Market Insight-Global Industrial Power Tools Market Overview 2024
Global Industrial Power Tools Market Was Valued at USD 32.69 Billion in 2022 and is Expected to Reach USD 43.07 Billion by the End of 2029, Growing at a CAGR of 4.12% Between 2023 and 2029.– Bossonresearch.com
Industrial Power Tools are specialized, heavy-duty tools designed for use in professional and industrial settings. Unlike consumer-grade tools, Industrial Power Tools are built to withstand rigorous use and perform demanding tasks. They are commonly employed in manufacturing, construction, metalworking, Industrial, and other industries where efficiency, precision, and durability are paramount.
The main development trends of power tools include cordless, battery revolution, intelligent networking, lightweight, etc. In recent years, power tool technology has developed rapidly, with more compact size, increased torque, more efficient motor drive, continuous improvement of brush and brushless motor technology, and the unstoppable wave of cordless and lithium electrification. Many power tool manufacturers have different Power process platform and dust-free, large battery solutions. In addition, various manufacturers have also made new progress in charging technology, intelligence and networking.
The global Industrial Power Tools market size is projected to reach US$ 43065.74 Million by 2029 from US$ 32689.41 million in 2022 at a CAGR of 4.12% during 2023-2029. Industrial power tools have various applications, and it is widely used in construction, residential and industrial manufacturing, etc., which have become the key driving forces for the development of the industrial power tool market. With their numerous features, power tools are used across industries. These power tools are efficient and equipped with cutting-edge innovations that simplify daily operations. They have qualities such as excellent performance, toughness and practicality. At the same time, the market expansion is underpinned by an ongoing wave of global industrialization, characterized by the continuous establishment and expansion of manufacturing facilities across regions. Manufacturing activities in sectors such as automotive, electronics and aerospace continue to grow, creating an increasing demand for various industrial power tools.
Figure Global Industrial Power Tools Market Size
Source: Bossonresearch.com, 2024
Driving Factors
Used in Multiple Industries
Power tools find a variety of applications in industrial applications. Power tools can increase productivity in less time than hand tools. It is widely used in construction, housing, and even industrial manufacturing. Power tools can take the hard work out of the construction process. Additionally, they are used to prevent accidents that occur with the use of hand tools in many industries. Therefore, with their numerous features, power tools are used across industries. These power tools are efficient and equipped with cutting-edge innovations that simplify daily operations. They have qualities such as excellent performance, toughness and practicality that favor their application in these industries. Power tools are manufactured with high-quality components. Therefore, they are helpful for most construction tasks.
At the same time, the market expansion is underpinned by an ongoing wave of global industrialization, characterized by the continuous establishment and expansion of manufacturing facilities across regions. Manufacturing activities in sectors such as automotive, electronics and aerospace continue to grow, creating an increasing demand for various industrial power tools. The demand for precision, efficiency and automation in modern manufacturing processes highlights this trend.
Rapid Urbanization and Construction Growth
Urbanization accounts for nearly 80% of global GDP value. The construction industry has been one of the important contributors to urbanization. The global construction industry has maintained a positive growth trend. Urbanization rates increase significantly as people gather in densely populated cities.
Urbanization trends and government investment in mega-projects are key drivers of the global construction and infrastructure boom. The construction of residential complexes, commercial spaces, and the development of infrastructure such as roads and bridges require a variety of power tools. Industrial power tools play a vital role in tasks ranging from concrete drilling to metal fabrication, contributing significantly to the sustained growth of the market.
Growing demand from the automotive industry As a key driver, the global growth of the automotive industry is driven by factors such as increased vehicle production, technological advancements and the shift towards electric vehicles. According to GlobalData, global light vehicle sales are expected to increase by 8.4% year-on-year to 87.86 million units in 2023.
With the increasing demand for power tools in the automotive industry, the industrial power tools market is expected to grow exponentially. Industrial power tools are an integral part of the automotive manufacturing process, including tasks such as metal fabrication, assembly line operations and maintenance. The demand for precise and efficient tools in the automotive industry has greatly contributed to the expansion of the industrial power tools market. It also helps in minimizing the total time required to complete the entire task within the specified time frame.
