Global Cordless Power Tools Market Outlook 2023-2028: A $26.29 Billion Market by 2028, Driven by Advances in Li-Ion Batteries, Growth in DIY Activities and Growth in Use of Fasteners

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Feb 15, 2024, 10:15 ET

DUBLIN, Feb. 15, 2024 /PRNewswire/ -- 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

For more information about this report visit https://www.researchandmarkets.com/r/he4esf

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