The power tool is projected to have a steady CAGR of 6% during the period 2024 to 2034. It is estimated to grow from USD 38,203.6 million in 2024 to USD 68,418.8 million in 2034.
Power tools are in high demand throughout industries. This is because of their ease of use and efficiency. Manufacturers also prefer them for their portability. These tools like drills, sanders, hammers, grinders, and many other tools make tasks more efficient. They also make the work less tiring than using traditional tools.
Split into industrial and consumer groups, the industry is always changing with new stuff like brushless motors and smart features. Influenced by the economy and new technology, big companies all over the world compete by making better things, improving quality, and reaching more customers. Looking ahead, more tools will run on batteries and there's a big push for tools that are good for the environment.
The rise of e-commerce platforms has significantly affected the power tool market. Online sales channels are growing rapidly. They are also offering consumers greater access to a wide range of tools. It is also observed that these channels are going to hold one-fourth of the total market share. This share has been growing as more consumers and businesses turn to online platforms for their purchasing needs. With a Growing CAGR of 8 to 10% over the next several years.
| Attributes | Key Insights |
|---|---|
| Estimated Size, 2024 | USD 38,204.7 million |
| Projected Size, 2034 | USD 68,418.8 million |
| Value-based CAGR (2024 to 2034) | 6.0% |
East Asia is dominating, particularly China, Japan, and South Korea, and is a manufacturing hub for power tools. Rapid industrialization in these countries have helped the market grow. Governments in developing economies have also announced several policies for affordable housing. Such initiatives have also positively affected the market.
There is a growing DIY culture in East Asia, similar to trends seen in North America. This has increased demand for consumer-grade power tools for home improvement and hobby. Generally, East Asian economies have been experiencing sustained economic growth, leading to higher disposable incomes and increased spending on durable goods like power tools.
Governments in East Asia often promote industries related to manufacturing and technology through policies and incentives, which will boost the power tool industries indirectly. In 2024, the tools and machines industries in Asia is projected to generate a revenue of USD 10,461.1 million.
East Asia stands out in the global power tool due to their strong economies, robust manufacturing bases, leadership in technological innovation, and substantial market demand driven by construction, manufacturing, and DIY sectors. These regions play a pivotal role in shaping the industry through their manufacturing capabilities, consumer markets, and advancements in power tool technology.
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The below table presents the expected CAGR for the global power tool over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 5.2%, followed by a slightly higher growth rate of 6.4% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1 2023 | 5.2% (2023 to 2033) |
| H2 2023 | 6.4% (2023 to 2033) |
| H1 2024 | 5.5% (2024 to 2034) |
| H2 2024 | 6.5% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 5.5% in the first half and remain relatively moderate at 6.5% in the second half.
Cordless Power Tools Sees Increasing Adoption
Power tools that run on batteries have grabbed the attention of many consumers. This is because they are compact and more portable. Manufacturers are also gradually replacing traditional batteries with lithium-ion ones. By doing so, they have made these tools more efficient and lightweight. These modifications in the tools have revved up their adoption.
Cordless power tools (CPT) now account for roughly half of the power tool due to their growing popularity. They are predicted to maintain their growing market share as consumers’ first choice continues to move toward more practical and adaptable tool options. Manufacturers in the EPTA are pushing innovation in this industry with the goal of satisfying changing consumer needs while keeping strict performance and safety guidelines.
Consumers are Preferring Tools with Minimal Setup Time and Simple Operation
Electric power tools take considerably less time to assemble the complete setup for working than hand tools, which take more time for setup and are generally more complex in setup and operation.
The electric tools are considered the most optimum handheld devices and prove very effective when the operations need to be carried out manually and have great manual adjustments to meet with the desired aesthetics of end product. Leverage in terms of setup simplicity and simple manual operation freedom acts as a catalyst for the hefty growth in the utilization of electric power tools.
Power tools' short setup times and straightforward controls appeal to a wide range of users, from inexperienced do-it-yourselfers to seasoned homeowners, by providing effectiveness, user-friendliness, and increased safety when finishing home improvement projects.
