Global Consumer Power Tools

Global Consumer Power Tools

Global demand for consumer power tools is forecast to increase nearly 1.0% per year to $13.0 billion in 2027, while in real terms, demand is expected to decline. The high-income markets that account for the bulk of global demand hold limited short-term opportunities, reflecting the particularly elevated level of demand in 2021 and 2022. However, rising income levels and the expansion of the middle class in industrializing nations offer potential for growth.

Sales to Remain High Following Pandemic-Driven Surge

Global demand for consumer power tools increased rapidly in both 2020 and 2021, with these years representing by far the strongest year-over-year growth in recent history. While sales contracted slightly in 2022, the market size remained well above the 2020 level. Demand growth was driven by rising interest in DIY activities during the COVID-19 pandemic, as shifting behavior patterns led to increased spending on home maintenance and improvement projects.

While changing behavior patterns following the worst years of the pandemic are expected to be a negative for the consumer power tools industry – with homeowners increasingly shifting their spending back toward away-from-the-home activities – the continued interest in DIY activities will represent an ongoing boon to sales. Consumers who purchased entry-level power tools in 2020 and 2021 will provide an important target market for the sale of more advanced, higher value, and more niche tools.

Battery Power Penetrating Broader Product Ranges

The consumer segment of the power tools industry has been quicker to adopt battery power than the professional segment, and cordless products are now common in consumer-oriented product lines. Some segments – most notably electric drills – are already dominated by cordless models, leaving limited room for further market share growth. However, in other segments – such as sanders, polishers, and grinders – plug-in models have remained highly competitive to date. As battery technology continues to improve, offering longer run times and higher power levels, cordless models will become increasingly competitive in a broader array of product lines.

Growth in Industrializing Nations Requires Development of DIY Markets

While countries like China and India represent fast-growing markets for consumer power tools, sales in these nations will remain far below their potential due to underdeveloped consumer interest in DIY activities. In contrast to the US and many European markets, DIY is not seen as a popular hobby, and many consumers who could purchase power tools prefer to rely on hired labor. Efforts by Western DIY retailers to expand in industrializing nations have met with mixed results, and cultural attitudes will remain an obstacle to faster market growth. However, successful cultivation of interest in DIY could result in sales growth far faster than that driven simply by rising income levels.

Study Description

This Freedonia industry study analyzes the $12.5 billion global consumer power tools industry. It presents historical demand data (2012, 2017, and 2022) and forecasts (2027 and 2032) by product (electric tools, pneumatic tools, tools powered by other energy sources) and region (North America, Central and South America, Western Europe, Eastern Europe, Asia/Pacific, Africa/Mideast). Demand for electric tools is further segmented by product (drills; saws; sanders, polishers, and grinders; other electric tools, parts and attachments for electric tools) and power source (plug-in, cordless). The study discusses the impact of the COVID-19 pandemic. The study also evaluates competitive analysis on industry competitors including Bosch, Hilti, Makita, Stanley Black & Decker, and Techtronic Industries.