Surge in Global Infrastructure & Construction Development Activities Is One of Key Factors Driving Market Growth
The majority of power tools are utilised in the construction sector. These tools are required for construction operations such as drilling, cutting, and grinding. They have primarily tools used to improve labour efficiency and productivity on construction sites. As a result, any increase in global construction activity will benefit the power tools market. One of the primary reasons driving market expansion is the rising need for public infrastructure in emerging markets like as India, China, Brazil, Russia, South Africa, and the nations of the Cooperation Council for Arab States of the Gulf. The two most populous countries, China and India, also have the fastest-growing economies. Governments have been forced to invest heavily in infrastructure development due to rising population and urbanisation. Such factors would boost the growth of the power tools market over the forecast period.
Power tools powered by batteries, such as cordless hammer drill, impact wrench, circular saw and nailer have become extremely popular in various fields and do-it-yourself (DIY) enthusiasts’ circles. Unlike ordinary corded tools that are roped to an electrical socket, they offer greater mobility and thus can be used for sanding activities on wood or metal cutting or chiselling jobs. In fact, lithium-ion batteries have taken over from old nickel cadmium and nickel metal hydride types because they have higher energy density, longer life span and lower mass. However, in March 2024, Chicago Pneumatic introduced the CP8609 series, a line of eBlueTork battery-operated torque wrenches, designed to enhance efficiency and safety for tire changes on large commercial vehicles. This innovation reflects the industry's ongoing shift towards more versatile and compact power tools.
Power tools powered by batteries, such as cordless hammer drill, impact wrench, circular saw and nailer have become extremely popular in various fields and do-it-yourself (DIY) enthusiasts’ circles. Unlike ordinary corded tools that are roped to an electrical socket, they offer greater mobility and thus can be used for sanding activities on wood or metal cutting or chiselling jobs. In fact, lithium-ion batteries have taken over from old nickel cadmium and nickel metal hydride types because they have higher energy density, longer life span and lower mass. However, in March 2024, Chicago Pneumatic introduced the CP8609 series, a line of eBlueTork battery-operated torque wrenches, designed to enhance efficiency and safety for tire changes on large commercial vehicles. This innovation reflects the industry's ongoing shift towards more versatile and compact power tools.
Technological Advances in the Power Tools Will Have a Positive Impact on the Market
The power tools industry has changed dramatically over the previous two decades as a result of the adoption of cordless power tools, new designs, and other technology. These advancements have resulted in the acceptance of power tools by numerous end-user segments, particularly the home improvement segment. Power tool companies have been spending heavily in producing higher-performance power tools and boosting the usability of existing designs. For instance, Stanley Black & Decker's DEWALT brand launched the FLEXVOLT battery system. When attached to a different power tool, this battery system automatically adjusts the output voltage of the battery. The technology enables the battery to sustain a longer runtime without requiring regular recharge. Increased innovation in power tools is likely to fuel the global power tools market during the forecast period.
Furthermore, the electric segment will account for the majority of the technology segment's revenue. The demand for cordless, battery-powered power tools, which are becoming increasingly popular among DIY consumers in developed nations, will drive the major expansion of the power tools market over the forecast period. These instruments have acquired significant recognition in the professional arena as charging technology advances and quick charging alternatives become accessible. Although they do not directly burn fuel to create electricity, power tools are considered environmentally friendly and energy efficient. Due to the aforementioned factors, electrical technology is anticipated to become the leading market share holder in the global power tools market.
Furthermore, the electric segment will account for the majority of the technology segment's revenue. The demand for cordless, battery-powered power tools, which are becoming increasingly popular among DIY consumers in developed nations, will drive the major expansion of the power tools market over the forecast period. These instruments have acquired significant recognition in the professional arena as charging technology advances and quick charging alternatives become accessible. Although they do not directly burn fuel to create electricity, power tools are considered environmentally friendly and energy efficient. Due to the aforementioned factors, electrical technology is anticipated to become the leading market share holder in the global power tools market.
Recent Trends in the Power Tools Industry:
- The industry is shifting to cordless tools for portability, convenience, and improved battery technology.
- Power tools now feature smart technology with Bluetooth and IoT for diagnostics and tracking.
- Ongoing advancements in battery technology boost performance with higher energy density and faster charging.
- The industry emphasizes sustainability by adopting eco-friendly practices and energy-efficient tools.
- The rise of smart factories and automation enhances efficiency and precision in manufacturing.
