Power Tools Industry Overview
The global Power Tools Market, valued at USD 31.08 billion in 2022, is projected to expand at a compound annual growth rate (CAGR) of 7.2% from 2023 to 2030. This growth is significantly supported by worldwide government investments in infrastructure development, which are expected to fuel demand for power tools in construction. These initiatives are anticipated to drive substantial investment in non-residential construction, subsequently boosting power tool demand throughout the forecast period.
While the COVID-19 pandemic initially inflicted a heavy toll on global economies, leading to reduced consumer spending and supply chain disruptions, the market is now poised for recovery and growth. The shutdown of production facilities in early 2020 caused product shortages and revenue decline for market players.
Detailed Segmentation:
- Product Insights
The drills segment dominated the market in 2022 with a revenue share of 31.72% and is expected to continue leading over the forecast period. Drills are easy to use, cheaper as compared to other power tools, and are commonly used in industrial and household applications. Drills are also prominently used as a basic repair and maintenance tool, thus, driving segmental growth. Apart from drills, the product segment is bifurcated into saws, wrenches, grinders, sanders, and others.
The wrenches segment is anticipated to grow at a healthy CAGR of 8.4% during the forecast period. As compared to traditional wrenches, power wrench reduces a lot of time and manual effort in fastening as compared to traditional wrenches. Wrenches are prominently used in production plants to improve work efficiency. The automation of production facilities is a major contributor to the growth of the segment.
- Mode of Operation Insights
The pneumatic mode of operation accounted for a market revenue share of 26.87% of global market revenue in 2022. The market demand for pneumatic power tools is increasing due to their high power and torque, durability, cost-effectiveness, safety, and versatility. As industries such as automotive, construction, and manufacturing continue to grow, the market demand for pneumatic power tools is expected to continue to rise.
The cordless electric mode held a significant share in 2022 and is expected to dominate the market of power tools throughout the forecast period. Many power tools manufacturers in the market are modifying their product portfolio and increasing the cordless power tools offerings for their customers. Moreover, the cordless tools are user-friendly and easy to use for industrial as well as household applications.
- Application Insights
The residential application segment is projected to witness the highest CAGR of 8.3% during the forecast period. The growth is primarily attributed to the growing trend of DIY culture. The availability of user-friendly and easy-to-operate power tools is the vital reason for the considerable growth rate of household applications. Renovation and remodeling of construction projects are growing, leading to increased utilization of the product in the residential sector.
Homeowners are increasingly choosing to renovate their homes, which is driving the demand for power tools. They are essential for many home renovation tasks, such as cutting, drilling, sanding, and painting. Also, there is increased awareness among homeowners about the benefits of using power tools. Homeowners are realizing that power tools can save them time and effort, as well as help them achieve professional-level results.
- Regional Insights
Europe is anticipated to record healthy growth over the forecast period. The growth of the regional industry is expected to be led by Germany and the U.K. The presence of manufacturing and production plants across many countries of the European Union are some of the factors anticipated to drive the growth.
Middle East & Africa is expected to experience a substantial CAGR of 4.6% during the forecast period. The demand for the market in the MEA region is expected to continue to grow due to the increase in infrastructure development, industrialization, oil and gas exploration, DIY culture, technological advancements, and other factors. As more consumers and industries in the MEA region seek to adopt power tools for various applications, the demand for power tools is likely to increase.
Gather more insights about the market drivers, restraints, and growth of the Power Tools Market
Key Companies & Market Share Insights
The key players held the majority of the revenue share in 2022. Companies are engaging in mergers and acquisitions and strategic partnerships to strengthen their product portfolio and provide competitive differentiation.
In addition to inorganic growth strategies, companies are also investing in their research and development to provide technologically advanced products. For instance, Robert Bosch has introduced the Toolbox App that connects to power tools to enhance efficiency. It offers services such as customized power control and managing tools using smartphones. The advent of connected power tools has further intensified the competition in the market. Some prominent players in the global power tools market include:
- Emerson Electric, Co.;
- Hilti Corporation;
- Ingersoll-Rand PLC;
- Koki Holdings Co., Ltd.;
- Makita Corporation;
- Robert Bosch;
- Stanley Black & Decker;
- Techtronic Industries
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