The power
tools market is projected to grow from USD 29.5 billion in 2020 to USD 36.9
billion by 2025; it is expected to grow at a CAGR of 4.6% from 2020 to 2025.
The key factors fueling the growth of the market growing adoption of cordless
power tools, rising demand for fastening tools in industrial environments, and
growing construction industry in emerging economies are the key factors driving
the growth of the market. The power tools market offers several opportunities
for manufacturers to focus smart connectivity for power tools.
Driver:
Rising adoption of cordless power tools globally
Cordless power tools
include a wide range of battery-powered tools, such as hammer drills, impact
wrenches, and circular saws, as well as nailers and staplers. The demand for
more mobile, flexible, and compact tools is driving the market for cordless
tools. Lithium-ion batteries are replacing conventional nickel-cadmium (Ni-Cd)
and nickel-metal hydride (Ni-MH) power tools. Advances in battery technology
are contributing to the increasing adoption of cordless power tools with
high-density batteries that can last longer once charged.
Lithium-ion
batteries provide higher energy density and longer operational life to power
tools. These batteries are lightweight and do not exhibit self-discharge.
Therefore, lithium-ion batteries have become the most popular option for
powering cordless power tools. Furthermore, with consumers’ attraction toward
cordless tools, tool manufacturers are focusing on cordless power tools and
launching innovative products in the market.
Restraint:
High maintenance cost
Power tools, such as
assembly tools, are precision instruments, requiring regular maintenance of its
moving parts. Power tools are required to be recalibrated at regular intervals
for precise operations. Motors, batteries, power connections, and other
components of power tools wear out and fail over time. Regular maintenance,
e.g., oiling, sharpening and replacing parts, and other repairs, is required
for the proper working of tools, which, in turn, incurs high cost. Consumers,
particularly in developing countries, are reluctant to spend on the maintenance
of power tools due to the availability of low-cost manual labor. Thus, the high
cost of maintenance is restraining the growth of the power tools market. Also,
the cost of ownership of power tools increases because of maintenance and
repair requirements. Therefore, consumers in developing countries are leasing
power tools, which is also hampering the growth of the market for power tools.
Opportunity:
Fastening tools in wind energy industry
Electric fastening
tools play a vital role in the installation of wind turbines. These fastening
tools are used during the foundation of bolts, gearboxes, rotor bearing tools,
and wind turbines. Additionally, these tools are used in maintenance,
repairing, and inspecting tower processes. To maintain accuracy, a tightening
factor is decided and accordingly, torque is applied to joints. As wind turbine
installation requires precise torque, electric fastening tools are likely to be
the most suitable power tools for this industry. Growing installation capacity
may create lucrative opportunities for players in the power tools market.
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Brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=50744034
Challenge:
Regulatory compliance and power tool safety
As power tools are
supplied worldwide by several tools manufacturers to various industries, such
as automotive, aerospace, energy and power, shipbuilding, and consumer
electronics, power tool product safety, and regulatory compliance are critical
issues for manufacturers. Domestic and international distribution channels, as
well as end users, demand safety, reliability, and rigorous compliance with
existing and emerging safety standards. Thus, it is important for tool
manufacturers to comply with these safety regulations. In addition to mandatory
regulations, manufacturers must address important concerns from retailers and
consumers regarding quality and environmental sustainability. Depending on the
specific type of equipment, additional regulations may address physical safety
requirements, electromagnetic interference, operating noise levels, material
chemical composition, and product recycling issues. In addition to mandatory
requirements, additional product testing results in the increased cost of power
tools. Thus, to comply with existing trade policies and support, safety
regulations are the major challenges for power tools manufacturers.
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