April 21, 2024
India Power Tool Market

India Power Tool Market is Estimated to Witness High Growth Owing to Rising Construction Industry

The power tools market in India consists of electric power tools and high-pressure air tools that are used for various end-use applications such as automobiles, metal fabrication, and construction. Power tools provide higher efficiency, power and accuracy as compared to traditional hand tools. Rapid urbanization and industrialization has boosted infrastructure spending and residential building construction in India. This has increased the demand for power tools from the construction industry. The growing construction sector is one of the major drivers of growth for India power tool market.

The India Power Tool Market is estimated to be valued at US$ 1006.27 Bn in 2024 and is expected to exhibit a CAGR of 6.0% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the India Power Tool Market Size are BASF SE, Chevron Phillips Chemical Company, LLC, Exxon Mobil Corporation, Ineos Group Ltd, LyondellBasell Industries N.V., Royal Dutch Shell plc, Saudi Basic Industries Corporation, China Petroleum & Chemical Corporation (Sinopec), The Dow Chemical Company, Lonza Group.

The rising disposable income and living standards in India have increased consumer spending on home improvement andDo-It-Yourself (DIY) activities. This has generated significant growth opportunities for power tool manufacturers in the country. Furthermore, growing infrastructure development projects under initiatives like Smart Cities Mission and housing for all by 2022 are driving demand for advanced power tools from the construction sector.

The increasing foreign direct investments in sectors like automotive, manufacturing and housing have encouraged global power tool companies to expand their footprint in India. Major players have established manufacturing plants to cater to the growing demand. Additionally, easing of FDI norms and Make in India initiative are expected to accelerate the global expansion of power tool market in India.

Market drivers

The rapid growth of the construction industry in India is one of the major drivers for the power tools market. According to India Brand Equity Foundation, India needs investment worth $775.67 billion in infrastructure by 2022 to have sustainable development. This rising infrastructure spending is positively impacting the power tools demand. Furthermore, the growing local manufacturing of power tools following the Make in India campaign is expected to boost the market during the forecast period.

PEST Analysis

(Political) The power tools industry in India is highly regulated by the government. The government has imposed several import tariffs and duties to boost the local manufacturing of power tools in the country. However, lack of coherent policies and regulations in the solar power sector impacts the demand for power tools in construction activities.

(Economic) India’s growing economy and increasing spending power of consumers is fueling the demand for power tools in construction as well as industrial applications. Strong growth in infrastructure development, housing, and industrial sectors has propelled the demand for power tools in India. However, increasing raw material prices and high interest rates remain challenges for stakeholders.

(Social) Rapid urbanization and growing housing needs have increased residential construction activities across major cities in India. The rise of nuclear families and improving income levels have also boosted individual spending on power tools for DIY projects. Moreover, social media influence and easy access to power tools through online retail are expanding their usage in non-industrial applications.

(Technological) Advent of cordless technology and energy-efficient batteries has revolutionized the power tools market. Manufacturers are integrating advanced lithium-ion batteries into their products that provide longer runtimes and portable operations. The widespread adoption of internet of things (IoT) and 3D printing technology is also extending newer application areas for power tools in India.

The India Power Tool Market is concentrated primarily in metros and Tier I & Tier II cities where construction activities are ramping up significantly. Western and Southern regions account for the bulk of market revenues owing to industrialization and infrastructure projects underway. States like Maharashtra, Tamil Nadu, Gujarat, Karnataka and Andhra Pradesh dominate power tools consumption in the country.

The Northern region is emerging as the fastest growing market for power tools in India on account of government initiatives to boost manufacturing under schemes like Make in India. States like Uttar Pradesh and Haryana are witnessing massive industrial investments and real estate construction, spiking the demand for construction equipment and power tools. Moreover, metro expansion projects in Delhi NCR and urban renewal plans across Punjab and J&K are propelling Northern India to the forefront of power tools market growth over the coming years.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it