with regular price fluctuations in raw materials of power tools are limiting the growth of the power tools market globally.
Growing emergence of smart connectivity in power tools industry is an emerging opportunity in the market.
The drilling and fastening tools segment is estimated to have the highest market share in 2022.
Electric mode of operation segment has the highest share in the power tools market in 2022.
Industrial application segment holds the highest share in the power tools market globally.
North America dominates the Global Power Tools Market in 2022.
The key players in the global power tools market are Robert Bosch GmbH, Stanley Black & Decker, Inc., Hilti Corporation, Techtronic Industries Co. Ltd., and Makita among others.