Power Tools Industry Overview:
Global power tools market is expected to garner $39,639 million by 2022, registering a CAGR of 5.4% during the forecast period 2016 to 2022. Power tools have diverse applications in commercial and residential sectors. The adoption of power tools is enabled by work efficiency achieved through advanced sensors, which is used to analyze and perform tasks with minimum errors. The revenue of the Global power tools market has increased, owing to rising trend of automation enabling enhanced returns on investments and cost optimization.
The utilization of power tools simplifies human work reduces the burden of repetitive tasks and decreases the chances of human errors & injury. Growth of smart technologies and development of low-cost & energy-efficient tools boost the growth of the power tools market. The rising demand of automation has revolutionized the adoption of power tools technology. Pneumatic and powder-actuated technologies are in the initial stage of development; however, further innovation in these technologies is expected to provide significant growth opportunities to the market. However, unstable economic situation in the Middle Eastern countries, decline in construction and automotive industry in China and increasing concerns for human safety restrict the adoption of power tools.
Power Tools Market Segmentation
The report segments the global power tools market based onmode of operation, end user, and geography. The mode of operation segment is further categorized into electric power tools, pneumatic power tools, and others. Electric power tools dominate the global market in terms of value. Pneumatic power tools are emerging as potential alternatives to electric power tools in industries, although commercial production of pneumatic tools is still low due to their high price and unavailability of compressed air cylinders.
Electric power tools are bifurcated into product type and power source. Product types include drills, saws, grinders, and others, whereas, power source includes corded and cordless tools.
Based onend user, the market is classified into residential and non-residential users. Residential user segment is expected to grow at the highest CAGR of 5.9% due to increase in demand for do-it yourself (DIY) techniques among household consumers owing to the associated convenience. Construction, manufacturing, automotive, aerospace, and logistics are grouped under non-residential user segment.
Geographically, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. North America is expected to dominate the global market during the analysis period due to significant growth in construction, manufacturing, and automotive industries. The market in Asia-Pacific is projected to grow at a significant rate due to increase in DIY techniques, low product penetration, investments in infrastructural developments, and rise in disposable incomes.
Top Impacting Factors in Power Tools Market
The power tools market is influenced by factors such as rapid industrialization and automation, and unavailability of skilled human workforce. In addition, emerging growth opportunities in developing nations and recent technological advancements in power tools in electrical and pneumatic segments accelerate the adoption of power tools across various verticals. However, reduction in automotive sales and growth in concerns for human safety impede the market growth. Each of these factors has its individual impact on the market growth.
Rapid Industrialization and Automation
Increase in demand for automation and rapid industrialization foster the use of power tools. Adoption of power tools in construction, manufacturing, and domestic sectors has increased for automating processes, which leads to increased efficiency, accuracy, and perfection; reduced human errors; and enhanced safety of the workforce.
High Labor Cost and Lack of Skilled Workforce
Lack of skilled workforce and high labor costs are major driving factors for the adoption of power tools in most industries in developed and developing nations. Several organizations have adopted usage of power tools to reduce their labor costs and improve efficiency, although the initial cost of procuring a set of power tools is high, but once used they offer higher productivity, efficiency, and profits. Moreover, labor wages are on the rise in the American and European markets, and Asia-Pacific is also expected to witness an upsurge in labor costs during the forecast period.
Increase in Application Areas
Electronics, construction, logistics, manufacturing, and aerospace industries prefer power tools to cater to their specific requirements and increase efficiency & precision of their processes.Rise in demand from the construction industry owing to the advanced infrastructural developments boosts the sales of power tools. Increase in adoption of power tools due to its advantages across diverse applications is expected to show promising growth and would enable tremendous opportunities to market players in the future.
Growth of Real Estate industry in India
The real estate sector is one of the most lucrative sectors globally. In India, this sector is expected to grow at a notable rate of around 30% over the next decade owing to the growth of corporate environment in the country and demand for urban and semi-urban accommodations. As per India Brand Equity Foundation, real estate is the fourth largest sector in terms of FDI inflows. Retail, hospitality, and commercial real estate are on a continuous rise due to increase in investments in this sector and growth of organized retail sector. By 2031, 600 million people are expected to reside in urban areas.
Indian Real Estate Market
The key players profiled in this report include Stanley Black & Decker Inc., Atlas Copco AB, Robert Bosch GmbH, Techtronic Industries Co. Limited, Actuant Corporation, Makita Corporation, Danaher Corporation, Emerson Electric Co., Hitachi Koki Co. Ltd., and Hilti Corporation. Other players in the value chain include Snap-On Incorporated, Apex Tool Group, LLC, C. & E. Fein GmbH, Metabowerke GmbH, United Pacific Industries Limited, Panasonic Electric Works Europe AG, Mafell AG, and Altendorf.
Power Tools Market Key benefits:
- The study provides an in-depth analysis of the power tools market, with current trends and future estimations to elucidate on the imminent investment pockets.
- It provides a detailed impact analysis and information on key drivers, restraints, and opportunities.
- Porter’s Five Forces Model illustrates the market scenario by analyzing various parameters such asthreat of new entrants, threat of substitutes, strength of the buyers, and strength of the suppliers.
- Value chain analysis signifies the key intermediaries involved and elaborates their roles and value additions at every stage.
- The quantitative analysis of the market from 2014 to 2022 is provided to elaborate the market potential.
Power Tools Market Key segment:
Power Tools by Mode of Operation
- Electric Power Tools
- Pneumatic Power Tools
Electric Power Tools by Power Source
- Corded Electric Power Tools
- Cordless Electric Power Tools
Power Tools by End User
Power Tools by Region
- North America
- Rest of North America
- Rest of Europe
- Rest of Asia-Pacific
- Latin America
- Middle East
Key Market Players
- Stanley Black & Decker Inc.
- Atlas Copco AB
- Robert Bosch GmbH
- Techtronic Industries Co. Limited
- Actuant Corporation
- Makita Corporation
- Danaher Corporation
- Emerson Electric Co.
- Hitachi Koki Co. Ltd.
- Hilti Corporation
Companies mentioned in the report
- Snap-On Incorporated
- Apex Tool Group, LLC
- C. & E. Fein GmbH
- Metabowerke GmbH
- United Pacific Industries Limited
- Panasonic Electric Works Europe AG
- Mafell AG