Power Tools Market By Product (Drills, Saws, Wrenches, Grinders, Sanders, Others) By Mode of Operation (Electric, Pneumatic, Others) By Application (Industrial, Residential) - Growth, Share, Opportunities & Competitive Analysis, 2016 - 2028

What is the Global Consumption of Power Tools?

Commercial power tools were consumed more than 271 million units globally in 2020. By 2027, the number of units sold is expected to exceed 384.6 million. The Asia Pacific dominated global market consumption in 2021, with India leading the charge. Factors such as the developing construction industry in emerging nations and the increasing need for electric fastening tools in the industrial environment are driving the expansion of the power tools market.

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What is the Market Size of Power Tools in terms of value?

Global Power Tools Market is projected to increase at a significant CAGR of 5.5% in the coming years. In 2021, the global power tools market was valued at USD 33.8 Billion and is projected to reach at the value of USD 46.6 Billion by 2028. The demand for power tools is projected to increase substantially in the coming years. It is presumed to generate revenue opportunities for the key industry players worth USD 12.8 billion during the forecast period between 2022 and 2028.

What is the Price Trends for Power Tools?

The price of power tools has increased immensely in the last five years, starting from approximately USD 13.94 per unit in May 2016 to USD 78 per unit in November 2021. This is majorly due to price fluctuations of raw materials. Steel, plastic, rubber, and copper are among the raw materials used in power tools. However, due to shifting economic dynamics, the prices of these basic resources have constantly been fluctuating in recent years.

Interesting Facts about Power Tools Industry

  • The top 5 countries for power tools exports are Japan, Germany, Ireland, China, and United States.
  • The top 5 importers of power tools are Portugal, Germany, China, Singapore, and Slovakia.
  • The growth of the power tools market is being fueled by factors such as the burgeoning construction sector in emerging countries and the growing demand for electric fastening tools in the industrial environment.
  • The continual fluctuation in raw material prices is a major impediment to market growth. Steel, plastic, rubber, and copper are among the raw materials used in power tools. Due to shifting economic dynamics, the prices of these basic resources have constantly been fluctuating in recent years.
  • In 2021, the Asia Pacific region dominated the global power tools market in terms of volume and value, which is expected to continue over the forecast period.
  • The industrial application will have the highest share in the forecast period. Power tools are in high demand in several industries, including automotive and construction.

Who are the Top 10 players/companies in the power tools market in terms of value and volume?

The key players in the global power tools market in value and volume include Emerson Electric, Co.; Hilti Corporation; Ingersoll-Rand PLC; Koki Holdings Co., Ltd.; Makita Corporation; Robert Bosch; Stanley Black & Decker; and Techtronic Industries. These major players are focusing on new product development and technological innovation to improve their power tools production and achieve a competitive market share on a global scale. Furthermore, some regional and country-level players are significantly investing in expanding their product variety and increasing sales. For instance, in October 2021, Eastman and Stanley Black & Decker, Inc. formed cooperation to promote sustainability in the power tool sector. As a result, BLACK+DECKER, a Stanley Black & Decker brand, will launch reviva, a new product line that will feature the brand's first sustainability-focused power tools made using Eastman's Tritan Renew copolyester. In addition, Robert Bosch Power Tools GmbH also announced the addition of 12V and 18V cordless sanders to its comprehensive product portfolio of woodworking and wood cutting solutions in September 2021, the GEX12V-5 Brushless 5 In.

Who are the Top 10 Countries in the Power Tools Market?

The major countries in the global power tools market are China, India, the U.S., Canada, Mexico, the U.K., Germany, France, Japan, Italy, Russia, and Africa. India is expected to grow fastest in the market, outperforming the rest of the world's emerging markets. One of the primary causes for the development of the market in the country is favorable government policies aimed at boosting manufacturing sector capabilities across the country. In addition, growing investments by Indian tool manufacturers in research and development operations to produce unique products boost regional market growth.

Which is the Key Application Area in the Power Tools Market?

In 2021, the industrial application accounted for more than 63.0% of total revenue. Using tools in industries such as construction, aerospace, automotive and logistics are examples of industrial applications. Industrial applications have a significant advantage over residential applications due to greater technological innovation and the acceptance of modern technologies in these areas. For example, power tools are most commonly used in the automotive and construction industries, which is fueling the industrial segment's rise. 

The residential application segment is anticipated to grow at the fastest rate of 5.2 percent between 2022 and 2028, despite the industrial segment being the largest stakeholder. The rise can largely be ascribed to the growing popularity of DIY culture. A major driver in the rapid proliferation of residential applications is the widespread availability of user-friendly and simple-to-operate power tools. In addition, the use of power tools in the residential sector is increasing as renovation and remodeling projects grow.

