The global Power Tools market size is expected to be worth around US$ 40.8 billion by 2028, according to a new report by Vision Research Reports.
The global Power Tools market size was valued at US$ 32.2 billion in 2020 and is anticipated to grow at a CAGR of 4.1% during forecast period 2021 to 2028.
The key factors fueling the growth of the market growing adoption of cordless power tools, rising demand for fastening tools in industrial environments, and growing construction industry in emerging economies are the key factors driving the growth of the power tools market. The power tools market offers several opportunities for manufacturers to focus smart connectivity for power tools.
COVID-19 impact on the power tools market
COVID-19 has emerged as a global pandemic that has spread across 215 countries worldwide and disrupted various industries around the world. The dynamics upon which various industries used to operate are set to change drastically. As the world continues to fight this crisis, multiple industries continue to experience a constant decline. Among these industries, the automotive industry has a diverse effect.
COVID-19 has been spreading across the world, starting from APAC, then moving to Europe, and currently accelerating in North America. COVID-19 has affected nearly all continents; however, the US, Russia, Brazil, India, UK, Spain, Italy, and Germany have experienced a sharp increase in diagnosed cases. Globalization and interconnected economies of most countries would be affected due to COVID-19.
COVID-19 has severely impacted automotive companies, affecting manufacturing hubs in India, China, Italy, Germany, Spain, and the US. These countries have announced the complete or partial lockdown of manufacturing units, apart from assembly plants. Other tier-I manufacturers are also experiencing the decline in their sales of vehicles, due to the lockdown of manufacturing operations. For instance, Germany, which is the car manufacturing hub in the European region, has lost 22 working days, thereby affecting 568,518 employees and has caused a production loss of 456, 977 vehicles. However, it is expected to have high demand for power tools in the automotive sector in 2021, since power tools heavily relies on electronic components for automobile production.
The drilling and fastening tools segment of the power tools market is projected to grow at the highest CAGR from 2021 to 2027.
Currently, drilling and fastening tools is projected to grow at highest CAGR during forecasted period. Electric drilling and fastening tools are used by professionals and DIY consumers, while most pneumatic drilling and fastening tools are used in industrial environments such as automotive and aerospace manufacturing plants. Electric drilling and fastening tools are operated either through a battery, based on application or through corded power supply. Hydraulic drilling tools are ideal for heavy industry and construction applications. The prominent players offered drilling and fastening tools, have been affected owing to the outbreak of COVID-19. The foreseeable decline in the growth of end-user industries may have a considerable direct impact on the power tools market in FY20.
The electric power tools market is projected to grow at the highest CAGR during the forecast period.
The electric power tools market is projected to grow at the highest CAGR during the forecast period owing to the increasing demand for do-it-yourself (DIY) techniques among household consumers. Electric power tools are also used in a wide range of industries including construction, automotive, aerospace, energy, and shipbuilding. The growth of electric power tools is fueled by innovations in battery technology and the growing adoption of cordless tools among industrial and residential users. Rapid urbanization and industrialization are anticipated to further fuel the growth of the market in the near future.The COVID-19 outbreak is expected to impact all end-user industries. This, in turn, is expected to affect electric power tools production, as well as demand for a power tools in the market.
The power tools market in APAC is projected to grow at the highest CAGR during the forecast period.
APAC is likely to be the fastest-growing region in the power tools market. Countries such as China and India are witnessing rising demand for power tools. COVID-19 forced lockdowns across APAC. The supply chains in and around APAC have been disrupted, which has resulted in limited permissible transportation. Asian countries under lockdown have suffered tremendous loss of business and revenue due to the shutdown of many manufacturing units. This has impacted the demand for power toolss in 2021.
Driver: Rising adoption of cordless power tools globally
Cordless power tools include a wide range of battery-powered tools, such as hammer drills, impact wrenches, and circular saws, as well as nailers and staplers. The demand for more mobile, flexible, and compact tools is driving the market for cordless tools. Lithium-ion batteries are replacing conventional nickel-cadmium (Ni-Cd) and nickel-metal hydride (Ni-MH) power tools. Advances in battery technology are contributing to the increasing adoption of cordless power tools with high-density batteries that can last longer once charged.