The Higher Working Ability than Hand Tools Provides Induced Productivity
Power tools can work 24x7 without any interruptions. These tools can provide service all day throughout the year with a very minimum occurrence of shutdown for the maintenance
The power tools excel in the ability of manufacturing, as they can provide a greater speed of production than hand tools to meet the requirement of the products to keep pace with the increment in the demand for products in the market
Many end users who are looking to gain a prominent enhancement in terms of rate of production could provide a substantial customer base for the power tools in the slated course of time. The ability of the power tools to complete a long and meticulous cycle of operations is an ability that can improve customer inclination from hand tools to power tools.
Increasing Adoption of Power Tools for DIY and Household Applications
The high living standards and changes in lifestyle in developed cities in the USA and India drive the consumer inclination towards DIY interior designing. Moreover, in the developing regions, the increasing population coupled with increasing disposal income is fueling the DIY market correspondingly boosting the sales of power tools.
The use of DIY products lowers long-term costs than work outsourced to expensive labor. Resulting in increased demand for power tools for DIY and household applications. Additionally, the advent of e-commerce has enabled easy access and discounting for consumers. These factors are expected to increase the demand for power tools in DIY applications.
The increasing adoption reflects a growing trend towards convenience, efficiency, and the empowerment of individuals to tackle home projects independently. This shift is also driven by several factors such as ease of use, versatility, cost-effectiveness, innovation in design, and many more.
Principal Consultant
The global power tool industry has shown growth at a CAGR of 5.0% for 2019 to 2023. The revenue estimated in 2024 is USD 38,203.6 million. In the forecast period, the Power Tool sales are expected to grow at the 6.0% CAGR.
| Historical CAGR (2019 to 2023) | 5.0% |
|---|---|
| Forecast CAGR (2024 to 2034) | 6.0% |
During 2019 to 2023, the global power tool industries had a slow growth rate due to disrupting supply chains. During the same period, the shortage of raw materials and other components caused the need for power tool equipment for manufacturing power tools. Factories also shut down, reducing workforce availability and other challenges in the production of the companies.
Lockdowns and the temporary closure of construction sites also reduced demand for power tools. Many manufacturing projects were either suspended or postponed, impacting the need for new tools and equipment.
The global power tool is expected to grow at a strong CAGR of 6.0% in terms of value during the forecast period, reaching a value of USD 68,418.8 million by 2034. This anticipated growth is driven by several factors. Manufacturers are developing specialized power tools equipped with features like precise torque control, automated calibration, and compatibility with robotic systems. These tools play an important role in streamlining production, ensuring consistent quality, and minimizing human error within automated workflows.
Tier 1 companies comprise market leaders with a market revenue of above USD 10,000 million. They capture a significant market share of 20% to 25% in global industries. High production capacity and a wide product portfolio characterize these leaders. These businesses are distinguished by their extensive expertise in manufacturing and reconditioning across multiple packaging formats and a broad geographical reach.
They provide a wide range of series including reconditioning, recycling, and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality. Prominent companies within tier 1 include Makita Corporation, Stanley Black & Decker, and Robert Bosch GmbH, Inc.
Tier 2 companies include mid-size players with revenue of USD 1,000 to 10,000 million. They have a presence in specific regions and highly influence the local market. These are characterized by a strong presence overseas and strong market knowledge. These players also have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach.
Prominent companies in tier 2 include Ryobi, Craftsman, Husqvarna AB, Kyocera Corporation, Apex Tool Group, Ridgid Tool, and Husqvarna AB.
Tier 3 includes a majority of small-scale companies operating at the local presence and serving niche markets having revenue below USD 1000 million. These companies are notably oriented towards fulfilling local sectors' demands.
