Global Power Tools

Report Overview

Competition intensifying as power tool producers expand professional-grade cordless product lines

Key Themes Covered in this Report:

• Cordless conversion amid battery technology advances
• Innovations in high-power professional-grade tools
• Post-pandemic correction transitions and what marks the “new normal”

Featuring 206 Tables & 132 Figures!
 

Global power tool demand was $43.8 billion in 2024, and it is forecast to increase 3.7% per year to $52.4 billion in 2029. Sales in inflation-adjusted terms are expected to advance at a 1.8% annual rate, similar to that in the 2019-2024 period. Growth will be driven by rising building construction activity and durable goods manufacturing, particularly in industrializing nations. Consumer demand will continue to be more heavily influenced by trends in high-income countries.

Cordless Conversion Accelerating in High-Power Product Segments

Growing market share for cordless electric tools has represented a key trend in the power tools market throughout the 21st century, and will continue through the 2020s. However, the nature of the trend is evolving. In some segments – most notably consumer drills – cordless electric tools have already entrenched themselves as the dominant option, and hold limited potential for further market share gains. Continued technological advances are now driving more significant market growth for high-powered cordless electric products, especially those targeted at professional users.

Previous generations of cordless electric tools competed most directly with plug-in electric tools, while products like pneumatic and engine-driven tools – which are primarily sold to professional users with demanding performance requirements – were relatively resilient against cordless competition. Now, however, new generations of cordless electric tools are posing more serious threats to non-electric power tools, with products like cordless nailers and cordless impact wrenches achieving significant penetration of professional markets.

Demand Normalizing Following Post-Pandemic Market Correction

The global power tools market suffered a significant hangover following its 2021 pandemic-driven demand surge, with inflation-adjusted sales falling in both 2022 and 2023. The consumer market was particularly impacted, as homeowners in high-income nations shifted spending away from DIY products as the peak of the COVID-19 pandemic passed. This trend continued into 2024, but was largely at an end by the conclusion of the year. Going forward, consumer markets are expected to grow at rates more commensurate with overall consumer spending levels as new households are formed and existing homeowners resume expanding and updating their stock of power tools.

Industrialization & Foreign Investment Create Opportunities in South & Southeast Asia

Demand in India is expected to grow at the fastest rate globally, and a number of other South and Southeast Asian countries are expected to post particularly fast gains. Growth will be driven by broad industrialization and urbanization, with offshore investments by Chinese manufacturers particularly supporting demand gains. For example, between 2019 and 2024, Vietnam went from a minor power tool producer to one of the world’s largest exporters of these products, mainly due to investment by Chinese firms.

With geopolitical conflicts continuing to pose obstacles to trade – and Chinese exporters in particular seeking to retain access to lucrative Western markets – it is expected that foreign firms will continue to invest heavily in Southeast Asia, including both production of power tools and of other goods where power tools are used in the manufacturing process.

Historical Market Trends & Growth Factors

Global demand for power tools is influenced by a combination of macroeconomic, market-specific, and technological factors as well as consumer and end user preferences. Specific factors impacting demand include:

• the health of the global economy

• building construction activity

• manufacturing activity

• the number of motor vehicles in use

• consumer spending levels

• residential renovation and DIY versus DIFM trends

• raw material costs and supply chain challenges

• technological advancements and new product development

• E-commerce growth, as expanding online sales channels make power tools more accessible, particularly in emerging markets

In addition, changes in exchange rates and price levels impact power tool demand as measured in US dollar terms.

Due to the volatility of these indicators – in particular building construction – sales can fluctuate significantly from year to year. However, market volatility at the global level is mitigated to an extent by economic development in industrializing countries, which has provided a steady source of growth throughout recent history.

Power Source Trends

Global power tool sales are forecast to rise 3.7% per year to $52.4 billion in 2029. Electric tools will account for 84% of gains between 2024 and 2029, increasing their share of global sales over this span. Growth in demand for electric tools will be driven by ongoing advances in the cordless electric segment:

• Cordless electric tools will continue to entrench themselves in segments with less-demanding performance requirements, as their flexibility and convenience have already made them the dominant option for products like drills.

