Power Tools Market

Power Tools Market Size, Share, Growth (2024-2029)

Global Power Tools Market, valued at USD 27.50 billion in 2023, is set to rise from USD 28.62 billion in 2024 to USD 34.30 billion by 2029, marking a 4.27% CAGR during 2024-2029.

Power Tools Market Overview

A large variety of tools used in construction, carpentry, metalworking, and do-it-yourself projects can be found in the power tools, a growing segment of the economy. Power tools enable users to finish jobs swiftly and with less effort than they could with conventional hand tools. They are made to make labor easier and more efficient. Power tools are portable or fixed mechanical tools that are propelled by an internal combustion engine, an electric motor, or compressed air. Drilling, cutting, grinding, sanding, polishing, and sculpting materials like wood, metal, concrete, and plastic are just a few of the many activities these instruments are employed for. Power tools have been widely adopted by sectors like construction, aircraft, automotive, shipbuilding, and energy. Additionally, homeowners use them for a range of domestic needs. Best-quality materials are used in the design, production, and sale of a wide range of power tools by power tool makers. Power tool demand in the automotive industry is high, building activities are expanding in emerging nations, and battery power tool use is increasing globally. The market is fueled by several reasons, including the expansion of the construction sector, a rise in do-it-yourself projects, and the development of automated power tools. Due to the rising need for portable and user-friendly products, the power tool market is anticipated to expand significantly.

Power Tools Market Drivers

The expanding construction sector is the primary factor driving the power tools market due to the market trends. The global economy relies heavily on the construction sector, which is predicted to rise in the upcoming years. Power tool demand is anticipated to rise as more infrastructure projects are developed and put into action globally. Power tool manufacturers are selling more products as a result of rising consumer demand, which boosts market sales volumes and revenue. Power tool demand has increased, which has increased market competition as producers compete to create cutting-edge items that will satisfy consumer demand. Power tool market demand has fueled technological developments in the sector, leading manufacturers to release new and improved devices with features including longer battery life, enhanced ergonomics, and increased power and performance. As the market for power tools expands, it opens job opportunities for those involved in their design, manufacture, distribution, and sale. Additionally, With the increasing trend of industrial automation, there is a greater demand for power tools that can perform jobs more efficiently and correctly.

Power Tools Market Restraints 

The fluctuation of raw material prices, particularly those for steel and aluminum, is one of the major factors limiting the market for power tools now. Due to trade disputes around the world and the COVID-19 pandemic's effects on the supply chain, the prices of these materials have been shifting. Power tool producers now face higher production expenses, which they must either bear outright or pass along to customers in the form of higher prices. As a result, the market's size may be impacted since some customers might decide to put off purchases or select less expensive options. Furthermore, as many manufacturers rely on these chips for the electronic components of their products, the ongoing semiconductor chip shortage is also having an impact on the market for power tools. Power tool manufacturers have experienced production delays and higher costs because of this shortage, which may ultimately have an influence on the market's size and profitability.The power tool industry is typically impacted by the volatility of raw material prices and the scarcity of semiconductor chips, which could result in slower growth and reduced market size in the near future.

REPORT COVERAGE

Power Tools Market Opportunities

The growing demand for linked and smart equipment is one of the key prospects for the power tool market. Several factors drive this trend; by offering real-time data and analytics, and smart and connected technologies, organizations in the market can increase efficiency and productivity by empowering workers to make educated decisions and optimize their work processes. Through the provision of timely alerts and warnings when there are potential hazards or malfunctions, smart and connected tools can also increase safety. By enabling workers to manage and troubleshoot tools from a distance, smart and connected machines can be remotely monitored and managed, minimizing downtime and maintenance expenses. Professionals and DIY enthusiasts are increasingly in demand for smart and connected tools as they provide increased convenience and functionality, fueling demand and expanding the power tools market.

The power tools industry has a significant chance to create cutting-edge solutions that satisfy both consumer and professional needs because of the rising demand for smart and connected tools. Features like wireless networking, cutting-edge sensors, and cloud-based data storage and analysis might be a part of this. Additionally, producers can create tools that are tailored for particular sectors and use, like manufacturing, construction, and automotive repair, which will positively affect the expansion of the power tools market.

Power Tools Market Recent Developments 

• Bosch introduced a new line of cordless power tools with improved connection and cutting-edge safety features in October 2021.

• A new line of high-performance cordless power tools from Milwaukee Tool that are intended for heavy-duty applications will be available starting in November 2021.

• In December 2021, A new cordless angle grinder from Makita with an upgraded safety system and a brushless motor was released.

• DeWalt introduced a new line of cordless power tools in January 2022 that is intended to be more manageable and portable due to their lighter weight and increased compactness.

• In February 2022, in order to increase the productivity and safety of sanding operations, Festool introduced a new line of sanders that incorporates cutting-edge dust extraction technology.

