The global battery power tools market size was valued at USD 24 billion in 2021 and is projected to reach USD 47 billion by 2030, growing at a CAGR of 7.7% during the forecast period (2022-2030). Battery power tools are mechanical devices that operate on a battery. These tools include handheld machine drills, nailers, saws, grinders, impact wrench, and others, which are used for varied applications such as production, packaging, assembly, and maintenance operations, including drilling, screw driving, chiseling, and sanding.
The growth of the global power tools market is driven by rapid industrialization in developed & developing countries, a rise in urbanization, and a surge in the adoption of battery power tools in the automotive industry. Moreover, household consumers' demand for power tools increased in do-it-yourself (DIY) techniques. Thus, the increased adoption of DIY methods has, in turn, fueled the market growth due to the rise in demand for battery-driven cordless tools, lifestyle changes, and a surge in per capita income.
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Several automotive manufacturers have focused on automation of operational processes to reduce cost, save time, deliver high-quality products, and increase productivity to sustain the intense competition in the market. Battery power tools reduce employees' workload in automation processes by helping them perform manual tasks at higher productivity and with enhanced efficiency.
Moreover, these tools are used in the automotive industry for cutting, drilling, and polishing applications. Furthermore, players in the automotive sector are increasingly adopting battery power tools, as they help in faster product assembling and reducing human labor. There has been a shift in preference from corded to cordless power tools, including saws, impact wrenches, impact drivers, hammer drills, and others. These tools are ideal for cutting, sanding, welding, metalworking, and other applications. This shift depicts the desire for an efficient mobile device that can operate for a prolonged period by charging once. For instance, in April 2021, Makita launched a new XGT system. The system includes over 50 cordless equipment and tools to handle the most demanding applications. The XGT offers battery power tools with 40V and 80V power capacity.
Furthermore, several companies have focused on using cordless power tools instead of hand tools for tasks such as cutting and nailing, owing to the implementation of stringent regulations on the work site for the safety of employees. In addition, the need for automation across various industries is the key factor propelling the growth of the battery power tools market.
Due to intense competition in the market, key market players have introduced low-cost and highly efficient power tools such as electric drills and grinders. For instance, in July 2019, Makita Corporation, a Japanese manufacturer of power tools, launched an 18V LXT lithium-ion cordless rebar cutter (XCS04). It provides spark-free steel rod and rebar cutting and is ideal for cutting rebar in swimming pools, support columns, bridges, tilt-up walls, retaining walls, and waterways & tanks. Thus, introducing power tools that are durable and designed to withstand extreme environmental conditions boosts the growth of the global market.
Furthermore, technological advancements in power tools enable developers to design innovative products while maintaining affordability. In addition, the adoption of cordless power tools has increased among industrial and commercial end-users, owing to their enhanced usability. The expansion of the customer base by the manufacturers of battery power tools targeting construction, manufacturing, automotive industries, and households to cater to their specialized demands fuels the market growth. For instance, in January 2018, Apex Tool Group expanded its product offerings such as assembly systems and tightening solutions globally across multiple industries such as automotive and aerospace through its brand Cleco.
The corded or wired power tools are low-cost alternative battery power tools. Small- & medium-scale industries are inclined toward adopting wired power tools due to the high cost of battery power tools. One of the limitations that impact the market growth is the expensive pricing of the battery power tools due to components such as batteries and brushless motors. The price for battery power tools varies depending upon the function and capacity to perform respective operations. An increase in the prices of raw materials augments the total cost of production, which may further increase the market price of the power tool. For example, the price of a brushless cordless compact drill is about 150% higher than the price of a corded drill bare tool. This price difference is attributed to installing sensors, rechargeable batteries, and active vibration control technology, which comprises battery power tools. Therefore, the availability of low-cost alternatives and fluctuations in the prices of raw materials are expected to hinder the market's growth during the forecast period.
Advanced rechargeable batteries are the enablers of energy in cordless power tools for their respective use. Factors such as ongoing improvements, lightweight, and cost advantages make advanced rechargeable batteries popular for use in cordless electric power tools. In addition, lithium-ion batteries are increasingly finding their application in cordless saws and lawnmowers, owing to their advantageous features such as minimum charging times and operation of up to 14 hours.
In addition, many companies are focusing on developing batteries for high-drain applications such as cordless power tools, on meeting requirements such as low charge & discharge rate capability, higher lifetime, higher battery volumetric energy, and lower price. Moreover, in February 2018, Robert Bosch GmbH, Mitsubishi Corporation, and the Japanese company GS Yuasa International Ltd. collaborated to establish a joint venture called the Lithium Energy and Power GmbH & Co. KG for the development of next-generation of lithium-ion battery technology. Thus, all these factors collectively are anticipated to offer remunerative opportunities for market expansion during the forecast period.
The global battery power tools market share is segmented into the motor tool, type, application, and region.
Depending on motor type, the global battery power tools market is divided into the brushed motor and brushless motor. The brushed motor segment is anticipated to dominate the global battery power tools market, in terms of revenue, during the study period. It is estimated to grow at a CAGR of 7.5% during the forecast period. Brushed motors are used in households and some construction and manufacturing industries, where corded tools cannot be easily connected to power sockets. They are used for drilling metals, plastics, wood, brick, stone, concrete, and tiles. In addition, these motors offer enhanced user comfort, flexible & easy-to-handle features, superior efficiency, and prolonged durability, along with robustness, which are the essential parameters of power tools. Moreover, they increase the efficiency and usability of electric tools in applications such as sawing and drilling. Thus, the increase in consumers' preference for the purchase of brushed motors, owing to their cost-effectiveness and prolonged service life, is a critical factor that significantly contributes to the growth of the global market.
