Power Tool Market Forecasts to 2028 – Global Analysis By Mode of Operation (Pneumatic Power Tool, Electric Power Tool), Distribution Channel (Offline, Online), Material (Wood/Metal, Glass, Concrete, Brick/Block), End User (Residential/Household/Do-It-Yourself (DIY) (Furniture), Commercial, Industrial/Professional), and By Geography
According to Stratistics MRC, the Global Power Tool Market is accounted for $37,327.15 million in 2021 and is expected to reach $59,548.21 million by 2028 growing at a CAGR of 6.9% during the forecast period. A power tool also called a power instrument is a device or machine which is powered by an additional mechanism or source. These tools are primarily used to cut, wrench, saw drill, and polish materials. These tools help in reducing the time consumed on redundant tasks as well as improve overall efficiency. Most modern power tools have lithium batteries which are recharged by plugging into an electric outlet. These tools are in high demand across sectors due to their high efficiency and hassle-free use, as well as their mobility, decreased use of labor and time.
Rapid industrialization coupled with an increase in infrastructural spending
Rising expenditure on infrastructure development such as improvement of bridges, roads, and others are propelling the market growth. As stated by the global infrastructure outlook, over the forecast period, the global population is estimated to grow by approximately two billion. The urban population will increase by 46%, triggering massive demand for infrastructure support. An increase in urbanization has led to the expansion of the industrial sector throughout the globe, boosting the power tools market. Industrialization has increased due to development in transportation, high immigration, new inventions, and high investment.
Fluctuations in raw material prices
The key metals used in the production of power tools are such as brass, copper, zinc, steel, aluminium, and nickel. The electric power tools offer high productivity and efficient operations, the technologies employed during manufacturing augment their initial prices. Power tools also include other components such as motors, batteries, and electronic components. As a result, manufacturers of power tools are heavily reliant on the consistent supply raw materials for smooth functioning. Fluctuating costs of raw materials, component parts, or finished goods could result in manufacturing interruptions, delays, inefficiencies, or an inability to market products. Raw materials required for power tools are procured globally, and generally available from multiple suppliers at competitive prices.
Expansion of smart and connected power tools
With the introduction of IoT and the use of smart connected systems in assembly line operations, each piece of equipment within the plant is getting connected. Advancements in technologies and the adoption of smart manufacturing practices lead to innovation of smart and connected tools. Leading tool manufacturers are concentrating their efforts on the development of smart and connected power tools. For instance, Milwaukee Tool Corporation (Brand of Techtronic Industries) launched ONE-KEY, the digital platform for tools and equipment. This cloud-based platform allows a user to customize torque and speed settings for applications at hand.
Declining sales of commercial vehicles due to COVID-19
Power tools are used in automobile manufacturing as well as servicing plants for numerous applications, such as fastening, drilling, tightening, and polishing. The automotive sector is facing a downfall, which, in turn, could further impact the sales volume of metal bellows suppliers. In the automotive industry, power tools are primarily used for installing brakes and seats in automobile and detecting problems, such as faulty parts, on the assembly line at an early stage, thereby eliminating production errors. COVID-19 has severely impacted automotive companies, affecting manufacturing hubs in India, China, Italy, Germany, Spain, and the US. These countries have announced the complete or partial lockdown of manufacturing units, apart from assembly plants. For instance, the China Passenger Car Association (CPCA) stated that car sales in China fell by 92% in the first half of February 2020.
The electric power tool segment is expected to be the largest during the forecast period
The electric power tool segment is estimated to have a lucrative growth due to innovations in battery technology, the easy mobility and operation efficiency of electric tools, advent of powerful battery packs, and rising espousal of cordless tools among residential and industrial users. The electric power tools are widely used in the broad range of industries such as construction, automotive, aerospace, energy, and shipbuilding. Companies have launched electric power tools, which are easy to handle and smooth by function. For instance, in January 2018, Apex Tool Group extended its product offerings that include tightening solutions and assembly systems worldwide across numerous industries such as aerospace and automotive through its brand Cleco.