Power Tools Market COVID-19 Impact

The power tools market has been significantly impacted by the COVID-19 pandemic. Global supply chains have been hampered by the pandemic, which has resulted in a shortage of raw materials and delays in the manufacture and delivery of power tools. Longer client wait times and higher manufacturing expenses are the results of this. Online sales of power tools have significantly increased as a result of physical store closures and social distance-inducing policies. The rise of the power market has been attributed to this trend, which has also boosted manufacturers' and retailers' adoption of e-commerce platforms. Power tool consumption and market size declined as a result of industry closures and reduced activity during the pandemic, which had an impact on several sectors like manufacturing and construction. Power tools were in high demand for home remodeling and renovation projects as a result of a growth in DIY projects and increased time spent at home. The pandemic has brought attention to the significance of workplace safety, which has increased demand for power tools that prioritize safety features like dust extraction and ergonomic designs, having a positive impact on the market for power tools.In conclusion, the COVID-19 pandemic has had a mixed effect on the market for power tools, with certain segments seeing an increase in demand and others having difficulties because of supply chain interruptions and decreased demand. Even after the pandemic, the move towards online sales and the emphasis on safety measures are expected to persist, influencing the power tool market's future.

Power Tools Market Segmentation

By Type of Power Source: 

• Corded

• Cordless tools 

The market for cordless power tools has gained popularity recently and is predicted to remain dominant in the years to come. The convenience and portability of cordless tools, which enable users to work in a wider variety of locations without being constrained by a power outlet, as well as the growing availability of high-capacity lithium-ion batteries, which offer longer run times and faster charging, are some of the causes of this. Additionally, cordless tools can now deliver performance on par with that of their corded counterparts thanks to advancements in brushless motor technology. However, the market for corded power tools remains heavily populated by this category, especially for tasks that require constant power, like heavy-duty drilling or cutting. Additionally, corded tools typically cost less than their cordless counterparts, making them a popular choice for consumers on a tight budget.

By Application:

• Construction

• Woodworking

• Automotive

• Manufacturing

The construction segment has the dominant share of the market. Power tools like drills, saws, and nail guns are crucial in the construction sector for jobs like framing, roofing, and plasterboard installation. Power tool consumption is anticipated to rise as the global construction market continues to expand. The need for energy-saving and environmentally friendly power tools is also anticipated to rise as green building techniques are increasingly adopted. Power tools like grinders, sanders, and saws are utilized in the manufacturing sector for a number of activities, including cutting, shaping, and finishing.

Automotive repair, woodworking, and DIY applications are a few other crucial power tool applications. For jobs like tire changes and engine repairs, the automobile sector uses power equipment like air compressors and impact wrenches. For the construction and finishing of furniture and other wooden products, power tools like routers and sanders are crucial. 

By End User:

• Professional 

• DIY users

The professional segment is likely to have the largest shares of the market during the forecast period. 

Contractors, builders, electricians, mechanics, and other professionals in skilled trades use power tools professionally. These users frequently need instruments that are more robust and capable of handling the everyday rigors of use on construction sites or in workshops. Professional users may prefer power tools with advanced features and capabilities to aid in their ability to operate more accurately and effectively because they tend to have a greater level of technical knowledge and expertise. Although DIY users make up a significant portion of the power tool market, they frequently lack the technical expertise and knowledge of professional users and may place a higher value on affordability and ease of use than on high-end features and performance. For chores like house repairs, carpentry projects, or handicrafts, DIYers may employ power tools.

By Type of Tool:

• Drills

• Saws

• Sanders

• Grinders

• Nail Guns

The drills category is dominating the largest shares of the market. Drills are necessary equipment for many tasks, such as DIY projects, building, and carpentry. They can be employed for many fastening activities, including drilling holes and driving screws. Additionally, it is anticipated that improvements in battery technology and the growing use of cordless drills will fuel this market's expansion in the upcoming years.

In the power tool market, fastening instruments like impact drivers and nail guns play a significant role. They are frequently used for jobs like framing, roofing, and plasterboard installation in the construction, manufacturing, and automotive repair industries. Due to their portability and convenience, cordless versions of these tools are also growing in popularity, much like drills. Saws, sanders, grinders, and routers are a few additional crucial power tool market sectors. These devices are frequently used for cutting and shaping materials in the building and manufacturing industries, as well as in metalworking and woodworking applications.

Power Tools Market Regional Analysis

• North America

• Europe

• Asia Pacific

• Middle East, Africa

• Latin America 

North America is gaining traction over the shares of the market. The major markets in this region are the United States and Canada, where there is a high demand for cordless power tools and a growing focus on ergonomics and safety.

Another developed market for power tools in Europe. There is fierce competition among well-known manufacturers, and there is a rising need for energy- and environmentally-conscious instruments. The biggest markets in this area are in Germany and the UK, where professional users are prevalent, and the DIY market is expanding.

Power tool sales are expanding at the quickest rate in the Asia-Pacific region, thanks to rising building activity and the expansion of the power tools sector. With a growing middle class and an increase in demand for power tools for both professional and DIY use, China and India are the two main markets in this area.

 With a rising need for electric and cordless equipment in the manufacturing and construction sectors, Latin America is a burgeoning market for power tools. The biggest markets in this region are in Brazil and Mexico, where professional users are widely present, and the DIY market is expanding.

 Power tool market demand is increasing in the Middle East and Africa due to uses in manufacturing and construction. The biggest markets in this region are in South Africa and Saudi Arabia, where professional users are widely present, and the DIY market is expanding.

Power Tools Market Key Players

• Stanley Black & Decker Inc., Robert Bosch GmbH, Makita Corporation, Techtronic Industries Co. Ltd., Hilti Corporation, Atlas Copco AB, Snap-On Inc., Hitachi Koki Co. Ltd., Emerson Electric Co., Festool GmbH