Cordless Power Tools Market Size, Share & Trends Analysis Report By Tool Type (Drilling and Fastening Tools, Sawing and Cutting Tools, Demolition Tools, Material Removal Tools, Routing Tools, Other Tools), By Motor Type (Brushed Motors, Brushless Motors), By Li-Ion Battery Type (12 V, 18V, 20V, 40V, Above 40V), By End-User (Industrial, Commercial, Residential) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global cordless power tools market size was valued at USD 23.23 billion in 2023. It is estimated to reach USD 48 billion by 2032, growing at a CAGR of 9.5% during the forecast period (2024–2032).

A mechanism and additional power source activate a power tool in addition to the manual labor utilized with hand tools. Cordless power tools can be utilized without a power cord. They are battery-operated equipment for various commercial, residential, and other DIY activities. These compact and wireless power tools can be installed with brushed or brushless motors. They are not connected to any electrical system that supplies mains power, allowing them to be mobile.

In addition, lithium-ion batteries are employed in cordless power tools. In addition, lithium-ion batteries are now present in most power tools in the market. These batteries can store a substantial quantity of energy that does not deplete over time when the device is not in use. They are made to be lightweight, thereby reducing worker fatigue. Without the risk of stumbling or tangling a cable, cordless tools allow for unrestricted movement and navigation when working on multiple tasks or in confined spaces.

Highlights

• Drilling and fastening dominate the tool type segment
• Brushed motors dominate the motor type segment
• Industrial dominates the end-user segment
• North America is the highest shareholder in the global market

Market Dynamics

Global Cordless Power Tools Market Drivers:

Advances in Li-ion Batteries

Numerous battery improvements for greater backup capacity have been produced due to the growing demand for long-lasting battery life. This has drastically improved the performance and efficiency of Li-ion batteries. Though the replacement with Li-ion batteries will result in 10% to 49% additional costs, the preference for efficient Li-ion batteries is on the rise for use in electric vehicles (EVs) and e-communication devices. At present, cordless power tools equipped with Li-ion batteries give tough competition to NiCd batteries.

Furthermore, NiCd batteries that have been used for decades cannot power heavy tools, resulting in poor productivity. As a result, screwdrivers, saws, and drillers are powered by Li-ion batteries. Using Li-ion batteries in tools also enables the development of new products as they can provide battery backup even for heavy equipment. Therefore, introducing Li-ion battery technology is a game-changer in the market. In the future, innovative battery technology will be a major factor influencing purchase behavior. Professional users are also recommended to have one battery system for all cordless equipment. This will boost the dependence on Li-ion batteries, thus driving the market.

Growth in DIY Activities

In some developed economies of the US and Europe, most adults indulge in creative and purposeful leisure activities. Based on their hobbies, some consumers also spend money on upkeep and repair projects for their homes. Consumers in countries such as France, Germany, Italy, and the UK consider DIY activities a major hobby. The concept is also gaining momentum in the developing economies of India, Brazil, and South Africa. In addition, consumers in the residential sector often take up repair and enhancing activities that improve their skills and prove cost-efficient. Furthermore, hypermarkets, supermarkets, and other specialty stores such as Home Depot offer DIY projects and drive the market for DIY tools, eventually raising the demand for cordless power tools and driving the market growth.

Global Cordless Power Tools Market Restraint:

Low-Cost Labor in Developing Economies

One of the major factors that hamper the growth of cordless power tools is cheap labor in most developing economies, concentrated in Asia-Pacific and Latin America. Low-cost manual labor mostly constitutes less-skilled workers who use traditional tools instead of technologically advanced ones. These laborers use hammers and other basic tools, leading to low preference and poor penetration of cordless power tools in these countries.

The availability of labor at an affordable cost in developing economies can also be a major factor in the under-penetration of DIY activities. As outsourcing is done at a cheaper rate, people in households are not interested in small repair and maintenance works, eventually leading to a lower preference for residential cordless power tools. The scenario is also affected by the weak presence of DIY outlet stores and supermarkets owing to the low significance of DIY trends in Asian countries. Such factors are estimated to restrict market growth.