The residential/household/do-it-yourself (DIY) (furniture) segment is expected to have the highest CAGR during the forecast period
The residential/household/do-it-yourself (DIY) (furniture) segment is anticipated to witness the fastest CAGR growth during the forecast period, due to rising interest in do-it-yourself (DIY) activities and availability of user-friendly and easy to operate power tools. Power tools are achieving acceptance in household applications owing to their easy mobility and easy operability. People are undertaking home improvement projects such as kitchen remodeling, landscaping activities, and patio or deck renovation, which augments the demand for power tools. DIY solutions have subsequently gained popularity and ensured a rising demand for power tools as consumers seek to perform minor repairs and development & renovation on their own instead of hiring professionals. The use of power tools by DIY enthusiasts is rising in developed countries, such as the US, the UK, and Germany.
Region with highest share:
North America is projected to hold the largest market share during the forecast period owing to rising infrastructure development and industrial development in the region, presence of major players, the healthy growth of the construction, manufacturing, and automotive industries, and unavailability of cheap labor aids in the adoption of DIY jobs. The construction industry is expected to witness significant growth in the near future owing to the ongoing and upcoming construction projects, which will consequently fuel the demand for power tools. Countries like US and Canada have been witnessing an increase in demand for cordless power tools.
Region with highest CAGR:
Asia Pacific is projected to have the highest CAGR, due to increasing disposable income, rising road construction and infrastructure activities, especially in emerging economies such as India, Singapore, China, and Japan and growing government initiatives toward enhancing industrial manufacturing facilities and infrastructural development in various countries in APAC. China-based power tools manufacturers are fast penetrating the market on account of wide range of offerings at competitive-price range. Favorable government policies to boost the manufacturing sector capabilities across the country can be identified as one of the prime reasons behind the development of the market in the country.
Key players in the market
Some of the key players profiled in the Power Tool Market include Makita Corporation, Emerson Electric Co., Snap-on Incorporated, Robert Bosch GmbH, Stanley Black & Decker, Inc., Apex Tool Group, Panasonic Corporation, Techtronic Industries, Hilti Corporation, Hitachi Corporation, Atlas Copco AB, Kyocera Corporation, Illinois Tool Works, 3M, Honeywell International Inc., and Danaher Corporation.
In October 2021, Stanley Black & Decker, Inc. has entered into a partnership with Eastman to advance sustainability in the power tools industry. BLACK+DECKER, a Stanley Black & Decker brand, would be releasing a new product line, namely reviva, which would be offering the brand's first sustainability-led power tools that utilize Eastman's Tritan Renew copolyester.
In December 2020, Hilti Corporation has announced the expansion of its its rotary and combination hammer tool portfolio with the next generation TE 70-ATC/AVR, the most powerful SDS-Max combination hammer in its class. The newly launched tool would help commercial contractors and tradespeople drill up to 40% faster in reinforced concrete and demolish more concrete.
In February 2020, Makita Corporation launched an innovative nailer named 18 Gauge 2” Brad Nailer (AF506). It is a cordless power tool and features better ergonomics. It can be used on hard and soft wooden surfaces.
In May 2019, Apex Tool Group partnered with Arrow Schmidt Peterson Motorsports. Under this partnership, Apex Tool has been used by the team of skilled mechanics and engineers to get the most out of their cars.
Mode of Operations Covered:
• Pneumatic Power Tool
• Electric Power Tool
• Liquid Fuel Tool
• Powder-Actuated Tools
• Hybrid Power Tools
Distribution Channels Covered:
Tool Types Covered:
• Demolition Tools
• Material Removal Tools
• Drilling and Fastening Tools
• Routing Tools
• Sawing and Cutting Tools
• Air-Powered Tools (Air Hoses)
• Electric Cords and Plugs
• Other Tool Types
• Metalworking/Metal Fabrication
End Users Covered:
• Residential/Household/Do-It-Yourself (DIY) (Furniture)
• Machinery Manufacturing
• Maintenance Repair and Operations (MRO) Services
• Gardening Field
• North America
Rest of Europe
• Asia Pacific
Rest of Asia Pacific
• South America
Rest of South America
• Middle East & Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
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- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
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