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The Global Power Tools Market size is estimated to grow by USD 11.43 billion between 2022 and 2027 accelerating at a compound annual growth rate (CAGR) of 5.74%. The growth of the electric power tools market depends on several factors, such as the rise in global construction and infrastructure development activities, the technological innovation accelerating replacement demand, and the growing demand for home improvement products
This power tools market report extensively covers market segmentation by end-user (industrial and residential), technology (electric, pneumatic, and others), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
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The report includes the adoption lifecycle of the market, spanning from the innovator’s stage to the laggard’s stage. Furthermore, the report includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Power Tools Market Customer Landscape
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving growth in the power tools market is the rise in global construction and infrastructure development activities. Power tools are mostly used in the construction industry. These tools are essential to carry out construction operations such as cutting, drilling, and grinding. They have essentially supported tools used to increase the efficiency and productivity of labor at construction sites. Therefore, any growth in global construction activities will have a positive impact on the global power tools market.
The increasing demand for public infrastructure in emerging markets such as Brazil, Russia, India, China, South Africa, and the countries of the Cooperation Council for the Arab States of the Gulf is one of the prime factors driving the market growth. China and India, the two most populous countries, are also the fastest-growing economies. Growing population and urbanization have compelled governments to invest substantially in infrastructure development. Such factors will increase the electric power tools market growth during the forecast period.
Significant Power Tools Market Trends
Product innovations in global power tools market is a power tools market trend that is expected to have a positive impact during the forecast period. The power tools market has changed significantly during the last two decades due to the adoption of cordless power tools, innovative designs, and other technologies. These innovations have led to the adoption of power tools among many end-user segments, especially the home improvement segment. Companies in the power tools market have been investing significant capital in developing better-performance power tools and increasing the utility of the existing designs.
For instance, Stanley Black & Decker's brand DEWALT introduced the FLEXVOLT battery system. This battery system automatically changes the battery's output voltage when it is connected to a different power tool. The system allows the battery to maintain greater runtime without the need for frequent charging. Such types of increasing innovation in power tools is expected to drive the growth of the global electric power tools market during the forecast period.
The volatility in prices of raw materials will be a major challenge for the power tools market during the forecast period. Commodity price volatility can be a major challenge for suppliers and manufacturers. This is because several market players are starting to compete based on price to sell their products. Most of them are undifferentiated or generic power tools. The production of power tools involves the use of steel, copper, rubber, plastic, and other composites. Also, the motor inside most electric power tools constitutes magnets that are made of rare earth materials.
Most of these raw materials are globally traded commodities, and their prices are prone to significant fluctuations, which may negatively impact power tool manufacturers due to a reduction in profit margins or sales caused by higher prices of power tools. Materials such as steel and aluminum account for a significant share of the production cost. The price of Neodymium, a rare earth material used for producing magnets for motors, is also highly volatile. Although the risk against price volatility can be hedged by derivative instruments, it will continue to represent a significant challenge for the global electric power tools market.
Vendors 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.
ANDREAS STIHL AG and Co. KG: The company offers power tools under the subsidiary Andreas Stihl Pvt. Ltd. Also, the company offers power tools under the subsidiary Andreas Stihl Pvt. Ltd.
Apex Tool Group LLC: The company offers power tools under the brands Weller, Cleco, and Apex. Also, through this segment, the company offers its hand tools and power tools to various markets such as Industrial, Vehicle service, Motor vehicle industry, Aerospace, Construction/DIY, and Electronics.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak based on their quantitative data analysis.
The industrial segment will account for a major share of the market's growth during the forecast period. A large share of the global power tools market is dominated by the industrial end-user segment. Industry-specific requirements, technological advancements, and economic growth are some of the variables that influence the market environment for power tool users in the industry.
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The industrial segment was valued at USD 22.99 billion in 2017 and continued to grow until 2021. The expansion of the manufacturing industry is one of the major factors driving the market for industrial power tools. Manufacturers need effective and dependable power tools to meet their production needs as consumer and industrial product demands rise. Power tools, for instance, are used in the construction industry to drill, cut, and shape building materials. They are also used in the automotive industry for assembling and disassembling vehicle parts. It is anticipated that the demand for power tools in the industrial sector will increase during the forecast period due to the growing number of construction projects, particularly in developing nations.
Based on technology, the market has been segmented into electric, pneumatic, and others. The electric segment will account for the largest share of the type segment. The primary growth of the power tools market during the forecast period will be the demand for cordless, battery-driven power tools, which are becoming very popular among DIY consumers in developed countries. As charging technology continues to advance, and fast charging solutions become available, these tools have gained considerable acceptance in the professional arena. Power tools are considered environmentally friendly and energy efficient as they do not directly burn fuel to generate electricity. Due to the above factors, electrical technology is expected to become the primary market share holder in the technology segment of the global electric power tools market during the forecast period.
North America is estimated to contribute 44% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the electric power tools market during the forecast period.
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The growth of the infrastructure sector and the rise in construction activities by companies that use machinery tools will boost the growth of the power tools market in the US. The manufacturing industry is one of the major contributors to the economy in Canada, and this segment accounted for a share of around USD 170 million in 2020. It is more than 10% of Canada's GDP. Similarly, in November 2021, Samsung Electronics, an advanced semiconductor technology company, announced the expansion of its manufacturing in Taylor, Texas. Such large large-scale construction of high-rise buildings will increase the demand for power tools during the forecast period.
In 2020, the power tools market in the region witnessed a significant decline in its growth owing to the outbreak of COVID-19. However, in 2021, the initiation of vaccination drives in various countries such as the US, Canada, and Mexico led to the lifting of lockdown restrictions which further led to the reopening and recovery of the manufacturing, automotive, and construction sectors 2021. These sectors registered significant growth in North America in 2022, which is expected to continue between 2023-2027 and drive the growth of the market in focus during the forecast period.
The power tools 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.
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Power Tools Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.74% |
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Market growth 2023-2027 |
USD 11.43 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
4.98 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 44% |
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Key countries |
US, China, Japan, Germany, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ANDREAS STIHL AG and Co. KG, Apex Tool Group LLC, Atlas Copco AB, C. and E. Fein GmbH, Evolution Power Tools Ltd., Group Silverline Ltd., Hilti Corp., Illinois Tool Works Inc., JPW Industries Inc., Koki Holdings Co. Ltd., Makita USA Inc., Nemo Power Tools Ltd., Panasonic Holdings Corp., Positec Tool Corp., Robert Bosch GmbH, Snap On Inc., Stanley Black and Decker Inc., Techtronic Industries Co. Ltd., Chervon Holdings Ltd., and Emerson Electric Co. |
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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. |
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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
US - Power Tools Market - According to our research report, the Power Tools Market in the US will witness a CAGR of 3.33% which is expected to increase by USD 1.63 billion for the forecast period 2020 to 2025.
Europe- Power Tools Market - The power tools market share in Europe is expected to increase by USD 1.59 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 4.06%.
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 Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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