Power Tools Market size is estimated to reach ~USD 101.39 billion by the end of 2035 by growing at a CAGR of ~8.7% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of power tools was ~USD 37.26 billion. The growth of the market can be attributed to the increasing infrastructural development projects dealing with the development of dams, bridges, roadways, railways, airports, energy utilities, and commercial and residential. In 2020, more than 2,500 global infrastructure projects were announced — an increase of 5.5 percent from 2019 buildings.
In addition to these, there is a huge demand for power tools in modern households. With the surge in consumers becoming aware and technically equipped they prefer repairing the furniture or any electrical equipment manually. Even refurbishing existing fittings, or plumbing they prefer to do themselves to save costs of a paid technician. As such the demand for modern power tools to make tasks easier is much in demand. The essential power tools for home use include a power drill + driver, jigsaw, circular saw, miter saw, oscillating multi-tool, random orbital sander, cordless brad nail gun, and table saw. According to a recent survey, 55% of Americans own at least five power tools, and 23% own 10 or more. Apart from that, the survey also revealed that nearly 46% of people have increased their power tool collections in the last decade.
Base Year |
2022 |
Forecast Year |
2023-2035 |
CAGR |
~8.7% |
Base Year Market Size (2022) |
~ USD 37.26 billion |
Forecast Year Market Size (2035) |
~ USD 101.39 billion |
Regional Scope |
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Growth Drivers
Challenges
The global power tools market is also segmented and analyzed for demand and supply by mode of operation into electric, liquid fuel, hydraulic, pneumatic, and powder-actuated. Amongst them, the electric segment is expected to garner a significant share of around ~36% in the year 2035. The most common electric power tools are power saws, electric planes, electric milling cutters, electric mortising machines, electric wrenches, power grinders, electric drills, and portable parquet finishers. They can be corded or cordless. Corded electric tools require plug-and-play whereas cordless tools are more handy and convenient to operate. Consumers increasingly prefer cordless tools that are lightweight, portable, flexible, and compact. The future is in cordless technology: Major power tool manufacturers gained a 5% increase in power tool sales owing to the introduction of cordless power tools. Bosch Power Tools had launched more than 60 new cordless tools for professional users, in the last two years, more than 25 of which in 2021. By 2023, the range is supposed to cover a total of around 100 new cordless tools.
The global market is segmented and analyzed for demand and supply by type into sawing and cutting, drilling and fastening, demolition, routing, portable nibblers, air-powered, material removal, electric cords, plugs, accessories, and others. Amongst them, the material removal segment are estimated to grow at the highest rate garnering a share of around 22% during the forecast period. These tools are used as end-effectors to remove material from a part to produce the desired shape. Material removal tasks such as deburring using , deflashing, edge-breaking, surface finishing etc., require beveling tools, chipping hammers, circular cutters, drilling solutions, grinders, pneumatic saws, riveting hammers, and others. They can be powered by electric or pneumatic sources.
Our in-depth analysis of the global power tools market includes the following segments:
By Type |
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By Mode of Operation |
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By Application
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By Material |
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By End User |
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By Sales Channel |
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The market in the APAC region holds the highest market share of 33.2% by the end of 2035 owing to the rapid growth of population, increasing urbanization, and demand for power tools in infrastructural development and automotive. China has a population of 1.4 billion and India with 1.3 billion inhabitants, remains the two most populous countries, comprising 19% and 18% of the total global population respectively. In roughly seven years, or around 2024, the population of India is expected to surpass that of China. Moreover, China is the largest automobile market worldwide, both in terms of demand and supply. China's automobile registrations rose by 10% to approximately 23.24 million units in 2022. The automotive industry in India is the fourth-largest by production in the world as per 2021 statistics. In 2022, India became the fourth largest country in the world by valuation of the automotive industry. As of 2022, India is the 3rd largest automobile market in the world, surpassing Japan and Germany in terms of sales. All these factors contribute to the growth of the market in the region.
The power tool market in North America region is projected to grow at a high rate and garner a market share of about ~27% by the end of 2035. US demand for power tools is expected to reach ~USD 11.2 billion in 2026 owing to the increasing use of power tools in construction and automotive. 5.9 million U.S. commercial buildings contained a total of 97 billion square feet as of 2018. The number of housing units in the United States has been growing year on year and in 2021, there were approximately 142 million housing units in the United States.
The European power tools market is estimated to be close on the heels of its American counterpart, registering a share of about ~24% by the end of 2035. The number of dwellings in England grew from 21.2 million in 2001, to around 25 million by 2021. Germany and the U.K. are expected to lead the market in terms of revenue. The automotive industry in Germany has created a huge demand for power tools. Germany has sold a total of 2,651,357 units in 2022 and an increase of 1.1 percent over 2021.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Payel Roy, Dhruv Bhatia
Ans: The rising urbanization, growing infrastructure, and increasing demand from the automotive sector are the major factors driving the market growth.
Ans: The market size of power tools is anticipated to attain a CAGR of ~8.7% over the forecast period, i.e., 2023 – 2035.
Ans: The supply chain disruptions owing to the political unrest in the world and fluctuations in prices are estimated to be the growth-hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Robert Bosch, Emerson Electric, Co.; Hilti Corporation; Ingersoll-Rand PLC; Koki Holdings Co., Ltd.; Makita Corporation; Stanley Black & Decker; Techtronic Industries, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, mode of operation, application, material, end user, sales channel, and by region.
Ans: The electric sub-segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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