Power Tools Market 2020 and Forecast 2021-2027

                                          
Report Overview: Power Tools Market


The global power tools market size was valued at USD 21.2 billion in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 3.1% from 2021 to 2027. Tools that are activated using a power source apart from manual labor are termed as power tools. They are used in multiple applications such as production and assembly lines, maintenance and repair, packaging, and DIY jobs. Ease and efficiency of operation, reduced time and labor requirements, and easy portability are some of the prominent factors driving the demand for power tools across various industries.

Increasing adoption of power tools in the automotive and construction industry is anticipated to drive their demand over the next seven years. The automotive production and assembly lines involve a lot of fastening jobs. Power tools help in reducing the time associated with these redundant tasks, along with providing increased efficiency. Thus, power tools are increasingly used by vehicle manufacturers as well as the repair and maintenance service providers in the automotive industry. Similarly, the growing use of drills, sanders, wrenches, and other tools in the construction sector is augmenting the demand for these tools.

Power tools are gaining popularity in household applications owing to the easy operability and ease of mobility. The growing trend of Do-It-Yourself (DIY) activities has resulted in increased demand from household users. In order to cater to the requirements of users that are not trained professionals, companies are offering products with enhanced safety features. For instance, Bosh Power Tools offers special Bosch Protection features that include rotation control clutch in rotary hammer drills and restart protection in angle grinders. Such features help in reducing injury risks associated with products and helps in the adoption of power tools in household applications.

Technological advancements are another factor influencing the growth of the market. Companies are introducing technologically advanced products in order to enhance the efficiency of their products. For instance, the Flexvolt battery offered by Dewalt automatically switches battery voltage depending upon the tool you attached to it. Automatic switch of voltage helps in manually adjusting the power before using different corded power tools. Similarly, in January 2019, Bosch Power Tools introduced the X-Lock angle grinder lock interface. The changing system for grinders ejects wheels with just a pull of a lever and helps in eliminating the use of other tools.
In addition to technological innovations, the increasing adoption of cordless tools that provide easy mobility and no external power source is driving the market growth. The market is anticipated to descent owing to the setback experienced by the automotive and other industries caused by the outbreak of COVID-19 pandemic. However, growing demand from household applications and the revival of industries in the near future is expected to upkeep the market growth over the forecast period 2021-2027.



Product Insights: Power Tools Market

Drills segment lead the market in 2019 with a revenue share of 30.2% and is expected to continue dominance over the forecast period. Drills are easy to use, cheaper as compared to other power tools, and are commonly used in industrial and household applications. Drills are also prominently used as a basic repair and maintenance tool, thus, driving segmental growth. Apart from drills, the product segment is bifurcated into saws, wrenches, grinders, sanders, and others.

The wrenches segment is anticipated to grow at a healthy CAGR from 2020 to 2027. As compared to traditional wrenches, power wrench reduces a lot of time and manual efforts in fastening as compared to traditional wrenches. Wrenches are prominently used in the production plants to improve work efficiency. The automation of production facilities is a major contributor to the growth of the segment.

Mode of Operation Insights: Power Tools Market

The electric mode of operations accounted for more than 60.0% share of the global revenue in 2019. The large share is attributable to the easy mobility and operation efficiency of electric tools. The advent of powerful battery packs has resulted in the increased power of electric tools. The electric model of operation is further segmented into two as corded and cordless.

The cordless electric mode held a significant share in 2019 and is expected to dominate the power tools market throughout the forecast period. Many power tools manufacturers are modifying their product portfolio and increasing the cordless power tools offerings for their customers. Moreover, the cordless tools are user-friendly and easy to use for industrial as well as household applications. For instance, in 2018, Stanley Black and Decker and Robert Bosch have diversified their product portfolio as the companies launched several cordless power tools in 2018 and introduced intelligent power tools for professionals.

Application Insights: Power Tools Market

The industrial application held more than 63.0% of the revenue share in 2019. Industrial applications include the use of tools in industries such as automotive, construction, aerospace, and logistics. Increased technological innovation and adoption of advanced technologies among these industries is the crucial factor for the dominance of industrial applications over the residential segment. Automotive and construction industries have the highest adoption of power tools, thus driving the growth of the industrial segment.

Although the industrial segment is the significant shareholder, the residential application segment is projected to have the highest CAGR of 5.2% from 2021 to 2027. The growth is primarily attributed to the growing trend of DIY culture. The availability of user-friendly and easy to operate power tools is the integral reason for the considerable growth rate of household applications. Renovation and remodeling of construction projects are growing, leading to increased utilization of power tools in the residential sector.

Regional Insights: Power Tools Market

Asia Pacific held the largest market share of 33.2% in 2019. Due to the flourishing automotive industry in countries such as India and China, the region is projected to witness the highest CAGR of over the forecast period. Increasing disposable income, growing construction & infrastructure development activities are major factors influencing the growth of the regional market. Europe is anticipated to record a healthy growth in the future led by Germany and the U.K. The presence of manufacturing and production plants across many countries of the European Union is driving the market growth.

North America is a significant shareholder of the power tools market and held a revenue share of 26.2% in 2019. Growing infrastructure development and industrial development in the region is driving the demand for power tools. Additionally, the presence of major players such as Stanley Black and Decker, Emerson Electric Co., and Apex Tool Group is contributing to the revenue share of the region. Moreover, the unavailability of cheap labor aids in the adoption of DIY jobs, thus, contributing to regional growth.

Key Companies & Market Share Insights: Power Tools Market

Major players of the market held the majority of the revenue share in 2019. Companies are engaging in mergers and acquisitions and strategic partnerships to strengthen their product portfolio and provide competitive differentiation. For instance, in March 2017, Stanley Black and Decker, Inc. announced the acquisition of Newell Brands Inc.’s tools business to enhance their product portfolio.
In addition to inorganic growth strategies, companies are also investing in their research and development in order to provide technologically advanced products. For instance, Robert Bosch has introduced the Toolbox App that connects to the power tools to enhance efficiency. It offers services such as customized power control and managing tools using smartphones. The advent of connected power tools has further intensified the competition in the market. Some of the prominent players in the power tools market include:

Key Companies Profiled: Power Tools Market Report

 	
Emerson Electric, Co.
 	
Hilti Corporation
 	
Ingersoll-Rand PLC
 	
Koki Holdings Co., Ltd.
 	
Makita Corporation; Robert Bosch
 	
Stanley Black & Decker
 	
Techtronic Industries.

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2016 to 2027. Trusted Business Insights has segmented the power tools market report based on product, mode of operation, application, and region.

Product Outlook (Revenue, USD Million, 2016 - 2027)

 	
Drills
 	
Saws
 	
Wrenches
 	
Grinders
 	
Sanders
 	
Others

Mode of Operation Outlook (Revenue, USD Million, 2016 - 2027)

 	
Electric
 	
Corded
 	
Cordless
 	
Pneumatic
 	
Others

Application Outlook (Revenue, USD Million, 2016 - 2027)

 	
Industrial
 	
Residential