The global electric power tools market size was valued at USD 74.13 billion in 2022. It is projected to reach USD 119.51 billion by 2031, growing at a CAGR of 5.45% during the forecast period (2023-2031).
Electric power tools have a wide range of applications in every aspect of construction, manufacturing, and material modification. The development of electric power tools has revolutionized the working process by facilitating operation and saving time. Consequently, the versatile functionality of these tools makes them suitable for use in a variety of applications, including in professional, residential, and commercial settings. There are corded and cordless platforms with varying power capacities for electric power tools. Initially, electric power tools were intended for small jobs; however, improved mechanisms and batteries have increased their functionality and spread of use for large-scale projects. In addition, electric power tools can be utilized for drilling, sawing, planning, cutting (metal, soft materials, wood, and other materials), grinding, compacting, and hammering, among other tasks.
Rising Adoption of Electric Power Tools in the Construction Sector
The electric power tools facilitate a variety of construction tasks, including drilling, grinding, cutting, and sawing, among others. Recent technological developments have enhanced the productivity of electric power tools used for heavy-duty construction tasks. The fact that electric power tools reduce manual labor by aiding in labor-intensive tasks increases their popularity within the construction industry. In addition, the diverse portfolio of electric power tools, which includes power drills, hammers, and sanders, increases the reliance on these tools due to their portability, lightweight, and ability to complete tasks in less time.
The major manufacturers have developed products tailored to specific construction tasks. Electric tool manufacturers have also incorporated technologies such as anti-vibration and dust control systems into their products to reduce risks to operators and facilitate work. Such developments are accelerating the adoption of electric power tools in the construction industry, thereby driving the global market for electric power tools.
Increasing Popularity of Portable Power Tools
As a result of continuous advancements in battery technology, there has been a significant shift in consumer preferences toward cordless power tools in the current environment. The replacement of nickel-cadmium (NiCad) batteries with lithium-ion (Li-Ion) batteries have improved the performance of cordless power tools. Compared to an 18V nickel-cadmium battery, an 18V lithium-ion battery offers a longer runtime. In addition, NiCad batteries lose charge when not in use and require proper maintenance and use. In contrast, Li-ion batteries can withstand a wide range of temperatures and can be stored for extended periods of time without experiencing self-discharge. This increases the operational capacities and operating times of cordless power tools. This has demonstrated that cordless power tools are as effective as their corded and pneumatic counterparts. In addition, high-capacity batteries have aided in the development of tools such as breakers, jackhammers, miter saws, and chain saws, which were previously powered by fuel or pneumatics due to their high power demands.
High Production Cost of Electric Power Tools
Although electric power tools are more productive and efficient than their manual counterparts, the technologies used in their products result in a price increase. Pneumatic power tools have been on the market for a long time and have grown in popularity due to their improved performance and lower costs. A DeWALT 20V Cordless 1/2-inch Impact Wrench Kit with a battery socket kit costs approximately $219.0 on online retail platforms. On the same platform, however, a DeWALT 12-inch Impact Wrench designed for heavy-duty tasks costs only $140.0. This clearly illustrates the price disparity between pneumatic and electric tools, which inhibits the adoption of electric power tools and consequently restrains their market expansion.
Increasing Technological Advancements
The widespread use of automation technologies has made it possible to monitor tool productivity from distant platforms like computer software, mobile application platforms, and others. The automation technologies include inventory management options to reduce the amount of time and money wasted on inefficient tool and tool operation management. To enhance tool performances, the major tool manufacturers have already embraced these technologies. For example, the German-based company Robert Bosch GmbH provides the BOSCH ToolBox App for its Bosch Power Tools. The app includes functions like project documentation, conversion tools, Bosch tool tracking, service locators, and others. Additionally, Stanley Black & Decker offers a Tool Connect Inventory management solution under the DeWALT brand. It has a Wi-Fi connection between the mobile application and the power tool, and the data gathered can be sent to a portal for inventory management. It enables the tracking of materials, tools, and equipment across numerous job sites from a single location. In order to perform real-time diagnostics, the Tool Connect technology also keeps track of diagnostics for tools like battery life, operating temperatures, and others. These technologies could enhance how electric power tools function, opening up opportunities for the market for these tools to grow over the course of the forecast period.
| Study Period | 2019-2031 | CAGR | 5.45% |
| Historical Period | 2019-2021 | Forecast Period | 2023-2031 |
| Base Year | 2022 | Base Year Market Size | USD 74.13 Billion |
| Forecast Year | 2031 | Forecast Year Market Size | USD 119.51 Billion |
| Largest Market | North America | Fastest Growing Market | Europe |
The global electric power tools market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
North America region is the highest contributor to the market and is expected to grow at a CAGR of 7.61% during the forecast period. The major manufacturers of electric power tools are primarily focused on the North American market due to their high adoption rates. The United States is a major center for the production of electric power tools for many major corporations, including Stanley Black & Decker, Techtronic Industries Co., Ltd., and others. The majority of Stanley Black & Decker's tools are produced at its production facilities in various U.S. states. In addition, the German-based Robert Bosch GmbH, through its consumer goods segment, which consists of power tools and home appliances, aims to provide an extensive selection of electric power tools for non-professional use in North America. In addition, the extensive network of retailers and wholesalers facilitates the availability of electric power tools, thereby boosting sales in this region. Online retail platforms also facilitate the sale of electric power tools because consumers can obtain the desired tools from the convenience of their own homes. This has led to an increase in the number of DIY users, primarily from the United States and Canada.
