A tool driven by an electric motor, a compressed air motor, or a gasoline engine is referred to as a power tool. These are employed in a variety of settings, including production and assembly lines, maintenance and repair, packing, and do-it-yourself projects. Power tools include, among others, drills, saws, sanders, and cutters. They are frequently employed in manual, labor-intensive fields like building, woodworking, and metalworking.
The market for power tools in 2021 was
USD 35.63 billion, and by 2030 it will reach USD 55.89 billion, at a 5.13% CAGR during the forecast period.
Increased government support, high-income levels, the popularity of DIY (Do-It-Yourself) techniques, and widespread usage across various sectors, including construction and automotive, are major growth drivers for the global power tool market. Global demand for power tools is growing as developed nations place more emphasis on developing their infrastructure.
Market Dynamics
Drivers
Power tools are majorly utilized in the Construction industry. These tools are necessary to perform building tasks like drilling, grinding, and cutting. They support machinery that boosts labor productivity and efficiency on building sites. Therefore, any increase in building activity worldwide will benefit the power tool market.
One of the main reasons fueling the market growth is the rising demand for public infrastructure in developing nations like Brazil, Russia, India, China, South Africa, and the countries of the Gulf. The most populated countries, China and India, also have the fastest-growing economies. Governments have been forced to make significant infrastructure investments due to development and a growing population.
Restraints
The power tool market is expanding quickly due to the rising demand for sophisticated and effective tools across various sectors, including manufacturing, construction, and the automotive industry. However, these tools’ high purchase and maintenance expenses limit market expansion.
Power tool products are expensive because of cutting-edge technologies and premium base materials. To make a product more user-friendly, businesses are significantly investing in adopting cutting-edge technologies, raising the total cost.
Opportunity
The development of numerous smart and connected tools was sparked by the growth of IoT technologies and the improvement of smart connected systems in the running of assembly lines. Therefore, the top tool makers are putting all their efforts into making smart, connected power tools, likely leading to plenty of future growth opportunities.
Market Segmentation
By Product
On the basis of product, the market is segmented into drills, wrenches, saws, grinders, and sanders.
In 2020, the drills segment led the entire market with a revenue share of nearly 30.2%. The drills are cheaper and simpler to use than other electric tools. These are primarily employed in domestic and commercial settings.
Additionally, from 2020 to 2030, the wrenches segment will expand at a rapid CAGR. In order to increase the effectiveness and productivity of the job, wrenches are widely used in production facilities.
By Mode of Operation
In terms of mode of operation, the market is segmented into pneumatic, electric, and others.
In 2020, the electric segment held a maximum position in the market with a revenue share of nearly 60%. Electric power tools are utilized in various industries like energy, aerospace, automotive, construction, etc.
By Application
In terms of application, the power tools market is segmented into residential and industrial.
The industrial segment led the entire market with a revenue share of nearly 60%. The numerous industrial applications include the use of tools in sectors such as logistics, aerospace, construction, and automotive. The dominance of industrial uses over the residential market is largely due to increased technological innovation and adoption in these sectors.
Regional Analysis
Asia Pacific was the biggest regional market in 2020, with a revenue share of nearly 33.2%, and will expand rapidly during the forecast period. The largest share of this region is due to the expanding manufacturing sector, rising car sales, and expanding urbanization. Additionally, the ongoing expansion of government efforts to support the expansion of various manufacturing and infrastructural facilities in nations like India, China, and Japan are boosting the regional market’s overall growth.
Key Players
- Emerson Electric, Co
- Koki Holdings Co., Ltd.
- Makita Corporation
- Hilti Corporation
- Robert Bosch
- Stanley Black & Decker
- Ingersoll-Rand PLC
- Techtronic Industries
The market for power tools in 2021 was USD 35.63 billion, and by 2030 it will reach USD 55.89 billion, at a 5.13% CAGR during the forecast period. Power tools are in high demand across various sectors for factors including their portability, efficiency, and reduced time and labor requirements.
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