Electric Power Tools Market Analysis and Forecast to 2031: By Product Type (Corded Power Tools, Cordless Power Tools), End-User Industry (Construction, Automotive, Aerospace, Others), and Region

Electric Power Tools Market Analysis and Forecast to 2031: By Product Type (Corded Power Tools, Cordless Power Tools), End-User Industry (Construction, Automotive, Aerospace, Others), and Region

The global electric power tools market was valued at US$ 25.8 billion in 2021 and it is anticipated to grow up to US$ 50.3 billion by 2031, at a CAGR of 6.8% during the forecast period.

Electric power tools are used in several industries, including in construction, manufacturing, or material modification activities. The advancements in electric power tools have provided ease and saved operation time. Thus, the multiple functionalities of electric power tools make them suitable for use in various applications, including residential and commercial establishments. Moreover, various power capacities offer electric power tools in both corded and cordless platforms. In the beginning, electric power tools were intended for small-scale jobs, however, the enhanced mechanisms and batteries have enhanced the functionality and penetration of use for large-scale jobs. Further, electric power tools are used for sawing, drilling, planning, grinding, cutting (metal, wood, soft materials, and others), hammering, and compacting operations.

Market Drivers and Trends

The impact of the 2020 recession has been observed across the global economy and the global engineering and construction (EC) industry. In 2022, the EC sector will have a big role in supporting any nation’s growth plan. According to the Infrastructure Investment and Jobs Act (IIJA), with increasing investments across healthcare, public safety, and other public infrastructure are expected to bode well for the EC firms and are likely to accelerate recovery across the non-residential segment. Furthermore, the residential segment is expected to stay strong and exhibit similar activity as it did in 2021. Further, in India, according to Invest India website, the Indian government continuously focuses on the development of infrastructure and construction services through multiple policies such as open foreign direct investment (FDI) norms, large budget allocation to the infrastructure sector, and the smart cities mission. In FY21, infrastructure activities accounted for a 13% share of the total FDI inflows of US$ 81.7 billion, according to Invest India website. Moreover, according to Invest India website, India aims to become the third largest construction market globally by 2025.

Also, the global EC sector has increased its investments in modern technologies, including modern tools equipment and digitalization. These technologies will help the EC sector in faster growth. Thus, the rapid expansion of the construction sector is a major factor driving the growth of the electric power tools market because key market players are manufacturing cord and cordless power tools that allow construction workers to use them.

Market Restraints and Challenges

Electric power tools, including assembly tools, are precision instruments requiring regular maintenance of their moving parts. Also, electric power tools need to be recalibrated at regular intervals for precise operations. Motors, power cords, batteries, carbon brushes, drive belts, and bearings wear out and fail over time when continuously used. In addition to the aforementioned electric power tool components, other components, including drill bits, power switches, and accessories, require high maintenance for proper functioning as these tools are frequently used in multiple industries. Thus, the need for regular repair and replacement of electric power tool parts costs higher for the user, which might act as a restraining factor for the electric power tools market.

Global Electric Power Tools Market Segmental Overview

The report analyses the global electric power tools market based on product type, end-user industry, and region.

Global Electric Power Tools Market by Product Type

Based on product type, it is bifurcated into corded power tools and cordless power tools. The cordless power tools segment is increasing at a faster rate because cordless power tools are widely used in several industries, including construction, automotive, and aerospace. Further, the basic operations such as cutting, chopping, drilling, hammering, and grinding can be easily completed using cordless power tools with more efficiency and ease. Thus, numerous benefits of the cordless power tools segment boost the market's growth.

