Portable Power Tools Market Analysis North America,Europe,APAC,South America,Middle East and Africa - US,China,Japan,Germany,UK - Size and Forecast 2023-2027

Portable Power Tools Market Forecast 2023-2027

The portable power tools market size is estimated to increase by USD 7.61 billion at a CAGR of 5.02% between 2022 and 2027. The demand for DIY building products is increasing the popularity of home improvement projects and the desire for cost-effective solutions. The increasing demand for power tools is driven by the need for efficient and reliable tools for various construction and renovation projects. The use of Li-ion batteries in power tools is enabling cordless operation, providing greater flexibility and convenience to users, and driving the adoption of these tools in the market. This market research and growth report includes key drivers, trends, and challenges during the forecasted period. 

What will be the Size of the Portable Power Tools Market During the Forecast Period?

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The market is experiencing robust growth, driven by the demand from industrial, commercial, and residential end-users across developing economies. They are powered by lithium-ion batteries and featuring both brushed and brushless motors, cater to various applications such as drilling and fastening, demolition, sawing and cutting, and material removal. With options ranging from 12V to above 40V batteries, users benefit from enhanced efficiency and performance. Industries like the automobile, aerospace, and electronics sectors heavily rely on these tools for manufacturing and assembly processes. Additionally, the rise in DIY activities further fuels the demand, emphasizing the importance of routing tools, drills, impact drivers, and screwdrivers in both professional and personal settings.

Market Segmentation

This report extensively covers market segmentation by product (cordless-tools and corded-tools), application (commercial and consumer), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021. In the global market, corded tools held a significant share, particularly in manufacturing industries such as aviation and military, due to their powerful motors requiring consistent electricity. DIY trends and projects drove the demand, driven by advances in battery technology and rechargeable batteries. Ergonomics and safety measures are essential considerations in both corded and cordless tools. The aviation and military industries, with their high-performance requirements, continue to favor corded tools. However, cordless power tools are gaining popularity in home renovation and DIY projects due to their portability and environmental awareness. Infrastructure projects in emerging markets also favor cordless tools for their compatibility and interoperability. Battery technology and rechargeable batteries have made cordless power tools more efficient, but they still face challenges such as heat generation and safety hazards. They are preferred for screw driving, fastening, and studding applications due to their energy efficiency. The market is expected to grow as advances in technology address the challenges of cordless power tools.

By Product 

The cordless tools segment will account for a major share of the market's growth during the forecast period. Cordless equipments are used in applications where the freedom of movement of these is very important. They can perform most tasks performed by corded tools. These tasks include drilling, grinding, polishing and sanding, and screw driving. Cordless equipment is increasingly being used by professionals such as electricians, plumbers, auto mechanics, and service engineers due to the ease of use without having to depend on a source of electricity.

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The cordless segment was valued at USD 16.74 billion in 2017 and continued to grow until 2021. Cordless equipment has evolved considerably since its inception. Li-ion batteries have almost replaced nickel-cadmium (NiCd) batteries that were traditionally used in cordless power tools. Li-ion batteries provide cordless equipment with more runtime and have more charge storage capacity than NiCd batteries. Similarly, these have had concerns about heavy-duty performances in the past. These concerns have been addressed by the use of BLDC motors instead of brushed DC motors. BLDC motors have higher power density than brushed DC motors and can provide better torque than a brushed DC motor of a given size. Such factors will increase segment growth during the forecast period.

By Region

North America is estimated to contribute 33% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.  

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The market is a significant segment within the power tools industry, characterized by the production and distribution of compact, battery-operated or corded tools. These including drills (12V drills, cordless drills), drivers (impact drivers, screwdrivers), routing tools (routing machines, plunge routers), and cutting tools (circular saws, jigsaws), offer the convenience of mobility and versatility for various applications. The market is driven by factors such as increasing demand for DIY projects, the growing construction industry, and advancements in battery technology (lithium-ion batteries). Manufacturers like DEWALT, Bosch, and Makita dominate the market with their robust offerings and innovative features. The market is expected to grow at a steady pace due to the rising trend of automation and increasing demand for power tools in developing countries.

Market Dynamics

The market encompasses a wide range of equipment designed for efficient and convenient power solutions. They include Motors, Brushless Motors, Batteries, Operated, and Devoted Batteries, play a crucial role in various industries and DIY projects. Manual Labor tasks are increasingly being replaced by them, such as Brushless Motors and Motors, which offer increased power and torque. The Battery-operated market is experiencing significant growth due to the demand for cordless solutions. Devoted Batteries ensure optimal performance, while the use of Lithium-ion Batteries provides longer runtimes and faster charging times. The Market for Motorized Tools is driven by the need for versatility and portability, making them essential for professionals and homeowners alike. The Brushless Motors and Motors, along with the Batteries and Chargers, are key components of this Market, providing power solutions for a diverse range of applications. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.

Key Market Driver

The use of Li-ion batteries is the key factor driving the growth of the global market. They should also be lightweight and allow for easy movement, making them suitable for both personal and commercial use. Recent advancements in motor technology, including the introduction of brushless DC (BLDC) motors, have improved tool efficiency. However, to meet the increasing demand for cordless equipment, there is a need for advancements in battery technology. Lithium-ion (Li-ion) batteries have become the preferred choice over nickel-metal hydride (Ni-MH) or nickel-cadmium (NiCd) batteries in cordless tools. 

