Dublin, Feb. 19, 2024 (GLOBE NEWSWIRE) -- The "Global Cordless Power Tools Market - Outlook & Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering.
The Global Cordless Power Tools Market was worth $14.41 Billion in 2022 and is forecast to grow to $26.29 Billion in 2028, registering a CAGR of 7.5%.
The global cordless power tools market is illustrated by low market intensity with high competition. The present scenario leads vendors to alter and improve their unique value propositions to achieve a strong market presence. Currently, the industry is moderately fragmented and is dominated by vendors. The presence of differentiated global and regional vendors characterizes the market.
As international players increase their market footprint, regional vendors will likely increase difficulty competing with these global players. The rivalry is solely based on durability, technology, services, price, and customization. The major vendors in the global cordless power tools market include Stanley Black & Decker, Techtronic Industries, Robert Bosch, Makita, and Hilti. Further, vendors must develop new technologies and remain abreast with upcoming innovations to have a competitive advantage. Many international players are expected to expand their reach worldwide during the forecast period to gain more market share, especially in the fast-developing countries in APAC and Latin America.
Market Opportunities & Trends
- Rising Demand for Industrial Heat Guns
- Increased Prominence of Asian Manufacturing
- Industry 4.0 and Smart Precision Manufacturing
Market Growth Enablers
- Advances in Li-Ion Batteries
- Growth in DIY Activities
- Growth in Use of Fasteners
Market Restraints
- Low-Cost Labor in Developing Economies
- Fluctuation in Raw Materials Pricing
- High End-user Variability
MARKET TRENDS & DRIVERS
Advances in Li-ion Batteries
The increasing need for extended battery life has driven significant advancements to enhance backup capacity. These developments have brought about remarkable improvements in the performance and efficiency of Li-ion batteries, encompassing enhancements in energy density, charging speed, cycle durability, safety, and stability.
While the transition to Li-ion batteries may incur an additional cost ranging from 10% to 49%, the preference for these efficient Li-ion batteries is steadily growing, particularly for applications in electric vehicles (EVs) and electronic communication devices. At present, the cordless power tools market mainly uses Li-ion batteries in their tools, giving tough competition to NiCd batteries. Moreover, Li-ion batteries have less harmful environmental effects from the advantages in storing aspects.
Increased Prominence of Asian Manufacturing
Since the first industrial revolution in the late 18th century, a few European countries and the United States have exerted significant control over the manufacturing sector. These nations have traditionally held considerable influence over essential global resources, positioning them advantageously to promote industrial development and lead the way in innovation through advancements in manufacturing technologies, materials, and solutions for end-users. Notably, some of the world's largest automotive, aerospace, and defense manufacturers are increasingly localizing their production activities in the Asia-Pacific (APAC) region while sharing technology.
INDUSTRY RESTRAINTS
Fluctuations in Raw Materials Pricing
The primary expense in power tool production arises from raw materials, which account for the most considerable portion of costs. These raw material expenses typically make up approximately 50% to 60% of the total production cost for these items. The prices of essential raw materials utilized in power tool manufacturing, including steel, plastic, rubber, fasteners, and batteries, have exhibited significant fluctuations in recent years. This instability in raw material prices poses a substantial risk to manufacturers' profit margins in the cordless power tools market. Furthermore, other operational costs, such as labor wages, are also experiencing a noticeable upward trend.
SEGMENTATION INSIGHTS
INSIGHTS BY TOOL TYPE
The global cordless power tools market by tool type is segmented as drilling and fastening, sawing and cutting, demolition, material removal, and routing tools. The drilling and fastening tool type held the most significant segmental share in 2022. The most common cordless power tools are drilling and fastening tools such as drills, impact wrenches, impact drivers, screwdrivers, and nut runners. The sawing and cutting tools segment is the second-largest segment; the higher share of the segment is favored because these tools are mostly used for wooden and metal works that need precision cutting. They are also used in DIY activities as most vendors offer user-friendly cutting tools, such as jigsaws, for home improvement and wood-crafting.
Segmentation by Tool Type
- Drilling and Fastening Tools
- Sawing and Cutting Tools
- Demolition Tools
- Material Removal Tools
- Routing Tools
- Others
Segmentation by Drilling and Fastening Tools
- Drills
- Impact Drivers
- Impact Wrenches
- Screwdrivers & Nut Runners
Segmentation by Sawing and Cutting Tools
- Circular Saws
- Reciprocating Saws
- Band Saws
- Jigsaws
- Shears and Nibblers
Segmentation by Demolition Tools
- Demolition Hammers
- Rotary Hammers
- Hammer Drills
Segmentation by Material Removal Tools
- Sanders
- Grinders
Segmentation by Routing Tools
Segmentation by Others
- Layout Tools & Laser Tools
- Dust Extractors
- Heat and Glue Guns
INSIGHTS BY CATEGORY
The mass category segment dominated the global cordless power tools market in 2022. Mass cordless power tools are mainly used to clean and maintain moderate-sized homes or yards. The segment is projected to grow significantly during the forecast period due to high customer preference.
INSIGHTS BY END-USER
The industrial end-user segment emerged as the leading source of revenue in the global cordless power tools market in 2022, and this pattern is expected to persist over the projected period. Hand tools are extensively used across various industries, including automotive, aerospace, electronics, energy, construction, shipbuilding, etc. Within this spectrum, the construction sector takes the lead in generating revenue, driven by the region's increasing construction and renovation endeavors.
Following closely behind is the automotive industry, which specializes in the assembly precision components. Drilling and fastening tools are the major tools for tightening fasteners, engine mounting, and other joint works. Sanders and angle grinders are used for smoothening and polishing the vehicle parts and chassis. With the global electric vehicles market growing at 60% annually, expansion and increased production facilities can increase demand for cordless power tools, especially in fastening tools, routing, and the material removal tools segment.
GEOGRAPHICAL ANALYSIS
North America held the most significant global cordless power tools market share, valued at over USD 6 billion in 2022. The region is projected to uphold its leading position throughout the forecast period, primarily driven by revenue generated in the United States.
North America boasts a multitude of significant industries, encompassing automotive, construction, aerospace, electronics, and packaging, among others. Particularly noteworthy is the North American automotive sector, which hosts the world's largest population of electric vehicles, a response to the growing consumer demand for environmentally friendly products.
Key Company Profiles
- Stanley Black & Decker
- Robert Bosch
- Techtronic Industries Company
- Makita
- Hilti
Other Prominent Vendors
- Atlas Copco
- Apex Tool Group
- Ingersoll Rand
- Snap-on
- Koki Holdings
- Emerson
- Panasonic
- Fortive
- Positec
- CHERVON
- FEIN
- FERM
- AIMCO
- Uryu Seisaku
- INTERSKOL
- Festool
- Kyocera
- CS Unitec
- Dynabrade
- Husqvarna
- STIHL
- Blount International
- AEG
- Wagner Group
- The Steinel Company
- Hitachi-Koki
- Master Appliance Corp
- Dongcheng Tools
- Seekone
- Genesis
- FERM
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 572 |
| Forecast Period | 2022 - 2028 |
| Estimated Market Value (USD) in 2022 | $14.41 Billion |
| Forecasted Market Value (USD) by 2028 | $26.29 Billion |
| Compound Annual Growth Rate | 10.5% |
| Regions Covered | Global |
For more information about this report visit https://www.researchandmarkets.com/r/fil8r
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