Power Tools Market Analysis APAC,North America,Europe,Middle East and Africa,South America - US,China,Japan,Germany,France - Size and Forecast 2024-2028

Power Tools Market Forecast 2024-2028

The power tools market size is forecast to increase by USD 16.84 billion, at a CAGR of 7.2% between 2023 and 2028. Market growth hinges on factors like the increase in global construction and infrastructure development, technological innovations driving replacement demand, and the rising demand for home improvement products. As construction activities expand worldwide, advancements in technology spur the need for upgrades, while consumer interest in enhancing living spaces drives demand for home improvement products. These trends underscore the evolving landscape of the market and opportunities for industry stakeholders.

The APAC region has been undergoing rapid urbanization and infrastructure development, leading to increased construction activities. Further, Atlas Copco AB company offers power tools such as industrial drills, assembly tools, material removal tools and screw feeder. Also, Emerson Electric Co. company offers power tools such as corded, cordless, and tile saws under the brand RIDGID.

Market Forecasting and Size

Market Forecast 2024-2028

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Market Dynamics

The market serves various industries such as construction, aerospace, automotive, and shipbuilding. Power tools manufacturers prioritize using the highest quality materials to ensure durability and performance. Battery power tools have become increasingly popular due to their convenience and versatility across construction activities and other sectors. In the market, products like wrenching, saw drills, and polishing materials cater to diverse needs, including petrochemical and oil and gas applications. While cordless power equipment offers mobility, concerns over maintenance costs and moving parts persist amidst fluctuating prices. Leading brands like Robert Bosch Power Tools GmbH innovate with products such as cordless sanders and random orbit sanders to meet industry demands. Our researchers studied the market research and growth 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.

Key Market Driver- Rise in global construction and infrastructure development activities

Power tools are predominantly utilized in the construction, aerospace, automotive, and shipbuilding industries. These tools play a vital role in executing construction tasks like cutting, drilling, and grinding. They serve as essential support tools aimed at enhancing the efficiency and productivity of labor at construction sites with the highest quality materials. Therefore, any upsurge in global construction activities is poised to have a favorable impact on the market. Furthermore, the growing population and urbanization have spurred governments to make substantial investments in infrastructure development. In contrast to the US and some APAC countries, many regions worldwide currently experience a stagnant construction market but are anticipated to exhibit steady growth during the forecast period.

Additionally, numerous countries in Asia, including India, Malaysia, and Indonesia, along with certain nations in the Middle East, such as Saudi Arabia and the United Arab Emirates (UAE), are witnessing significant investments in urban infrastructure and public utilities development. These investments encompass cordless power equipment and expenditures on the construction of new stadiums, roads, airports, and residential infrastructure tailored for tourists and athletes. Such initiatives are expected to significantly bolster the demand for these tools in the construction and infrastructure development sectors throughout the forecast period.

Significant Market Trends- Portable power tools with smart technologies

There is a growing trend of introducing web and digital connectivity in the market. Most of the established brands have introduced smart technologies in their product lines. For instance, the Bluetooth feature enables connectivity between power tools and smartphones. This allows individuals responsible for the custody of power tools to track the status of tools and ensure their safety. DEWALT, Stanley Black and Decker Inc. brand, provides Bluetooth-enabled batteries that can be connected to the owner smartphone through a smartphone application. 

Further, these tools are also available with an embedded chip. This chip, first introduced by Milwaukee, a brand owned by Techtronic Industries, enables users to operate portable power tools as per the inbuilt speed and torque settings that are best suited for a given application. It helps improve the productivity and workmanship of power tool operators. It also reduces the possibility of improper use of these tools and increases their lifecycle. Owing to these smart technologies and convenient portable designs, the market is expected to grow during the forecast period.

Major Market Challenge- High cost of power tools

Power tools are used for the easy and efficient movement of goods. To increase operational convenience, these tools come with various capabilities and features. Also, increased usability, accurate controls, and foolproof technology eliminate the risks of mishandling high-speed power tools. However, these features and advanced technology come at a higher cost. This high cost of consumables and high maintenance costs have caused small-scale industries to sidestep investing in efficient and effective power tools. End-user

Furthermore, the battery technology in power tool batteries has the major share and decides the price. Due to this reason, battery-powered power tools, especially Li-ion battery-powered tools, are losing the market. The decline in the demand for cordless power tools owing to high costs is expected to hinder the growth of the market during the forecast period.

Market Segmentation by End-user, Technology and Geography 

End-user Segment Analysis: 

The market share by the industrial segment will be significant during the forecast period. Power tools, whether electric, pneumatic, or cordless, are designed to enhance efficiency and productivity in industrial processes. These enable faster and more precise completion of tasks, contributing to increased overall output. Industry-specific requirements, technological advancements, and economic growth are some variables that have an impact on the market environment for power tool users in the industrial sector. 

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The industrial segment was the largest and was valued at USD 24.65 billion in 2018. The expansion of the manufacturing industry is one of the major factors driving the market. Manufacturers need effective and dependable power tools to meet their production needs as consumer and industrial product demands rise. The industrial sector often requires tools that can handle heavy-duty applications. These products, especially those with high torque and durability, are well-suited for tasks such as metalworking, construction, and manufacturing. These are used in the automotive industry for assembling and disassembling parts for vehicles. 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. Additionally, the industrial sector of the global market is anticipated to grow due to the rising popularity of cordless products.