Lithium-ion batteries provide higher energy density and longer operational life to power tools. These batteries are lightweight and do not exhibit self-discharge. Therefore, lithium-ion batteries have become the most popular option for powering cordless power tools. Furthermore, with consumers’ attraction toward cordless tools, tool manufacturers are focusing on cordless power tools and launching innovative products in the market.
Restraint: High maintenance cost
Power tools, such as assembly tools, are precision instruments, requiring regular maintenance of its moving parts. Power tools are required to be recalibrated at regular intervals for precise operations. Motors, batteries, power connections, and other components of power tools wear out and fail over time. Regular maintenance, e.g., oiling, sharpening and replacing parts, and other repairs, is required for the proper working of tools, which, in turn, incurs high cost. Consumers, particularly in developing countries, are reluctant to spend on the maintenance of power tools due to the availability of low-cost manual labor. Thus, the high cost of maintenance is restraining the growth of the power tools market. Also, the cost of ownership of power tools increases because of maintenance and repair requirements. Therefore, consumers in developing countries are leasing power tools, which is also hampering the growth of the market for power tools.
Opportunity: Fastening tools in wind energy industry
Electric fastening tools play a vital role in the installation of wind turbines. These fastening tools are used during the foundation of bolts, gearboxes, rotor bearing tools, and wind turbines. Additionally, these tools are used in maintenance, repairing, and inspecting tower processes. To maintain accuracy, a tightening factor is decided and accordingly, torque is applied to joints. As wind turbine installation requires precise torque, electric fastening tools are likely to be the most suitable power tools for this industry. Growing installation capacity may create lucrative opportunities for players in the power tools market.
Challenge: Regulatory compliance and power tool safety
As power tools are supplied worldwide by several tools manufacturers to various industries, such as automotive, aerospace, energy and power, shipbuilding, and consumer electronics, power tool product safety, and regulatory compliance are critical issues for manufacturers. Domestic and international distribution channels, as well as end users, demand safety, reliability, and rigorous compliance with existing and emerging safety standards. Thus, it is important for tool manufacturers to comply with these safety regulations. In addition to mandatory regulations, manufacturers must address important concerns from retailers and consumers regarding quality and environmental sustainability. Depending on the specific type of equipment, additional regulations may address physical safety requirements, electromagnetic interference, operating noise levels, material chemical composition, and product recycling issues. In addition to mandatory requirements, additional product testing results in the increased cost of power tools. Thus, to comply with existing trade policies and support, safety regulations are the major challenges for power tools manufacturers.
Company profiles of the key players have also been included in the report. The company profiles cover, the overview, key developments, financial overview and business strategy of the players focusing on the power tools market. In addition, the historical milestones and the business segments have also been provided The key players profiled in the power tools market include, Robert Bosch GmbH (Germany), Stanley, Black & Decker, Inc. (U.S.), Emerson Electric Co.(U.K.), Makita Corporation (Japan), Actuant Corporation (U.S.), SKF (Sweden), Techtronic Industries (China), Hilti Corporation (Germany), Danaher Corporation (U.S.) and Hitachi Koki Ltd (Japan).
Power Tools Market: By Technology
Power Tools Market: By Application
Power Tools Market: By Geography
The report provides a cross-sectional analysis of all the above segments with respect to the following regions:
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This report provides insights into the following pointers:
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
Primary research represents a bulk of research efforts, supplemented by extensive secondary research. Annual reports, press releases, and relevant documents of key players operating in various application areas have been reviewed for competition analysis and market understanding.
Secondary research also includes recent trends, technical writing, Internet sources, and statistical data from government websites, trade associations, and agencies. These have proved to be reliable, effective, and successful approaches for obtaining precise market data, capturing market participants’ insights, and recognizing business opportunities.
The study objectives of this report are:
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