Power Tools Market Size, Share & Industry Growth

Updated on : Oc 22, 2024

Power Tools Market Size & Growth

The global power tools market size is expected to grow from USD 39.5 billion in 2024 to USD 45.5 billion by 2029, growing at a CAGR of 2.9% during the forecast period from 2024 to 2029.

The growth of the construction industry in emerging economies, widespread adoption of battery-powered power tools worldwide, and rising demand for power tools in the automotive sector, all significantly influence the dynamics of the power tool market.

In addition, the development of smart and connected power tools, coupled with the rising demand for fastening tools in the wind energy industry are all factors that generate opportunities within the power tools industry.

Power Tools Market Forecast to 2029

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Power Tools Market Trends

DRIVERS: Increased adoption of battery-powered tools globally

Battery-powered tools encompass a variety of cordless equipment, such as hammer drills, impact wrenches, circular saws, and nailers, utilized across different industries and by homeowners. These tools offer users increased flexibility and mobility compared to traditional corded counterparts, as their cordless nature allows for easy maneuvering around the workplace.

They are well-suited for tasks like sanding, welding, cutting, and metalworking. Lithium-ion batteries have replaced conventional nickel-cadmium (Ni-Cd) and nickel-metal hydride (Ni-MH) power sources in these tools. Ongoing advancements in battery technology contribute to the growing popularity of cordless power tools, featuring high-density batteries that offer longer operational durations once charged. Lithium-ion batteries deliver higher energy density and extended operational life, all while being lightweight and exhibiting minimal self-discharge.

Consequently, they have emerged as the preferred choice for powering cordless tools. As consumers are more attracted to cordless tools, manufacturers focus on launching innovative products. For instance, in March 2024, Chicago Pneumatic (a brand of Atlas Copco AB) launched the CP8609 series of eBlueTork battery-operated torque wrenches, ideal for fast and accurate tire changes on large commercial vehicles like trucks and buses. These tools enhance operator safety, traceability, and productivity in nutrunning operations, building on the success of the CP86 series. The demand for more mobile, flexible, and compact tools drives the market for battery-powered/cordless tools.

RESTRAINTS: High maintenance costs

Power tools, including assembly tools, are precise instruments that require regular maintenance. It's important to recalibrate these tools periodically to ensure accurate performance. Components such as motors, batteries, power cords, drive belts, carbon brushes, and bearings naturally wear out over time and may eventually fail. Other parts like power switches, drill bits, and accessories need frequent maintenance for proper function, given their widespread use in nearly every industry.

Regular maintenance involves tasks such as oiling, sharpening, and replacing parts, which can incur significant costs. Consequently, the expense of repairing and replacing parts for power tools tends to be relatively high.

Particularly in developing countries, consumers may hesitate to invest in power tool maintenance due to the availability of low-cost manual labor. The overall cost of owning power tools increases due to maintenance and repair requirements. Therefore, in developing countries, consumers often choose to lease power tools rather than buy them outright, as the high cost of maintenance hampers the market.

OPPORTUNITIES: The advancement of intelligent and connected power tools

With the growing adoption of IoT devices and the increasing popularity of smart and connected systems in assembly line operations, every piece of equipment within the plant becomes interconnected. Technological advancements and the adoption of smart manufacturing practices drive the innovation of smart and connected tools, prompting manufacturers to prioritize the production of such tools.

For example, Milwaukee Tool, a brand of Techtronic Industries Co. Ltd., offers ONE-KEY, a digital platform for tools and equipment. This cloud-based platform enables users to customize torque and speed settings for specific applications. Similarly, Robert Bosch GmbH (Germany) provides the Bosch Toolbox app, tailored for professionals across various industries such as construction, electricians, gardening, metalworking, plumbing, HVAC engineering, carpentry, and masonry. This app allows users to monitor project timelines, track travel, manage tasks, record material usage, and create memos complete with report sheets.

CHALLENGES: Difficulties in designing ergonomic and lightweight power tools

Power tools manufacturers are facing the challenge of designing equipment to fit the operator’s needs. The misuse of electric portable equipment can cause many painful or even fatal injuries. Customers are looking for ergonomic equipment that offers the desired performance and provides better comfort and control to the operator; this allows work to be completed with ease and less fatigue.

However, with the development of cordless equipment, the weight of such equipment has increased due to the addition of batteries. Therefore, designing ergonomic and lightweight equipment is an important concern for power tools manufacturers. To overcome these design-related challenges, manufacturers need to focus more on implementing ergonomic principles and producing user-friendly and comfortable tools than on manufacturing battery-powered equipment with high capacity and longer runtimes.

Power Tools Market Ecosystem

Power Tools Market Segmentation

Drilling and fastening tools segment to hold the largest share of the power tools market during 2024–2029.

The drilling and fastening tools segment is expected to account for the largest share of the power tool market during the forecast period, due to its versatility and widespread utility across various industries, including construction and woodworking. These tools are indispensable for tasks such as drilling holes and fastening components.

Demand for them remains consistently high due to ongoing construction projects and maintenance needs across different sectors. Technological advancements, such as the introduction of cordless options and smart controls, further enhance their performance and appeal.

Additionally, the DIY market significantly contributes to their popularity among homeowners and hobbyists, who rely on them for a multitude of projects. Moreover, innovations such as ergonomic designs and feature-rich functionalities continue to drive the demand for these tools in both professional and personal settings.

