NEW YORK, Dec. 16, 2022 (GLOBE NEWSWIRE) -- A new report on the global power tool market has just been published by IndexBox, an AI-driven market research platform. Here are some of the most interesting takeaways.
Power Tool Market Outlook
In 2022, the global power tool market was worth an estimated $32.2 billion and is expected to grow to $42.7 billion by 2030, at a compound annual growth rate (CAGR) of 3.2%. The market is primarily driven by the increasing demand from the construction and automotive industries. Emerging economies are also expected to contribute to market growth. In addition, the growing popularity of do-it-yourself (DIY) projects is also fuelling the growth of the power tool market.
Demand for power tools is forecast to increase in both developed and emerging markets as construction activity continues to grow around the world. In particular, Asia-Pacific is expected to be a key growth region for the power tool market due to the growing construction industry in countries such as China and India.
The automotive industry is also a key consumer of power tools, as they are used for various applications such as assembly, repair, and maintenance. The manufacturing industry uses power tools for various purposes such as drilling, cutting, grinding, etc.
The global power tool market presents both challenges and opportunities for producers. While the market is growing rapidly, competition is intensifying as new players enter the scene. To stay ahead of the competition, manufacturers need to focus on innovation and offering products that meet the needs of consumers in terms of performance, features, and price.
Key Vendors
The global power tool market is highly fragmented, with a large number of small and medium-sized vendors competing for market share. The top five vendors in the market are Stanley Black & Decker, Robert Bosch, Hilti, Makita, and Hitachi Koki.
Stanley Black & Decker is the largest player in the global power tool market, with a market share of 18.6%. The company offers a wide range of power tools under its renowned brands including Craftsman, Dewalt, and Stanley.
Robert Bosch is the second-largest player in the power tool market with a market share of 12.5%. The company offers a wide range of products under its brand name including drills, impact drivers, saws, and grinders.
Hilti is the third-largest player in the power tool market with a market share of 8.1%. The company provides a wide range of products including drills, saws, grinders, and ultra-high-pressure cleaners.
Makita is the fourth-largest player in the global power tool market with a 6.8% market share. The company manufactures cordless and electric power tools for professional and consumer applications.
Hitachi Koki is the fifth-largest player in the global power tool market with a 5% market share. The company offers products under its own brand as well as under the Hitachi and Metabo brands.
Sales Channels
There are two main types of channels through which power tools are sold: direct and indirect. Direct channels involve the power tool manufacturer selling their products directly to the customer through company-owned stores or online. Indirect channels involve the power tool manufacturer selling their products to distributors who then sell on to retailers who finally sell to the customer.
In terms of sales volume, indirect channels are responsible for the majority of power tool sales globally. However, in terms of value, direct channels account for a larger share due to the higher prices charged by manufacturers for products sold through this channel.
The most popular type of retailer for power tools is the specialty store, followed by home improvement stores and then mass merchandisers. Online retail is also becoming an increasingly important sales channel for power tools, especially in developed markets where internet penetration is high and consumers are comfortable making purchases online.
Market Drivers
The following factors drive the global power tool market:
1. Increasing construction activities
With the global population increasing, there is a consequent increase in the demand for housing and other construction activities. This has resulted in a rise in the demand for power tools, as they are used extensively in the construction industry.
2. Growth of the do-it-yourself (DIY) culture
There has been a recent trend of people taking up home improvement projects themselves, rather than hiring professional contractors. This DIY culture has encouraged people to purchase power tools for their own use.
3. Advancements in technology
Power tools have undergone significant technological advancements in recent years, making them more efficient and user-friendly. This has made them more popular among users, resulting in increased sales.
Market Challenges
The global power tool market is growing at a moderate pace, however, there are several challenges that the industry faces. One of the biggest challenges is the increasing cost of raw materials. The cost of steel and aluminum has increased significantly in recent years, which has led to an increase in the price of power tools.
Another challenge facing the industry is the competition from low-cost manufacturers in China and other countries. These manufacturers are able to produce power tools at a fraction of the cost of major brands, which has put pressure on prices and margins.
Additionally, the growth of online sales has also been a challenge for traditional brick-and-mortar retailers. Online retailers such as Amazon offer a wide selection of power tools at competitive prices, which has made it difficult for local retailers to compete.
Market Opportunities
Increasing demand for cordless power tools, the growing construction industry, and rapid industrialization are some of the key factors driving the market growth.
In terms of product type, the power tool market is categorized into drills & drivers, saws, grinders & sanders, impact wrenches/drivers, routers & trimmers, and others. Drills & drivers held the largest share in the market owing to their widespread applications in various construction and industrial activities such as drilling holes and driving screws.
Based on technology, the power tool market is classified into brushed and brushless. Brushless technology held a significant share in the market due to its superior features such as a longer life span and lower maintenance cost as compared to brushed technology.
On the basis of the end-use industry, the power tool market is segmented into construction, manufacturing, automotive & aviation, oil & gas, and others. The construction industry was the leading end-use segment owing to increasing infrastructural development across the globe. Moreover, the growing automotive industry is also expected to fuel demand for power tools over the forecast period.
About IndexBox
IndexBox is a market research firm developing an AI-driven market intelligence platform that helps business analysts find actionable insights and make data-driven decisions. The platform provides data on consumption, production, trade, and prices for more than 10K+ different products across 200 countries.
Companies Mentioned in the Report
Stanley Black & Decker, Makita Corporation, Robert Bosch GmbH, Hitachi Koki Co. Ltd, Hilti.
Sources
World - Power Tool - Market Analysis, Forecast, Size, Trends and Insights
EU - Power Tool - Market Analysis, Forecast, Size, Trends and Insights
Asia - Power Tool - Market Analysis, Forecast, Size, Trends and Insights
U.S. - Power Tool - Market Analysis, Forecast, Size, Trends and Insights
