Power tools are equipment that employs compressed air, combustion, or electricity. They enable users to do a variety of tasks that would be difficult to complete with standard tools. They have shown to be quite operative when manual labor with hand tools may not return the optimum results. Power tools run on electricity, combustion, or compressed air, allowing them to run smoothly. Power tools are extensively employed in home-based applications and businesses such as building and manufacturing due to their numerous features and effectiveness.
The worldwide power tools market was worth $35.63 billion and will be worth $ 55.89 billion by 2030, growing at a 5.13% CAGR from 2021 to 2030.
Key Industry Drivers
The increased use of these equipment in the construction and automotive industries will drive market expansion. Power tools boost efficiency and shorten task completion times. Assembly lines in vehicle manufacturing necessitate the fastening of nuts and bolts for numerous components and systems. Because of this, the tools are employed in the automobile industry by automotive OEMs and maintenance service providers. Furthermore, the construction industry’s growing use of sanders, wrenches, and drills is driving up demand for power tools.
Rising DIY activities have raised household tool demand. Power tools are becoming more popular in residential applications because of their portability and ease of use. Bosch, for example, provides power tools with unique safety features such as restart prevention in angle grinders and rotation control in rotary drills. These features increase the acceptance of power tools in applications such as the home and lower the danger of injury connected with the goods.
Restraining factors
Maintenance and high prices of moving parts, and variations in the costs of raw materials required to create power materials are hampering the market’s overall growth.
Commercial Potential of Power Tools Propelling the Sales
The movability and simple mobility of force devices have been fuelling their interest at a higher rate than traditional hand instruments. Request from assembling gathering units, creation as well as administration areas are supposed to fuel the interest for power devices. Development area is supposed to be a vital end client helping the market development.
Prodded by these variables, business potential open doors are probably going to take off for power apparatus producers. Particularly with development of cordless power apparatuses prompting the send-off of cutting edge variants of effect torques, roundabout saws, and sledge drills among others, deals possibilities have gotten to the next level.
Subsequently, there is massive concentration towards sending off adaptable, portable, and minimized instruments to stay up with dynamic purchaser inclinations. Also, nickel-metal hydride (Ni-MH) and nickel-cadmium (Ni-Album) power apparatuses are progressively being supplanted with lithium particle batteries. For example, in 2019 Bosch sent off cordless power devices, fitted with lithium-particle batteries to offer superior power and effectiveness. These advances have been pivotal in working on the business capability of force apparatuses.
Key Opportunities
The advent of IoT technologies and the strengthening of smart connected systems in assembly line operations resulted in the development of numerous smart and connected tools. As a result, the main tool manufacturers are focusing entirely on manufacturing smart and connected power tools, which are expected to generate many growth prospects in the future.
Market Segmentation
Application Insights
On the basis of application, the power tools market is segmented into logistics, electronics, construction, industrial, aerospace, energy, and shipbuilding.
The industrial application segment accounted for more than 63.0% of revenue in 2020. Industrial uses have surpassed residential applications due to increased technological innovation and acceptance of advanced technologies in these areas. Power tools are most often employed in the automotive and construction industries, contributing to the expansion of the industrial segment. Additionally, the residential segment will grow at a CAGR of 4.6% during the forecast period. The broad availability of user-friendly and easy-to-use power tools is a major contributor to the rapid proliferation of residential applications.
Product Insights
In 2020, the Drills market segment had the biggest market share of 30.2%. Drills are less expensive and easier to use than other power equipment. These are typically employed in domestic and industrial settings. Drills, saws, wrenches, grinders, sanders, and other tools comprise the product segment. Furthermore, the wrenches segment will grow at a robust CAGR between 2020 and 2030. Wrenches are widely used in manufacturing plants to boost job efficiency and productivity.
Regional Insights
Asia Pacific had the largest market share of 33.2% in 2021. Because of the rising automotive sector in countries like India and China, the area will have the highest CAGR during the forecast period. Increasing disposable income, increased construction and infrastructure development activities, are all major factors influencing the regional market growth. Germany and the United Kingdom will drive Europe’s future growth. The presence of manufacturing and production operations in a number of European Union countries is driving the market growth.
North America was also a significant regional player, with a share of 26.2% in the power tool market in 2021. Power tool demand is being fueled by the region’s expanding industrial and infrastructure growth. The region’s revenue share is further influenced by the presence of important companies like Apex Tool Group, Emerson Electric Co., and Stanley Black & Decker.
Key Players
- Techtronic Industries
- Robert Bosch
- Hilti Corporation
- Makita Corporation
- Stanley Blach & Decker
- Ingersoll-Rand PLC
- Koki Holdings Co., Ltd
- Emerson Electric, Co
- Others