US Power Tools

Report Overview

Cordless tools have proven to be popular with consumers, but less with professionals.

• How are power tool manufacturers addressing professional concerns?

Featuring 133 tables and 67 figures

Demand for power tools is expected to expand 3.4% yearly to $13.2 billion in 2028. Sales to professionals and consumers grew at double-digit paces in 2021, and then demand remained near or at those levels in 2022 and 2023.

Going forward, trends will normalize and sales growth will return through the forecast period, boosted by:

• product developments – especially related to more torque, longer lasting batteries, quick charging systems, and less weight – that will entice users to purchase power tools or upgrade the ones that they already own

• growth in employment in the underlying markets, especially among younger professionals who often do not have their own tools (because older and better-equipped workers are retiring)

• professional users’ continued uptake of cordless tools based on improvements that make them usable in more demanding applications

Cordless Tools Lead, but Opportunities for Conversion from Corded Still Exist

Over the last decade, cordless power tools have increased share; 68% of all power tool sales in the US were cordless electric in 2023. Historically, consumer uptake drove a significant portion of increased sales, but consumer uses are becoming mature. Going forward, greater opportunities exist for cordless power tools in professional settings that have not yet seen a large-scale conversion to cordless. New battery technologies, tools with greater power, and safety concerns surrounding workplace hazards (such as power cords and hoses) have made these products more appealing for professionals. Hence, professional cordless tool demand will see the fastest gains through 2028.

Retention of Those Who Engage in DIY Projects Essential for Consumer Sales

Sales of power tools to consumers surged in 2020 and 2021 as a combination of pandemic-related trends – including increased time spent at home and temporary financial stimulus from the government – caused DIY home improvement projects to spike. While sales subsequently moderated in 2022 and 2023 – due in part to a return to pre-pandemic behaviors by much of the public and high levels of inflation that dissuaded some people from purchasing additional tools – the base of consumers willing to tackle DIY projects had been broadened.

Going forward, demand in the consumer market is expected to remain well above pre-pandemic levels even as growth normalizes. Essential to supporting these sales will be the retention of consumers who maintain interest in DIY projects, as they may be more willing to purchase more project-specific tools or upgrade their existing tools to better performing models.

Historical Market Trends & Growth Factors

Power tools are used in construction, industrial, and manufacturing settings to:

• build and repair structures and infrastructure

• produce and maintain automobiles and other vehicles

• manufacture durable goods such as cabinets, furniture, and machinery

Tools are also used for simple household, hobby, and do-it-yourself (DIY) tasks. The outlook in professional key end use sectors contributes directly to the health of the power tools market on a year-to-year basis. However, their use in repair applications and general tasks insulates the market somewhat from more significant volatility.

At the broadest level, demand for power tools reflects growth in the overall economy. A combination of both consumer and industrial factors supports gains in the power tool industry:

• spending and trends in consumer behavior toward household projects and hobbies

• new building construction activity and improvement and renovation activity

• fluctuations in automobile replacement and repair rates and expansion of the motor vehicle base

• manufacturing shipments and trends in professional tools

However, these trends are not mutually exclusive to these segments of the power tool industry. Home renovation projects, for example, can be done by both consumers (DIY) and professionals (DIFM). Another factor is sales of existing homes, which often depend on current mortgage rates; such sales can spur consumers to purchase new tools, particularly if they are first-time homebuyers. It can also lead to significant investment in the form of professional construction for renovations.

Lastly, product innovation can drive sales of replacements and larger sets of tools. Higher requirements for quality, productivity, and ergonomics – as well as changes in manufacturing methods – can drive spending on power tools.

Historically, market gains have been somewhat limited by competition from rental tools (which are available at major retail outlets such as Lowe’s and Home Depot), inheritance of used tools, and hand tools. Most consumers do not use power tools on a regular basis, which also limits replacement demand.

Supply & Demand

Exports

US exports of power tools are expected to rise. Unlike imports, exports were volatile between 2018 and 2023. Companies that produce in the US continue to tout quality in their marketing efforts to consumers and professionals. That said, exports will continue to be hindered by overseas producers that can take advantage of lower labor and production costs.

