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The power tools market size is forecast to increase by USD 16.84 billion, at a CAGR of 7.2% between 2023 and 2028. Market growth hinges on factors like the increase in global construction and infrastructure development, technological innovations driving replacement demand, and the rising demand for home improvement products. As construction activities expand worldwide, advancements in technology spur the need for upgrades, while consumer interest in enhancing living spaces drives demand for DIY home improvement products. These trends underscore the evolving landscape of the market and opportunities for industry stakeholders. The market has been undergoing rapid urbanization and infrastructure development, leading to increased construction activities.
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The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market share by the industrial segment will be significant during the forecast period. Power tools, whether electric, pneumatic, or cordless, are designed to enhance efficiency and productivity in industrial processes. These enable faster and more precise completion of tasks, contributing to increased overall output. Industry-specific requirements, technological advancements, and economic growth are some variables that have an impact on the market environment for power tool users in the industrial sector.
The industrial segment was the largest and was valued at USD 24.65 billion in 2018. The expansion of the manufacturing industry is one of the major factors driving the market. Manufacturers need effective and dependable device to meet their production needs as consumer and industrial product demands rise. The industrial sector often requires tools that can handle heavy-duty applications. These products, especially those with high torque and durability, are well-suited for tasks such as metalworking, construction, and manufacturing. These are used in the automotive industry for assembling and disassembling parts for vehicles. It is anticipated that the demand for device in the industrial sector will increase during the forecast period due to the growing number of construction projects, particularly in developing nations. Additionally, the industrial sector of the global market is anticipated to grow due to the rising popularity of cordless products.
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North America is estimated to contribute 31% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Another region offering significant growth opportunities to companies is APAC, which is expected to be the fastest-growing market, driven by strong demand from emerging countries, including China, India, and other Southeast Asian countries. These are essential in construction for tasks such as drilling, cutting, and fastening, contributing to the high demand for these tools. The industrial sector in APAC, including manufacturing and fabrication, has seen substantial growth.
The market is a significant industry that caters to various sectors including construction, aerospace, automotive, shipbuilding, and more. Power tools manufacturers produce a wide range of equipment, from wrenching tools to saw drills, polishing materials, and grinders, routers, hammer-drills, and sanders. The industry's growth is driven by the increasing demand for highest quality materials and advanced technologies in these sectors. Battery power tools have gained popularity due to their portability and reduced maintenance cost. Cordless sanders, random orbit sanders, and cordless power equipment are some of the popular battery-powered tools. The market is also influenced by the transition from internal combustion engines to electric motor and compressed air-powered tools.
The market is subjected to fluctuating prices due to the rising cost of raw materials and moving parts. Industries such as petrochemical, oil and gas, and maintenance activities rely heavily on power tools. The market is expected to grow significantly in the coming years due to the increasing demand for efficient and cost-effective tools. Some of the key players in the market include manufacturers continuously innovating to meet the evolving needs of their customers and stay competitive in the market. The power tools industry is expected to continue its growth trajectory, driven by advancements in technology and increasing demand from various end-use industries. Atlas Copco AB company offers power tools such as industrial drills, assembly tools, material removal tools and screw feeder. Also, Emerson Electric Co. company offers power tools such as corded, cordless, and tile saws under the brand RIDGID.
Rise in global construction activities is poised to have a favorable impact on the market. Power tools are predominantly utilized in the construction, aerospace, automotive, and shipbuilding industries. These tools play a vital role in executing construction tasks like cutting, drilling, and grinding. They serve as essential support tools aimed at enhancing the efficiency and productivity of labor at construction sites with the highest quality materials. Furthermore, the growing population and urbanization have spurred governments to make substantial investments in infrastructure development. In contrast to the US and some APAC countries, many regions worldwide currently experience a stagnant construction market but are anticipated to exhibit steady growth during the forecast period.
Additionally, numerous countries in Asia, including India, Malaysia, and Indonesia, along with certain nations in the Middle East, such as Saudi Arabia and the United Arab Emirates (UAE), are witnessing significant investments in urban infrastructure and public utilities development. These investments encompass cordless power equipment and expenditures on the construction of new stadiums, roads, airports, and residential infrastructure tailored for tourists and athletes. Such initiatives are expected to significantly bolster the demand for these tools in the construction and infrastructure development sectors throughout the forecast period.
