Demand for power tools in the US is projected to increase 2.9% per year through 2024 to $9.4 billion. The market for power tools is dependent on macroeconomic factors such as employment levels, construction activity, durable goods manufacturing, and disposable personal income, all of which will be hampered by pending recessionary impacts as a result of the COVID-19 pandemic. Nonetheless, opportunities exist targeting homeowner DIY activity and upgrade sales, including more powerful cordless tools and products that are easier to operate.
Demand for cordless electric power tools continues to outpace that for plug-in versions, aided by product development of more powerful and longer lasting tools. The availability of lithium-ion batteries has enabled tool manufacturers to create tools that are comparable to their plug-in counterparts in more tool categories. Professional end users are increasingly willing to choose cordless power tools as they become better able to handle heavier tasks. This continued innovation, coupled with the fact that cordless power tools are more convenient and safe, will drive gains going forward. Lastly, as the cost of these products comes down, end users will opt for battery-powered tools over alternatives.
Professional tool demand is expected to continue to outpace consumer demand through 2024 due underlying conditions that in the long run support gains despite near term challenges in these market sectors:
Although manufacturing employment is expected to decline through 2024 as a result of the lingering effects of the pandemic and greater automation in US factories, demand in this market will be realized by power tool upgrades that improve production efficiencies.>/p>
Although not as big as the professional market, consumers remain a very important outlet for power tool manufacturers. Consumers are inspired to purchase tools for projects around the house by the internet and DIY home shows. While some consumers buy these products as they aspire to be handier around the house, many purchase them out of necessity for a particular project.