Technology Segment Analysis

Based on the technology, the market has been segmented into electric, pneumatic, and others. The electric?segment will account for the largest share of this segment.? Electric tools are driven by power sourced from electrical mains or rechargeable batteries. Electric power tools have been gaining popularity over other power tools due to their advantage in form and size, as these tools are available in extremely compact sizes and are convenient to handle. The main growth driver for the segment will be the high demand for cordless, battery-driven power tools, which have become very popular with DIY consumers in developed countries. Electric power tools are also considered more environment-friendly and energy-efficient as they do not directly burn fuel to produce power. Owing to the aforementioned factors, electric technology is expected to be the leading market share holder in the technology segment of the market during the forecast period.

Regional Analysis

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North America is estimated to contribute 31% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Another region offering significant growth opportunities to companies is APAC. APAC is expected to be the fastest-growing market, driven by the strong demand from emerging countries, including China, India, and other Southeast Asian countries. These are essential in construction for tasks such as drilling, cutting, and fastening, contributing to the high demand for these tools. The industrial sector in APAC, including manufacturing and fabrication, has seen substantial growth.

In addition, power tools are widely used in industrial settings for tasks such as metalworking, woodworking, and assembly, further boosting demand. The rise of e-commerce platforms has made power tools more accessible to a wider audience. Online retail channels have facilitated easy purchases, contributing to their increased popularity among consumers, which in turn will fuel the growth of the regional market during the forecast period.

Who are the Major Market Companies?

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.

• Apex Tool Group LLC - The company offers power tools such as power drills, saws, grinders and more, under the brands Weller, Cleco, Xcelite, Erem and Apex.

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

C. and E. Fein GmbH, Chervon Holdings Ltd., Evolution Power Tools Ltd., Group Silverline Ltd., Hilti AG, Illinois Tool Works Inc., JPW Industries Inc., Koki Holdings Co. Ltd, Makita Power Tools India Pvt. Ltd., Nemo Power Tools Ltd., Panasonic Holdings Corp., Robert Bosch GmbH, Snap On Inc., Stanley Black and Decker Inc., Techtronic Industries Co. Ltd., Vicky Power Tools, and Zoshab International Power Tools LLP 

Technavio market forecast 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.  

Segment Overview

The market analysis and report forecasts market growth analysis by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• End-user Outlook 
  • Industrial
  • Residential

• Technology Outlook
  • Electric
  • Pneumatic
  • Others

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

Market Analyst Overview: 

The global power tools market is witnessing exponential growth driven by various sectors such as construction, aerospace, automotive, and shipbuilding. Power tools manufacturers are leveraging the highest quality materials to produce advanced battery-powered tools that cater to the diverse needs of industries. With increasing construction activities in both developed and developing countries due to rapid urbanization, power tools play a crucial role in residential and infrastructural development projects, including roads, railways, airports, and energy utilities. From cordless drills to demolition jackhammers and circular saws, a wide array of power tools are utilized in industrial and residential construction projects, offering efficiency and precision. These tools are designed to handle various materials, including ferrous metals, non-ferrous metals, steel, zinc, copper, brass, and aluminum.

Furthermore, in response to the growing demand, power tool manufacturers are focusing on enhancing ergonomics, performance, and safety features, such as vibration reduction, non-slip grips, and lightweight housings. Additionally, the rise of cordless tools powered by advanced battery elements caters to the need for portability and flexibility. Further, with advancements in smart and connected power tools, driven by the Internet of Things (IoT), the market is poised for further growth, offering improved maintenance, efficiency, and asset utilization for construction firms and DIY enthusiasts alike. Additionally, the global power tools market is influenced by various factors, ranging from industry-specific demands to technological advancements. With increasing construction activities in commercial buildings and residential buildings, there's a growing demand for versatile tools like jigsaws and reciprocation saws.

Additionally, homeowners and professionals alike rely on drilling tools for various applications, including furniture repair and home remodeling. The market sees a shift towards electric cordless power tools, offering convenience and flexibility. However, safety remains a concern, leading to a focus on designing ergonomic power tools to reduce health problems and fatal injuries. Industries such as aerospace, petrochemical, and oil and gas rely heavily on pneumatic tools and fasteners for efficient operations. The market's growth is also influenced by price fluctuations in raw materials like resin and nickel, alongside technological innovations such as hydraulic tools and semiconductor chips. As the DIY segment gains traction and shipbuilding expands, the global power tools market continues to evolve to meet diverse user needs across various sectors.

Market Scope
Report Coverage	Details
Page number	173
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 7.2%
Market Growth 2024-2028	USD 16.84 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	6.75
Regional analysis	APAC, North America, Europe, Middle East and Africa, and South America
Performing market contribution	North America at 31%
Key countries	US, China, Japan, Germany, and France
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Apex Tool Group LLC, Atlas Copco AB, C. and E. Fein GmbH, Chervon Holdings Ltd., Emerson Electric Co., Evolution Power Tools Ltd., Group Silverline Ltd., Hilti AG, Illinois Tool Works Inc., JPW Industries Inc., Koki Holdings Co. Ltd, Makita Power Tools India Pvt. Ltd., Nemo Power Tools Ltd., Panasonic Holdings Corp., Robert Bosch GmbH, Snap On Inc., Stanley Black and Decker Inc., Techtronic Industries Co. Ltd., Vicky Power Tools, and Zoshab International Power Tools LLP
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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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 growth of the market between 2024 and 2028
• Precise estimation of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across APAC, North America, Europe, Middle East and Africa, and South America
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market  companies

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