• Going forward, growth in demand for cordless electric tools will increasingly be driven by expansion into higher-powered segments, with the range of applications in which battery-powered products can offer competitive performance broadening considerably.

• This will particularly aid adoption of cordless electric tools in professional segments, as these users tend to have especially strict performance requirements.

Until relatively recently, cordless electric tools competed most directly against plug-in electric tools, and non-electric tools were able to hold their ground to an extent against cordless competition. However, the improving power capabilities of cordless electric tools have made them significantly more competitive against other product types. As a result, market share declines for pneumatic and other power tools accelerated between 2019 and 2024, and sales of these products will continue to grow at a somewhat slower pace through 2029:

• Pneumatic tools are seeing increasingly significant competition from cordless electric tools in segments like impact wrenches and nailers. However, these products will continue to find use in environments where a cord is not a major constraint.

• Engine-driven tools will post weak growth going forward due to their poor environmental profile, with many suppliers making efforts to phase out gas-powered product lines.

• Hydraulic and powder-actuated tools hold somewhat better potential to retain their market niches due to their especially strong performance characteristics, but these will remain relatively low-volume products restricted to professional markets.

Plug-In to Cordless Conversion

Demand & Forecasts

There are two major types of electric power tools: plug-in (or corded) and cordless. Plug-in electric tools receive energy directly from an electrical outlet, while cordless tools utilize rechargeable battery packs.

Global growth in demand for electric power tools through 2029 will be driven entirely by the cordless segment. Sales of plug-in electric tools will fall as competition from cordless products intensifies:

• Cordless electric tools have already achieved saturation in a number of product segments with less demanding power requirements, such as consumer drills.

• Going forward, rising market share for cordless electric tools will reflect product development that allows these tools to find more widespread use in niches where plug-in electric tools previously were able to retain a leading position.

• In particular, higher-powered professional-grade cordless electric tools represent a leading growth segment.

Plug-in electric tools will continue to find significant use in niches where long run times are a particularly valuable consideration. However, as battery technology advances and integrated battery platforms proliferate, this advantage will increasingly represent an advantage of cost, rather than an advantage of absolute capabilities.

Global Power Tools Report Details

Key Industry Participants Driving Trends

Global Power Tools Report Scope

This study examines global supply and demand for power tools. Historical data (2014, 2019, and 2024) and forecasts for 2029 and 2034 are provided for power tool demand by product, market, and power source; net exports; and shipments on a country-by-country basis. Annual data for 2021 to 2028 are also provided.
Power tools are segmented into:

• electric tools (plug-in and cordless)

  • drills

  • saws (e.g., circular, reciprocating, miter, band)

  • sanders, polishers, and grinders

  • other electric tools, including hammers, impact wrenches, planers and routers, and screwdrivers

  • batteries, parts, and attachments (e.g., drill chucks, driver bits, sand belts)

• pneumatic tools (e.g., nailers, staplers, sanders, riveters, drills, screwdrivers, nutrunners, riveting hammers)

• tools powered by other energy sources, including:

  • hydraulic (e.g., automotive service tools, drills, impact wrenches, rotary hammers, saws, spreaders)

  • powder-actuated (e.g., nailers, staplers)

  • engine-driven tools (framing nailers, drills, saws)

Electric tool demand is also presented by power source (plug-in, cordless).

Excluded from the scope of this study are:

• air compressors

• chainsaws

• hand tools such as manual screwdrivers and saws

• hydraulic jacks

• machine tools such as CNC equipment

• nail and staple cartridges

• power lawn and garden equipment such as trimmers/edgers and leaf blowers

• table and wall-mounted saws

Power tool demand by market is presented for professional and consumer markets. The professional market is further segmented into construction, motor vehicle aftermarket, and industrial and other (which mainly consists of manufacturing applications).

Demand by product and market is presented in dollar terms. Demand in value terms is shown at the manufacturers’ level and excludes distributor and retailer markups.