Power Tools Market Size, Sales Analysis & Opportunity

The global power tools market is expected to reach US$ 33.36 Billion in 2022. As per the latest Future Market Insights (FMI) analysis, demand for electric power tools and portable power tools will rise exponentially in the coming years.

Soaring applications in automotive, construction, aerospace, and other industries also will create demand for handheld and pneumatic power tools. The report also predicts power tools sales to constitute nearly 7% to 8% of the global tooling industry.

Attribute

Details

Power Tools Market Estimated Size 2022

US$ 33.36 Billion

Power Tools Market Value-Based CAGR (2022 to 2032)

5.1%

Power Tools Market Value 2032

US$ 51.2 Billion

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The global Power Tools market is expected to grow at a 3.7% CAGR between 2022 and 2032, in comparison to a 7.3% CAGR registered from 2016 to 2021.

Scope for application is expected to rise across diverse industries as manufacturers offer intelligent solutions for corded and non-corded power tools. As per FMI, rapid expansion in end-use industries including aerospace, automotive, furniture, and others is positively fuelling the demand for power tools. With features such as electric motors, power tool applications have been surging to eliminate strenuous manual labor across industries.

Leading power tool manufacturers are focusing on developing technologically advanced products with higher efficiency and improved performance, especially for the cordless power tools market. This is projected to give tailwinds to the power tools market growth through 2032. For instance, power tools market players such as Robert Bosch, Stanley Black & Decker, and others are developing cordless power tools in-built with Li-ion batteries to offer enhanced performance. These advancements have been crucial in fuelling demand for power tools globally.

Backed by the aforementioned factors, sales are projected to increase at a healthy 5.1% CAGR over the assessment period. The overall demand for Power Tools is projected to grow at a CAGR of 5.1% between 2022 and 2032, totaling around US$ 51.2 Million by 2032.

Commercial Potential of Power Tools Propelling the Sales

The portability and easy maneuverability of power tools have been fuelling their demand at a higher rate than conventional hand tools. Demand from manufacturing assembly units, fabrication as well as service sectors are expected to fuel the demand for power tools. The construction sector is expected to be a crucial end-user aiding the market growth.

Spurred by these factors, commercial opportunities are likely to soar for power tool manufacturers. Especially with the innovation of cordless power tools leading to the launch of advanced versions of impact wrenches, circular saws, and hammer drills among others, sales prospects have improved.

Consequently, there is immense focus on launching flexible, mobile, and compact tools to keep pace with dynamic consumer preferences. Moreover, nickel-metal hydride (Ni-MH) and nickel-cadmium (Ni-Cd) power tools are increasingly being replaced with lithium-ion batteries. For instance, in 2019 Bosch launched cordless power tools, fitted with lithium-ion batteries to offer improved power and efficiency. These advances have been crucial in improving the commercial potential of power tools.

Furthermore, professionals around the world are seeking solutions to make their jobs easier and ultimately save time and resources. As a matter of fact, they are looking for a good mix of solutions to increase productivity. While their evolving needs led to advancements in wireless technologies including motors, electronics, and batteries, the demand for productivity solutions has been encouraging innovations in the power tools market.

For example, there is immense focus on going green. Market players looking to carve a niche amid rising competition, have been consciously introducing eco-friendly alternatives to popular technologies. An increasing number of power tools manufacturers are therefore ruling out fossil fuel models to offer more energy-saving power solutions.

With the world struggling with massive storms, chaotic heat waves, and wildfires, the need to move away from pollutants is more than ever before. Catering to changing consumer preferences, Santa Monica, Calif.-based start-up Graze Mowing announced a next-generation autonomous robot for lawn mowing at a commercial scale in September 2020. While the company hopes to use solar power in the near future, currently it has been working with swappable batteries that promise to save significantly on the cost incurred of fuel and electricity.

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Price Sensitivity in the Market to Hamper the Growth

Raw materials predominantly used in power tools are steel and aluminum. With fluctuating costs of aluminum and steel, the cost of raw materials is also bound to increase or decrease.

This will have a significant impact on the power tools market in the near term which is set to witness a marginal downturn. In order to sustain the slowdown, manufacturers will look at stabilizing the pricing of power tools through diversification and newer pricing strategies.

Substantial Growth in the Commercial and Residential Construction Sector is Fueling Growth in the USA

FMI has projected North America to remain one of the most lucrative markets throughout the course of the forecast period. Growth within this region is expected to be spearheaded by the USA One of the key factors supporting expansion in the country is the substantial growth in commercial and residential construction. As per the USA. Census Bureau, construction spending recorded by the country stood at US$ 1,459.4 Billion in November 2020. With both private and public spending on construction activities surging, power tool manufacturers will have lucrative prospects to capitalize on in the near future.

Besides this, prospects for growth will rise as the demand for MRO services rises within the automotive sector. Select USA has predicted automotive sales in the USA to gradually recover post-COVID-19, which will present attractive opportunities for power tool sales within the USA in the coming years.

Favorable Government Support for Infrastructure Development Spurring Demand

The remarkable growth in infrastructure development and construction activities in the United Kingdom is driving power tools Market sales within the country. The refined projections for the construction industry growth in the United Kingdom have been paving the way for power tools Market sales. The gradually reviving construction sector is expected to offset a sharp decline in sales witnessed on account of COVID-19. According to the Office of National Statistics, United Kingdom, construction output has improved marginally by 1% in October 2020.

