Power Tools Market by Mode (Electric (Corded & Cordless), Pneumatic, Others), Tool Type (Drilling & Fastening, Sawing, Demolition, Material Removal), Application (Industrial (Construction, Automotive, Aerospace, Energy), DIY) - Global Forecast to 2023

The power tools market was valued at USD 25.79 billion in 2016 and is expected to reach USD 35.58 billion by 2023, growing at a CAGR of 4.6% between 2017 and 2023. The increasing urbanization, constantly growing construction industry in emerging economies, increasing sales of commercial vehicles across the world, and rising demand for cordless power tools are the key driving factors for the market growth.

The base year considered for the study is 2016, and the forecast period considered is between 2017 and 2023. The report provides detailed information regarding the major factors influencing the growth of this market.

The objectives of the study of Power Tools Market are as follows:

• To define, describe, and estimate the power tools market, in terms of value, segmented on the basis of mode of operation, tool type, application, and geography
• To forecast the market size, in terms of value, of various segments with regard to 4 main regions—North America, Europe, Asia Pacific (APAC), and Rest of the World (RoW)
• To analyze and forecast the market size of power tools, in terms of value and volume, for various types of power tools
• To provide an overall view of the global market through illustrative segmentations, analyses, and market size estimations in terms of geographic regions
• To provide detailed information regarding the market dynamics influencing the growth of the market (drivers, restraints, opportunities, and challenges)
• To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the power tools market
• To study and analyze value chain of the power tools ecosystem 
• To strategically analyze the micromarkets with respect to individual growth trends, future prospects, and contribution to the overall power tools market
• To strategically profile key players and comprehensively analyze their ranking and core competencies in the market, along with detailing the competitive landscape for market leaders
• To analyze competitive developments such as expansions, mergers and acquisitions, product launches and developments, and research and development activities in the global power tools market

Research Methodology: This research study incorporates the use of secondary sources, annual reports, directories, and databases such as Hoovers, Bloomberg BusinessWeek, Factiva, and OneSource to identify and collect the useful information for the extensive technical, market-oriented, and commercial study of the power tools market. To find the overall market size, top-down and bottom-up approaches have been used to estimate sizes of other individual markets by using percentage splits from secondary sources such as Hoovers, Bloomberg BusinessWeek, Factiva, and OneSource as well as with the help of primary research. The market breakdown and data triangulation procedures have been employed to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews with industry leaders such as CEOs, VPs, directors, and marketing executives for key insights (both qualitative and quantitative) pertaining to the market.

The figure below shows the breakdown of the primaries, on the basis of company type, designation, and region, conducted during the research study.

To know about the assumptions considered for the study, download the pdf brochure

Market Ecosystem:

Major players involved in the market include Robert Bosch (Germany), Stanley Black & Decker (US), Techtronic Industries (TTI) (Hong Kong), Makita (Japan), Hilti (Liechtenstein), Atlas Copco (Sweden), Apex Tool Group (US), Ingersoll-Rand (Ireland), Hitachi Koki (Japan), Snap-on (US), C. & E. Fein  (Germany), Chevron Group (China), and Positec Group (China).

Target Audience of the Power Tools Market Report:

• Power tool manufacturers
• Suppliers of brushed DC motors and brushless DC (BLDC) motors
• Battery suppliers
• Original equipment manufacturers (OEMs) of electronic components
• Raw material suppliers
• Technology-standard organizations, forums, alliances, and associations

 “This study answers several questions for the stakeholders, primarily the market segments to focus on in the next 2–5 years for prioritizing efforts and investments.”

Scope of the Power Tools Market Report:

In this report, the overall power tools market has been segmented on the basis of mode of operation, tool type, application, and geography.

