The global power tools market is estimated to grow from USD 31.8 billion in 2019 to USD 41.7 billion by 2024, at a CAGR of 5.5%. The power tools market is highly diversified and competitive due to the presence of a large number of companies. However, bigger firms in the market are increasingly acquiring small players to expand their offerings worldwide. Key factors driving the power tools market growth include growing adoption of cordless power tools, increasing sales of commercial vehicles, rising demand for fastening tools in industrial environments, and growing construction industry in emerging economies. However, the high maintenance cost of power tools and fluctuations in raw material prices may hamper the growth of the market.
The market for electric power tools is expected to grow at the highest CAGR during the forecast period owing to the increasing demand from professionals and DIY users. Electric power tools are either operated through battery, based on application, or through corded power supply. Electric power tools are also used in a wide range of industries, including construction, automotive, aerospace, energy, and shipbuilding. The growth of electric power tools is fueled by innovations in battery technology and growing adoption of cordless tools among industrial and residential users. The rapid urbanization and industrialization are anticipated to further fuel the growth of the market in the near future.
The market for drilling and fastening tools is expected to grow at the highest CAGR during the forecast period owing to their extensive use in industrial and residential applications. Electric drilling and fastening tools are used by professionals and 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 nut runners, is due to growing automotive sales across the world and rising installation of wind power plants as these tools are essential elements in automotive assembly and wind turbine installation operations.
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The market for residential/DIY applications is expected to grow at the highest CAGR during the forecast period. Residential and commercial construction applications have started showing signs of recovery across the world. Remodeling and renovation projects are growing at a faster rate than new construction projects. This is especially true in residential projects wherein there is heightened interest in remodeling and refurbishing existing homes rather than purchasing new ones among consumers. 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 and RoW due to the availability of low-cost labor and high ownership cost of power tools. The power tools market in APAC is expected to grow at the highest CAGR during the forecast period. The demand for power tools for residential applications is limited due to lack of do-it-yourself (DIY) activities in APAC wherein inexpensive labor is abundant. China and India to remain lucrative growth markets for manufacturers of power tools. With growing manufacturing sectors, India has become one of the fastest-growing countries in the adoption of power tools. The low-priced power tools have created an intense competition among manufacturers in this region.