Asia Power Tool Batteries Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Asia Power Tool Batteries Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Asia power tool batteries market is expected to register a CAGR of more than 8% during the forecast period of 2022 – 2027. With the COVID-19 outbreak in Q1 of 2020, manufacturers have limited the production of power tool batteries due to the shortage of raw materials, which further declined the sales of power tool equipment. This has negatively impacted the power tool batteries market. Factors such as the increasing adoption of battery-powered power tools and the rapidly growing automotive industry are expected to drive the power tool batteries market during the forecast period.

Key Highlights

• China is expected to be the largest market for power tool batteries, as the country has the highest manufacturing capacity globally, coupled with rapid infrastructure development in the nation.
• The rising demand for fastening tools and the evolution of smart and connected power tools in the energy and automotive sectors are expected to provide immense opportunities for the market.
• Lithium-ion dominates the technology type market as it provides the highest energy density compared to other technologies.

Key Market TrendsThe Lithium-ion Type is Expected to Dominate the Market

• Lithium-ion batteries are the advanced battery solutions used in power tools. Li-ion batteries are lightweight with high energy density and are environment-friendly. The increasing demand from end-user sectors like construction, automotive, and industrial is expected to drive the market.
• However, Li-ion batteries are rechargeable batteries equipped with safety circuits for protecting them from overheating, ease of use, longer run times, flexible charging, etc. Lithium-ion batteries are commonly used for portable electronic applications, and there has been a growing prominence for cordless power tools.
• Lithium-ion batteries quickly replace conventional nickel-cadmium (Ni-Cd) and nickel-metal hydride (Ni-MH) as a power source for power tools. Advancements in battery technologies are also contributing to the increasing adoption of cordless power tools with high-density batteries that can last longer once charged.
• Further, Asia produces the most amount of lithium batteries owing to massive manufacturing capacity in various countries such as China, South Korea, Japan, Vietnam etc.
• Therefore, owing to the above points, the lithium-ion technology type is expected to witness dominant growth during the forecast period.

China going to dominate the Geographical segment

• China is the largest economy in the region, and globally, the country has the largest battery manufacturing capacity owing to the availability of lithium and supporting infrastructure. Further, the country remains a pioneer in the research and innovation in the power tool batteries market.
• China remains one of the largest consumers of power tool systems due to factors such as increased electric vehicle deployment, increased spending on consumer electronics, and increased consumer and manufacturing activities.​
• An increase in public spending on infrastructure is expected to be a significant driver, supported by continued positive growth in the residential and non-residential sectors in the construction industry. For instance, according to the National Bureau of Statistics of China, the output value of construction work increased rapidly from CNY 14.11 trillion in 2013 to about CNY 25.92 trillion in 2021.
• Therefore, China is expected to be the dominant region in the power tool batteries market during the forecast period, supported by increasing adoption in numerous end-user applications.

Competitive Landscape

The Asia power tool batteries market is fragmented. The key players in the market include Bosch Ltd, Hitachi Ltd, Makita Corporation, Panasonic Corporation, and Samsung SDI Co. Ltd., among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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