Global Outdoor Power Equipment Market (by Energy Source, Type, Sales Channel, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)

Global Outdoor Power Equipment Market (by Energy Source, Type, Sales Channel, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)

Market Insight:

Outdoor power equipment (OPE) is a type of equipment with small motors or engines that is primarily used for exterior service. Brush cutters, edgers, chainsaws, power rakes, etc., are common outdoor power equipment. End users, such as lawn and plant care providers and landscape service providers, frequently use outdoor power equipment for commercial purposes.

Buyers increasingly prefer OPE because it is more environmentally friendly and delivers power and performance comparable to traditional products. In fact, the increased development of parks and small scale gardens in residential buildings and cities to reduce the effects of pollution has led to an increase in the demand for outdoor power equipment such as lawn mowers, chainsaws, blowers, and so on. The global outdoor power equipment market is projected to reach US$36.41 billion in 2023, growing at a CAGR of 6.30% over the projected period.

Segment Covered:

• By Energy Source: In terms of energy source, the report offers insights of the global outdoor power equipment market into four segments: gas-driven, cordless, parts & attachments and corded. Gas-driven segment held the major share in the market, followed by parts & attachments. The presence of renewable fuel gas resources, such as ethanol fuel and other bio fuels has driven the demand for the gas-driven outdoor power equipment. Besides, cordless OPE is expected to witness rising popularity among customers owing to its portability, convenience and falling battery prices.
• By Type: On the basis of type, the report provides the segmentation of the global market as follows: lawn mower, chainsaw, trimmer & edger, blowers, tillers & cultivators, snow throwers and other outdoor power equipment. The lawn mower held the maximum share in the market, followed by trimmer and edger. The increase in the development of parks and small scale gardens in the residential building and in cities to curb the effect of pollution have led to increase in demand for lawnmowers to make the parks and gardens look pleasant. The increase in services in sports lawns and rising number of golf courses across the world is expected to contribute to the growth of trimmers and edgers.
• By Sales Channel: The report further provides the bifurcation of the market into two segments according to the sales channel: offline and online. Offline channel hold a dominant position in the outdoor power equipment market due to increasing reliance on retail outlets. The outdoor power equipment’s sales through direct purchase are declining as manufacturers of lawn and garden products are increasingly finding success on e-commerce platforms. Thus, the online segment is expected to register the highest CAGR over forecasted years.

Geographic Coverage:

According to this report, the global outdoor power equipment market is divided into four regions: Asia Pacific, North America, Europe, and Rest of the World. The countries covered in North America region are the US, Mexico, and Canada, while Europe includes UK, Germany, France, Italy, Spain and Rest of Europe. Moreover, China, Japan, India, South Korea and Rest of Asia Pacific are included in the Asia Pacific region.

North America accounted for the maximum share of the global market. A significant portion of market share is held by the US, followed by Canada and Mexico. As per the US government regulations, community garden plots are also considered as an important part of society and thus, the use of gardening tools favor the outdoor power equipment market. The Asia Pacific market is expected to expand significantly during the forecast period, driven by rapid urbanization and rapidly developing building industry. Strategic investments by global corporations in Asia provide lucrative market opportunities in the region.

Top Impacting Factors:

Growth Drivers

• Rapid Urbanization
• Growing Number Of Golf Club
• Falling Costs of Lithium-Ion Batteries
• Inclining Construction Activities

Challenges

• High Maintenance Costs and Fluctuating Raw Material Prices

Trends

• Technological Advancements
• Gardening Trend
• Growing Popularity of Do it Yourself (DIY) Trend
• Driver: Falling Costs of Lithium-Ion Batteries

The growing awareness of environmental issues leads to increasing adoption of the outdoor power equipment using lithium-ion batteries, as they are environment friendly and maximize energy output. Besides, continuous falling in prices of lithium –ion batteries has been fundamental in promoting the growth of battery powered outdoor power equipment. Several companies are focused on innovation in lithium-ion batteries. For instance, in 2021, Techtronic's Industries started using red lithium-ion batteries for its cordless power tools, as they work faster and deliver more than expected from the battery's life. Thus, the compatibility of battery platforms and falling prices is likely to promote customer loyalty to the same series of products and result in greater demand for battery powered outdoor power equipment during forecasted years.

• Challenge: High Maintenance Costs and Fluctuating Raw Material Prices

Outdoor power equipment tools are widely used among residential and professional users with growing infrastructure and urbanization to maintain their space and achieve a smart and greener city concept. The equipment must be recalibrated at regular intervals for exact operations, sharpened, oiled, and replaced for optimal tool operation, thereby increasing maintenance costs. Consumers in developing countries are unwilling to spend significant money on equipment maintenance since garden-keepers are relatively cheaper. These maintenance and repair requirements also increase the heavy outdoor machinery ownership costs. Also, the availability of large size equipment directly or indirectly affects the outdoor power equipment market growth in developing nations.

• Trend: Growing Popularity of Do it Yourself (DIY) Trend

Furthermore, the growing popularity of home improvement projects bodes well for the growth of the outdoor power equipment and garden tools market during the forecast period. Companies such as The Toro Company, Husqvarna, ANDREAS STIHL AG & Co. KG, and others gained profits from the stay-at-home trend due to the pandemic, which has extended the gardening season. The availability of a large number of ideas for DIY projects along with the rising popularity of DIY online platforms is one of the key factors for outdoor power equipment retailing market growth. For example, in 2018, popular player Pinterest has seen 450% huge growth in the users searching for DIY projects. Trends such as re-growing veggies, making planters, and many others are popular among people. These latest environmental trends are further anticipated to create significant opportunities for the Do-It-Yourself (DIY) outdoor power equipment market.

The COVID-19 Analysis:

The pandemic in 2020 did cast a gloomy outlook on almost all industries, worldwide. The outbreak of COVID-19 impacted market growth during the initial few months of 2020. However, in later months, demand for various outdoor power equipment has witnessed strong growth with the resumption of operations in multiple industries. A considerable increase in the market for Do-it-yourself (DIY) equipment and do-it-for-me (DIFM) services in the commercial and residential segments are expected to drive market growth.

Analysis of Key Players:

The global outdoor power equipment market is relatively concentrated, with the top 5 players including TTI, Chevron, SWK, Bosch and Greenwork accounting for more than 60% share of total market. The key players in the global outdoor power equipment market are:

• Robert Bosch GmbH
• Techtronics Industries Ltd.
• Chervon Holdings Limited
• Stanley Black & Decker, Inc.
• Husqvarna Group
• Briggs & Stratton Corporation
• The Toro Company
• Makita Corporation
• Honda Motor Co., Ltd.
• Deere & Company
• Ariens Company
• Yamabiko Corporation

In terms of market positioning, TTI, Chervon has significant market presence as the largest player in the global electric outdoor power equipment market, with the ambition to become the dominant players within the long-term. The market market is expected to keep consolidating, in light of enhancing user stickiness owing to the interchangeable battery platforms, along with accumulating brand image and understanding of end-user preferences.