Power Tools Market expected to experience a substantial CAGR of 4.6% during the forecast period

Power Tools Industry Overview

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.

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

Detailed Segmentation:

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.

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.

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.

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.

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Key Power Tools Companies:

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.

Some prominent players in the global power tools market include: