Power tools are gaining traction around the world as both professionals and DIYers look to get more done in efficiently and conveniently. A majority of power tools available in the market are made in China. Availability of raw materials and cheap labour in China has meant that power tools are available at affordable prices.

The value of the global power tools market was worth US$ 27.58 Bn in 2015, and it is expected that the market will reach a valuation of US$ 46.47 Bn by 2025. Some of the key trends in the power tools market are,

Power tools are fast outpacing hand tools, as more consumers are preferring to accomplish minor tasks on their own. Increasing popularity of cordless electric saws, grinders, sanders, and polishers is providing impetus to the global power tools market.

Demand for power tools has also witnessed a surge among professionals, owing to resurgence in the housing market. The global volume of construction is expected to grow by 70% and reach US$ 15 trillion by 2025. The U.S., China, and India are expected to witness robust construction activity, owing to which demand for power tools is expected to increase in the future.

China dominates the global power tools market, accounting for roughly 80% of power tools produced globally. Chinese vendors have a price advantage as they offer highly efficient power tools at competitive prices.

The power tools market is also witnessing a shift from corded tools to cordless tools. For example, Hitachi Koki registered incremental sales of 5% in its power tools sales, owing to the introduction of cordless tools. Cordless power tools are expected to gain traction in the future, owing to their ease of use and performance advantages.

The DIY trend, which has traditionally remained limited to developed world, is now gaining a foothold in the developing market. Rising disposable income and rapid urbanisation have introduced consumers to DIY, owing to which demand for power tools has received a fillip.

Another key trend in the power tools market is that Lithium-ion batteries are replacing Ni-Cd technology, owing to the advantages that the former offers. Lithium-ion batteries are lightweight, highly efficient, and offer enhanced run time as compared to Ni-Cd batteries. Owing to these benefits, Li-ion batteries have become the preferred choice among end-users in the power tools market.

Key stakeholders in the power tools market are focusing on product development initiatives to launch innovative products in the market. Companies are investing heavily into research and development (R&D) to enhance tool strength and durability of their offerings. For example, Hitachi Koki Co. Ltd. has introduced the series 36V cordless gardening tools along with the highly-efficient brushless motors. Furthermore, Makita, a Japan based manufacturer of professional and consumer power tools, is focusing on developing safe products with reduced dust emissions featuring low noise and vibration capabilities to meet environmental regulations.

 Resurgence of Construction Industry in Emerging Nations

A key macroeconomic factor propelling the power tools market is infrastructure investment in emerging economies. Owing to strong growth in emerging regions of the world, construction industry in expected to witness growth opportunities, which in turn are anticipated to boost the demand for power tools. China, India, and the U.S. to account for nearly 60% of global market growth.

North America, Western Europe, and Asia-Pacific together account for over 70% of share of global power tools market. Asia Pacific, which accounts for third largest share currently, is expected to gain more than 100 BPS to become the second most lucrative market by 2025.