Power Tools Market Size, Share, Growth Analysis, By Tool Type, By Mode of Operation, Material, By Application, Distribution Channel, and Region - Industry Forecast 2024-2031

Global Power Tools Market size was valued at USD 40.72 billion in 2022 and is poised to grow from USD 43.09 billion in 2023 to USD 67.64 billion by 2031, growing at a CAGR of 5.8% during the forecast period (2024-2031).

The power tools market is experiencing significant growth, driven by various factors, achieving double-digit growth in both developed and developing markets. One of the primary drivers is the increasing demand for public infrastructure projects in emerging economies such as Brazil, Russia, India, China, South Africa, and Arab nations (GCC). Countries like China and India are investing heavily in infrastructure development due to their rapidly growing populations, which in turn fuels the demand for construction and related tools. The surge in construction and infrastructure activities is generating substantial demand for power tools used in building, manufacturing, and maintenance sectors. However, the market also faces challenges due to consumer behavior changes during the pandemic. For instance, there was a notable increase in the use of power tools like drills, saws, and hammers for home renovation and DIY projects as people spent more time indoors. Looking ahead, the market is poised for further growth, particularly due to the rising interest in electric vehicles (EVs). The expansion of the EV sector necessitates the establishment of new plants and factories to build battery banks. It is anticipated that the industry will support the creation of 200 new gigafactories by 2030, leading to a substantial increase in the demand for power tools.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Power Tools market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Power Tools Market Segmental Analysis

Power tools market is segmented by Tool Type, Mode of Operation, Materials, Application, Distribution Channel, and Region. Based on Tool Type, the market can be segmented into Drilling and Fastening Tools (Drills, Impact Drivers, Impact Wrenches, Screwdrivers and Nut Runners), Demolition Tools (Rotary Hammers/Hammer Drills/Demolition Hammers), Sawing and Cutting Tools (Jigsaws, Reciprocating Saws, Circular Saws, Band Saws, Shears & Nibblers), Material Removal Tools (Sanders/Polishers/Buffers, Air Scalers, Grinders [Angle Grinders, and Die And Straight Grinders]), Routing Tools (Routers/Planers/Joiners). Based on Mode of Operation, the market is segmented into Electric, Pneumatic, and Hydraulic. Based on Material, the market is segmented into Bricks/Blocks, Concretes, Glasses, Woods/Metals, and Others. Based on Application, the market is segmented into Industrial/Professional (Construction, Automotive, Aerospace, Energy, Shipbuilding, Others), and Residential/DIY. Based on Distribution Channel, the market is segmented into Offline, and Online. Based on region, the market is segmented into North America, Europe, Asia-Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Power Tools Market

As the world becomes increasingly technologized, the global adoption of power tools is on the rise. This surge is primarily driven by the advantages of cordless tools, which offer greater mobility compared to their corded counterparts. Cordless tools are more portable, lighter, and reduce the amount of equipment needed, making them more convenient for users. For example, Panasonic introduced a new Cordless Impact Driver with a body length of only 98 mm, capable of delivering high-power impact tightening even in confined spaces. The ease of handling and reduced weight of cordless power tools significantly influence their growing usage and popularity.

Restraints in the Global Power Tools Market

The tool industry is facing more challenges than ever before, particularly with fluctuations in raw material prices affecting the production of power tools. Markets will be significantly impacted by these changes, especially in countries like the United States, the United Kingdom, Japan, China, and India, which are predicted to lead in demand for power tools. The interplay between raw material prices and market growth is evident, as materials like steel, metals, and aluminum, commonly used in tool production, are subject to price variations due to exchange rate fluctuations and economic volatility. Consequently, rising raw material costs present a major barrier to market growth, limiting the industry's ability to sustain its expansion.

Market Trends of the Global Power Tools Market

Atlas Copco AB and Robert Bosch Tool Corporation are industry leaders offering a variety of power tools with energy-saving green technologies. The shift to multi-use solutions is a top priority for key industry players, providing tools that are versatile, capable of performing multiple tasks, and offering high accuracy levels. Consumers are increasingly interested in cordless tools that are small, lightweight, and portable, allowing for easier handling of heavy devices. By directly responding to market trends, disruptive companies are able to seize leading positions by meeting consumer demand for high-quality, error-free products.