Besides this, Britain is identified as one of the leading manufacturers in the world, which places it as a lucrative market for power tools globally. Make the United Kingdom has reported annual output worth £192 billion, as manufacturing continues to drive exports and Research and Development in the country. Against this backdrop, power tools manufacturers are likely to find the country as a lucrative pocket for sales.

Growing Inclination towards Power Tools for Increasing Productivity Will Boost Sales

FMI has identified Germany as the leading power tools market within Europe. The growth outlook continues to be positive for the country, especially as demand is expected to soar amid improving construction activities. The upbeat performance exhibited by Germany’s construction sector will continue aiding power tools sales.

According to the Federal Statistics Office, Destatis, construction sector turnover in Germany was up by 2.2% in October 2020 in comparison to the corresponding month of the previous year. Consistently rising spending on construction will remain a chief driver, since the construction sector will continue to be one of the leading end-users of power tools.

Improving Industrial Activities in the Region to Push Sales

China has been among the few nations to have been exhibiting recovery post-COVID-19 at an impressive rate. Despite encountering a temporary slowdown amid COVID-19, China’s rapid pace of economic recovery has boded well for the power tools market. According to the National Bureau of Statistics, exports and imports have significantly grown in the country from September 2020 onwards, with imports increasing by 13.2% and exports surging by 9.9% in comparison to the previous year.

The aforementioned figures are indicative of improving industrial activities, which will present attractive opportunities for power tools Market sales. Also, China’s unique response to COVID-19 to ensure an unhindered food supply amid COVID-19 has been aiding the steady growth of the power tools market. Their efforts have also been discussed by the Food and Agricultural Organization (FAO) of the United Nations.

Significant Advancements in the Agricultural Sector to Support the Growth

According to a USA Department of Agriculture (USDA) report, the agriculture sector in Brazil has transformed from one that includes indigenous systems of production with limited use of modern technologies to a global leader in agriculture. Macroeconomic reforms undertaken by the country have been a key enabler of the growth of Brazil's agriculture sector. The report also mentioned that the country’s value-added surged an average of 3.4% annually over the past two decades, with agricultural output nearly doubling during the time.

The rising investment in technology has been a key enabler of the expansion of the agricultural sector in Brazil, which also is indicative of lucrative opportunities for power tools sales in the region.

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Demand for Drilling Tools Will Continue to Outclass Other Products

Drilling tools are highly sought-after power tools due to their increasing application across diverse industries, including construction, manufacturing, and others. In fact drilling tools also are used in various do-it-yourself projects, which has been fuelling their demand in commercial and household applications besides their increasing adoption across industries. The drilling tools segment is expected to account for over 17% of the market by the end of 2032 and is expected to remain dominant through the forecast period.

Construction Application Drives Continue to Account for the Bulk of Demand

Accounting for nearly 30% of the overall share through the forecast period, construction applications drives continue to account for the bulk of demand for the power tools Market. Growth in the segment is primarily due to the rapid development of the construction industry along with the bulk deployment of power tools in construction projects. Increasing construction spending in countries such as the USA, the United Kingdom, and China will continue aiding the expansion of the market.

Increasing do-it-yourself (DIY) activities and high capita spending on DIY tools in developed countries from North America and Europe are driving the consumer inclination towards DIY activities e.g. interior home renovation, plumbing, gardening, and others. The footprint of DIY tools is also expected to expand in developing regions. The use of DIY products lowers long-term costs than work outsourced to hired labor resulting in increased demand for power tools for DIY and household applications. Additionally, the advent of e-commerce has enabled easy access and discounts for consumers. These factors are expected to ascend the demand for power tools in DIY applications.

Increasing Investments for the Launch of Advanced Technologies Driving Growth

Electric and pneumatic are currently the leading technologies available, of and the demand for the former has been surging at a higher pace. The advent of cordless technology is expected to fuel growth opportunities within the market. Some of the leading players such as Bosch, Milwaukee, Hitachi, and others include cordless power tools in their portfolios.

Also driven by surging demand, they are increasingly investing in the launch of advanced technologies, which will ultimately fuel demand within the electric category. For instance, Bosch has recently launched cordless power tools in-built with lithium-ion batteries in June 2019. According to FMI, over 6 out of 10 power tools sold will be from the electric category in 2022.

Instant Gratification to Push Offline sales to a Great Extent

According to FMI, offline sales channels will continue dominating through the forecast period. By 2022, offline sales are expected to account for 64.3% of the overall share. Offline sales offer instant gratification, which continues to be a key driver.

However, the COVID-19 outbreak has exposed the vulnerabilities of this medium. As a result, there is an increasing focus on diversification. Market players are exploring opportunities across online sales channels. According to FMI, online channels will report growth at a higher pace than their offline counterparts.

Some key start-ups in the Power Tools market include-

The top Power Tools market players are constantly upgrading their offerings to help end users. They are investing in partnerships, acquisitions, collaborations, and new product launches to gain a competitive edge in the market. For instance:

Report Attribute

Details

Growth Rate

CAGR of 5.1% from 2022 to 2032

Market Value in 2022

US$ 33.36 Million

Market Value in 2032

US$ 51.2 Million

Base Year for Estimation

2021

Historical Data

2016 to 2021

Forecast Period

2022 to 2032

Quantitative Units

Revenue in US$ Million and CAGR from 2022 to 2032

Report Coverage

Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis

Segments Covered

Regions Covered

Key Countries Profiled

Key Companies Profiled