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Raw Material Price Volatility Will Be A Primary Concern for The Power Tools Market During the Forecast Period
Volatility in commodity prices may be a significant concern for suppliers and manufacturers. This is owing to multiple market participants are beginning to compete on pricing to sell their items. Copper, steel, rubber, plastic, and other composites are used in the manufacture of power tools. Furthermore, the motors used in most electric power tools are made of rare earth elements. The majority of these raw materials are internationally traded commodities, and their prices are subject to significant fluctuations, which may have a negative influence on power tool producers owing to lower profit margins or sales driven by increased power tool pricing. Steel and aluminium account for a substantial portion of the production cost. The cost of Neodymium, a rare earth material used to make motor magnets, is also extremely volatile. Although price volatility may be managed with derivative instruments, it will remain a key concern for the global electric power tools market.
New Product Releases of 2023 Enhance Tool Efficiency and Precision for Industry Leaders
Major industry leaders utilize strategies that focus on launching new products, merging with competitors, and purchasing companies to grow their customer base and enhance their range of products. Makita U.S.A., Inc., a manufacturer of high-quality professional tools and accessories, introduced the 18V LXT LithiumIon Cordless 24" Hedge Trimmer (model XHU10) in June 2023. The new String Trimmer combines effective cutting performance with the ease of cordless operation, as well as lower weight (up to 30% less than a comparable gas model).
Furthermore, in February 2023, Evolution Power Tools introduced the S355MCS, the world's first 355mm Steel Cutting Mitering Chop Saw. This innovative saw builds on the legendary S355CPS with advanced mitering capabilities, featuring a cutting head that swivels +/- 46° for precise angled cuts. It includes Positive Stops at key angles and micro-adjustment for exact settings. Unlike other chop saws, the S355MCS rotates the entire cutting head, allowing users to maintain workpiece alignment while achieving precise miters. Enhanced features continue to ensure top-notch cutting performance and versatility.
Furthermore, in February 2023, Evolution Power Tools introduced the S355MCS, the world's first 355mm Steel Cutting Mitering Chop Saw. This innovative saw builds on the legendary S355CPS with advanced mitering capabilities, featuring a cutting head that swivels +/- 46° for precise angled cuts. It includes Positive Stops at key angles and micro-adjustment for exact settings. Unlike other chop saws, the S355MCS rotates the entire cutting head, allowing users to maintain workpiece alignment while achieving precise miters. Enhanced features continue to ensure top-notch cutting performance and versatility.
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Significant Growth in The Residential and Commercial Construction Sectors Is Driving Growth in The United States
North America is expected to be one of the most profitable markets throughout the forecast period. The United States is likely to lead growth in this region. The significant increase in commercial and residential building is one of the primary drivers driving the country's expansion. According to the United States Census Bureau, construction spending in April 2023 is reached to US$ 1,908.4 billion. With both private and public construction investment increasing, power tool manufacturers will have profitable opportunities to capitalise on in the near future. In addition, throughout the forecast period, the demand for power tools will increase as MRO services are more in demand within the automotive industry.
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The report provides a detailed overview of the power tools market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for power tools market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the power tools market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the power tools market. Some key country and region included in the power tools market report as follows:
| Regions | Countries |
|---|---|
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Netherlands, Switzerland, Poland, Belgium, Sweden, Austria, Norway, Denmark, Finland, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Malaysia, Singapore, Thailand, Vietnam, Philippines, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Turkey, Morocco, Ethiopia, Algeria, Israel, Iran, Kenya, Rest of MEA |
Power Tools Market Research Report Covers In-depth Analysis on:
- Power tools market detailed segments and segment-wise market breakdown
- Power tools market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in power tools industry)
- Current, historical and forthcoming 10 years market valuation in terms of power tools market size (US$ Mn), volume (Units), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Power tools market demand analysis
- Power tools market pricing analysis over forecast period (by key segment and by region)
- Power tools market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in power tools market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in power tools market
- Power tools market sales and distribution strategies
- A comprehensive overview of parent market
- A detailed viewpoint on power tools market forecast by countries
- Mergers and acquisitions in power tools market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What are the key factors driving growth in the power tools market?
The key drivers include technological advancements, increased construction activities and rising DIY trends. The demand for energy-efficient and smart power tools is boosting market growth.
Which regions are expected to experience the highest growth in the power tools market?
North America and Asia-Pacific are anticipated to experience significant growth due to increased industrial activities, construction projects and a growing emphasis on home improvement.
What are the major challenges facing the power tools market today?
Major challenges include high production costs, intense competition and the need for continuous innovation to meet evolving consumer demands and regulatory standards.
What future trends are expected in the power tools market?
Future trends include the rise of cordless and battery-operated tools, increased automation and the integration of IoT technology for smarter, more connected power tools.