On the basis of Mode of Operation:

• Electric
  • Corded
  • Cordless
• Pneumatic
• Others (Hydraulic and Power-Actuated)

On the basis of Tool Type

• Drilling and Fastening Tools
• Demolition Tools
• Sawing and Cutting Tools
• Material Removal Tools
• Routing Tools
• Others (Measuring and Layout Tools, Laser Tools, Dust Extractors, Glue Guns, and Heat Guns)

On the basis of Application

• Industrial/Professional
  • Construction
  • Automotive
  • Aerospace
  • Energy
  • Shipbuilding
  • Others ( Oil & Gas, Electronics, and Mining)
• Residential/DIY

On the basis of Geography

• North America
• Europe
• Asia Pacific (APAC)
• Rest of the World (RoW)

The market is further analyzed for the key countries in each of these regions.

Available Customizations:

With the given market data, MarketsandMarkets offers customizations according to the company’s specific need. The following customization options are available for the report.

Company Information

Detailed analysis and profiling of additional market players (up to 5)

Product Analysis

Product Matrix, which gives a detailed comparison of the product portfolio of each company

Growth in the construction industry and rising demand for battery-operated tools to drive the power tools demand close to USD 36 billion by 2023

A tool that is actuated by an additional power source, such as electric, pneumatic, hydraulic, or gas power source, is called a power tool. An electric power tool is the most common power tool that operates either on the continuous power supply or battery-operated supply. Pneumatic power tools are driven by compressed air, supplied through air compressors, while hydraulic power tools operate on hydraulic fluids.

Power tools have evolved as advanced tools, and the demand for ergonomic, lightweight power tools is increasing among consumers. Professional as well as DIY users are shifting toward cordless tools due to technological advancements in the battery technology.

The global power tools market in projected to reach USD 35.58 billion by 2023, largely due to constantly growing construction industry in emerging economies, increasing worldwide sales of commercial vehicles, and rising adoption of lithium-ion batteries for charging cordless power tools.

Ongoing new product developments such as smart and connected power tools by leading companies likely to propel further growth of the power tools market in the long-term forecast.

Market Dynamics

• Drivers
  • Constantly growing construction industry in emerging economies
  • Increasing global sales of commercial vehicles
  • Rising adoption of high-density lithium-ion batteries for charging cordless power tools
• Restraints
  • High maintenance cost
  • Comply with strict trade policies and safety regulations
• Opportunities
  • Focus on manufacturing smart power tools with wireless connectivity
  • Industry 4.0 creating opportunities for assembly power tool providers
• Challenges
  • Manufacturing ergonomic and lightweight power tools

Critical Questions:

• Are the eco-friendly battery-powered tools the ultimate way forward?
• How the industry players are investing in technology and product innovations?
• What are the key opportunities to grow in the power tools market?

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Table of Contents

1 Introduction (Page No. - 14)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Study Scope
           1.3.1 Markets Covered
           1.3.2 Years Considered for the Study
    1.4 Currency
    1.5 Limitations
    1.6 Stakeholders

2 Research Methodology (Page No. - 18)
    2.1 Research Data
           2.1.1 Secondary Data
                    2.1.1.1 List of Major Secondary Sources
                    2.1.1.2 Key Data From Secondary Sources
           2.1.2 Primary Data
                    2.1.2.1 Primary Interviews With Experts
                    2.1.2.2 Breakdown of Primary Interviews
                    2.1.2.3 Key Data From Primary Sources
           2.1.3 Secondary and Primary Research
                    2.1.3.1 Key Industry Insights
    2.2 Market Size Estimation
           2.2.1 Bottom-Up Approach
                    2.2.1.1 Approach for Capturing the Market Share By Bottom-Up Analysis (Demand Side)
           2.2.2 Top-Down Approach
                    2.2.2.1 Approach for Capturing the Market Share By Top-Down Analysis (Supply Side)
    2.3 Market Breakdown and Data Triangulation
    2.4 Research Assumptions

