The global power tools market was valued at approximately USD 31.08 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 7.2% from 2023 to 2030. This growth is largely attributed to the ongoing infrastructure development projects launched by governments worldwide. These initiatives are expected to significantly increase the demand for power tools, especially those used in construction activities. With governments around the world investing heavily in non-residential construction projects, the demand for power tools is expected to rise substantially throughout the forecast period.
The COVID-19 pandemic had a severe impact on economies globally, leading to a slowdown in consumer spending and disrupting supply chains. During the first quarter of 2020, the pandemic caused widespread shutdowns of production and manufacturing facilities, resulting in product shortages. This, in turn, led to decreased revenues for companies operating within the power tools market. However, as the economy began to recover and industries resumed operations, the demand for power tools started to rebound.
Gather more insights about the market drivers, restrains and growth of the Power Tools Market
In 2022, the U.S. power tools market held a dominant share, accounting for approximately 86.01% of the global market. The demand for power tools in the U.S. has been steadily increasing due to several key factors. These include growth in the construction industry, rising interest in do-it-yourself (DIY) projects, and increased adoption of power tools in industrial and manufacturing settings. The positive outlook for the U.S. power tools market is expected to continue, driven by ongoing demand from both consumer and industrial segments across various sectors.
Mode Of Operation Segmentation Insights
In 2022, the electric mode of operation segment accounted for the largest revenue share of around 65.30%. The growing demand for electric power tools is driven by their convenience, efficiency, safety, durability, technological advancements, and cost-effectiveness. As more people engage in DIY projects and home renovations, and as industries such as construction and manufacturing continue to expand, the demand for electric power tools is expected to continue growing. The increasing popularity of electric tools is also driven by innovations in battery technology, which have enhanced their power and performance.
The pneumatic mode of operation held a market revenue share of 26.87% in 2022. Pneumatic power tools are in high demand due to their high power, torque, durability, cost-effectiveness, safety, and versatility. As industries such as automotive, construction, and manufacturing continue to experience growth, the demand for pneumatic power tools is expected to increase. These tools are particularly valued for their ability to perform heavy-duty tasks in industrial environments, making them indispensable in sectors requiring high performance and reliability.
The cordless electric mode also held a significant share of the market in 2022, and this segment is expected to dominate the power tools market over the forecast period. Many manufacturers are increasingly focusing on developing and expanding their cordless power tool offerings to meet the needs of both industrial and residential customers. Cordless tools are known for their user-friendliness and ease of use, making them ideal for a wide range of applications, from household tasks to professional industrial work. The convenience and portability offered by cordless tools make them particularly appealing to consumers and professionals alike.
The advent of powerful battery packs has further enhanced the performance of electric tools, enabling them to offer increased power and longer operational durations. The electric mode of operation is also divided into corded and cordless sub-segments. While corded tools still hold a portion of the market, cordless electric tools are becoming more popular due to their freedom of movement and increasing power efficiency.
One of the advantages of pneumatic power tools is that they do not generate emissions or produce hazardous waste, making them more environmentally friendly and compliant with stringent regulatory standards. As industries seek to reduce their environmental impact, pneumatic tools are likely to see continued demand.
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