Global Cordless Power Tools Market Opportunities:

Rising Demand for Industrial Heat Guns

Heat guns, one of the most popular power tools, have unlimited usage across various industries. Heat guns use precise temperature control and airflow, reducing the heat to a pinpoint, enabling precise results every time. Some major industries where heat guns are used include aerospace, automotive, electronics, construction, maintenance, packaging, etc. The industrial heat gun market is expected to grow from USD 0.78 billion in 2021 to USD 1.68 billion by 2027 due to consistent demand.

Industrial heat guns are powerful and durable tools that offer higher temperatures. With the rise in disposable incomes and high spending on aviation and military by developed nations, the demand for industrial heat guns is expected to surge. As heat guns become cordless and powered by Li-ion batteries, they are increasingly used for home improvement and crafting activities. This, along with the growth in preference for heat guns for industrial and DIY activities in residential households, is expected to create opportunities for the market to grow over the forecast period.

Regional Analysis

North America Dominates the Global Market

Based on region, the global cordless power tools market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global cordless power tools market shareholder and is estimated to exhibit a CAGR of 9.33% over the forecast period. North America is expected to maintain its position during the forecast period, with revenue mostly generated from the US, the largest economy in the region. North America has several large industries, including the automobile, construction, aerospace, electronics, and packaging; the market for cordless power tools in North America is anticipated to increase quickly thanks to developments in Li-ion battery technology. Manufacturers in the North American automotive industry, a pioneer in the automobile business, create the most electric cars globally due to the rising demand for environmentally friendly goods. Some of the largest automobile manufacturers, such as Ford, General Motors, and FCA, are US-based. In addition, the automotive sensors market in North America is expected to exhibit a CAGR of 5.45% between 2020 and 2027. Hence, the requirement for assembling more precision parts will increase. This can further drive the market for cordless assembly tools such as drillers and wrenches.

Europe is anticipated to exhibit a CAGR of 10.32% over the forecast period. Europe, home to world-class manufacturing facilities, accounted for a significant share of the global cordless power tools market. Europe is one of the largest and wealthiest economies and has some of the most developed countries, such as France, the UK, Italy, and Spain. The EU accounts for around 76% of the total GDP in Europe. Since the introduction of the industrial revolution in Europe, the standard of living, per capita income, productivity, and innovation have witnessed significant growth. The rising economic development in the region has also led to rapid urbanization in countries, with people opting for more individual and smart homes to improve their lifestyles. Similarly, the growth of the industrial sector has led to the rising demand for battery-operated power tools, fueling the market growth.

Asia-Pacific has several industries: manufacturing, services, automobiles, and electrical, increasing the need for cordless power tools. While Japan and South Korea are major manufacturers and exporters of electrical appliances and automobiles, Singapore dominates with its excellent construction facilities. Furthermore, the increasing purchasing power of consumers and the rising practice of DIY among young consumers are driving the heat guns market in the region. The region is also the fastest-growing market for cordless power tools.

In Latin America, rising construction, the production of automobiles, and the manufacture of household appliances are major factors expected to boost the demand for cordless power tools, with Brazil, Mexico, and Argentina being the main markets. However, increasing infrastructural development in countries such as Peru, Chile, and Colombia is expected to provide growth opportunities for the market. Furthermore, business-friendly governmental policies and increasing investments in oil & gas and renewable sources in Chile, Peru, and Colombia are expected to boost the demand further during the forecast period.

In the Middle East and Africa, the rise in industrial and manufacturing sectors and the increasing adoption of DIY practices are expected to drive the demand for power tools in the region. The manufacturing industry in the Middle East is witnessing a significant change, driven by rapid technological developments that can boost the demand for advanced battery-operated power tools. Furthermore, most Gulf contractors are interested in using cordless tools over corded ones in the construction industry, which is a positive sign of growth. The entry of global players such as Stanley Black & Decker has further strengthened the growth in the region. The country focuses on product innovation to fulfill the construction, industrial, and manufacturing needs and demands.

