USA Power Tools Market Outlook to 2028

USA Power Tools Market Overview

The USA Power Tools Market was valued at USD 13 billion in 2023, driven by the surge in residential and commercial construction activities, as well as the increasing demand from the automotive and aerospace sectors. The market has shown robust growth due to technological advancements in battery technology, making cordless power tools more efficient and preferred by professionals and DIY enthusiasts alike. The markets growth is further supported by the rising trend of home improvement and renovation projects across the country, contributing to sustained demand.

The USA Power Tools Market is dominated by key players such as Stanley Black & Decker, Inc., Robert Bosch Gmb H, Makita Corporation, Hilti Corporation, and Techtronic Industries Co. Ltd. These companies have established strong market presence through extensive product offerings, strategic acquisitions, and continuous innovation.

In 2024, Stanley Black & Decker announced the expansion of its manufacturing facility in North Carolina, adding a new production line dedicated to cordless power tools. This development aligns with the growing consumer preference for cordless tools, which are expected to account for more than 60% of the total power tools market by the end of 2025.

The USA Power Tools Market is primarily dominated by cities such as New York, Los Angeles, and Chicago, driven by their extensive construction and industrial activities. New York, being a hub for both residential and commercial construction, has seen significant demand for power tools, particularly in the construction of high-rise buildings and infrastructure projects. Los Angeles and Chicago also contribute to the market dominance due to their robust manufacturing sectors, where power tools are extensively used.

USA Power Tools Market Segmentation

By Product Type: The USA Power Tools Market is segmented by product type into Cordless Power Tools, Corded Power Tools, and Pneumatic Power Tools. In 2023, Cordless Power Tools held a dominant market share, largely due to the advancements in battery technology that have enhanced their performance and runtime. The shift towards cordless tools is also driven by the convenience of portability and the increasing availability of high-power cordless options, which match the performance of traditional corded tools.

By Application: The USA Power Tools Market is segmented by application into Construction, Automotive, Aerospace, and DIY/Home Improvement. In 2023, the Construction segment held the largest market share, attributed to the ongoing residential and commercial construction activities across the country. The demand for power tools in this segment is driven by the need for efficiency, speed, and precision in construction projects, with tools like drills, saws, and grinders being extensively used.

By Region: The USA Power Tools Market is segmented by region into North, South, East, and West. In 2023, the Southern region dominated the market share, driven by the rapid growth in construction activities. The favourable climate, population growth, and increasing investments in infrastructure projects have contributed to the dominance of the South region in the power tools market.

USA Power Tools Market Competitive Landscape

Company

Establishment Year

Headquarters

Stanley Black & Decker, Inc.

1843

New Britain, CT

Robert Bosch Gmb H

1886

Gerlingen, Germany

Makita Corporation

1915

Anjo, Japan

Hilti Corporation

1941

Schaan, Liechtenstein

Techtronic Industries Co. Ltd

1985

Hong Kong

Stanley Black & Decker, Inc.: In 2024, Stanley Black & Decker expanded its product line with the introduction of a new range of cordless tools powered by advanced lithium-ion batteries. This development is part of the companys strategy to capture a larger share of the growing cordless market, which is expected to drive significant revenue growth in the coming years. The company also announced a partnership with a leading Io T provider to integrate smart features into its premium product range.

Robert Bosch Gmb H: In 2023, the company announced a $130 million investment specifically to support the manufacturing of power tool accessories in Lincolnton, North Carolina. This move aligns with the companys vision to lead in the smart tools segment, catering to the increasing demand for connected devices in the professional market.

USA Power Tools Market

USA Power Tools Market Growth Drivers

Infrastructure Development Projects: The U.S. governments Infrastructure Investment and Jobs Act, launched in 2021, is expected to funnel $1.2 trillion into various infrastructure projects, significantly boosting the demand for power tools. As part of this initiative, over $110 billion is allocated to roads, bridges, and major infrastructure repair, necessitating the use of heavy-duty power tools. These projects are creating a surge in demand for drills, saws, and grinders, driving substantial growth in the power tools market.

Rise in Residential Construction: In 2024, the U.S. residential construction market is projected to grow substaintially, driven by low mortgage rates and a continued housing shortage. This surge in residential construction activities is a critical growth driver for the power tools market, particularly cordless tools that are favoured for their convenience and mobility on job sites. Builders are increasingly adopting advanced power tools to enhance efficiency and meet tight project deadlines.

Growth in DIY Culture: The rise in DIY (Do-It-Yourself) culture, particularly among millennials and Gen Z, has led to increased sales of power tools in the U.S. market. In 2023, the DIY home improvement volume was valued at $558 billion, driven by the popularity of home renovation shows and online tutorials. This trend is boosting demand for user-friendly and affordable power tools, as more consumers undertake home improvement projects independently.

USA Power Tools Market Challenges

Supply Chain Disruptions: The power tools market faces significant challenges due to global supply chain disruptions, particularly in the availability of raw materials like steel and electronic components. In 2023, delays in semiconductor shipments impacted the production of smart power tools, leading to supply shortages and increased lead times. This disruption has forced manufacturers to reassess their supply chain strategies, leading to higher production costs and delayed product launches.

Rising Raw Material Costs: The increasing cost of raw materials, particularly metals such as aluminum and steel, poses a significant challenge to the power tools market. In 2024, the price of aluminum reached a 13-year high, driven by supply constraints and increased demand from the automotive and aerospace sectors. These rising costs are squeezing profit margins for manufacturers, who are struggling to pass on the cost increases to consumers without affecting demand.

USA Power Tools Market Government Initiatives

Steel and Aluminum Tariffs on the U.S. Power Tools Market: U.S. government initiative impact the power tools market by the implementation of tariffs on imported steel and aluminum under Section 232 in 2018. These tariffs, set at 25% for steel and 10% for aluminum, raised the cost of raw materials, affecting manufacturers' production costs and pricing strategies in the power tools industry.

Tax Incentives for Manufacturing: In 2024, the U.S. Department of Energy, Treasury, and IRS announced $4 billion in tax credits under the Qualifying Advanced Energy Project Tax Credit (48C) to boost domestic clean energy manufacturing across 35 states. This initiative, funded by the Inflation Reduction Act, offers a 30% investment tax credit to over 100 projects, including $1.5 billion for historic energy communities. It aims to create well-paying jobs, reduce energy costs, and enhance climate and energy security, impacting related markets like power tools.

USA Power Tools Market Future Outlook

USA Power tools market is expected to grow exponentially by 2028, driven by robust construction and infrastructure development, technological innovations in tool design, and the rising trend of DIY projects among consumers. The market is expected to continue expanding as demand for efficient, high-performance tools increases across various industries.

Future Trends

Adoption of Green Technology in Power Tools: The USA Power Tools Market will see a growing adoption of green technologies, with manufacturers increasingly focusing on eco-friendly designs and sustainable materials. By 2028, it is expected that power tools sold in the U.S. will feature components made from recycled or sustainable materials.

Growth in Modular Power Tools: The future of the power tools market will likely be shaped by the development of modular power tools, allowing users to interchange components and customize their tools for specific tasks. By 2028, modular systems are expected to offer greater versatility and cost-effectiveness for both professionals and DIY enthusiasts.
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