3 Executive Summary (Page No. - 28)

4 Premium Insights (Page No. - 34)
    4.1 Power Tools Market Opportunities
    4.2 Electric Power Tools Market for Automotive Industry, By Region
    4.3 Power Tools Market, By Tool Type
    4.4 Power Tools Market, By Industrial Applications
    4.5 Power Tools Market in North America, By Mode of Operation and Country
    4.6 Power Tools Market, By Geography

5 Market Overview (Page No. - 39)
    5.1 Introduction
    5.2 Market Dynamics
           5.2.1 Drivers
                    5.2.1.1 Constantly Growing Construction Industry in Emerging Economies
                    5.2.1.2 Increasing Global Sales of Commercial Vehicles
                    5.2.1.3 Rising Adoption of High-Density Lithium-Ion Batteries for Charging Cordless Power Tools
           5.2.2 Restraints
                    5.2.2.1 High Maintenance Cost
                    5.2.2.2 Comply With Strict Trade Policies and Safety Regulations
           5.2.3 Opportunities
                    5.2.3.1 Focus on Manufacturing Smart Power Tools With Wireless Connectivity
                    5.2.3.2 Industry 4.0 Creating Opportunities for Assembly Power Tool Providers
           5.2.4 Challenges
                    5.2.4.1 Manufacturing Ergonomic and Lightweight Power Tools

6 Industry Trends (Page No. - 44)
    6.1 Introduction
    6.2 Value Chain Analysis
           6.2.1 Research and Development (R&D)
           6.2.2 Component Suppliers
           6.2.3 Power Tool Manufacturers
           6.2.4 Distributors and Retailers
           6.2.5 End Users
           6.2.6 Post-Sales Services
    6.3 Key Trends in the Power Tools Market
           6.3.1 Connected Assembly Power Tools
           6.3.2 Brushless Dc Motors (Bldc)
           6.3.3 High-Density Lithium-Ion (Li–Ion) Batteries
           6.3.4 Wireless Charging Technology

7 Power Tools Market, By Mode of Operation (Page No. - 48)
    7.1 Introduction
    7.2 Electric
           7.2.1 Corded Tools
           7.2.2 Cordless Tools
    7.3 Pneumatic
    7.4 Other Tools

8 Power Tools Market, By Tool Type (Page No. - 69)
    8.1 Introduction
    8.2 Drilling and Fastening/Driving Tools
           8.2.1 Drills
           8.2.2 Impact Drivers
           8.2.3 Impact Wrenches
           8.2.4 Screwdrivers and Nutrunners
    8.3 Demolition Tools
           8.3.1 Rotary Hammers/Hammer Drills/Demolition Hammers
    8.4 Sawing and Cutting Tools
           8.4.1 Jigsaws
           8.4.2 Reciprocating Saws
           8.4.3 Circular Saws
           8.4.4 Band Saws
           8.4.5 Shears and Nibblers
    8.5 Material Removal Tools
           8.5.1 Sanders/Polishers/Buffers
           8.5.2 Grinders
                    8.5.2.1 Angle Grinders
                    8.5.2.2 Die Grinders
                    8.5.2.3 Straight Grinders
    8.6 Routing Tools
           8.6.1 Routers/Planers/Joiners
                    8.6.1.1 Palm Routers
                    8.6.1.2 Laminate Trimmers
    8.7 Others

9 Power Tools Market, By Application (Page No. - 80)
    9.1 Introduction
    9.2 Industrial/Professional
           9.2.1 Construction
           9.2.2 Automotive
           9.2.3 Aerospace
           9.2.4 Energy
           9.2.5 Shipbuilding
           9.2.6 Other Industries
    9.3 Residential/Diy

10 Geographic Analysis (Page No. - 93)
     10.1 Introduction
     10.2 North America
             10.2.1 US
             10.2.2 Canada
             10.2.3 Mexico
     10.3 Europe
             10.3.1 Germany
             10.3.2 France
             10.3.3 UK
             10.3.4 Italy
             10.3.5 Rest of Europe
     10.4 APAC
             10.4.1 China
             10.4.2 Japan
             10.4.3 South Korea
             10.4.4 India
             10.4.5 Rest of APAC
     10.5 Row
             10.5.1 South America
             10.5.2 Middle East and Africa