Global Electric Power Tools Market by End-User Industry

Based on end-user industry, it is segmented into construction, automotive, aerospace, and others. The construction segment is expected to have the largest electric power tools market share in 2021. The growth in the adoption of electric power tools in the construction sector is expected to drive the electric power tools market growth. Further, the global construction sector is growing rapidly. For instance, in January 2022, according to Construction Products Association (CPA) forecasts that output in the construction industry will grow by a robust 4.3% in 2022, slowing to 2.5%. Also, housebuilding, the largest sector within the global construction industry, is expected to remain buoyant, while infrastructure will be the major driver for growth. Therefore, the construction segment is expected to have the largest electric power tools market share in 2021.

Geographical Analysis of Global Electric Power Tools Market

Region-wise, it is studied across North America, Europe, Asia Pacific, and the Rest of the World. The North American market is expected to hold the majority of the market share in 2021 due to the increasing construction industry in the US and Canada regions. Further, the presence of a large number of key manufacturers of electric power tools, including Apex Tool Group, LLC (US), Ingersoll Rand Inc. (US), Stanley Black Decker, Inc. (US), and Snap-on Incorporated (US), are also supporting the market growth in North America. This, in turn, boosts the demand for electric power tools in the North American region.

Major Players in the Global Electric Power Tools MarketCOVID-19 Impact

In 2020, the COVID-19 pandemic resulted in economic challenges owing to subsequent lockdowns. In 2020, manufacturing and construction industries were severely affected due to a drastic decrease in product demand, falling prices, and storage shortages. A swift decline in manufacturing revenues due to virtually nonexistent manufacturing demand and slow production capabilities had limited the expenditure on the production of electric power tools worldwide. Thus, the COVID-19 pandemic had negatively affected the global electric power tools market in 2020.

However, in 2021, the manufacturing industry started recovering from the significant labor and supply chain challenges that triggered the production of electric power tools. Further, in 2022, electric power tools will have a higher global demand due to the continued progress in the construction sector.

Recent Developments

• June 2022, Bosch Power Tools (Robert Bosch GmbH), the global leader for power tools and power tool accessories, had launched the GWS12V-30 12V Max Brushless 3-inch Angle Grinder. With an optimized gear structure, fast breaking time, and brushless motor to maximize battery runtime, the GWS12V-30 grinder offers the users the endurance needed to handle heavy-duty cutting applications on multiple jobs.
• October 2021, Stanley Black Decker, Inc. had partnered with Eastman to advance sustainability in the power tools industry. With this partnership, BLACK+DECKER, a Stanley Black Decker brand, released a new product line, namely Reviva, which would be offering the brand's first sustainability-led power tools that utilize Eastman's Tritan Renew copolyester.
• December 2020, Hilti had expanded its rotary and combination hammer tool portfolio with the next-generation TE 70-ATC/AVR, the most powerful SDS-Max combination hammer in its class. This tool helps commercial contractors and tradespeople drill up to 40% faster in reinforced concrete and demolish more concrete.

Frequently Asked QuestionsQ1. How big is the electric power tools market?Ans. The global electric power tools market size was US$ 25.8 billion in 2021 and is anticipated to reach US$ 50.3 billion in 2031, growing at a rate of 6.8% from 2022 to 2031.Q2. What is the electric power tools market growth rate?Ans. The growth rate of the electric power tools market is 6.8% from 2022 to 2031.Q3. Which region holds a major market share for the electric power tools market?Ans. North America holds a major market share of the electric power tools market in 2021.Q4. Which segment accounted for the largest electric power tools market share?Ans. Based on product type, it is bifurcated into corded power tools and cordless power tools. The cordless power tools segment is likely to hold the major share of the market in 2021.Q5. Who are the key players in the electric power tools market?Q6. What are the factors driving the electric power tools market growth?Ans. The major factor driving the growth of the market is growth in adoption of electric power tools in the construction sector.Q7. What are the key growth strategies of electric power tools market players?Ans. The key growth strategies of electric power tools market players are product launch, partnerships, and government initiatives.Q8. Which region will provide more business opportunities for the electric power tools market during the forecast period?Ans. The Asia Pacific region will provide more business opportunities for the electric power tools market during the forecast period.

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