February 22, 2024
Power Tools Market

Increasing Adoption Of Cordless Power Tools Is Expected To Drive Growth In The Global Power Tools Market

The global Power Tools Market is estimated to be valued at US$ 29995.02 Mn in 2023 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Power tools refer to any tool operated electrically that simplifies manual labor by providing higher torque, speed and stamina as compared to hand tools. They comprise drills, routers, saws, sanders, nail guns and other equipment used for construction, woodworking and industrial applications. Power tools offer benefits such as high torque and speed for drilling, cutting and finishing tasks with precision and ease. They reduce manual labor and enable fast completion of projects. Growing construction and DIY activities are expected to propel the demand for power tools in the coming years.

Market key trends:
One of the key trends driving growth in the power tools market is the increasing adoption of cordless power tools. Advancements in battery technology have enabled manufacturers to develop cordless power tools with improved run time and power similar to their corded counterparts. The convenience of mobility offered by cordless power tools has made them a popular choice among professional tradespeople and DIYers. Continuous innovations focused on enhancing battery capacity, reducing charging time and developing fast charging systems is expected to further fuel preference for cordless power tools over the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate due to the requirement of high initial investment and established brands. However, new players can enter the market by introducing innovative products.

Bargaining power of buyers: The bargaining power of buyers is high due to the presence of multiple established brands and availability of substitutes. Buyers can negotiate on price easily.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are multiple raw material suppliers. However, suppliers may gain power if a few control the supply of any critical raw materials.

Threat of new substitutes: The threat of new substitutes is moderate as gasoline-powered tools and manual tools continue to pose a threat. However, cordless power tools are gaining popularity over corded tools.

Competitive rivalry: The competitive rivalry is high among key established players to gain market share by introducing innovative products and expanding geographically.

Key Takeaways

Global Power Tools Market Size is expected to witness high growth, exhibiting CAGR of 8.3% over the forecast period, due to increasing infrastructure development activities and renovation projects across the globe.

The Asia Pacific region dominated the power tools market in 2023 with a share of over 35%, owing to rapid industrialization and infrastructure development in China and India. North America is expected to grow at a CAGR of 6.2% during the forecast period due to the rising demand from the construction industry in the US and Canada.

Key players operating in the power tools market are Apex Tool Group LLC, Atlas Copco AB, Emerson Electric, Co Techtronic Industries, Hilti Corporation, Stanley Black & Decker, Ingersoll-Rand plc, Robert Bosch, Koki Holdings Co., Ltd., and Makita Corporation. These players are focusing on new product launches and strategic partnerships to gain more revenue share.

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