According to a report by Transparency Market Research (TMR), the global power tools market demonstrates a highly concentrated competitive landscape. In 2014, 70% of the overall market was occupied by the top four players, namely, Robert Bosch GmbH, Makita Corp., Stanley Black & Decker Inc., and Hilti. The worldwide presence of these companies has supported them extensively to gain prominence in this market.
As of now, these players concentrate on developing user-friendly power tools to meet the expectations of end users. However, their focus is likely to get shifted towards technological innovations and advancements of products over the next few years in order to achieve a competitive edge.
Boosted by the rising trend of do-it-yourself (DIY), the opportunity in the global market for power tools is likely to expand at a CAGR of 5.30% between 2015 and 2021, increasing from US$26.1 bn in 2014 to a value of US$38.0 bn by the end of the forecast period, With a share of 72%, construction applications led the demand for power tools in 2014. Analysts expect the segment to continue its leading streak, states the report.
Increase in Infrastructural Development Projects to Ensure Dominance of Asia Pacific
Geographically, Asia Pacific has emerged as the leading contributor to the global power tools market. The region is teeming with opportunities and is expected to remain dominant in the coming years too. The increasing number of infrastructural development projects in China and India are likely to create lucrative prospects for power tools manufacturers across the world. TMR estimates the Asia Pacific power tools market to reach US$13.4 bn by the end of the forecast period.
On the other hand, since Europe and North America have reached maturity, the growth prospect for power tools market is very low in these regions. Nevertheless, the changing lifestyle preferences of consumers are projected to maintain a steady demand for electric power tools in these regions over the next few years. The rise in construction activities will also support the demand for power tools here. Canada and the U.S. will surface as the key domestic markets for power tools in North America over the forecast period, reports the study.
Rising Urbanization to Boost Demand for Power Tools
Thanks to the changing economic conditions, the world is witnessing a significant surge in urbanization. “In order to speed up the urbanization process, the demand for power tools has experienced an upswing in the recent times, says the author of this report. The growing need for infrastructure development is also driving the demand for power tools.
In addition to this, the emerging concept of do-it-yourself (DIY), propelled by the changing lifestyle of consumers and the increase in their disposable income, is likely to boost this market substantially over the forecast period, notes the study.
High Maintenance Cost of Power Tools to Act as Market Restraint
While the future prospects of the global power tools market looks bright, the market’s progress may be hindered due to the high maintenance cost associated with these tools, which is likely to limit their uptake in the coming years.
The concerns over the high energy consumption by these tools will also act as a restraint to the growth trajectory of this market over the next few years, states the report.
The study presented here is based on a report by Transparency Market Research (TMR) titled “Power Tools Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2015 - 2021.”
The global power tools market is segmented into:
- Electric power tools
- Pneumatic power tools
- Energy driven power tools
- Hydraulic power tools
- Powder-actuated power tools
- North America
- Asia Pacific
- Rest of the World
- Middle East
- Latin America
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