11 Competitive Landscape (Page No. - 114)
     11.1 Overview
     11.2 Ranking Analysis of Players in Power Tools Market
     11.3 Competitive Situations and Trends
             11.3.1 Battle for Market Share: New Product Launches and Developments Emerged as Key Strategies
             11.3.2 Product Launches and Developments
             11.3.3 Acquisitions and Collaborations
             11.3.4 Expansions

12 Company Profiles (Page No. - 119)
     12.1 Introduction
     12.2 Key Players
             12.2.1 Atlas Copco
             12.2.2 Stanley Black & Decker
             12.2.3 Robert Bosch
             12.2.4 Ingersoll-Rand
             12.2.5 Hilti
             12.2.6 Techtronic Industries (TTI)
             12.2.7 Makita
             12.2.8 Hitachi Koki
             12.2.9 Snap-On
             12.2.10 Apex Tool Group
     12.3 Key Innovators
             12.3.1 Uryu Seisaku
             12.3.2 Positec Group
             12.3.3 CS Unitec
             12.3.4 Deprag Schulz
             12.3.5 Friedrich Duss
     12.4 Other Key Players
             12.4.1 C. & E. Fein
             12.4.2 Emerson Electric
             12.4.3 Interskol
             12.4.4 Panasonic
             12.4.5 Chevron Group
             12.4.6 Illinois Tool Works (ITW)
             12.4.7 Ferm
             12.4.8 Aimco Global
             12.4.9 TTS Tooltechnic Systems (Festool)
             12.4.10 Kyocera

13 Appendix (Page No. - 154)
     13.1 Insights of Industry Experts
     13.2 Discussion Guide for the Power Tools Market
     13.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
     13.4 Introducing RT: Real-Time Market Intelligence
     13.5 Available Customizations
     13.6 Related Report
     13.7 Author Details

List of Tables (68 Tables)

