Power Tools Market Size, Share & Industry Analysis, By Mode of Operation (Electric, Pneumatic and Others), By Tool Type (Drilling & Fastening Tools, Material Removal Tools, Sawing & Cutting Tools, Demolition Tools, and Others), By Application (DIY and Industrial) and Regional Forecast, 2024-2032

The global power tools market size was valued at USD 27.51 billion in 2023 and is projected to grow from USD 28.52 billion in 2024 to USD 40.20 billion by 2032, exhibiting a CAGR of 4.4% during the forecast period. The Asia Pacific dominated the power tools market with a share of 35.77% in 2023.

Power tools are primarily used in operations such as cutting, wrenching, saw drills, and polishing materials. They are used in varied industries, such as automotive, aerospace, construction, petrochemical, oil and gas, and others, to ease complex operations. These tools are handy and easy to operate, providing comfort while operating, and allowing one to achieve desired results. The global market is projected to grow significantly in the forecast period owing to the adoption of cordless power equipment. However, high maintenance cost of moving parts and fluctuating prices of raw material are weakening by the open market trade flow.

Companies cater to their products in two divisions, professional and consumer products. Professional products include corded or cordless tools such as pneumatic and fasteners (wrenches and drivers, drills, saws, guns, nails, concrete, masonry anchors, and others). On the other side, hedge trimmers, string trimmers, lawnmowers, and edgers are a few gardening products that fall under the consumer product division.

Considering the initial COVID-19 impact, Wuhan has been a traditional manufacturing base of modern industrial manufacturing of optoelectronic technology, automotive manufacturing, iron manufacturing, and steel manufacturing. Thus, it negatively affected the production activities in various industries, significantly hampering the market growth.

Power Tools Market Trends

Development of Multi-Purpose Products and Additional Accessories to Lay the Foundation for Future Growth

Companies, such as Atlas Copco AB, Robert Bosch Tool Corporation, Techtronic Industries Co. Ltd., and others, are developing energy-efficient power tool products with innovative technologies. Industry leaders are also focusing on introducing multi-purpose machines that can be used precisely while conducting numerous operations. On the other hand, consumers are banking on cordless power tool products that are easy to operate on high-torque, light in weight, compact, and efficient. Therefore, consumers' increasing demand for errorless products allows companies to achieve their height of disruptive innovations. As a result, the development of innovative products is projected to bolster the demand in the future ahead.

Power Tools Market Growth Factors

Expansion of the Construction Industry and Manufacturing Sector in Emerging Economies to Boost Growth

The rapid expansion of the construction industry is a major factor influencing the global power tools market growth. Key players are manufacturing corded and cordless power tools that allow construction workers to use them across various applications. Also, small and mid-sized manufacturing enterprises are bound to use these tools to their capabilities and flexibility. Additionally, leading manufacturers across the globe offer advanced products through collaboration and research.

Rising development of infrastructural projects such as the development of railways, roadways, airports, and commercial & residential buildings generate the demand for power tools such as, jackhammers, circular saws, cordless drills, and electric power tools to work efficiently.

For instance, in May 2018, Robert Bosch Tool Corporation partnered with Triax Technologies, Inc. to develop a tracking solution device. Also, it allows construction firms to track the location of equipment & tools and monitor real-time worker, asset utilization, and safety data.

RESTRAINING FACTORS

Price Fluctuations of Raw Materials to Hinder Market Growth

Power tools in industries are creating a leveraging opportunity in industrialized countries such as the U.S., the U.K., Japan, China, India, and others. However, continuous price fluctuation of raw materials in the global market is an important factor affecting the market growth. Due to price hack, common materials in the industry, such as steel, aluminum, and semiconductor chips, have been impacted badly in the international market. Hence, market volatility and regular price fluctuation in raw materials are the prime factors that hampered the market growth.

For instance, according to the International Study Group, considering the coming deficit in 2021, the copper shortfall at the global level was 441,000 tons, which is 2% less than demand for refined metal and is intended to hike copper prices by 25%.

Power Tools Market Segmentation Analysis

By Mode of Operation Analysis

Electric Segment to Depict Highest Growth Rate with Rising Demand from Construction Sector

On the basis of mode of operation, the market is categorized into electric, pneumatic, and others, including hydraulic tools.

Among these, the electric segment includes cordless and corded tools. It held the highest market share in 2023 and will remain dominant and witness notable growth during the forecast period due to its advanced performance capabilities. Additionally, the global market has revolutionized the work scenario of construction, automotive, industry, and others, enhancing operation efforts and saving time for their end-users.

The demand for pneumatic tools is estimated to slow down as electric tools are expected to be replaced. Other tools, such as hydraulic power tools for heavy load operations, are anticipated to project moderate market growth over the forecast period.

By Tool Type Analysis

Material Removal Tools to Witness High Growth during the Forecast Period due to Various Industrial Applications

Based on tool type, the market is divided into drilling & fastening tools, material removal tools, sawing & cutting tools, demolition tools, and others, which include routing tools.

The material removal tools segment is anticipated to witness the highest growth, owing to their demand across car factories, metal processing workshops, and other industrial sites. Material removal tools such as grinders, sanders, and others exhibit considerable penetration across various residential and industrial projects.