Electric mode of operation is expected to grow at the higher CAGR in the power tools market during the forecast period.

The electric mode of operation is expected to grow at the higher CAGR in the power tools market during the forecast period. Electric power tools find widespread use in industries like construction, automotive, aerospace, energy, and shipbuilding due to advancements in battery technology and the rising popularity of cordless options among both corporate and individual users.

Anticipated market expansion is driven by rapid urbanization and industrial growth, offering lucrative prospects for businesses in the years ahead. Moreover, the increasing emphasis on sustainability and energy efficiency in industrial operations contributes to the demand for electric power tools, reinforcing their market dominance.

Industrial/Professional application will dominate the market during the forecast period.

The Industrial/Professional application is expected to account for the largest share of the power tool market during the forecast period. Industries such as construction, manufacturing, automotive, and aerospace heavily depend on power tools for critical functions like cutting, drilling, fastening, and shaping materials, which generates significant demand among professionals.

As projects within these sectors grow in complexity and scale, there arises a heightened requirement for top-tier power tools capable of effectively managing challenging tasks. Moreover, companies are increasingly prioritizing productivity, efficiency, and safety, thereby investing in high-quality power tools to optimize performance and operational workflows.

Asia Pacific is expected to grow at the higher CAGR in the power tools market during the forecast period.

Asia Pacific is expected to grow at the higher CAGR in the power tools industry throughout the forecast period. This surge is fueled by strong economic growth, rapid urbanization trends, and increasing disposable incomes across key markets such as China, India, Japan, and South Korea. Additionally, the rising disposable income and expanding middle-class population in the region are significant drivers of demand for power tools, particularly for residential and DIY purposes.

Moreover, advancements in technology and the availability of innovative power tool solutions tailored to the specific needs of the Asian market are contributing significantly to market growth. Moreover, a growing emphasis on environmental awareness is encouraging the adoption of energy-efficient and environmentally friendly power tools. These combined factors position the Asia-Pacific region as a significant driver of growth in the power tool market.

Power Tools Market by Region

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Top Power Tools Companies - Key Market Players

The power tools companies have /implemented various types of organic and inorganic growth strategies, such as product launches, product developments, partnerships, and collaborations, to strengthen their offerings in the market. The major players are

• Stanley Black & Decker, Inc. (US),
• Robert Bosch GmbH (Germany),
• Techtronic Industries Co. Ltd. (Hong Kong),
• Makita Corporation (Japan),
• Hilti Corporation (Liechtenstein),
• ANDREAS STIHL AG & Co. KG (STIHL) (Germany),
• Atlas Copco AB (Sweden),
• Apex Tool Group, LLC (US),
• Ingersoll Rand (US),
• Snap-on Incorporated (US), among others. The study includes an in-depth competitive analysis of these key players in the power tools industry with their company profiles, recent developments, and key market strategies.

Power Tools Market Report Scope

Power Tools Market Highlights

This research report categorizes the global Power Tool Market based on Tool Type, Mode of Operation, Applications, and Region.

Recent Developments in Power Tools Industry

• In February 2024, Robert Bosch GmbH introduced the new AdvancedDrill and AdvancedImpact 18V-80 QuickSnap, enabling powerful screwing and drilling even in tight spots. These cordless tools are part of Bosch's '18V Power for All System', which covers over 70 DIY tools and appliances. With a single 18V lithium-ion battery and charger, users save space and money, while reducing environmental impact. Equipped with Syneon Technology for optimal performance and endurance, Bosch tools maintain full power until the battery is drained, ensuring efficient drilling and screwing throughout the task.
• In February 2024, Makita U.S.A., Inc. has launched the 5" Paddle Switch Angle Grinder with AC/DC Switch (9558HP), providing another choice for professionals in metal fabrication shops, as well as the electrical, mechanical, and plumbing trades. This addition expands Makita’s grinding options, offering users 7.5 AMPs and 10,000 RPM in a compact 4.5 lb grinder.
• In October 2023, Milwaukee, a subsidiary of Techtronic Industries Co. Ltd., introduced the innovative M18 FUEL 4-½" / 5” Dual-Trigger Braking Grinder, offering dual-trigger activation, a fixed side handle, and AUTOSTOP kickback control for enhanced user control and safety on the worksite. Featuring four speed settings (3,500-8,500 RPM), the grinder offers precise control. It's ONE KEY compatible for wireless syncing with devices, enabling tool location tracking and security features
• In August 2023, DEWALT, a Stanley Black & Decker brand and leader in total jobsite solutions, introduced the new 20V MAX XR Brushless Cordless 1/2 in. High Torque Impact Wrench (DCF961), the industry's top-rated cordless 1/2 in. impact wrench, delivering 1200 ft-lbs of max fastening torque and 1750 ft-lbs of max breakaway torque. This wrench automatically boosts power after four seconds of impacting, aiding in loosening stubborn fasteners. It also features 3 Speeds, PRECISION WRENCH technology to prevent overtightening, and BATTERYGUARD for reduced battery wear.
• In April 2023, Milwaukee, a subsidiary of Techtronic Industries Co. Ltd., introduced the new M18 FUEL Drill and Impact Driver featuring ONE-KEY technology. This expansion of their advanced drilling and driving solutions includes the M18 FUEL ½” Hammer Drill and M18 FUEL ¼” Hex Impact Driver, both integrated with ONE-KEY. These tools offer users unparalleled driving speeds, enhanced safety features, and cutting-edge customization options.

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