Table 1 Power Tools Market, By Mode of Operation, 2014–2023 (USD Billion)
Table 2 Electric Power Tools Market, By Tool Type, 2014–2023 (USD Billion)
Table 3 Electric Market, By Application, 2014–2023 (USD Billion)
Table 4 Electric Power Tools Market, By Industry, 2014–2023 (USD Billion)
Table 5 Power Tools Market for Construction Industry, By Region, 2014–2023 (USD Million)
Table 6 Power Tools Market for Automotive Industry, By Region, 2014–2023 (USD Million)
Table 7 Power Tools Market for Aerospace Industry, By Region, 2014–2023 (USD Million)
Table 8 Market for Energy Industry, By Region, 2014–2023 (USD Million)
Table 9 Electric Power Tools Market for Shipbuilding Industry, By Region, 2014–2023 (USD Million)
Table 10 Market for Other Industries, By Region, 2014–2023 (USD Million)
Table 11 Electric Power Tools Market for Residential/Diy Application, By Region, 2014–2023 (USD Billion)
Table 12 Power Tools Market, By Power Source, 2014–2023 (USD Billion)
Table 13 Pneumatic Power Tools Market, By Tool Type, 2014–2023 (USD Billion)
Table 14 Pneumatic Market, By Industry, 2014–2023 (USD Billion)
Table 15 Pneumatic Market for Construction Industry, By Region, 2014–2023 (USD Million)
Table 16 Power Tools Market for Automotive Industry, By Region, 2014–2023 (USD Million)
Table 17 Power Tools Market for Aerospace Industry, By Region, 2014–2023 (USD Million)
Table 18 Power Tools Market for Energy Industry, By Region, 2014–2023 (USD Million)
Table 19 Power Tools Market for Shipbuilding Industry, By Region, 2014–2023 (USD Million)
Table 20 Power Tools Market for Other Industries, By Region, 2014–2023 (USD Million)
Table 21 Other Power Tools Market, By Tool Type, 2014–2023 (USD Billion)
Table 22 Other Market, By Industry, 2014–2023 (USD Billion)
Table 23 Other Market for Construction Industry, By Region, 2014–2023 (USD Million)
Table 24 Power Tools Market for Automotive Industry, By Region, 2014–2023 (USD Million)
Table 25 Power Tools Market for Aerospace Industry, By Region, 2014–2023
Table 26 Power Tools Market for Energy Industry, By Region, 2014–2023 (USD Million)
Table 27 Power Tools Market for Shipbuilding Industry, By Region, 2014–2023 (USD Million)
Table 28 Other Power Tools Market for Other Industries, By Region, 2014–2023 (USD Million)
Table 29 Power Tools Market, By Tool Type, 2014–2023 (USD Billion)
Table 30 Drilling and Fastening Tools Market, By Mode of Operation, 2014–2023 (USD Billion)
Table 31 Demolition Tools Market, By Mode of Operation, 2014–2023 (USD Billion)
Table 32 Sawing and Cutting Tools Market, By Mode of Operation, 2014–2023 (USD Billion)
Table 33 Material Removal Tools Market, By Mode of Operation, 2014–2023 (USD Billion)
Table 34 Routing Tools Market, By Mode of Operation, 2014–2023 (USD Billion)
Table 35 Other Tools Market, By Mode of Operation, 2014–2023 (USD Billion)
Table 36 Power Tools Market, By Application, 2014–2023 (USD Billion)
Table 37 Market, By Industrial Application 2014–2023 (USD Billion)
Table 38 Power Tools Market for Industrial Applications, By Region, 2014–2023 (USD Billion)
Table 39 Power Tools Market in Construction Industry, By Mode of Operation, 2014–2023 (USD Billion)
Table 40 Power Tools Market for Construction Industry, By Region, 2014–2023 (USD Billion)
Table 41 Power Tools Market in Automotive Industry, By Mode of Operation, 2014–2023 (USD Billion)
Table 42 Power Tools Market for Automotive Industry, By Region, 2014–2023 (USD Billion)
Table 43 Power Tools Market for Aerospace Industry, By Mode of Operation, 2014–2023 (USD Billion)
Table 44 Power Tools Market for Aerospace Industry, By Region, 2014–2023 (USD Billion)
Table 45 Power Tools Market for Energy Industry, By Mode of Operation, 2014–2023 (USD Billion)
Table 46 Power Tools Market for Energy Industry, By Region, 2014–2023 (USD Billion)
Table 47 Power Tools Market for Shipbuilding Industry, By Mode of Operation, 2014–2023 (USD Million)
Table 48 Power Tools Market for Shipbuilding Industry, By Region, 2014–2023 (USD Million)
Table 49 Power Tools Market for Other Industries, By Mode of Operation, 2014–2023 (USD Billion)
Table 50 Power Tools Market for Others Industries, By Region, 2014–2023 (USD Billion)
Table 51 Electric Power Tools Market for Residential/Diy Applications, By Region, 2014–2023 (USD Billion)
Table 52 Power Tools Market, By Region, 2014–2023 (USD Billion)
Table 53 Market in North America, By Mode of Operation, 2014–2023 (USD Billion)
Table 54 Power Tools Market in North America, By Industrial Application,2014–2023 (USD Billion)
Table 55 Power Tools Market in North America, By Country, 2014–2023 (USD Billion)
Table 56 Power Tools Market in Europe, By Mode of Operation, 2014–2023 (USD Billion)
Table 57 Power Tools Market in Europe, By Industrial Application, 2014–2023 (USD Billion)
Table 58 Power Tools Market in Europe, By Country, 2014–2023 (USD Billion)
Table 59 Power Tools Market in APAC, By Mode of Operation, 2014–2023 (USD Billion)
Table 60 Power Tools Market in APAC, By Industrial Application, 2014–2023 (USD Billion)
Table 61 Market in APAC, By Country, 2014–2023 (USD Billion)
Table 62 Power Tools Market in Row, By Mode of Operation,2014–2023 (USD Million)
Table 63 Power Tools Market in Row, By Industrial Application, 2014–2023 (USD Million)
Table 64 Power Tools Market in Row, By Region, 2014–2023 (USD Billion)
Table 65 Power Tools Market Players’ Ranking Analysis (2016)
Table 66 Most Significant Product Launches in the Market, 2017
Table 67 Most Significant Acquisitions and Collaborations in the Market, 2015–2017
Table 68 Most Significant Expansions in the Market, 2015–2017

