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The Europe Power Tools Market size is estimated to grow by USD 2.57 billion at a CAGR of 4.36% between 2023 and 2028. The market is experiencing significant expansion, driven by various influential factors. The increasing preference for cordless power tools, characterized by their versatility, portability, and improved battery technology, is fueling market growth. Moreover, the expansion of both commercial and residential end-user markets, underpinned by construction activities and home improvement projects, is contributing to the market's upward trend. Additionally, the demand for power tools from industries, particularly the manufacturing and automotive sectors, is another crucial factor propelling the market forward. Overall, the market is poised for robust growth, driven by these key factors.
Market Forecast 2024-2028
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The market encompasses various sectors, including the automotive industry, wind energy, and the production of professional and consumer products. Battery-powered power tools, such as those used in the automotive sector for manufacturing and maintenance, are gaining popularity due to the shift towards cordless technology. Companies like Milwaukee Tool Corporation, Bosch, Ingersoll Rand, Snap-on Incorporated, Apex Tool Group, and Milwaukee Tool are major players in this market. Lithium-ion batteries are the preferred choice for these tools due to their high energy density and long life. The wind energy industry also relies heavily on power tools for the installation and maintenance of wind turbines. Fastening tools, hedge trimmers, string trimmers, lawnmowers, and edgers are some of the essential power tools used in this sector. The market is influenced by raw material prices, particularly those of petrochemicals used in the production of Tritan Renew copolyester for tool housings. The cordless power equipment market is expected to grow significantly due to the moving parts' reduced wear and tear and the convenience they offer. The professional and consumer products segments cater to different customer needs, with the former focusing on durability and the latter on affordability. The Bosch Toolbox app and similar digital solutions facilitate tool management and enhance user experience. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The automotive industry and the aerospace and defense industry contribute to the majority of the industrial demand for power tools. One of the main reasons is that these industries involve a lot of metalwork and assembly operations. As a result, the demand for power tools for cutting, grinding, drilling, and polishing is increasing for metal works.
Moreover, the automotive and aerospace industries mainly leverage pneumatic power tools as compressed air utility is mostly available in manufacturing facilities. In addition, they need low maintenance and generally have a longer life, which is essential for heavy-duty industrial applications. Therefore, such factors are positively impacting the market. Hence, it is expected to drive the market growth during the forecast period.
Web and digital connectivity is a primary trend in the market. It facilitates inventory management and improves the performance of power tools. In addition, smart technologies are being launched by established power tools brands such as DEWALT, Milwaukee, and Bosch. For instance, Bluetooth connectivity allows the individuals responsible for the custody of power tools to track the status and ensure the safety of the tools.
Moreover, DEWALT offers Bluetooth-enabled batteries that owners can connect to through a smartphone app. In addition, it enables owners to receive an alert if the tool goes out of the Bluetooth range. Furthermore, it also has the feature to disable the battery of an out-of-range tool and thus prevent unauthorized use of the power tools. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
There is a significant decline in the working-age population in Europe due to the consistently low birth rates. In addition, the consistent increase in the average age of the workforce is usually followed by a declining productivity rate. For instance, the productivity growth rate in Europe has declined by 75% in the last 20 years.
Moreover, Europe is among the regions with the highest labor costs. Therefore factors such as the decreasing productivity due to the aging population and the high environmental and regulatory costs can lead to the migration of certain businesses from Europe to other regions. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market growth during the Market forecasting period.
The market is evolving with advancements in electric mode of operation and innovations in drilling and fastening tools, circular saws and sanders, and the integration of ONE-KEY technology for enhanced control. Industries like the petrochemical industry and power and energy sector drive demand for professional products and multi-purpose tools, supported by pneumatic tools and hydraulic tools in the industrial segment. Price fluctuations in copper prices impact raw materials sourcing, influencing material removal tools and sawing and cutting tools development. The market also sees growth in DIY applications and additional accessories, emphasizing sustainability and efficiency in demolition tools and routing tools.
The commercial segment is estimated to witness significant growth during the forecast period. There is an increase in runtime and performance of cordless power tools due to several technological advancements. Therefore, the construction industry will increasingly use cordless power tools, as access to grid electricity on a construction site is not readily available. In addition, it will fuel the growth of the market as the average selling price (ASP) of cordless tools is higher than that of corded tools.
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The commercial segment was the largest segment and was valued at USD 4.75 billion in 2018. Moreover, tradesmen, including electricians, plumbers, carpenters, and auto mechanics, are the largest end-users of power tools as power tools increase their productivity and enable them to carry out their services efficiently. Furthermore, an increase in the immigrant population in Europe is expected to increase the number of tradesmen. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth analysis during the forecast period.
Based on technology, the segment is classified into electric, pneumatic, and engine-driven. The electric segment can be classified into corded and cordless tools. Corded tools need a connection to a power outlet where the operation is being performed, while cordless tools use battery power and do not require grid electricity except for recharging. The continuous improvement in battery technology, particularly lithium-ion batteries is significantly contributing to the growth of this segment. In addition, these batteries provide higher power density, longer runtimes, and faster charging times, making cordless electric tools more versatile and efficient. Furthermore, increasing environmental awareness has led to a preference for electric power tools over gasoline-powered or pneumatic alternatives. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth and forecasting during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, market research and growth, to enhance their presence in the market.
ANDREAS STIHL AG and Co. KG: The company offers power tools such as GS 461 concrete cutter for professional use on construction sites, Petrol chain saws for cutting firewood, and property maintenance.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Apex Tool Group LLC, Atlas Copco AB, Bahco, C. and E. Fein GmbH, Caterpillar Inc., Drill King International, Emerson Electric Co., Evolution Power Tools Ltd., Hilti AG, KKR and Co. Inc., KYOCERA Corp., Makita Corp., Michael Weinig AG, Panasonic Holdings Corp., Robert Bosch GmbH, Sandvik AB, Snap On Inc., Stanley Black and Decker Inc., and Techtronic Industries Co. Ltd.
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.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market is a significant sector, encompassing a wide range of tools used in various industries for cutting, drilling, sanding, and other applications. The market consists of various types of power tools such as power drills, saws, sanders, and grinders. These tools are essential for construction, manufacturing, and other industries, enabling increased productivity and efficiency. The European market for power tools is driven by factors such as the growing construction industry, increasing demand for automation, and advancements in technology. The market landscape depends on Emerging economies, the DIY market, Wuhan, and Multi-purpose products. Companies in this sector focus on producing innovative and high-performance tools to cater to the evolving needs of customers. The market is competitive, with key players continually striving to expand their product offerings and improve their market share. Consumers look for tools that are durable, efficient, and offer good value for money. The market is expected to grow in the coming years, driven by these factors and others.
Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.36% |
Market growth 2024-2028 |
USD 2.57 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.52 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ANDREAS STIHL AG and Co. KG, Apex Tool Group LLC, Atlas Copco AB, Bahco, C. and E. Fein GmbH, Caterpillar Inc., Drill King International, Emerson Electric Co., Evolution Power Tools Ltd., Hilti AG, KKR and Co. Inc., KYOCERA Corp., Makita Corp., Michael Weinig AG, Panasonic Holdings Corp., Robert Bosch GmbH, Sandvik AB, Snap On Inc., Stanley Black and Decker Inc., and Techtronic Industries Co. Ltd. |
Market dynamics |
Parent market analysis, market report, 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 the 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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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