The Popularity of DIY Projects
The rise in DIY activity, driven by online tutorials and home improvement shows, has increased demand among homeowners and hobbyists for power tools that are efficient, fast and easy to cut, drill and fasten. These tools also help in completing time-consuming home construction and repair tasks easily without causing any disruption. Electric cordless power tools are widely adopted by residential users due to the growing demand for flexible, portable and compact tools. These household power tools include hammers, cordless drills, jig saws, sanders, cutters, electric screwdrivers, and more.
The rise of DIY projects has contributed to the increased demand for sanders. Sanders can be used to sand surfaces such as walls, furniture, and floors, which is common during home improvement and renovation projects. Advances in sanding technology have made sanders more efficient, easier to use, and more versatile. For example, a random orbital sander can sand in a circular pattern, reducing the risk of leaving scratches or marks on the sanded surface.
Emerging market needs Emerging markets experiencing rapid urbanization are witnessing a surge in demand, with construction and industrial activity also increasing. Demand for power tools spans a range of applications from infrastructure development to residential and commercial construction. As these markets develop, demand for efficient, reliable industrial power tools continues to increase, providing manufacturers with opportunities for market penetration and expansion
The Increasing Number of Women in The Construction Industry
The increasing number of women in the construction industry has led to an increase in demand for battery-powered tools due to their lighter weight compared to gasoline-powered and pneumatic tools. This shift is in response to the need for more ergonomic and user-friendly tools that meet the needs of a diverse workforce. Battery-powered tools offer portability, ease of use and reduced physical stress, making them ideal for workers with varying physical abilities. The emphasis on lightweight tools is in line with the goal of promoting inclusivity and meeting the ever-changing needs of the construction industry, creating a market niche for innovative and user-centric power tool solutions.
E-Commerce Channel
Providing power tools through online platforms and e-commerce channels increases market accessibility. The growing popularity of e-commerce platforms has transformed the distribution and accessibility of industrial power tools, reshaping market dynamics. Online sales channels offer a wide range of products, comparison tools and customer reviews to provide buyers with a convenient and informed buying experience. This shift to e-commerce promotes global reach, allowing manufacturers to cater to a diverse customer base.
Development of innovative productsMany companies in the industry are leveraging innovative technologies to develop energy-saving power tool products. Industry leaders are also working towards launching versatile machines that can be used with precision while carrying out a large number of operations. On the other hand, consumers value cordless power tool products that are easy to operate with high torque, are lightweight, compact and efficient. Growing consumer demand for error-free products enables companies to reach the heights of disruptive innovation. Therefore, innovative product development is expected to boost demand in the future.
Key Development Trends
Cordless power tools grow in popularity
The industrial power tools market is experiencing a significant rise in the penetration of cordless tools among consumers. Traditional power tools are corded tools that need to be connected to a power source through a wire to work. Corded power tools have limitations, such as limited movement, external power sources that are too far away or difficult to find, and cables that age or break accidentally, causing leakage and injury. Cordless power tools are becoming increasingly popular among users because of their freedom of movement, lightness and ease of use. In recent years, their penetration rate in the power tool market has continued to increase.
This shift has prompted many power tool manufacturers to re-evaluate and expand their product portfolios, emphasizing the development of cordless options. For example, in 2019, the Biturbo tool developed by Bosch raised the performance of battery tools to a new level, surpassing corded tools for the first time. The user-friendliness of cordless tools enhances their appeal, making them suitable for various applications and contributing to the overall market growth.
Popularization of brushless motor technology
The industrial power tool market is undergoing significant changes with the widespread adoption of brushless motor technology. Historically, power tools often came with brushed motors. However, there has been a significant shift in the popularity of brushless motor technology, signaling a new era of energy efficiency and efficiency for the industry. Brushless motors offer several advantages over brushed motors, including reduced friction, lower heat generation, and improved overall durability. As a result, power tools equipped with brushless motors experience less wear, resulting in longer service life and improved reliability. This technological advancement has pushed the industry to new heights, helping to develop more powerful, efficient, and environmentally friendly industrial power tools. The continued refinement and improvement of brushed and brushless motor technology demonstrates the industry's commitment to continued innovation, ensuring that power tools remain at the forefront of energy-efficient and high-performance solutions for a variety of applications.
