The outdoor power equipment market is expected to grow from USD 31.0 billion in 2024 to USD 36.5 billion by 2029, at a CAGR of 3.3% during the forecast period. The rising interest in gardening activities and increasing demand for landscaping services, increasing use of battery-powered outdoor power equipment for lawn maintenance, and rapid growth in construction sector all significantly influence the dynamics of the outdoor power equipment market. In addition, growing inclination toward rental services and increasing popularity of connected outdoor power equipment are all factors that generate opportunities within the outdoor power equipment market.
DRIVERS: Rising interest
in gardening activities and increasing demand for landscaping services
The outdoor power
equipment market experiences significant growth driven primarily by increasing
demand from both residential and commercial customers seeking landscaping
services to enhance property aesthetics. Within the landscaping sector, a
diverse range of outdoor power tools such as lawn mowers, hedge trimmers,
blowers, and saws are employed for tasks including lawn maintenance,
hardscaping, tree care, and snow removal. According to the 2023 National
Gardening Survey in the US, approximately 80% of households engaged in lawn and
garden activities in 2022, with an average expenditure of USD 616 per
household. This reflects a growing trend among homeowners in developed nations
to allocate more resources to outdoor and gardening activities, thus driving
demand for outdoor power equipment.
Outdoor power equipment
also plays a pivotal role across various professional sectors including
landscaping services, ground maintenance, sports field upkeep, commercial
nurseries and greenhouses, as well as forestry and logging operations. The 2023
report from the National Golf Foundation indicates significant growth in the US
golf industry, with 15,945 golf courses, five times more than any other
country. This growth underscores an increased demand for outdoor power
equipment to maintain these golf courses effectively.
RESTRAINTS: High
maintenance costs
Outdoor power equipment,
such as lawn mowers and trimmers, is recognized for its precision engineering.
These tools comprise various components, including motors, air filters, and
fuel filters, which demand regular upkeep. Recalibration of outdoor power equipment
is necessary at consistent intervals to ensure optimal functionality. As time
passes, components like motors, batteries, and cables gradually degrade and
require routine oiling, sharpening, and repairs. The maintenance expenses for
outdoor power equipment are relatively steep. Especially in developing regions
where labor costs are lower, consumers hesitate to invest significant sums in
equipment upkeep. This elevated maintenance cost has thus acted as a barrier to
the expansion of the outdoor power equipment market. Furthermore, consumers in
developing countries are increasingly favoring the leasing of outdoor power
equipment, exacerbating the market's growth challenges.
OPPORTUNITIES:
Increasing popularity of connected outdoor power equipment
With the increasing
integration of IoT devices and other technological advancements, manufacturers
are directing their efforts towards providing smart and interconnected outdoor
power equipment. For example, John Deere has introduced JDLink to its customers
at no extra cost; this digital platform collects real-time equipment data and
sends it to John Deere service centers, while also allowing customers to
monitor and manage their equipment using smartphones. Similarly, Husqvarna
Group, based in Sweden, offers residential robotics lawn mowers like the
Automower 450X and 435X AWD, which feature smartphone connectivity for remote
control and monitoring. These connected and intelligent products are gaining
popularity among consumers and present a lucrative opportunity for the growth
of the outdoor power equipment market.
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CHALLENGES: Stringent
trade policies and safety regulations
Safety and regulatory
compliance are top priorities for manufacturers in the global outdoor power
equipment industry. Domestic and international distribution channels, as well
as end-users, demand reliability and strict adherence to both current and evolving
safety standards. In addition to meeting mandatory regulations, it's crucial
for manufacturers to address significant concerns raised by retailers and
consumers regarding product quality and environmental sustainability.
Furthermore, depending on the type of equipment, manufacturers must also
navigate additional regulations covering aspects such as physical safety
requirements, electromagnetic interference, operational noise levels, and
product recycling. These regulatory demands not only increase the overall cost
of owning outdoor power equipment but also pose significant challenges for
manufacturers, particularly concerning product testing mandates.
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