They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized industry, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
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The section below covers the industry analysis of the power tool for different countries. Industries demand analysis on key countries in several regions of the globe, including North America, East Asia, Europe, and others is provided. The United States is anticipated to remain at the forefront in North America, with a value share of 17.2% through 2034. In East Asia, China is projected to witness a CAGR of 6.1% by 2034.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| India | 8.1% |
| The United States | 6.2% |
| China | 6.1% |
| The United Kingdom | 5.9% |
| Germany | 5.7% |
| Japan | 5.3% |
China power tool industry is poised to exhibit a CAGR of 6.1% between 2024 and 2034, reaching over USD 10,835.9 million by 2034. Currently, it holds the highest share in the Asian industries, and the trend is expected to continue during the forecast period.
China has firmly established itself as the global leader in power tools exports, significantly outpacing other major exporting countries. In recent years, China exported an estimated 155 million units of power tools, which is approximately ten times the export volumes of the United States, Japan, or Germany that year. Over the last decade, China's power tools exports have experienced positive growth, with a CAGR of around 7% between 2012 and 2021. This growth is driven by the global demand for high-quality Chinese power tools.
The growing construction industry and DIY culture is also one of the major drivers. Chinese manufacturers of lithium batteries like Polinovel and Guangdong Aokly Group are investing on a large scale in research and development to improve the performance, reliability, and affordability of power tools battery technology. Advances in materials science, battery technology, and digital integration enhance the capabilities and appeal of these tools across various sectors.
Chinese power tool manufacturers are investing in technological advancements, such as the large-scale shift from Nickel-Cadmium (NiCad) to Lithium-Ion (Li-ion) batteries, to improve the efficiency and performance of their products. The growing popularity of cordless power tools in China is driving industry growth. Cordless tools offer benefits like portability, flexibility, and ease of use, making them increasingly popular among consumers.
India's power tools market was valued at around USD 1,729.7 million in 2019 and increased to USD 2,553.2 million in 2024. The industry is estimated to reach USD 2,553.2 million by the end of 2024, and it is further projected to expand at a CAGR of 8.1% during 2024 to 2034. By the end of 2034, it is estimated to reach USD 5,563.6 million.
India is going through rapid industrialization and significant investments in infrastructure development. This includes construction projects, manufacturing facilities, and smart city initiatives, all of which drive demand for power tools across various sectors. Government initiatives such as "Make in India" and investments in infrastructure projects like Atmanirbhar Bharat are boosting demand for power tools.
The United States power tools was valued at around USD 4,791.5 million in 2019 and increased to USD 6,472.9 million in 2024. The industry is further projected to expand at a CAGR of 6.2% and is estimated to reach USD 11,812.7 million by 2034 end.
There is a significant growth in DIY culture and home improvement activities among homeowners. This demographic relies heavily on power tools for tasks like renovation, woodworking, and maintenance. About 75% of homeowners in the United States depend on DIY culture. With trends like home renovation and remodeling gaining popularity, there is a growing need for power tools among homeowners looking to improve their living spaces in the country.
The section contains information about the leading segments in the industry. By product type, the jigsaw segment is estimated to grow at a CAGR of 5.5% throughout 2034. Additionally, the power tool is projected to expand at 6.0% until 2034.
| Product | Jigsaw |
|---|---|
| Value Share (2034) | 21.1% |
The jigsaw segment dominates the sector in terms of revenue, accounting for almost 21.1% of the market share in 2024. The dominance in revenue share is due to the significantly higher prices of other products.
Unlike some specialized power tools that require advanced skills, jigsaws are relatively easy for beginners to learn and use effectively. Modern jigsaws are designed with user-friendly features such as adjustable speed settings, ergonomic handles, and quick-change blade systems. This ease of use makes them accessible to both professionals and hobbyists, contributing to their widespread adoption. This accessibility lowers the barrier to entry for new users, expanding the market size.
| End Use | Manufacturing |
|---|---|
| Value Share (2034) | 27.3% |
The manufacturing segment is forecast to account for a revenue of over USD 18,473.0 million in the Power Tool Industries by 2034 end. It is also poised to expand at a CAGR of 5.7% across the forecast period.
Industrial manufacturing environments require high efficiency and productivity to meet production quotas and deadlines. Power tools, such as drills, saws, grinders, and pneumatic tools, significantly speed up processes compared to manual tools, thereby increasing overall output and reducing production time.
