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The power tool battery market size is forecast to increase by USD 1.52 billion, growing at a CAGR of 8.1% between 2023 and 2027. This growth is driven by the rising demand for lithium-ion batteries, advancements in 3D printers, and the impact of increased electric vehicle sales on battery innovation and production capacity.
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The power tool batteries market, part of the broader power equipment batteries market, includes lithium-ion batteries crucial for battery power tools and power tool batteries and chargers. It encompasses the small power battery market and the evolving power tool portable power supply market, driven by advancements in lithium-ion technology and innovative battery solutions.
The industrial segment is estimated to witness significant growth during the forecast period. Some of the key industrial sectors that are widely adopting include construction, mining, chemical manufacturing, and semiconductor fabrication. There is an increasing demand for uninterrupted power supply due to rapid industrialization across the world, especially in developing countries such as China, Brazil, and India. Additionally, factors such as an increase in construction activities and growing spending globally are expected to fuel the demand for this segment.
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Furthermore, there is a growing demand in the industrial sector. Uninterrupted power supply is a crucial factor for any industrial sector and industries rely on these to prevent losses resulting from the non-operation of the plant and machinery due to the unavailability of electricity. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the global market growth during the forecast period.
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North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the main factors that is significantly driving the global market in North America is the increase in investments in industries such as construction, automobile, and aerospace. Additionally, the growth of the construction sector in the region is expected to fuel the demand in North America.
In addition, some of the main countries in North America which have significant construction activities both in the residential and commercial sectors include the US and Canada. Furthermore, the rise in demand from automobile and construction industries in these countries is fuelling capital investment projects such as free trade agreements. Hence, such factors are expected to drive the global market growth in the region during the forecast period.
The power tool batteries market, within the broader power equipment batteries sector, is pivotal for battery power tools and their accompanying batteries and chargers. It also encompasses the small power battery market and the evolving power tool portable power supply market. This market is propelled by continuous advancements in lithium-ion technology, which offer superior performance, longer lifespan, and environmental advantages over traditional battery types.
One of the key factors driving the market growth is the declining Li-ion battery prices. As the demand for Li-ion batteries is growing significantly, it will impact the market for lead acid batteries as the only differentiating factor between the two batteries which determines their preference is the price. Additionally, there is an increase in investment in technological advances by Li-ion battery manufacturing to reduce the prices of batteries.
Furthermore, Li-ion batter is being promoted by several companies which will positively impact the market growth. Moreover, there has been a decline in Li-ion battery prices an average of 23% per year since 2010. Additionally, there is a decline in energy storage system cost which has led to a decrease in installation cost by 17% from USD 3,400/kWh to USD 1,600/kWh. Hence, such factors are expected to drive market growth during the forecast period.
A key factor shaping the market growth is the integration of 3D printing technology. There is increasing adoption of 3D printing technology for prosthetics, full-scale clothing, and electronic products, even though they have huge potential for use in the industrial sector. The technological advancement in 3D printing technology is expected to fuel the demand.
As a result, several manufacturers are increasingly emphasizing integrating 3D printing technology into their equipment to introduce new products in the market. Additionally, the development cost required for manufacturing using 3D printing is only half when compared to traditional manufacturing techniques. Hence, such factors are expected to drive market growth during the forecast period.
The high cost of power tool batteries equipment is one of the key challenges hindering the market growth. The main application is for the easy and efficient movement of goods. Also, these are equipped with several capabilities and features to enhance operational efficiency. The main advantage of this is that they eliminate the risks of mishandling high-speed due to factors such as increased usability, accurate controls, and foolproof technology.
However, these benefits and advantages offered come at a high price. The high cost associated with these can be attributed to the high cost of consumables, along with their high maintenance costs. As a result, it is expected to have a decline in the adoption of these by small-scale industries. Hence, such factors are expected to hinder market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the power tool batteries market analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Power Tool Batteries Market Customer Landscape
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.
Atlas Copco AB: The company offers Stihl lithium ion-pro batteries.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The power tool batteries market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in USD Billion for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
The market is witnessing significant growth, driven by the increasing demand for battery power tools in the automotive and manufacturing sectors. Professional users and individual consumers are embracing DIY techniques, often turning to platforms like YouTube for guidance. OEMs are focusing on brushless battery power tools also called as cordless power tools, offering a low-cost alternative to traditional corded power tools. Rechargeable batteries are dominating the market, especially with advancements in brushless motor technology, offering higher efficiency and longer lifespan compared to brushed motors. Innovations in battery design and manufacturing, including the integration of 3D printing technology, further enhance efficiency and customization possibilities. These factors collectively drive growth and innovation in meeting the increasing demand for reliable and efficient power solutions across various industries.
This trend is evident in a wide range of tools, including drills, saws, impact wrenches, and grinders. The market is witnessing business expansion and collaborations as key players like Apex Tool Group strive to strengthen their product positioning and competitive outlook. As the market evolves, stakeholders are focusing on product launch and innovation, especially in industrial applications where reliability and performance are crucial. The market is witnessing substantial growth, particularly in the automotive sector, where impact wrenches and lawn mowers equipped with brushed motors are in high demand. Additionally, DIY applications are driving the adoption of versatile tools like nibblers, showcasing the versatility and convenience offered by battery-powered solutions in various sectors.
The market is expanding, driven by applications in packaging, assembly, and maintenance operations. Handheld machine drills, nailers, and impact wrenches are essential in the automotive and manufacturing sectors, as well as for individual users employing DIY (Do-it-yourself) techniques. OEM (Original Equipment Manufacturer) tools are vital for reducing maintenance cost compared to manually operated hand tools. Manufacturing activities, along with the hotel industry and tourism industry, demand versatile power tools with specific motor types, such as brushed motors. Popular tools include lawn mowers, hammers, nibblers, polishers, drilling machines, planers, staplers, and nailers. These tools find use in both industrial and DIY applications, such as screw driving and chiseling. Leading companies like Hilti Corporation, Ingersoll-Rand PLC, Hitachi Ltd., Makita Corporation, and Snap-On Incorporated drive market growth through collaboration and acquisition, addressing needs in industrial application and sanding in the overall power tools market.
Power Tool Batteries Market Scope |
|
Report Coverage |
Details |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.1% |
Market growth 2023-2027 |
USD 1.52 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.56 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 36% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks, Power Tool Batteries Market Industry Report |
Key companies profiled |
Atlas Copco AB, BYD Co. Ltd., E One Moli Energy Corp., EGO, GS Yuasa Corp., Hilti AG, Husqvarna AB, Ingersoll Rand Inc., LG Chem Ltd., Makita Corp., Panasonic Holdings Corp., Renesas Electronics Corp., Robert Bosch GmbH, Samsung SDI Co. Ltd., Snap On Inc., Techtronic Industries Co. Ltd., Wanxiang Group, ANDREAS STIHL AG and Co. KG, Honda Motor Co. Ltd., and Stanley Black and Decker Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth and trends and inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period, Power Tool Batteries Market growth analysis. |
Customization purview |
If our power tool batteries market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this power tool batteries market forecast report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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