Global Power Tools
Global demand for power tools is forecast to increase 2.5% per year to $48.0 billion in 2027, a deceleration from the previous period when a pandemic-influenced surge in sales in 2020 and 2021 drove growth. Gains will be supported by increased construction and durable goods manufacturing activity, particularly in lower-income nations. However, weak prospects for consumer sales will hamper the pace of growth in higher-income nations.
Consumer Markets to Remain Elevated Following Pandemic-Driven Peak
Global sales of power tools in the consumer market increased dramatically in both 2020 and 2021. Growth was driven by the social environment of the pandemic, as increased time spent at home sparked heightened interest in DIY home improvement projects and associated products. As social conditions began to normalize in 2022, interest in DIY activities waned and consumers redirected discretionary spending toward away-from-home activities. As a result, power tool sales in the consumer market declined in many countries. This trend is expected to continue in 2023, with the global consumer power tools market contracting further. However, sales will remain far above 2019 levels, with many new power tool purchasers retaining a longer-term interest in DIY activity.
Power Tool Prices Expected to Stabilize but Remain Elevated
Global average power tool prices increased faster than historically typical rates in 2021 and 2022, with particularly large price hikes in the latter year. Price growth was attributable to supply chain issues associated with the COVID-19 pandemic, which created an inflationary environment in a wide variety of global markets. Prices of metals and other raw materials spiked, as did the cost of transporting goods. By the early part of 2023, prices of most raw materials had normalized to an extent, typically falling well below peak levels seen in the preceding two years. As a result, recent elevated rates of price growth are not expected to continue. However, the inflationary environment associated with the pandemic also contributed to increased labor costs, and the stickiness of wages will pose an obstacle to any price reductions. Thus, power tool prices are not expected to fall despite lower material costs.
Cordless Electric Tools Continuing to Gain Ground in Professional Markets
Rising market share for cordless electric tools – and corresponding losses for plug-in electric tools – has been a critical trend in the global power tools industry for some time. By 2022, cordless electric tools had already taken a dominant share of consumer markets in higher-income nations, leaving limited opportunities for further market share gains in these segments. However, these products are rapidly gaining share in professional markets, a trend that is expected to continue for some time.
Increased penetration of professional markets by cordless electric tools is mainly attributable to improving battery technology. Battery-powered tools are increasingly able to output sufficient power to meet the needs of professional users, with increased run times further contributing to greater usability. Continued growth for cordless electric tools will be supported by the development of unified battery platforms, which will allow professional operators to maintain a diverse inventory of tools without having to invest in individual batteries for every tool.
This Freedonia industry study analyzes the $42.4 billion global power tools industry. It presents historical demand data (2012, 2017, and 2022) and forecasts (2027 and 2032) by product (electric tools, pneumatic tools, tools powered by other energy sources), market (construction, motor vehicle aftermarket, other professional markets, consumer), and region (North America, Central and South America, Western Europe, Eastern Europe, Asia/Pacific, Africa/Mideast). Demand for electric tools is further segmented by product (drills; saws; sanders, polishers, and grinders; other electric tools, parts and attachments for electric tools) and power source (plug-in, cordless). The study discusses the impact of the COVID-19 pandemic. The study also evaluates company market share and competitive analysis on industry competitors including Bosch, Hilti, Makita, Stanley Black & Decker, and Techtronic Industries.