However, in recent years, lithium-ion (Li-ion) batteries have largely replaced Ni-MH or NiCd batteries due to their higher power density and energy storage capacity relative to size. Li-ion batteries provide a superior power-to-weight ratio compared to NiCd batteries, making them a preferred choice for various applications. They also have lower self-discharge rates and are made from less toxic materials, making them more environmentally friendly. This has led to their widespread adoption in electric vehicles (EVs), DIY activities, and various other sectors, including roads, railways, airports, internal combustion engines, and compressed air systems. Li-ion batteries' self-discharge rate is typically one-fifth that of NiCd batteries, allowing equipment to operate longer on a single charge. This shift towards cordless equipment has driven the global market's growth during the forecast period.

Significant Market Trends

Increasing use of brushless DC motors is the primary trend shaping the global market growth. Reliability, low maintenance, long life, and compactness are the main requirements for portable equipment. BLDC motors meet these requirements because they have no brushes that cause wear and friction loss. These are typically required in brush motors for mechanical commutation. Relatively low friction losses and wear mean that these motors emit very little heat, making them more energy efficient than brushed DC motors. This extends the life of the equipment and gives you better performance on a single charge. 

Therefore, there is an increasing trend of using BLDC motors in portable equipment, such as cordless screwdrivers and drills, as these motors are more compact than brushed DC motors because of the high-power density of the former. Multiple established brands such as Makita and Stanley Black and Decker have launched portable power tools with BLDC motors in recent years. Thus, increasing the use of brushless DC motors will drive the growth of the market during the forecast period.

Major Market Challenge

The limitation of performance is a major challenge impeding the growth of the global market. The use of portable equipment is advantageous due to its lightweight, portability, and cordless operation in the case of cordless equipment. However, due to the high cost, they have not fully replaced traditional power tools, such as stationary or handheld equipment. Other reasons are battery limitations and lack of high power. Unlike, these do not have large or very powerful motors, as they are a compromise between power and size.

This problem complicates even further in the case of cordless equipment, as batteries have limitations as far as storing electricity is concerned. Large batteries compromise portability and mobility. Thus, limitations on the size of the battery and motor also affect the performance adversely, therefore hindering the growth of the global market during the forecast period.

Customer Landscape

Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027. 

Global Market Customer Landscape

Who are the Major Market Players?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

3M Co.: The company offers portable power-tools such as 3M perfect-it random orbital polisher.

Atlas Copco AB: The company offers portable power-tools such as pneumatic hammers and pneumatic breakers.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

• ANDREAS STIHL AG and Co. KG
• C. and E. Fein GmbH
• Draper-Tools Ltd.
• Emerson Electric Co.
• Festool GmbH
• Hilti AG
• Husqvarna AB
• Ingersoll Rand Inc.
• J C Bamford Excavators Ltd.
• Koki Holdings Co. Ltd.
• Makita Corp.
• Panasonic Holdings Corp.
• PATTA International Ltd. Taiwan
• Robert Bosch GmbH
• Snap On Inc.
• Stanley Black and Decker Inc.
• Techtronic Industries Co. Ltd.
• YAMABIKO CORP.

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Market Analyst Overview

In the market, Manual labor tasks have been significantly streamlined with the introduction of Battery-operated power tools from brands like Devops and Brushless. They offer the convenience of portability, making them essential for various industries such as construction, automotive, and DIY projects. The demand is increasing due to their efficiency and versatility. For instance, impact wrenches, drills, and screwdrivers are commonly used tools that have become indispensable in many applications. The latest addition to this list is the Screwdriver, which offers improved precision and control. Moreover, the evolution of technology has led to advancements in battery technology, resulting in longer runtimes and faster charging times. This has further boosted the popularity. In conclusion, the market is witnessing a surge in demand due to their portability, efficiency, and versatility. Brands like Devops and Brushless are leading the charge with innovative solutions that cater to the diverse needs of consumers and professionals alike.

The market is experiencing significant growth driven by various sectors like the Industrial sector, Residential sector, Automobile industry, Aerospace industry, Electronics industry, and Energy industry. Battery-operated equipment, including Brushed motors and Li-ion battery type, are gaining popularity due to their convenience and efficiency. End-user benefit from a diverse range, from Drilling and fastening tools to Sawing and cutting tools, catering to different needs. The availability of 12V, 18V, 20V, 40V, and above 40V batteries ensures compatibility with various tool type, motor type, and applications. Moreover, with advancements like the BAT414 battery, the market is witnessing innovation to meet the evolving demands of consumers and industries.

The market is witnessing robust growth across various sectors, including the shipbuilding industry, hypermarkets, and supermarkets, as well as home improvement retailers like Home Depot and DIY outlet stores. Industrial heat guns, demolition tools, material removal tools, and nut runners are among the key offerings driving the market forward. Developed nations with high disposable incomes are major contributors to market expansion, fostering demand for advanced power tools. They cater to a wide range of applications, from heavy-duty industrial tasks to DIY projects at home. With sustained innovation and increasing adoption, the market is poised for continuous growth in developed economies and beyond.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Product Outlook 
  • Cordless-tools
  • Corded-tools

• Application Outlook 
  • Commercial
  • Consumer

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting and report on the factors that will challenge the market research and growth of market companies

Industry Scope
Report Coverage	Details
Page number	167
Base year	2022
Historic period	2017 - 2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 5.02%
Market growth 2023-2027	USD 7.61 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	4.45
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 33%
Key countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	3M Co., ANDREAS STIHL AG and Co. KG, Atlas Copco AB, C. and E. Fein GmbH, Draper Tools Ltd., Emerson Electric Co., Festool GmbH, Hilti AG, Husqvarna AB, Ingersoll Rand Inc., J C Bamford Excavators Ltd., Koki Holdings Co. Ltd., Makita Corp., Panasonic Holdings Corp., PATTA International Ltd. Taiwan, Robert Bosch GmbH, Snap On Inc., Stanley Black and Decker Inc., Techtronic Industries Co. Ltd., and YAMABIKO CORP.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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