Power tools are semiconductor devices that require an external power source to operate in a wide range of industrial applications. Power tools include things like circular saws, sanders, grinders, routers, jigsaws, drills, hammer drills, and a lot more. A power tool has a different mechanism and power source than hand tools, which are only operated by manual labor. Internal combustion engines, electric motors, and compressed air are the three most prevalent types of power tools.
The market worth of power tools in 2021 was USD 35.63 billion, and it will be worth USD 55.89 billion by 2030, growing at a 5.13% CAGR during the forecast period.
These are employed in a variety of settings, including production and assembly lines, maintenance and repair, packaging, and do-it-yourself projects. Power tool demand is primarily driven by ease and quality of service, reduced time and labor costs, and simple portability.
Market Dynamics
Drivers
Power tools are widely utilized in a variety of functions and applications, including DIY, assembly and production lines, and other packing tasks. These power tools offer higher efficiency and handling in terms of various activities and also help reduce time, fulfilling various labor requirements. Additionally, it greatly aids in increasing production and profitability. These are some of the key elements that will fuel market expansion throughout the projection period.
Restraints
The overall expansion of the market needs to be improved by factors like maintenance and high moving component costs, as well as volatility in the price of the raw materials used to make power materials.
Opportunity
The growth of IoT technologies and the improvement of smart linked systems in the operation of assembly lines sparked the development of several smart and connected tools. Therefore, the top tool makers are putting all their efforts into making smart, linked power tools, which will certainly lead to plenty of future growth potential.
Market Segmentation
By product
On the basis of product, the market is divided into several tools, such as drills, saws, wrenches, grinders, and sanders. In 2020, the drills segment ruled the market with the largest revenue share of 30.2%. Compared to other power tools, the drills are cheaper and simpler to use. These are primarily employed in domestic and commercial settings. Additionally, from 2020 to 2030, the wrenches market will grow at a strong CAGR. In order to increase the effectiveness and productivity of the operation, wrenches are often used in production facilities.
By Mode of Operation
By mode of operation, the market is segmented into pneumatic, electric, and others.
The electric segment in 2020 ruled the market with the largest revenue share of 60.0%. Many industries heavily rely on electric power tools, including aerospace, automotive, energy, shipbuilding, and construction.
By Application
In 2020, the industrial segment held a significant market position, with the highest revenue share of 60.0%. Utilizing the tools in numerous industries, including logistics, aerospace, construction, and automotive is one of the many industrial applications. The dominance of industrial applications over the residential market is largely due to increased technology innovation and adoption in these areas. The residential market segment will have the greatest CAGR throughout the forecast period compared to other industry segments.
Regional Analysis
Asia Pacific held the largest market position, with 33.2% of the revenue share in 2020. Additionally, elements, including this area’s expanding manufacturing sector, rising auto sales, and expanding urbanization, are the primary drivers behind the market expansion in the APAC region. Additionally, the ongoing expansion of government programs to support the expansion of various manufacturing and infrastructure facilities in nations like India, China, and Japan are boosting the regional market’s overall growth.
Key Players
- Techtronic Industries
- Koki Holdings Co., Ltd.
- Robert Bosch
- Emerson Electric, Co
- Ingersoll-Rand PLC
- Stanley Black & Decker
- Makita Corporation
- Hilti Corporation
The market worth of power tools in 2021 was USD 35.63 billion, and it will be worth USD 55.89 billion by 2030, growing at a 5.13% CAGR during the forecast period. Future growth of the power tool market is anticipated to be driven by the construction industry’s explosive growth. The building, upkeep, and repair of structures are the primary concerns of the construction sector, a branch of manufacturing and trade. Construction companies use power tools to increase productivity, accuracy, and worker safety.