Europe is expected to witness dynamic growth in the electric power tools market, with a CAGR of 8.35% during the forecast period. In Europe, the construction and industrial sectors are the primary users of electric power tools. Incorporating electric power tools into production and assembly processes helps to save time while simultaneously increasing productivity. The major countries in the region, such as Germany, the United Kingdom, France, and others, are significant centers of development for the automotive, aerospace, and defense industries, which increases the demand for electric power tools in these nations. The rapid industrial expansion in Germany attracts the attention of electric power tool manufacturers. The dominance of numerous brands in the German market increases the reliance on electric power tools for the manufacture and assembly of automobiles, aerospace, and other similar products. This motivates manufacturers of power tools to introduce innovative products.
Asia-Pacific is expected to witness a significant CAGR of 10.25% in the electric power tools market during the forecast period. China dominates the global market for electric power tools, both in terms of consumption and production. However, developing nations such as India, Singapore, Hong Kong, Taiwan, and others, have been identified as significant markets due to rapid technological development. The major players are attempting to establish manufacturing facilities in these markets in order to increase production and better serve the construction, automobile, and consumer goods industries in Asia, among others. Moreover, improving lifestyles and per capita incomes in Asian nations create opportunities for the home improvement and do-it-yourself (DIY) market, thereby increasing the demand for electric power tools for DIY applications.
The LAMEA region is expected to witness a moderate CAGR of 6.8% in the global electric power tools market during the forecast period. Emerging regions like Latin America are focused on establishing new electric power tool manufacturing hubs. South Africa has the highest growth potential for electric power tool manufacturing establishments. Due to an increase in various construction activities, the Middle East region is likely to generate demand for professional electric power tools. Major manufacturers of electric power tools have established subsidiaries to improve sales and services in developing regions. In addition, the demand from energy industries, particularly oil & gas, may boost the Middle Eastern adoption of electric power tools. In addition, advancements in battery technology and brushless D.C. motors have the potential to increase the demand for electric power tools in manufacturing facilities primarily located in Latin America and Africa.
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The global electric power tools market is segmented by product type and end users.
Based on product type, the global electric power tools market is bifurcated into corded power tools and cordless power tools.
The cordless power tools segment is the highest contributor to the market and is expected to grow at a CAGR of 8.74% during the forecast period. Cordless power tools are typically powered by Nickel Cadmium (Ni-Cd) or Lithium Ion batteries (Li-Ion). However, the majority of recently manufactured electric power tools utilize Li-Ion batteries due to their high power outputs and compact sizes. The development of battery technologies is a significant factor in the growing demand for cordless power tools. The lithium-ion battery packs manufactured for these cordless power tools have revolutionized the quality, operating life, productivity, and efficiency of cordless power tools.
The corded power tools segment is expected to witness a higher CAGR of 7.65%. The most common uses for corded electric power tools are heavy-duty tasks. Compared to their cordless counterparts, they are lighter, thinner, and more powerful. Corded power tools, which are primarily used for hard surfaces like concrete, stones, masonry, and metals, among others, include rotary hammers, demolition hammers, breakers, drills and drivers, saws, and others.
Based on the end user, the global electric power tools market is bifurcated into construction, automotive, aerospace, and others.
The construction segment is the highest contributor to the market and is expected to grow at a CAGR of 9.3% during the forecast period. The construction industry makes extensive use of electric power tools for tasks such as new construction, demolition, renovation, and installation, among others. Electric power tools can be used for drilling, breaking, cutting, and sawing on a variety of materials, including metals, concrete, ceramics, natural stone, and wood. Consequently, the construction industry has benefited greatly from the availability of a variety of electric power tools for different construction tasks.
The automotive segment is expected to grow at a significant CAGR of 8.1%. Oral fluid offers a quick and painless specimen for drug testing. In the automotive industry, electric power tools are primarily utilized for assembly, maintenance, and repair operations. The electric power tools used most frequently in the automotive industry are grinders, sanders, impact wrenches, power drills, rotary tools, jigsaws, and buffers. The introduction of lithium-ion battery-powered cordless power tools and powerful corded electric power tools has aided in the reduction of assembly, repair, and maintenance times for automobiles.