Intelligent Internet
The enhancement of smart connected systems and the development of Internet of Things (IoT) technology have led to the innovation of various connected and smart tools. As a result, major power tool manufacturers are going all out to produce connected and smart power tools, which is expected to create substantial growth opportunities for the market in the coming period. For example, Milwaukee Tool Corporation, a Techtronic Industries brand, has launched the ONE-KEY digital platform for tools and equipment. This cloud-based platform will allow individuals to modify torque and speed for numerous applications at hand.
Bosch has also previously launched an application (APP) that connects power tools. Users can manage tools through smartphones. The APP can provide services such as customized power control, recording measurement values, images and annotations. With the maturity of technologies such as AI, 5G, and the Internet of Things, power tools will develop intelligently and usher in the next new era.
Lithium-ion battery powered
An important development trend in the industrial power tool market is the dominance of tools powered by lithium-ion (Li-ion) batteries. Lithium-ion batteries have attracted widespread attention and are expected to replace traditional battery types such as nickel-cadmium (Ni-Cd) and nickel-metal hydride (Ni-MH). The shift to lithium-ion batteries is driven by their superior performance, including higher energy density, longer life and lighter weight. These batteries offer a more efficient power-to-weight ratio, allowing power tools to become lighter without compromising performance. Manufacturers are increasingly integrating lithium-ion battery technology into their products to meet market demand for advanced, high-performance and environmentally friendly power tools. This shift aligns with the wider industry’s push for sustainability and innovation.
Take garden tools, for example. Garden tools are divided into hand-held, step-by-step, riding and intelligent types. According to different power sources, they can be divided into three categories: fuel power, AC electric power and cordless lithium power. Previously, most garden tools were of the traditional fuel type. Garden tools have developed rapidly in the past two years, with a growth rate of up to 60%, transitioning from fuel power to lithium batteries.
Continuous technological innovation
Technological advancements are influencing the growth of the market. The power tool industry has completely changed. The industry is highly competitive, and innovation and invention are key concerns for manufacturers, making it an attractive market for global investors. Companies in the industry are introducing technologically advanced products to increase the efficiency of their products. For example, Dewalt offers a Flexvolt battery that automatically switches battery voltage depending on the tool it's connected to. Automatic voltage switching helps adjust power manually before using different corded power tools.
Increased environmental awareness
Increased environmental awareness has led to the development of environmentally friendly power tools with emission reduction and energy saving features.
Meanwhile, to tap into this trend, manufacturers are investing in sustainable practices, including the use of recyclable materials and energy-saving technologies. To drive innovation, the industry's strong focus on energy efficiency is a response to environmental sustainability goals and regulations. Manufacturers are developing eco-friendly power tools with features such as energy-efficient motors, reduced emissions and sustainable materials. This aligns with wider global sustainability initiatives, influencing purchasing decisions and driving the market towards greener solutions.
Global Industrial Power Tools Market: Competitive Landscape
According to our calculations, the two indicators used to measure Industrial Power Tools market concentration, CR5 and HHI, will be 74.93% and 12.85% respectively in 2022. This means that the Industrial Power Tools market is less concentrated and manufacturers in the market are still in fierce competition. Key players in the current market include Stanley Black & Decker (DeWalt), Techtronic Industries Company Limited, Bosch, Makita, Snap-on, Koki Holdings Co., Ltd, Hilti Group, Einhell Germany AG, Festool, Dongcheng, Chevron Group, Apex Tool Group, Positec Group, Jiangsu Jinding, C. & E. Fein, Zhejiang Crown, KEN.
Figure The Global 5 Largest Players: Market Share by Industrial Power Tools Revenue in 2022
Source: Bossonresearch.com, 2024
Key players in the Industrial Power Tools Market include:
Stanley Black & Decker (DeWalt)
Techtronic Industries Company Limited
Bosch
Makita
Snap-on
Koki Holdings Co., Ltd
Hilti Group
Einhell Germany AG
Festool
Dongcheng
Chevron Group
Apex Tool Group
Positec Group
Jiangsu Jinding
C. & E. Fein
Zhejiang Crown
KEN
Others
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