List of Figures (53 Figures)

Figure 1 Power Tools Market Segmentation
Figure 2 Power Tools Market: Research Design
Figure 3 Power Tools Market Size Estimation Methodology: Bottom-Up Approach
Figure 4 Market Size Estimation Methodology: Top-Down Approach
Figure 5 Data Triangulation
Figure 6 Electric Power Tools to Dominate the Market During Forecast Period
Figure 7 Power Tools Market for Cordless Electric Tools Expected to Grow at A Higher Cagr During the Forecast Period
Figure 8 Power Tools Market for Drilling and Fastening Tools to Grow at the Highest Cagr During the Forecast Period
Figure 9 Power Tools Market for Automotive Industry to Grow at the Highest Cagr During the Forecast Period
Figure 10 North America Held the Largest Market Share in 2016
Figure 11 Attractive Opportunities in the Market Between 2017 and 2023
Figure 12 Electric Power Tools Market for Automotive Industry in APAC to Grow at the Highest Cagr During the Forecast Period
Figure 13 Power Tools Market for Drilling and Fastening Tools to Grow at the Highest Cagr Between 2017 and 2023
Figure 14 Automotive Industry to Grow at the Highest Rate Between 2017 and 2023
Figure 15 US to Hold the Largest Share of the Market in North America in 2017
Figure 16 North America to Hold the Largest Share of the PowerTools Market By 2023
Figure 17 Power Tools Market Dynamics
Figure 18 GDP From Construction in India and China
Figure 19 Commercial Vehicles Sales (2011–2016)
Figure 20 Power Tools Market: Value Chain
Figure 21 Electric Power Tools to Dominate the Power Tools Market During the Forecast Period
Figure 22 Drilling and Fastening Tools to Lead the Electric Market During the Forecast Period
Figure 23 Electric Power Tools Market for Automotive Industry in APAC to Grow at the Highest Rate Between 2017 and 2023
Figure 24 North America to Capture Largest Size of Electric Power Tools for Residential/Diy Application By 2023
Figure 25 Automotive Industry to Dominate the Pneumatic Market Between 2017 and 2023
Figure 26 Pneumatic Power Tools Market for Energy Industry in APAC to Grow at the Highest Cagr During 2017–2023
Figure 27 Construction Industry to Lead the Market for Hydraulic and Power-Actuated Market During 2017–2023
Figure 28 Drilling and Fastening Tools to Dominate the Power Tools Market During the Forecast Period
Figure 29 Power Tools Market for Electric Drilling and Fastening Tools to Grow at the Highest Rate During the Forecast Period
Figure 30 Electric Sawing and Cutting Tools to Dominate the Power Tools Market During the Forecast Period
Figure 31 Power Tools Market for Electric Routing Tools to Grow at the Highest Rate During the Forecast Period
Figure 32 Power Tools Market for Automotive Industry to Grow at the Highest Cagr During the Forecast Period
Figure 33 Power Tools Market for Constriction Industry in APAC to Grow at the Highest Cagr During the Forecast Period
Figure 34 North America to Account for the Largest Size of the Power Tools Market for Aerospace Industry During the Forecast Period
Figure 35 APAC to Hold the Largest Size of the Power Tools Market for Shipbuilding Industry During the Forecast Period
Figure 36 Snapshot of Power Tools Market in North America
Figure 37 Snapshot of Market in North America
Figure 38 the US to Hold the Largest Size of the North American Market During 2017–2023
Figure 39 Snapshot of Power Tools Market in Europe
Figure 40 Power Tools Market for Automotive Industry in Europe to Grow at the Highest Cagr During the Forecast Period
Figure 41 Snapshot of Power Tools Market in APAC
Figure 42 Power Tools Market India to Grow at the Highest Cagr During the Forecast Period
Figure 43 Power Tools Market in the Middle East and Africa Region to Grow at A Higher Cagr Between 2017 and 2023
Figure 44 Key Players Adopted Product Launches and Developments as Key Growth Strategies Between 2015 and 2017
Figure 45 Atlas Copco: Company Snapshot
Figure 46 Stanley Black & Decker: Company Snapshot
Figure 47 Robert Bosch : Company Snapshot
Figure 48 Ingersoll-Rand: Company Snapshot
Figure 49 Hilti: Company Snapshot
Figure 50 Techtronic Industries (TTI) : Company Snapshot
Figure 51 Makita: Company Snapshot
Figure 52 Hitachi Koki: Company Snapshot
Figure 53 Snap-On: Company Snapshot