The brushless motor segment is anticipated to exhibit the highest CAGR during the forecast period. The adoption of brushless motors is increasing at a considerable rate, owing to their advantages, which include less maintenance, long battery life, less heat dissipation, and noiseless operation. Due to the absence of brushes in these motors, no frictional force is generated, which does not heat the motors when compared with brushed motors. Power tools have witnessed significant technological advancements in the past few years. The key players such as Robert Bosch GmbH and Makita Corporation have focused on the development of brushless power tools to accelerate market growth. For instance, in March 2019, Dewalt, a leading manufacturer of power tools, launched ATOMIC Compact Series cordless power tool.
By tool, the global battery power tools market is classified into drills, impact wrench, saws, lawn mowers, and others. The drills segment is anticipated to dominate the global market, in terms of revenue, during the study period. It is estimated to grow at a CAGR of 7.2% during the forecast period. The primary factor driving the adoption of cordless power drills is their portability, enabling the user to operate them without needing an external power supply. Furthermore, the increase in popularity of cordless drills has propelled the market's growth because these drills can be utilized in remote areas where there is no power supply.
The saw segment is the second largest. The rise in popularity of advanced cordless power tools in the manufacturing sector to achieve better productivity drives the market's growth. Furthermore, many players have adopted product launches as their key developmental strategy to sustain the intense competition and improve their product portfolio. For instance, in September 2019, Makita Corporation launched 18V X2 LXT (36V) brushless cordless 14" and 16" top handle chain saws for professional arborists and utility companies. It offers precise cutting, and bumper spikes help prevent pull-in and aid control. Similarly, government initiatives such as Make in India and Made in China 2025 for developing small & medium-scale enterprises are expected to boost the demand for battery power tools during the forecast period.
The lawn movers segment is anticipated to exhibit the highest CAGR during the forecast period. An increase in consumer interest in gardening activities, such as backyard beautification, backyard cookouts, and landscaping, is a critical factor that propels the adoption of lawn mowers. In developed countries of North America and Europe, the shift in consumer inclination toward adopting battery-operated lawn mowers due to limiting mobility and the ability to mow larger areas with no emission propel the market growth.
By applications, the global battery power tools market is segmented into industrial and DIY. The industrial segment is anticipated to dominate the global battery power tools market, in terms of revenue, during the study period. It is estimated to grow at a CAGR of 7.6% during the forecast period. Recent industrial growth in Asia-Pacific and North America has fueled the development of the power tools market. Moreover, introducing new battery-related technologies & advanced sensors and strong & stable economic growth in emerging countries are expected to offer remunerative growth opportunities for the market players.
The DIY segment is anticipated to exhibit the highest CAGR during the forecast period. Companies such as Robert Bosch GmbH Power Tools, Hilti Corporation, and others have developed portable power tools for household consumers that are soundless and vibration-free. For instance, in November 2020, Bosch launched a compact and versatile cordless pneumatic EasyPump for mobility, leisure, and sport. It also launched Easy Cut & Grind, a cutting and grinding tool for DIY purposes. Such adopted strategies focusing on DIY will, in turn, boost the battery power tools market during the forecast period.
By region, the global battery power tools market growth is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
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North America dominated the market and is expected to maintain its dominance throughout the forecast period. It is estimated to grow at a CAGR of 7.2%. The need for home improvement and a rise in popularity of DIY trends, as American families have started to rebuild or fix houses on their own, are anticipated to boost the demand for battery power tools. Furthermore, many manufacturers in North America have adopted business expansion and investments as their developmental strategies to sustain the intense competition and improve their product portfolio. For instance, in July 2018, Milwaukee Tool, a manufacturer of cordless power tools and accessories, invested $190 million to develop advanced manufacturing and R&D sites in Wisconsin, US. Thus, all these factors are anticipated to offer remunerative opportunities for market expansion in North America.
Europe is the second-largest region. It is estimated to reach an expected USD 13090 million by 2030 at a CAGR of 6.7%. Battery power tools are primarily used in the construction and industrial segments in the European market. The rise in adopting these tools in the aerospace and automotive industries has gained traction in the market. Furthermore, more than 50% of the automotive and aerospace manufacturing industries are in Germany, France, and the UK, which is expected to boost the need for battery power tools. In addition, there has been a rise in DIY culture in European nations. Further, there has been a surge in demand for electric vehicles. Moreover, a rise in awareness about the benefits of cordless power tools is expected to drive their adoption in various modular construction projects and manufacturing industries in developing countries, thereby supplementing the market growth in Europe.
LAMEA is the fastest-growing region. The usage of battery screwdrivers and hammers is expected to increase in the oil and gas industry. Furthermore, battery power tools are witnessing increased adoption in industrial and manufacturing applications as these emerging nations are engaged in industrialization. Consequently, the adoption of battery power tools increases operational efficiency. The availability of affordable and energy-efficient power tools is further expected to drive market growth.