Industrial manufacturing often involves large-scale production, where the use of manual tools would be impractical and time-consuming. Power tools enable mass production while maintaining quality and consistency, thereby supporting economies of scale and competitive advantage. Power tools are predominantly utilized in the industrial manufacturing sector due to their ability to enhance efficiency, precision, safety, and productivity across various processes. Their adaptability to different tasks and materials, combined with technological advancements, makes them indispensable tools in modern manufacturing environments.
Key players operating in the power tool are investing in advanced reconditioning facilities and also entering into partnerships. Key power tool providers have also been acquiring smaller players to grow their presence to further penetrate the reconditioned market across multiple regions.
Recent Industry Developments in Power Tool
In terms of products, the industry is divided into drilling tool, fastening tool, heat gun, angle grinder, chain saw, orbital sander, jigsaw, impact wrench, and circular saw.
In terms of technology, the industry is segmented into electric and pneumatic tools. The electric segment is further classified into corded, and cordless. The cordless segment is segregated into li-ion battery, lead acid battery, and others (Ni-Cd, Ni-Mh).
In terms of sales channel, the industry is divided into online and offline.
In terms of application, the industry is segregated into manufacturing, MRO services, DIY, and construction. The manufacturing segment has been further grouped into metal fabrication, automotive, railways, aerospace, furniture, and others. Then MRO services segment is segregated into facility management, automotive, aerospace, and other industrial.
Key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia Pacific, and Middle East and Africa (MEA) have been covered in the report.
The global Power Tool is projected to witness a CAGR of 6.0% between 2024 and 2034.
The global Power Tool stood at USD 38,203.6 million in 2024.
The global Power Tool is anticipated to reach USD 68,418.8 million by 2034 end.
East Asia is set to record the highest CAGR of 5.6% in the assessment period.
The key players operating in the global Power Tool include DeWalt, Greif, Inc., and Stanley Black & Decker.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Product Type 6.2. Technology 6.3. Application 6.4. Sales Channel 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Product Type 7.1. Drilling Tool 7.2. Fastening Tool 7.3. Heat Gun 7.4. Angle Grinder 7.5. Chain Saw 7.6. Orbital Sander 7.7. Jigsaw 7.8. Impact Wrench 7.9. Circular Saw 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Technology 8.1. Electric 8.1.1. Corded 8.1.2. Cordless 8.1.2.1. Li-ion Battery 8.1.2.2. Lead Acid Battery 8.1.2.3. Others (Ni-Cd, Ni-MH) 8.2. Pneumatic 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application 9.1. Manufacturing 9.1.1. Metal Fabrication 9.1.2. Automotive 9.1.3. Railways 9.1.4. Aerospace 9.1.5. Furniture 9.1.6. Others 9.2. MRO Services 9.2.1. Facility Management 9.2.2. Automotive 9.2.3. Aerospace 9.2.4. Other Industrial 9.3. DIY 9.4. Construction 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Sales Channel 10.1. Online 10.2. Offline 11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 11.1. North America 11.2. Latin America 11.3. Western Europe 11.4. South Asia 11.5. East Asia 11.6. Eastern Europe 11.7. Middle East & Africa 12. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 18. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 19. Sales Forecast 2024 to 2034 by Product Type, Technology, Application, and Sales Channel for 30 Countries 20. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 21. Company Profile 21.1. Robert Bosch GmbH 21.2. Stanley Black & Decker, Inc. 21.3. Makita Corporation 21.4. Hilti Corporation 21.5. Atlas Copco AB 21.6. Techtronic Industries Company Limited 21.7. Snap-on Incorporated 21.8. Actuant Corporation 21.9. Husqvarna AB 21.10. Illinois Tool Works 21.11. Panasonic Corporation 21.12. Hitachi Corporation 21.13. Ingersoll Rand, Inc. 21.14. Enerpac Tool Group 21.15. Kyocera Corporation 21.16. Apex Tool Group 21.17. Ridgid Tool
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Power Tool Market