The power tools market is expected to be worth USD 35.58 billion by 2023, growing at a CAGR of 4.6% between 2017 and 2023. The constantly growing construction industry in emerging economies, increasing sales of commercial vehicles across the world, and rising demand for cordless tools. However, the high maintenance cost associated with power tools hinders the market growth. The market has been segmented on the basis of mode of operation, tool type, application, and geography.

In 2016, electric tools held the largest share of the overall power tools market. Corded electric tools are wired tools used as handheld tools. Corded tools need a continuous power supply; therefore, they never run out of power, unlike cordless tools. Corded tools offer more torque than cordless fastening tools. The electric tools market is dominated by corded tools. Due to the improvement in batteries due to a strong replacement of Ni-Cd batteries with Li-Ion batteries and increasing adoption of cordless tools help the market for cordless tools to grow at a higher rate.

Drilling and fastening tools held the largest share of the overall market in 2016. Electric drilling and fastening tools are used by professionals as well as DIY consumers, while most pneumatic drilling and fastening tools are used in industrial environments, such as automotive and aerospace manufacturing plants. The increase in the adoption of fastening tools, such as impact tools, screwdrivers, and nutrunners, is due to the continuously growing automotive sales all over the world and the rising installation of wind power plants as these tools are essential elements in automotive assembly and wind turbine installation operations.

The construction industry held the largest share of the power tools market in 2016. The construction industry is the largest shareholder of the market. Power tools play an important role at every stage of the construction activity, including the design, survey, construction, and maintenance phases. They are used for various construction applications such as drilling, driving, demolition, concrete cutting, and polishing. Tools such as impact drills, drivers, and rotary hammers are widely used in construction projects. The growing construction activities in countries such as the US, China, and India, demand technologically advanced and innovative power tools, thereby driving the market growth.

The APAC region is expected to be the fastest-growing region for the market owing to the continuous infrastructural growth in major countries such as China and India, rising automotive sales all over the world, and increasing installation of wind power plants. China is investing heavily in infrastructure development and urban area planning. This investment in construction projects would drive the market. With the growing urbanization in India, there has been a huge demand for power tools for the construction of urban development projects. Moreover, the shipbuilding industry in South Korea, Japan, and China is expected to fuel the growth of the market to a certain extent.

Power tools, such as assembly tools, are precision instruments. Lots of moving parts of power tools require regular maintenance. The cost of maintenance of power tools is high, and maintenance of these tools need to be carried out regularly. Also, the cost of ownership of power tools increases because of these maintenance and repair requirements. Hence, consumers in developing countries are leasing power tools, which is also hampering the growth of the market.