The drilling & fastening tools segment was estimated to hold the highest market share in 2023. This is attributed to operational advancements inculcated in drilling technology by manufacturers. The extensive usage of drilling and fastening tools across different industry verticals, including aerospace, energy, automotive, electronics, and consumer appliance providers, drive the demand for power tools, owing to which the market is experiencing substantial growth.

Also, sawing & cutting tools and demolition tools have lesser market share compared to drilling & fastening tools and material removal tools.

By Application Analysis

Spending Capability and Rising DIY Tools to Depict Highest CAGR due to Increased Adoption

Based on application, the market is segmented into DIY and industrial (manufacturing, automotive, construction, energy, and others (ship building). The do-it-yourself (DIY) segment is projected to have a prominent impact on the market owing to the growth and trend of DIY enthusiasts. This is mainly due to increased spending capability and rising households across developed and developing countries.

Additionally, there is a broad spectrum of creative DIY enthusiasts who are focusing on getting equipped with the necessary power tools. It is due to the high demand for power tools across the aerospace, automotive, energy and power, construction, and other sectors. The industrial segment is estimated to hold a significant power tools market share in the forecast period.

REGIONAL INSIGHTS

The global market is analyzed across North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.

Asia Pacific has been recognized to be the dominant and exponentially growing region in the global market. The demand for these tools is getting directly propagated by the growing industrialization, infrastructure development, and urbanization. Coupled with this, the growing Chinese market players control over the market with competitive pricing would aid growth. Moreover, India is expected to witness significant growth owing to Industry 4.0 and enhanced production in the manufacturing sector.

Furthermore, the rising population and growing demand for advancements generate opportunities for the market growth across the construction & material and automation sectors in the region.

India to Propel Due to Heavy Development of Manufacturing Sector in Asia Pacific

India is projected to develop at the most promising pace in the market, outpacing the rest of emerging markets across the globe. Governments in multiple states are offering attractive subsidies to set up manufacturing R&D facilities in their respective jurisdiction to increase tool manufacturing and subsequent sales in the region. Additionally, increasing automotive manufacturing clusters and heavy construction sector development are estimated to develop quickly in the regional market.

Following Asia Pacific, the Middle East & Africa is also projected to impact the market positively. It is mainly attributable to the growing adoption of power tools across the construction, power and energy, and oil & gas sectors. Furthermore, several players are also finding these regions to be potential zones to expand their business portfolios.

Europe and North America are expected to grow steadily during the forecast period. These regions are considered to be relatively mature and are not able to witness substantial construction expenditures. Growing popularity of DIY projects in different countries such as the U.S., the U.K., Germany, and France due to the availability of online tutorials and video guidance generates the demand for power tools. This factor drives the market growth across these two regions. Both regions observed a steady influence on the market with their steady demand for power tools and stagnant production rate.

Latin America is projected to grow moderately due to its geographical significance and stagnant industrialization. Similarly, a growing number of partnerships between private and public sector manufacturing and infrastructure companies in countries such as Brazil and Mexico are set to propel the power tools market growth during the forecast period.

KEY INDUSTRY PLAYERS

Major Players to Focus on Acquiring Small and Mid-sized Organizations

Prominent market participants have a strong presence in Asia Pacific, North America, and Europe. Hence, these companies focus on acquiring small & mid-sized companies with a strong local presence in the market. It allows them to expand their businesses and customer bases in other regions/countries.

For instance, in February 2021, Dewalt added outdoor power tools to its lineup in preparation for lawn & home maintenance season and spring landscaping.

List of Top Power Tools Companies:

• Robert Bosch GmbH (Germany)


• Stanley, Black & Decker, Inc. (U.S.)


• Hilti Corporation (Liechtenstein)


• Atlas Copco AB (Sweden)


• Makita Corporation (Japan)


• Emerson Electric Co. (U.S.)


• Hitachi Koki Ltd. (Japan)


• Ingersoll Rand (U.S.)


• Techtronic Industries Co. Ltd. (Hong Kong)


• Enerpac Tool Group (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• October 2023 – Atlas Copco developed a Cordless Drill to drill identical holes on the aircraft assembly line. The Atlas Copco’s EBB16 cordless drill is powered by a lithium-ion battery, which enables users to drill with more safety in the aerospace and manufacturing sector.


• July 2021 – Makita UK extended its outdoor power tools segment with its advanced ‘XGT 40VMax machines’. It includes UR002G 40VMax Cutter and 40VMax Hedge Trimmer that are brushless.


• June 2021 – Makita Corporation introduced an advanced nailer named 18 Gauge 2” Brad Nailer (AF506). It is a battery-operated power tool with better ergonomics. It can be used on hard and soft wooden surfaces.


• December 2020 – Hilti Corporation announced an expansion of its rotary hammer segment and combination portfolio with an introduction ‘TE 70-ATC/AVR’, the powerful SDS-Max-Combination Hammer. The newly presented tool delivers ~40% sooner concrete drilling.

REPORT COVERAGE

The report provides detailed information regarding various insights into the industry. Some of them are growth drivers, restraints, competitive landscape, regional analysis, and challenges. It further offers an analytical depiction of the market trends and estimations to illustrate the forthcoming investment pockets. The market is quantitatively analyzed from 2024 to 2032 to provide financial competency. The information gathered in the report has been taken from several primary and secondary sources.

Report Scope & Segmentation