Canada was the leading destination for US exports of power tools in 2023. Mexico is another major export market for US. Both Mexico and Canada benefit from their proximity to and trade agreements with the US, such as United States-Mexico-Canada Agreement (USMCA).

Countries in Western Europe – such as Germany, France, Belgium, the Netherlands, and the United Kingdom – are also major destinations for US-made power tools. Together, Germany and France alone received over 6% of US exports in 2023.

Market Trends: Professional vs. Consumer Tools

Demand for power tools in the US is forecast to grow 3.4% annually to $13.2 billion in 2028, a deceleration from the pace seen during the 2018-2023 period, as trends normalize following rapid sales gains in 2021 and elevated levels of demand in 2022 and 2023.

Gains will be supported by the continuation of major trends like:

• purchases of new power tools by first-time homeowners and DIYers

• growth in employment in the underlying markets, especially among younger professionals who often do not have their own tools (because older and better-equipped workers are retiring)

• the continued shift from plug-in electric power tools to pricier cordless versions in both markets

Power tool demand can be broadly segmented into two markets, professional and consumer. Growth in the professional market will be supported by the increasing number of younger construction workers, mechanics, and other laborers in the workforce, many of whom do not already have their own tools. Additionally, gains will be supported by the higher replacement rate of professional tools compared to those used by consumers. This is due in part to the faster adoption of new technology in the professional market. This also leads to a shift in product mix toward more expensive tools. For instance, value-added smart features (such as tool tracking and error monitoring) primarily appeal to professionals.

However, demand in both primary markets for power tools can be affected by the popularity of tool rentals, which allow users in either market to save on the costs associated with purchasing tools outright. While sales of tools to rental companies support demand, the rentals then act to limit the size of the market.

Technology Trends

Technological developments are critical to continued sales growth in the power tool industry:

• Most innovation is driven by competitive forces, as tool producers use technologically advanced products that solve user problems (such as worker fatigue and injury) to gain market share.

• Innovation can also piggyback off technological advances in other industries, such as batteries or electronics

• Environmental regulations may require the development of new processes to increase product sustainability by reducing the use of energy or raw materials.

Areas of recent development activity include creating lighter, easier-to-use products; reducing tool vibration; increasing tool power and battery life; and simplifying or streamlining the use of accessories. These innovations are designed to improve product performance, convenience, and safety. Often, innovations are first introduced in professional tools since professional users require higher performance and functionality and are willing to pay a premium for new features or improvements.

Report Details

This study examines the US market for power tools, including electric (plug-in and battery-powered), pneumatic, and hydraulic, powder-actuated, and engine-driven portable power tools, parts, and attachments for them that are used in a variety of applications. Historical data (2013, 2018, and 2023) and forecasts for 2028 and 2033 are presented for demand in value terms in current dollars (including inflation) and real dollars by product type, power source, and market. Annual data for 2020-2027 are also presented.

Types of power tools and their parts and attachments include:

• drills

• hammers

• impact wrenches

• nailers and staplers

• percussion tools (such as utility hammers and riveting hammers)

• planers and routers

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

• sanders, polishers, and grinders

• screwdrivers

• other power tools such as cutting tools, engravers, glue guns, leveling devices, lubricating equipment, nibblers, nutrunners, riveters, and shears

• parts and attachments such as batteries, battery chargers, chiseling tools, dies, drill bits, drill chucks, driver bits, dust collection systems, grinding discs, hammer heads, sanding belts, sanding pads, and saw blades

Demand is segmented by power source:

• electric (plug-in and battery-powered)

• pneumatic

• hydraulic, powder-actuated, and engine-driven

Parts and attachments are broken out for each power source except for engine-driven power tools, which, given their small market size, are grouped with the demand for engine-driven power tools themselves.

Excluded from the scope of this study are:

• air compressors

• chainsaws

• hand tools such as manual screwdrivers and saws

• machine tools such as computer numerical control (CNC) equipment

• nail and staple cartridges

• table and wall-mounted saws

For the purposes of this study, tools assembled in the US (regardless of the source of the components) count as domestic production.