Ongoing strength in construction activity and housing starts will boost demand for power tools used in construction applications, and continued growth in manufacturing output will fuel demand for industrial power tools. Disposable incomes and consumer spending will contribute to sales gains in both the professional and consumer markets. Among consumers, those with less interest in do-it-yourself (DIY) activities will be more likely to outsource jobs to professionals, while many of those undertaking DIY activities will upgrade from more basic power tools to higher priced or more technologically advanced models.
Competition from imports
Power tools will face intense competition from lower-cost imports, particularly among more basic items. The largest foreign suppliers of power tools to the US market in 2015 were China, Germany, Mexico, and Taiwan, with China supplying more than half of all imports. China, Mexico, and Taiwan all have lower labor costs than the US, so power tools made in these countries are less expensive. A sizable number of power tools are sourced from Germany because of their reputation for quality. However, growth in imports will be limited to some degree by a trend toward “reshoring” production back to the US, as professional users are often willing to pay a premium for domestically produced tools perceived to be of higher quality.
Electric outpaces pneumatic
According to the Power Tools study, electric tools will continue to register the most rapid gains through 2020, outpacing growth in demand for pneumatic and other power tools. The improved accuracy and control that electric power tools offer will boost product sales. Demand for cordless electric power tools will expand at a faster rate than plug-in models through 2020. Advances in battery technology and continued efforts to reduce the weight and improve the runtime of battery-powered units will boost sales of cordless products. Manufacturers are using brushless motors, which are more efficient than brushed models, in conjunction with newer battery technologies to bring more powerful cordless electric tools to market. These motors are more expensive to produce, but their lower maintenance requirements and longer operational life help mitigate the cost premium.
Professionals continue to dominate market
The professional market accounted for nearly two-thirds of all power tool sales in 2015, though the consumer market will post faster gains through 2020. In addition, ongoing increases in automotive aftermarket service and repair spending, supported by the aging and growing stock of motor vehicles in the US, will help spur associated professional power tool sales.
Power Tools provides historical data (2005, 2010, 2015) plus forecasts (2020, 2025) by type (electric, pneumatic and other), by market (professional, consumer) and distribution channel (direct sales and distributors, home centers, e-commerce, other). The study also assesses key market environment factors, details the industry structure, evaluates company market share and profiles industry players such as Techtronics, Stanley Black & Decker, and Bosch.
Freedonia's market research studies provide timely access to reliable, unbiased analysis from which to benchmark performance and answer critical questions: Is your business growing faster or slower than the overall market? Is your organization gaining or losing market share? Which products and markets are the most desirable to explore for expansion? Are there industry trends or competitor activities that present a threat or opportunity to your business?
Studies offer a great ROI and can help business leaders make informed, analytically driven decisions. When considering the time, effort, and expertise that goes into it, our off-the-shelf research saves our clients time and money.
Our reports have been used by over 10K customers, including:
This report forecasts to 2022 US power tools demand in nominal US dollars at the manufacturer level. Total demand is segmented by product in terms of: electric drills, electric saws, other electric tools, pneumatic tools, and other tools. Total demand is also segmented by market as follows: professional and consumer. To...
The drilling tools market is projected to grow at a CAGR of 4.75%, from 2017 to 2022. The drilling tool market is projected to reach USD 8.61 billion by 2022, at a CAGR of 4.75%, from 2017 to 2022. Increasing drilling activities and the development of unconventional hydrocarbon resources along with growing energy demand...
Abstract Pneumatic Tools Procurement in the US This report is intended to assist buyers of pneumatic tools. Pneumatic tools, also known as air tools, are handheld industrial tools powered by compressed air. Suppliers include manufacturers, wholesalers and retailers, while key buyers include the construction...
467 pages •
By Global Industry Analysts
• Feb 2018
This report analyzes the worldwide markets for Outdoor Power Equipment in Units by the following Product Segments: Bug Killers, Chain Saws, Hedge Trimmers, Leaf Blowers (Back Pack Leaf Blowers, & Handheld Leaf Blowers), Outdoor Grills (Charcoal-Fired Outdoor Grills, Electric-Fired Outdoor Grills, & Gas-Fired Outdoor Grills), Walk Behind...
Renewed power: Improving production and construction activity will support industry growth Abstract Power Tool Manufacturing The Power Tool Manufacturing industry’s dependence on the construction sector led to unusually strong growth in industry revenue over the past five years. As...
“Power tools market to exhibit significant growth potentials between 2017 and 2023” The power tools market is expected to grow at a CAGR of 4.6% between 2017 and 2023, to reach USD 35.58 billion by 2023. The key driving factors for the growth of the market are the increasing urbanization, constant growth of the construction industry...