Power Tools Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2027

The global Power Tools market is projected to witness a rise in revenue from US$ 31,994.7 Mn in 2021 to US$ 43,278.3 Mn by 2027. The market is registering a CAGR of 5.2% over the forecast period 2022-2027. A power tool is actuated by an additional power source and mechanism other than the solely manual labor used with hand tools. Power tools are primarily used to cut, wrench, saw drill, and polish materials. These tools come in various sizes and shapes, which makes them easy and handy to operate. Power tools are used by various industries such as construction, automotive, aerospace, energy, and shipbuilding among others.

The growing impetus of the global power tools market is attributed to factors such as the growing application of power tools in the construction industry and the rising adoption of cordless power tools globally. With constant developments in the construction industry, the demand for construction machinery and advanced tools & equipment has increased throughout the world. The growing use of drills, sanders, wrenches and other tools in the construction industry is augmenting the demand for these tools. Furthermore, the growing demand for construction activities coupled with the increasing usage of innovative and energy-efficient tools and growing purchasing power has resulted in the introduction of more efficient power tools. 

Cordless power tools are gaining extensive acceptance and implementation in both homes and workplaces. Cordless power tools include a wide range of battery-powered tools, such as hammer drills, impact wrenches, and circular saws, as well as nailers and staplers. These sorts of cordless tools are ideal for sanding, welding, metalworking, cutting, and other applications. This is propelling the market growth. However, 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.

Key Insights of the Report: 

• The latest study published by Astute Analytica analyzes the Global Power Tools market for the study period of 2017-2027; where historical years are 2017-2020, the base year is 2021, and the forecast period is 2022-2027.
• The research report offers a detailed study of market determinants including market drivers, restraints, opportunities, and trends; along with an attractive presentation in the form of impact analysis to gain a simpler and easy comparison view of all market determinants.
• The research study is a compilation of 14 chapters distributed across 236 pages with 35 lists of tables and 84 lists of figures.
• The market estimates are presented in terms of value (US$ Mn).
• Along with market estimations, the market study was conducted on the basis of various economic models such as PESTLE and Porter’s five force models.
• Detailed value chain analysis of the industry was conducted. It includes raw material providers, power tool manufacturers, distributors, and end-users.
• The competitive dashboard section includes analysis on the basis of the Concentration Ratio (CR), based on market size and market presence of key companies.

Key Takeaways from the Global Power Tools Market Report

• In terms of tool type, the drilling and fastening tools segment is estimated to have the highest market share in 2021 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.
• 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 2021. 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.
• The industrial application segment has the highest share of the power tools market in 2021. 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. However, the residential segment has the fastest CAGR in the market over the forecast period.
• North America is the highest shareholder in the Global Power Tools Market in 2021; however, Asia Pacific is estimated to dominate the market by the end of 2027. Increasing disposable income, growing construction & infrastructure development activities are major factors influencing the growth of the APAC market.

Competitive Landscape 

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. Through extensive research, it is found that big players have adopted various competitive strategies such as product development and collaboration with the OEMs in order to have a grip in the stabilized global market scenarios. Furthermore, leading companies are expanding their geographical boundaries by acquiring small brands and domestic companies.

Strategies Adopted by Key Market Players

• In May 2021, Atlas Copco completed the acquisition with the operating assets of MidState Air Compressor, which allows it to focus on growing business needs and continue to support the market presence in the region.
• In July 2020, Makita unveiled various new cordless models related to power tools, mainly the new 82mm DKP181 18V Brushless LXT Planer, for robust applications such as cutting bushes and tall weeds.
• Similarly, in August 2019, Panasonic expanded its product portfolio of the High Torque 2-Way Series by introducing new High Torque 2-Way Series tools. Panasonic’s new High Torque 2-Way Series tools share real-time fastening data to the qualifier with modifiable settings in torque stage, flush detection point, and cross-thread/re-hit detection.
• In April 2018, Emerson signed a definitive agreement to acquire Textron’s business of Tools and Test Equipment (Tools & Test). The acquisition added to Emerson's business and extended its served markets. It also delivered key capabilities to satisfy the evolving needs of consumers and drive premium growth.

Segmentation Overview

The following are the different segments of the Global Power Tools Market:

By Tool Type segment of the Global Power Tools Market is sub-segmented into:

• Drilling and Fastening Tools 
  • Drills
  • Screwdrivers and Nut-Runners
  • Wrenches
  • Drivers
• Demolition Tools 
  • Demolition Hammer
  • Hammer Drill
  • Breaker
  • Rotary Hammer
  • Others
• Sawing and Cutting Tools
  • Circular Saws
  • Jigsaws
  • Multi-Cutter Saws
  • Chop Saws
  • Band Saws
  • Reciprocating Saws
  • Shears and Nibblers
• Material Removal Tools 
  • Grinders
    • Die and Straight Grinder
    • Angle Grinder
    • Rotary Files
    • Bench Grinder
    • Pencil Grinders
    • Sanders
    • Polishers/ Buffers
  • Routing Tools 
    • Routers/Planer
    • Joiners
  • Air-Powered Tools
    • Air Hoses
    • Air Hammers
    • Air Scalers
    • Others
  • Others

By Mode of Operation segment of the Global Power Tools Market is sub-segmented into:

• Electric
  • Corded
  • Cordless
• Pneumatic
• Hydraulic

By Application segment of the Global Power Tools Market is sub-segmented into:

• Industrial
  • Construction
  • Automotive
  • Aerospace
  • Energy
  • Shipbuilding
  • Metal & Fabrication
  • Other Industries
• Residential

By Region segment of the Global Power Tools Market is sub-segmented into:

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
  • Eastern Europe
    • Poland
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia & New Zealand
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa (MEA)
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America