The global power-tool market is projected to see a rise in its revenue from U.S. $31,994.7 million in 2021 to $43,278.3 million by 2027. The market is registering a CAGR of 5.2% over the forecast period 2022-2027, according to a new report by Astute Analytica.
Power tools, which are actuated by an electric or batter power source, offer several advantages. They can perform tasks that are impossible for hand tools to complete, making it possible to work with rigid materials such as metals or concrete. They can also complete tasks in significantly less time and with more precision than hand tools, and are primarily used to cut, wrench, saw drill, or polish materials.
The only factors limiting the more extensive growth in the power-tool market are the potential for high maintenance cost along with regular price fluctuations in raw materials.
With ongoing developments in the construction industry, the demand for construction machinery and advanced tools and equipment has increased throughout the world. The growing use of drills, sanders, wrenches, and other tools in the construction sector is augmenting the demand for these tools. There’s also a demand for innovative, energy-efficient tools and growing purchasing power has resulted in the introduction of more efficient and ergonomic power tools.
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. These sorts of cordless tools are ideal for sanding, welding, metalworking, cutting, and other applications.
In terms of tool type, the power-tool market is segmented into drilling and fastening, demolition, sawing, cutting, material removal, routing, and air-powered tools. The drilling and fastening tools segment are estimated to have the highest market share over the last year and is projected to continue its dominance over the forecast period.
The rising demand for drilling and fastening tools from various end use industries such as automotive and aerospace manufacturing plants are driving the market share of power tools overall.
Based on mode of operation, the power-tool market is segmented into electric, pneumatic, and hydraulic. Among these, the electric segment holds the highest share in the power tools market as of 2021.
This is due to the rise in demand of power tools from wide range of industries including construction, automotive, aerospace, energy, and shipbuilding coupled with growing adoption of cordless tools among industrial and residential users.
Additionally, the advent of powerful battery packs has resulted in the increased power of electric tools. The pneumatic segment has the highest CAGR in the power tools market during the forecast period.
Based on application, the power-tool market is bifurcated into industrial and residential. Industrial application segment has the highest share of the market throughout 2021. An increased technological innovation and adoption of advanced technologies in industries, such as construction, aerospace, automotive, and energy among others, is expected to drive the industrial applications in the power tools market.
However, the residential segment has the highest CAGR in the market over the forecast period.
North America dominates
North America is the highest shareholder in the global power-tool market, owing to the rising demand for tools in wide range of industries coupled with the continuous migration to urban areas.
Moreover, rising construction industry in the region is further augmenting the growth of the market. However, Asia Pacific is estimated to dominate the market by the end of 2027. Increasing disposable income, growing construction & infrastructure development activities are major factors influencing the growth of the APAC market.
- The Andreas Stihl Pvt. Ltd. designs, manufactures and allocates power tools for specialized forestry and agriculture as well as for garden and landscape conservation, the construction sector, and the demanding private user. The company operates an extensive range of products, including industrial chainsaws, cultivators, string trimmers, leaf blowers, construction tools, cut-off saws, edgers, pole pruners, augers/drills, and protective apparel.
- Apex Tool Group Ltd. is an American multinational corporation, founded in 2010 and headquartered at Sparks Glencoe, Maryland, United States. Apex offers mechanics, trade, specialty tools, truck boxes, job site storage products, chains, and drill chucks, as well as soldering, cutting, motion control and air ventilation bits, torque measurement, metal cutting, and drilling solutions.
- Atlas Copco AB is a European multinational company established in 1873 and headquartered in Stockholm, Sweden. Atlas Copco AB manufactures and distributes compressed air equipment and treatment, mining equipment, vacuum solutions, generators, hybrid joining technologies and electric and pneumatic tools, and other assembly systems, as well as offers related equipment and services.
- Enerpac Tool Group is a Mechanical or Industrial Engineering company. The company specializes in industrial tools, portable machines, controlled bolting, heavy lifting solutions, Enerpac Service Centers, and others.
- Ferm International B.V. designs and manufactures high-quality power tools and accessories for the international market. The company offers angle grinders, circular saws, corded drills, cordless drills, garage tools, milling tools, sanding tools, and others.
- KOKI Holding Co. Ltd. mainly deals with manufacturing, as well as selling power tools. The company is one of the top in the Japanese electric-tool manufacturing Industry. Also, it is engaged in the end-to-end process starting from manufacturing to selling its product. It provides a plethora of electric equipment such as power tools, accessories, and fasteners for industrial applications.