Atlas Copco (Sweden), Apex Tool Group (US), Robert Bosch (Germany), Hilti (Liechtenstein), Makita (Japan), Ingersoll-Rand (Ireland), Stanley Black & Decker (US), Techtronic Industries (TTI) (Hong Kong), Hitachi Koki (Japan), and  Snap-on  (US) are the major players in the market.

Other key players in the market include C. & E. Fein  (Germany), Emerson Electric (US), Chevron Group (China), Panasonic (Japan), TTS Tooltechnic Systems (Germany), Illinois Tool Works (US), Positec Group (China), CS Unitec (US), FRIEDRICH DUSS (Germany), Uryu Seisaku (Japan), Deprag Schulz (Germany), KYOCERA (Japan), AIMCO Global (US), INTERSKOL (Russia), and FERM (Netherlands). These players are focusing on product launches and developments, acquisitions, and collaborations to enhance their product offerings and expand their businesses.

Leading power tool manufacturers are developing cordless power tool solutions for growing popularity of DIY trend to drive the industry forward

Industrial/Professional

Power tools are used in several industries including construction, automotive, aerospace, energy, and shipbuilding.

The construction industry is at the leading position in the power tools market as these tools are used in a majority of construction projects. Automotive and energy industries have high growth opportunities in the near future owing to the rising commercial vehicle sales and increasing installation of renewable power plants across the world. Innovation in battery technology is driving the demand for cordless power tools and manufacturers are developing innovative solutions to drive the industry forward. For instance, in 2017, Stanley black & decker launched cordless products for chainsaws, circular saws, and track saws. Similarly, in 2017, Hilti launched cordless impact driver to meet the increasing demand for cordless products from professional end-users.

Residential/DIY

Mostly electric power tools are used in by DIY consumers for residential refurbishment and improvement projects. Residential and commercial construction applications have started showing signs of recovery around the world. Therefore, the use of power tools by DIY enthusiasts for remodeling and renovation projects is rising in developed countries such as the US, the UK, and Germany. However, the DIY culture is not very popular in APAC due to the availability of low-cost labor and high ownership cost of power tools. To attract the large consumer base in the DIY sector, manufacturers are focusing on developing ergonomic, lightweight cordless power tools. For instance, in 2017, Makita introduced 18 V cordless tools including cordless router and cordless circular saw for residential/DIY applications.

Key Trends in the power tools market

Wireless Charging Technology

An innovative concept of wireless charging has emerged in the power tool market. For instance, in 2014, Robert Bosch (Germany) launched wireless drills, batteries, and chargers. In 2009, Bosch partnered with Fulton Innovation (US) for the deployment of wireless charging technology in power tools. Wireless charging provides flexibility in charging tools and saves time as well as the extra cost of secondary batteries. Cordless tools enable operators to gain mobility and flexibility. Companies are continuously engaged in the development of wireless charging technologies, and many advanced products are still in an experimental phase; therefore wireless charging is a major technological advancement ongoing in the market.

High-density Lithium-Ion (Li–Ion) Batteries

Continuous technological developments in batteries help manufacturers to design efficient cordless electric power tools. For many years, nickel–metal hydride (Ni–MH or NiMH) and nickel–cadmium (NiCd or NiCad) batteries are being used in cordless power tools. However, with the introduction of lithium-ion (Li- Ion) batteries, cordless electric tool manufacturers have started using these batteries more frequently owing to their superior energy density and slow loss of charge when idle. As a supporting step for the use of Li-Ion batteries, the European Power Tool Association (EPTA) restrain the marketing of batteries with a cadmium content by weight of more than 0.002% from December 31, 2016.

Critical questions would be;

• Where will all these developments take the industry in the mid to long term?
• Will the suppliers need to shift from corded to cordless? 
• What are the adjacent market which companies can leverage or explore?
• Is there a threat from substitute products?

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