Power Tools Market: Key Trends
Power tools consume less time and workforce due to which their use has considerably increased across manufacturing industries globally. The demand for power tools has been primarily robust in emerging economies such as China, Brazil, and India. The rapid industrialization has further bolstered opportunities for power tools sales across these developing nations. Supported by the emerging concept of do-it-yourself (DIY) techniques, demand for power tools is expected to rise at a CAGR of 5.3%. As per Transparency Market Research (TMR), the global power tools market, which stood at US$26.1 bn in 2014, is expected to reach US$38.03 bn by the end of 2021.
Since the use of power tools is considerably high in the construction industry, investment in infrastructural development will subsequently bolster their sales. Despite their rising application across diverse industries, the high maintenance cost of power tools will threaten the market’s growth to an extent.
Opportunities in Asia Pacific Poised to Surge Exponentially
Regionally, producers of power tools have been witnessing rising demand in Asia Pacific and North America. Since the market in North America has already reached maturity, it demonstrates not many prospects for growth. The Asia Pacific market for power tools on the contrary is bustling with opportunities. As per TMR, the region held a dominant share of 34% in the global power tools market in 2014. The infrastructural development currently underway in India and China has been crucial in fuelling demand from the Asia Pacific power tools market.
TMR estimates the power tools market in Asia Pacific to reach US$13.4 bn by 2021 from a valuation of US$8.8 bn in 2014. If these figures hold true, the Asia Pacific power tools market will exhibit a CAGR of 5.9% from 2015 to 2021. Based on technology, the demand for electric power tools is expected to surge at the highest pace during the forecast period.
Growth witnessed by the market in North America is expected to stagnate in the forthcoming years. Nevertheless, due to the changing lifestyle preference, the demand for electric power tools is projected to rise at a steady pace. The U.S. and Canada will emerge as the primary contributors to the power tools market in North America. The rise in construction applications will, however, secure demand for power tools in the region through the forecast period.
Rising Construction Activities Worldwide to Boost Demand for Power Tools
In terms of application, automobile, aerospace, construction, and electronics constitute the key segments in the power tools market. Of these, the construction industry emerged dominant in the market with a share of over 72% in 2014. The robust infrastructural development witnessed across emerging nations and the likelihood of the infrastructural investment to further increase in these nations have strengthened the market’s overall growth prospects.
Besides this, TMR expects the application of power tools to considerably increase in the automotive industry. Changing lifestyles and the rising disposable incomes across emerging nations have been fuelling demand for automobiles. This in turn creates opportunities for the increased application of power tools in the automotive sector.
In the aerospace industry, the demand for power tools primarily arises during the manufacturing of airplanes and their repair. The demand power tools in this industry is therefore expected to rise at a steady pace. The electronics industry segment in the power tools market is however expected to gain substantially from the emerging DIY trends. An increasing number of people worldwide are purchasing power tools to fix minor faults in the electronic appliances themselves. This will create considerable sales opportunities for power tools.
Some of the leading companies operating in the market are Robert Bosch GmbH, Stanley Black & Decker Inc., Actuant Corporation, Makita Corporation, Danaher Corporation, Hilti, and others.
Power tools are primarily used in manufacturing and construction industry for the purpose of reducing workload and increasing the output. These tools have several types of operation such as drilling, chiseling, sanding and screw driving among others. The market has been analyzed to grow steadily due to the increasing need for infrastructure development in emerging economies.
There are various types of tools such as electric, pneumatic, which are operated with the help of external power sources. The economic condition in the developing nations such as India and China is changing which is creating a demand for urbanization. The power tools are one of the primary equipments in the construction industry. Furthermore, the rising concept of DIY technique is creating the demand of power tools in the residential sector. In addition, easy availability of these tools on e-commerce websites is also aiding to the growth of the market. Moreover, the use of the power tools reduces the time of the output. The idea of DIY was previously restricted to the developed regions like U.S. and the U.K. However, the changing lifestyle and increasing disposable income in the emerging economies is driving the idea of DIY thereby increasing the sale of power tools. In addition, the manufacturing industry is gradually recovering from the economic slowdown. This is return is creating a demand for the power tools market in the industrial sector.
However, one factor that is hampering the growth of power tools is the additional maintenance cost associated with it. The power tools once bought require continuous maintenance over a period of time, is limiting the demand in the market. Moreover, in some case, the contractors with limited funding take these tools on lease, which in turn blocks new market for power tools especially in developing nations. This factor is acting as a restraint for the market during forecast period.
This report projection has been provided in terms of revenue (USD Million) from 2015 to 2021. Furthermore, the drivers and the restraints affecting the power tools market over the forecast period have also been covered in the study. In addition, the opportunities that are expected to help the market in future have also been discussed.
The power tools industry has been divided into three categories: by technology, by application and by geography. In terms of technology, the market has been further segmented into electric power tools, engine driven power tools, pneumatic power tools, powder-actuated power tools and hydraulic power tools. By application, the market has been segregated into automobile, construction, aerospace and electronic application. Furthermore, the market has been segregated geographically into four regions: North America, Europe, Asia Pacific and Rest of the world. Each of these segments has been analyzed in terms of revenue (USD Million).
In order to get a better understanding of the power tools market, a key trends analysis has been included for all the segments. In addition, for a better understanding the market, the market attractiveness for the application segment has been provided. Furthermore, the market share of the key players in the power tools market has also been discussed in terms of market share revenue held globally.
Company profiles of the key players have also been included in the report. The company profiles cover, the overview, key developments, financial overview and business strategy of the players focusing on the power tools market. In addition, the historical milestones and the business segments have also been provided The key players profiled in the power tools market include, Robert Bosch GmbH (Germany), Stanley, Black & Decker, Inc. (U.S.), Emerson Electric Co.(U.K.), Makita Corporation (Japan), Actuant Corporation (U.S.), SKF (Sweden), Techtronic Industries (China), Hilti Corporation (Germany), Danaher Corporation (U.S.) and Hitachi Koki Ltd (Japan).
Power Tools Market: By Technology
- Electric power tools
- Pneumatic power tools
- Engine driven power tools
- Hydraulic power tools
- Powder-actuated power tools
Power Tools Market: By Application
Power Tools Market: By Geography
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Rest of the World
- Latin America
- Middle East
The report provides a cross-sectional analysis of all the above segments with respect to the following regions:
- North America
- Asia Pacific (APAC)
- Rest of the World (RoW)