The global power tools market
size is expected to grow from USD 34.3 billion in 2021 to USD 45.2 billion by
2026, at a CAGR of 5.7%. The growth of the market is attributed to growing
construction industry in the emerging economies, high demand for power tools in
automotive industry, rising adoption of battery-powered power tools globally,
and surging demand for electric fastening tools in industrial environment.
However, factors such as high repair and replacement parts cost of power tools
and fluctuations in raw material prices are restraining the market growth. On
the flip side, rising adoption of fastening tools in wind energy industry,
development of smart and connected power tools, and growing demand for power
tools from household applications are expected to create huge opportunities for
the adoption of power tools in the coming years. Moreover, the power tools
manufacturers are facing challenges in designing ergonomic and lightweight
power tools as well as in complying strict regulatory compliance and safety
standards for manufacturing of power tools. Additionally, the declining sales
of commercial vehicles due to COVID-19 is also acting as a challenge for the
power tools market.
DRIVERS: Growing construction industry in emerging
economies
Rising demand from the construction industry due to
advanced infrastructural developments propels the sales of power tools. Power
tools are adopted in the construction industry because these tools offer
increased efficiency and accuracy, along with enhanced safety of the workforce.
The growth of the construction industry boosts the demand for power tools,
which leads to advanced infrastructural developments. Power tools such as
drills and hammers are widely used in the construction industry. The
construction industry is expected to witness significant growth in emerging countries
such as India and China due to strong government support and rising income
levels, thereby driving the growth of the power tools market.
RESTRAINT: Fluctuations in raw material prices
Power tools are manufactured using resins, ferrous
and non-ferrous metals such as steel, zinc, copper, brass, aluminum, and
nickel. Power tools also include other components such as batteries, motors,
and electronic components. Power tool manufacturers are largely dependent on
the supply of raw materials. Fluctuating costs of raw materials, component
parts, or finished goods could result in manufacturing interruptions, delays,
inefficiencies, or an inability to market products. Raw materials required for
power tools are procured globally, and generally available from multiple
suppliers at competitive prices.
OPPORTUNITIES: Development of smart and connected
power tools
With the advent of IoT and the adoption of smart
connected systems in assembly line operations, each equipment within the plant
is getting connected. Advancements in technologies and the adoption of smart
manufacturing practices lead to innovation of smart and connected tools.
Leading tool manufacturers are focusing on the production of smart and
connected power tools. For instance, Milwaukee Tool Corporation (Brand of
Techtronic Industries) launched ONE-KEY, the digital platform for tools and
equipment. This cloud-based platform allows a user to customize torque and
speed settings for applications at hand.
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CHALLENGES: Declining sales of commercial vehicles
due to COVID-19
Power tools are used in automobile manufacturing as
well as servicing plants for several applications, such as drilling, fastening,
tightening, and polishing. In the automotive industry, power tools are
primarily used for installing brakes and seats in an automobile and detecting
problems, such as faulty parts, on the assembly line at an early stage, thereby
eliminating production errors. COVID-19 has severely impacted automotive
companies, affecting manufacturing hubs in India, China, Italy, Germany, Spain,
and the US. These countries have announced the complete or partial lockdown of
manufacturing units, apart from assembly plants.
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