Power Tools Market 2030: The Future of Electric Tools in Industrial...

Power Tools Market 2030: The Future of Electric Tools in Industrial Applications

Posted 2024-11-12 09:28:02

The global power tools market was valued at USD 31.08 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 7.2% from 2023 to 2030. This growth is largely driven by the increasing infrastructure development initiatives undertaken by governments worldwide, which are expected to elevate the demand for power tools used in construction activities. These infrastructure projects, especially in non-residential construction, are likely to lead to significant investments, further boosting the demand for power tools throughout the forecast period.

However, the market was impacted by the COVID-19 pandemic, which had a severe effect on economies worldwide. The pandemic led to a slowdown in consumer spending, disrupted global supply chains, and caused the temporary closure of manufacturing plants, particularly in the early months of 2020. This disruption resulted in product shortages and revenue declines for companies operating in the power tools sector.

Gather more insights about the market drivers, restrains and growth of the Power Tools Market

Another notable trend in the power tools market is the growing popularity of cordless power tools. These battery-operated, portable tools—such as crimpers, hammer drills, impact drivers, impact wrenches, and circular saws—are increasingly being adopted for a wide range of applications in construction, maintenance, repair, sanding, metalworking, and welding, among others. The shift toward cordless tools, especially those powered by lithium-ion (Li-ion) batteries, is replacing older models that use traditional batteries like nickel-cadmium (Ni-Cd) and nickel-metal hydride (Ni-MH), as Li-ion batteries offer better performance, longer life, and lighter weight.

Technological advancements are also playing a pivotal role in driving market growth. Manufacturers are introducing innovative products to improve the efficiency and functionality of power tools. For example, Dewalt's Flexvolt battery is designed to automatically adjust its voltage depending on the tool it is connected to. This automatic voltage switching capability provides users with more precise control over the power output, enhancing the performance and versatility of both cordless and corded power tools.

Regional Insights

Asia Pacific Power Tools Market Trends

Asia Pacific was the largest regional market for power tools in 2022, accounting for 34.63% of the total market share. This region is expected to maintain its leading position and experience the highest compound annual growth rate (CAGR) throughout the forecast period. Key factors driving this growth include the booming automotive industry in major countries like India and China, as well as rising disposable incomes and the rapid expansion of construction and infrastructure development. These factors collectively create a robust demand for power tools across various sectors in the region.

North America Power Tools Market Trends

North America is also a significant player in the global power tools market, holding a revenue share of 25.66% in 2022. The region's demand for power tools is largely driven by ongoing infrastructure and industrial development projects. Additionally, the presence of leading market players such as Stanley Black & Decker, Emerson Electric Co., and Apex Tool Group adds to the region's strong market position. Another contributing factor to the growth of the North American market is the increasing adoption of DIY (do-it-yourself) culture, driven by the high cost of labor, which incentivizes consumers to take on home improvement and repair tasks themselves. This trend further propels demand for power tools in the region.

Europe Power Tools Market Trends

Europe accounted for a market value of USD 7,249.9 million in 2022. The demand for power tools in Europe is expected to continue its upward trajectory due to several factors, including a growing interest in home renovations, a strong DIY culture, and industrial growth. In addition, technological advancements and sustainability considerations are playing a role in driving the adoption of power tools. As both consumers and industries increasingly rely on power tools for a wide range of applications, demand for these tools in Europe is poised for sustained growth. Notably, the market in Europe is expected to see healthy growth over the forecast period, with Germany and the U.K. leading the charge. The presence of manufacturing and production facilities across the European Union is also expected to contribute to the region's growth.

Middle East & Africa (MEA) Power Tools Market Trends

Middle East & Africa (MEA) is expected to experience substantial growth, with a projected CAGR of 4.6% during the forecast period. The demand for power tools in the MEA region is set to rise due to several key drivers, including significant infrastructure development, industrialization, and oil and gas exploration activities. Additionally, the growing adoption of DIY culture and technological advancements in the region will continue to drive market growth. As more consumers and industries in the Middle East and Africa turn to power tools for a wide range of applications, the market demand in this region is anticipated to increase significantly.

Browse through Grand View Research's Category Advanced Interior Materials Industry Research Reports.

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Key Companies & Market Share Insights

The key players held the majority of the revenue share in 2022. Companies are engaging in mergers and acquisitions and strategic partnerships to strengthen their product portfolio and provide competitive differentiation.

In addition to inorganic growth strategies, companies are also investing in their research and development to provide technologically advanced products. For instance, Robert Bosch has introduced the Toolbox App that connects to power tools to enhance efficiency. It offers services such as customized power control and managing tools using smartphones. The advent of connected power tools has further intensified the competition in the market. Some prominent players in the global power tools market include: