Power Tools Market Size, Share & Trends Analysis Report By Product (Drills, Saws, Wrenches, Grinders, Sanders), By Mode Of Operation (Electric, Pneumatic), By Application, By Region, And Segment Forecasts, 2023 - 2030

Power Tools Market Size & Trends

The global power tools market size was estimated at USD 31.08 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 7.2% from 2023 to 2030. As governments across the globe are undertaking infrastructure development projects, the demand for power tools used in construction activities is anticipated to grow in the coming years. Such initiatives are expected to lead to aggressive investments in non-residential construction projects, and subsequently drive the demand for power tools over the forecast period. The outbreak of the COVID-19 pandemic took a severe toll on economies across the globe, slowing down consumer spending and disrupting supply chains. The shutdown of production and manufacturing facilities in the first quarter of 2020 led to a shortage of products and resulted in declined revenues for companies operating in the market.

The U.S. power tools market dominated the market and accounted for a market share of 86.01% in 2022. The demand for power tools in the U.S. has been increasing steadily over the past few years, driven by factors such as the growth in the construction industry, the popularity of DIY projects, and the increasing adoption of power tools in industrial and manufacturing settings. Overall, it seems that the demand for power tools in the US is expected to continue growing in the coming years, driven by a range of factors across various industries and consumer segments.

The popularity of cordless power tools is growing noticeably amongst consumers. Battery-operated, cordless power tools, such as crimpers, hammer drills, impact drivers, impact wrenches, and circular saws, are used in construction, repair, and maintenance applications as well as in sanding, metalworking, and welding, among other tasks, are widely being adopted across several end-use industries. Power tools powered by lithium-ion batteries are significantly gaining traction and are expected to replace power tools operating on conventional batteries, such as nickel-cadmium (Ni-Cd) batteries and nickel-metal hydride (Ni-MH) batteries.

Technological advancements are influencing the growth of the market. Companies are introducing technologically advanced products to enhance the efficiency of their products. For instance, the Flexvolt battery offered by Dewalt automatically switches battery voltage depending upon the tool you attached to it. An automatic switch of voltage helps in manually adjusting the power before using different corded power tools.

In addition to technological innovations, the increasing adoption of cordless tools that provide easy mobility and no external power source is driving market growth. The growing demand from household applications and the revival of industries in the near future is expected to upkeep the market growth over the forecast period.

Product Insights

The drills segment dominated the market in 2022 with a revenue share of 31.72% and is expected to continue leading over the forecast period. Drills are easy to use, cheaper as compared to other power tools, and are commonly used in industrial and household applications. Drills are also prominently used as a basic repair and maintenance tool, thus, driving segmental growth. Apart from drills, the product segment is bifurcated into saws, wrenches, grinders, sanders, and others.

The wrenches segment is anticipated to grow at a healthy CAGR of 8.4% during the forecast period. As compared to traditional wrenches, power wrench reduces a lot of time and manual effort in fastening as compared to traditional wrenches. Wrenches are prominently used in production plants to improve work efficiency. The automation of production facilities is a major contributor to the growth of the segment.

The saws segment accounted for a market value of USD 7,461.7 million in 2022. The construction industry is a significant user of saws, and the growth of the industry has driven demand for saws. Construction companies use saws for cutting and shaping materials such as concrete, metal, and wood. The construction industry is a significant user of saws, and the growth of the industry has driven demand for saws. Construction companies use saws for cutting and shaping materials such as concrete, metal, and wood.

The rise of DIY projects has contributed to the increased demand for sanders. Sanders are useful for sanding down surfaces such as walls, furniture, and floors, which are common in home renovation and improvement projects. Advancements in sanding technology have made sanders more efficient, easier to use, and more versatile. For example, random orbital sanders can sand in circular patterns, reducing the risk of leaving scratches or marks on the surface being sanded.

Mode Of Operation Insights

The electric mode of operation segment accounted for the largest revenue share of around 65.30% in 2022. The demand for electric power tools is increasing due to their convenience, efficiency, safety, durability, technological advancements, and cost-effectiveness. As more people take up DIY projects and home renovations, and as industries such as construction and manufacturing continue to grow, the demand for electric power tools is expected to continue to rise.

The pneumatic mode of operation accounted for a market revenue share of 26.87% of global market revenue in 2022. The market demand for pneumatic power tools is increasing due to their high power and torque, durability, cost-effectiveness, safety, and versatility. As industries such as automotive, construction, and manufacturing continue to grow, the market demand for pneumatic power tools is expected to continue to rise.

The cordless electric mode held a significant share in 2022 and is expected to dominate the market of power tools throughout the forecast period. Many power tools manufacturers in the market are modifying their product portfolio and increasing the cordless power tools offerings for their customers. Moreover, the cordless tools are user-friendly and easy to use for industrial as well as household applications.

The advent of powerful battery packs has resulted in the increased power of electric tools. The electric model of operation is further segmented into corded and cordless. The pneumatic tools do not generate emissions or produce hazardous waste, making them environmentally friendly and compliant with regulatory standards.

Application Insights

The industrial application held more than 62.84% of the revenue share in 2022. Industrial applications include the use of tools in industries such as automotive, construction, aerospace, and logistics. Increased technological innovation and adoption of advanced technologies among these industries is the crucial factor for the dominance of industrial applications over the residential segment. The Automotive and construction industries have the highest adoption of power tools, thus driving the growth of the industrial segment.

Overall, the demand for power tools in industrial application is expected to continue growing due to the increasing adoption of automation, the need for productivity and efficiency, the demand for precision, technological advancements, and safety considerations. As industries such as manufacturing, aerospace, and automotive continue to grow, the demand for power tools is expected to increase, driving the growth of the industrial segment.

The residential application segment is projected to witness the highest CAGR of 8.3% during the forecast period. The growth is primarily attributed to the growing trend of DIY culture. The availability of user-friendly and easy-to-operate power tools is the vital reason for the considerable growth rate of household applications. Renovation and remodeling of construction projects are growing, leading to increased utilization of the product in the residential sector.

Homeowners are increasingly choosing to renovate their homes, which is driving the demand for power tools. They are essential for many home renovation tasks, such as cutting, drilling, sanding, and painting. Also, there is increased awareness among homeowners about the benefits of using power tools. Homeowners are realizing that power tools can save them time and effort, as well as help them achieve professional-level results.

Regional Insights

Asia Pacific held the largest market share of 34.63% in 2022. Due to the flourishing automotive industry in countries such as India and China, the region is projected to witness the highest CAGR over the forecast period. Increasing disposable income and growing construction & infrastructure development activities are major factors influencing the growth.

North America is a significant regional market and held a revenue share of 25.66% in 2022. Growing infrastructure development and industrial development in the region is driving the demand for the market. Additionally, the presence of major players such as Stanley Black and Decker, Emerson Electric Co., and Apex Tool Group is contributing to the revenue share of the region. Moreover, the unavailability of cheap labor aids in the adoption of DIY jobs, thus, contributing to regional growth.

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 to grow due to the increase in home renovations and DIY culture, industrial growth, technological advancements, and sustainability considerations. As more consumers and industries seek to adopt power tools for various applications, the demand for the market in Europe is likely to increase.

Europe is anticipated to record healthy growth over the forecast period. The growth of the regional industry is expected to be led by Germany and the U.K. The presence of manufacturing and production plants across many countries of the European Union are some of the factors anticipated to drive the growth.

Middle East & Africa is expected to experience a substantial CAGR of 4.6% during the forecast period. The demand for the market in the MEA region is expected to continue to grow due to the increase in infrastructure development, industrialization, oil and gas exploration, DIY culture, technological advancements, and other factors. As more consumers and industries in the MEA region seek to adopt power tools for various applications, the demand for power tools is likely to increase.

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:

• Emerson Electric, Co.;

• Hilti Corporation;

• Ingersoll-Rand PLC;

• Koki Holdings Co., Ltd.;

• Makita Corporation;

• Robert Bosch;

• Stanley Black & Decker;

• Techtronic Industries

Power Tools Market Report Scope

Global Power Tools Market Report Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global power tools market report based on product, mode of operation, application, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Drills

  • Saws

  • Wrenches

  • Grinders

  • Sanders

  • Others

• Mode Of Operation Outlook (Revenue, USD Million, 2018 - 2030)

  • Electric

  • Pneumatic

  • Others

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Industrial

  • Residential

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa