The power tools market is estimated to grow from USD 29.5 billion in 2020 to USD 36.9 billion by 2025; at a CAGR of 4.6%.
Power tools market to exhibit significant growth during 2020-2025
Key factors driving the power tools market growth include growing adoption of cordless power tools, rising demand for fastening tools in industrial environments, and the growing construction industry in emerging economies.
However, the high maintenance cost of power tools and fluctuations in raw material prices may hamper the growth of the market.
The market for drilling and fastening tools to grow at highest CAGR during the forecasted period
Drilling and fastening tools are expected to grow at the highest CAGR during the forecasted period, followed by material removal tools with second-highest CAGR.
Fastening tools are widely used in industries, namely construction, automotive, aerospace, and energy.
Fastening tools are used for quality-critical operations such as tightening joints, mounting the engine to the chassis, and fastening bolts.
Material removal tools are used for polishing and smoothing vehicle parts and metal parts.
The investments in power tools show that the largest manufacturing companies are investing 20-30% of their annual revenue in new product development, which is likely to decrease in the next 2 years due to the ripple effect of the COVID-19 pandemic on various industry demands.
This may reduce the growth of drilling and fastening tools in 2020 and is expected to grow further until 2025.
The market for electric tools especially cordless tools to grow at highest CAGR during the forecast period
Currently, electric tools hold the largest market share among all other mode of operation in the power tools market, and a similar trend is likely to continue during the forecast period.
Electric power tools are operated either through a battery, based on application or through the corded power supply.
Corded electric tools are plug-n-play tools, whereas cordless tools are easy to operate, efficient, and handy in nature.
The majority of manufacturers are focusing more on launching cordless tools powered by lithium-ion batteries. As a result, the demand for cordless power tools with lithium-ion batteries is likely to increase during the forecast period.
The market for residential/DIY application to grow at highest CAGR during forecast period
The market for the residential/DIY application to grow at the fastest CAGR in the power tools market owing to the rising demand for cordless power tools in renovation and remodeling projects.
Mostly electric power tools are used by DIY consumers for residential refurbishment and improvement projects.
This is especially true in residential projects wherein there is heightened interest in remodeling and refurbishing existing homes rather than purchasing new ones among consumers.
Therefore, the use of power tools by DIY enthusiasts for remodeling and renovation projects is rising in developed countries, such as the US, the UK, and Germany.
At present, this market is estimated to witness the impact of the low usage of power tools due to COVID-19 and lockdown announced in countries.
In the case of the residential/DIY application, the global production of power tools has been declining owing to the COVID outbreak.
APAC is projected to grow at a higher CAGR during the forecast period.
APAC is expected to be the fastest-growing market for power tools. The demand for power tools for residential applications is limited due to lack of do-it-yourself (DIY) activities in APAC wherein inexpensive labor is abundant.
China and India to remain lucrative growth markets for manufacturers of power tools.
The low-priced power tools have created intense competition among manufacturers. With growing manufacturing sectors, India has become one of the fastest-growing countries in the adoption of power tools.
Growing investments in residential and infrastructure markets in this region are expected to boost the construction industry, thereby driving the use of power tools.
Due to the outbreak of COVID-19, various companies in APAC witnessed a decline in demand for power tools.
The company has been temporarily stalling new projects.
As lockdown restrictions continue, the demand is expected to remain below normal forcing utilities to reconsider their capital expenditure.
The study includes an in-depth competitive analysis of these key players in the power tools market, with their company profiles, recent developments, and key market strategies. Stanley Black & Decker (US), Techtronic Industries (Hong Kong), Robert Bosch (Germany), Makita Corporation (Japan), Hilti Corporation (Liechtenstein), Atlas Copco (Sweden), Apex Tool Group (US), Ingersoll-Rand (Ireland), KOKI Holdings (Japan), and Snap-on Incorporated (US) are among the major players in the power tools market.
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