Segmental Analysis

The global cordless power tools market is bifurcated into tool type, motor type, Li-ion battery type, and end-user.

Based on tool type, the global cordless power tools market is bifurcated into drilling and fastening tools, demolition tools, sawing and cutting tools, material removal tools, routing tools, and other tools. 

The drilling and fastening tools segment dominates the global market and is projected to exhibit a CAGR of 8.45% over the forecast period. The most common cordless power tools are drilling and fastening tools such as drills, impact wrenches, impact drivers, screwdrivers, and nut runners. Drills are the primary power tools for making holes or driving fasteners such as bolts and screws. Cordless drills are powered by Li-ion batteries, making them more efficient and offering higher productivity. Impact wrenches generate more torque than other fastening tools and are more precise. They also experience a high preference for use in construction sites as they offer more safety than their counterparts.

Cordless impact wrenches provide more mobility and are suitable for small household work. Impact drivers are like cordless drills and high torque tools primarily used for tightening nuts and driving screws with an additional hammering action. Further, screwdrivers are designed to drive screws such as drills and wrenches. Some advanced cordless screwdrivers also come with LED lights, adjustable speed, better handling, and a spindle lock mechanism. They are also less expensive than cordless drills and are preferred for household and DIY activities.

Based on motor type, the global cordless power tools market is segmented into brushed and brushless motors. 

The brushed motors segment dominates the global market and is anticipated to grow at a CAGR of 10.02% during the forecast period. Brushed motors are one of the simplest direct currents (DC) motors. A brushed motor comprises a permanent magnet stator and a wire-wound armature that acts as the rotor, commutator rings, and bushes. A magnetic field is created in the coil when DC power is applied to the armature windings through commutator rings. As a result, the rotor will turn.

Brushed motors have a straightforward structure and design. Due to the limited number of internal components, manufacturing is also quite straightforward. Therefore, brushed DC motors have a low overall cost. In comparison to brushless motors, brushed motors are dependable and more affordable. On the other hand, brushless motors are more powerful than brushed motors. Furthermore, the performance is dependent on the power. For instance, brushed drills have a low power-to-torque ratio, and this ratio falls further. Though brushes need to be replaced due to the physical wearing of the brushes, they are easy to replace.

Based on Li-ion battery type, the global cordless power tools market is bifurcated into 12 V, 18V, 20V, 40V, and above 40V batteries. 

The 12V Li-ion battery segment owns the highest market share and is predicted to exhibit a CAGR of 11.35% over the forecast period. Several players, such as Robert Bosch, offer 12V batteries. For instance, BAT414 is a 12V Max lithium-ion 2.0 Ah battery offered by Robert Bosch. BAT414 battery uses advanced technology for optimum battery life, power, and runtime.

Based on end-user, the global cordless power tools market is divided into industrial, commercial, and residential end-users. 

The industrial segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 9.85% over the forecast period. The industrial end-user segment constitutes the market's largest segment and is more likely to remain dominant throughout the forecast period. The automobile, aerospace, electronics, energy, construction, shipbuilding, and other industries use cordless power tools extensively. In addition, the automotive and construction sectors generated the most revenue for cordless power tools. Due to the increasing demand for sophisticated instruments from industries, the situation is anticipated to remain stable throughout the forecast period. However, the construction sector is estimated to be the highest revenue generator due to the rise in construction and renovation activities, followed by the automotive industry, which involves high-precision parts assembly.

Recent Developments

• January 2023- Hilti North America, a global pioneer in offering innovative tools, software, technology, and services to the commercial construction industry, revealed that it would introduce more than 30 new cordless tools to its portfolio of more than 70 existing Nuron battery-powered tools in 2023.

• January 2023- In 2023, Bosch Power Tools will launch 32 new 18V Cordless tools compatible with the CORE18V platform. New additions to the PROFACTOR high-powered lineup are among the latest additions to the brand's 18V line of tools.