What are the Major Driving Factors for Power Tools Market?

Over the forecast period, demand for power tools is expected to rise due to increased adoption in the automotive and construction industries. Fastening jobs abound on automotive production and assembly lines. Power tools can help you save time and boost efficiency by minimizing the time spent on these repetitious operations. As a result, car manufacturers and automotive repair and maintenance service providers are increasingly using power tools. Similarly, the construction industry's increased usage of drills, sanders, wrenches and other tools is increasing the demand for these products. In addition, because of their ease of use and mobility, power tools are becoming more popular in domestic applications. 

The growing popularity of Do-It-Yourself (DIY) projects has led to an increase in demand from consumers. As a result, companies are developing products with additional safety measures to cater to the needs of customers who are not trained, professionals. For instance, Bosch Protection features like the rotary hammer drill's rotation control clutch and the angle grinder restart protection are included in Bosh Power Tools. These attributes help to decrease product-related harm risks and increase the acceptance of power tools for use in domestic settings. Another aspect impacting market expansion is technological advances. In order to increase the effectiveness of their products, businesses are introducing technologically advanced ones. For instance, the Flexvolt battery from Dewalt automatically adjusts the voltage according to the tool it is connected to. An automatic voltage switch assists in manually regulating the power before using various corded power tools. Similarly, Bosch Power Tools released the X-Lock angle grinder lock interface in January 2019. The grinder wheel change system ejects wheels with merely a pull of a lever, reducing the need for other equipment.

What are the Major Restraints for Power Tools Market?

Raw material price fluctuations are a significant factor influencing industry growth. Steel, metal, and aluminum are common materials used to make these instruments. These resources are typically imported from other nations, and currency rates and market volatility influence price swings. As a result, the market's expansion is hampered by continuous price fluctuations in raw materials.

Which Region Dominated the World Power Tools Market?

In terms of value, the Asia Pacific region holds the greatest share of the worldwide Power Tools market in 2021, accounting for 38.1 percent. The Asia Pacific has established itself as the most powerful and fastest-growing region on the planet. The demand for these technologies grows in lockstep with rising industry, infrastructure expansion, and urbanization. In addition, the growing number of Chinese players taking control of the industry and offering tools at reasonable prices would help growth. Furthermore, India is predicted to expand significantly in the market. For instance, regional market trends are being aided by rising investments by Indian tool manufacturers in research and development activities to develop novel products. To encourage tool manufacture and subsequent sales in the region, governments in some states are offering attractive incentives to set up manufacturing R&D facilities in their jurisdictions. In addition, the regional market is expected to grow at a reasonable rate due to growing automotive production clusters and substantial development in the construction industry.

During the projected period, Europe and North America are expected to increase at a stable pace. These areas are considered to be mature, and as a result, they are unlikely to see significant building spending. Similarly, due to the consistent growth of the industrial sector, Latin America is predicted to grow at a very low rate. The market is also expected to benefit from the Middle East and Africa. It is mostly due to increased industrialization in the construction, electricity and energy, and oil and gas industries. Furthermore, numerous players see these areas as prospective expansion zones for their business portfolios.

Segmentation of Global Power Tools Market-

Global Power Tools Market – By Product

  • Drills
  • Saws
  • Wrenches
  • Grinders
  • Sanders
  • Others

Global Power Tools Market – By Mode of Operation

  • Electric
  • Pneumatic
  • Others

Global Power Tools Market – By Application

  • Industrial
  • Residential

Frequently asked questions about the global Power Tools industry

The COVID-19 epidemic significantly impacts various industries that touch the tools industry, including automotive, aircraft, shipbuilding, energy, and construction.

Asia Pacific has the highest share of the global power tools market in terms of both value and volume.

The power tools market's growth is fueled by factors such as the burgeoning construction sector in emerging countries and the growing demand for electric fastening tools in the industrial environment. In the near future, the development of smart and connected power tools and the increased usage of fastening tools in the wind energy industry are expected to drive power tool demand.

In 2021, the electric sector accounted for the greatest power tools market share, with a considerable CAGR projected over the forecast period.

In 2021, the industrial segment will dominate the global market, and this dominance is expected to continue during the forecast period.

Power Tools Market Scope

Report Attribute Details
Market Value in 2021 USD 33.8 Billion
Market Value in 2028 USD 46.6 Billion
CAGR 5.5%
Benchmarking Year 2021
Past data 2016 – 2021
Forecast period 2022 – 2028
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Published Date:  Jul 2022
Category:  Semiconductor & Electronics
Report ID:   57954
Report Format:   PDF
Pages:   199
Rating:    4.7 (68)
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