There is a growing trend of introducing web and digital connectivity in the market. Most of the established brands have introduced smart technologies in their product lines. For instance, the Bluetooth feature enables connectivity between devices and smartphones. This allows individuals responsible for the custody of devices to track the status of tools and ensure their safety. Companies provide Bluetooth-enabled batteries that can be connected to the owner smartphone through a smartphone application.
Further, these tools are also available with an embedded chip. This chip, first introduced by Milwaukee, a brand owned by Techtronic Industries, enables users to operate portable devices as per the inbuilt speed and torque settings that are best suited for a given application. It helps improve the productivity and workmanship of power tool operators. It also reduces the possibility of improper use of these tools and increases their lifecycle. Owing to these smart technologies and convenient portable designs, the market is expected to grow during the forecast period.
High cost of power tools is a major challenge affecting market growth. Power tools are used for the easy and efficient movement of goods. To increase operational convenience, these tools come with various capabilities and features. Also, increased usability, accurate controls, and foolproof technology eliminate the risks of mishandling high-speed devices. However, these features and advanced technology come at a higher cost. This high cost of consumables and high maintenance costs have caused small-scale industries to sidestep investing in efficient and effective power tools.
Furthermore, the battery technology in power tool batteries has the major share and decides the price. Due to this reason, battery-powered device, especially Li-ion battery-powered tools, are losing the market. The decline in the demand for cordless device owing to high costs is expected to hinder the growth of the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market's competitive landscape and offer information on 20 market companies, including C. and E. Fein GmbH, Chervon Holdings Ltd., Evolution Power Tools Ltd., Group Silverline Ltd., Hilti AG, Illinois Tool Works Inc., JPW Industries Inc., Koki Holdings Co. Ltd, Makita Power Tools India Pvt. Ltd., Nemo Power Tools Ltd., Panasonic Holdings Corp., Robert Bosch GmbH, Snap On Inc., Stanley Black and Decker Inc., Techtronic Industries Co. Ltd., Vicky Power Tools, and Zoshab International Power Tools LLP
Technavio market forecast provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market is witnessing significant growth due to the increasing construction activities in both developed and developing countries. The market caters to various sectors such as construction, aerospace, automotive, shipbuilding, and others. Power tools manufacturers are focusing on using the highest quality materials to produce cordless drills, demolition jackhammers, circular saws, jigsaws, and reciprocation saws, among others. The shift towards battery power tools is gaining momentum due to their portability and efficiency. In the construction sector, power tools are extensively used in residential construction projects and infrastructural development, including roads, railways, airports, energy, and utilities.
Power tools are essential for industrial construction projects involving the use of resin, ferrous metals, non-ferrous metals, steel, zinc, copper, brass, aluminum, nickel, and batteries, motors, and brushes. The power tools industry is expected to grow rapidly due to urbanization and the need for commercial buildings and residential buildings. The market is driven by factors such as increasing industrialization, growing infrastructure development, and the availability of advanced technologies such as the Internet of Things (IoT). The market is competitive, with key players including manufacturers focusing on innovation and product development to meet the evolving needs of their customers.
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Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.2% |
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Market Growth 2024-2028 |
USD 16.84 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.75 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
North America at 31% |
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Key countries |
US, China, Japan, Germany, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Apex Tool Group LLC, Atlas Copco AB, C. and E. Fein GmbH, Chervon Holdings Ltd., Emerson Electric Co., Evolution Power Tools Ltd., Group Silverline Ltd., Hilti AG, Illinois Tool Works Inc., JPW Industries Inc., Koki Holdings Co. Ltd, Makita Power Tools India Pvt. Ltd., Nemo Power Tools Ltd., Panasonic Holdings Corp., Robert Bosch GmbH, Snap On Inc., Stanley Black and Decker Inc., Techtronic Industries Co. Ltd., Vicky Power Tools, and Zoshab International Power Tools LLP |
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Market dynamics |
Parent market analysis, market growth analysis , market research and growth , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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