World Power Tools Market
World demand to rise 4.8% annually through 2018
NEW YORK, June 29, 2015 /PRNewswire/ -- Worldwide demand for power tools is forecast to increase 4.8 percent per year through 2018 to $32.9 billion, an improvement from the gains that were recorded during the 2008-2013 period. Advances will be fastest in the world's developing areas, where there is expected to be significant and increasing amounts of construction spending. In particular, areas in the process of modernizing their housing stock, such as China and India, will register especially rapid power tool demand gains. Among developed nations, power tool sales will be boosted by the projected economic rebound and the improving construction activity throughout much of Western Europe and the US.
China, India to be fastest growing power tool markets
In 2013, the US was the world's largest consumer, and second largest producer, of power tools. The US, alone, will account for approximately one-sixth of additional global sales between 2013 and 2018. This is a significant market because the country is home to substantial construction, manufacturing, and motor vehicle industries, with each utilizing a significant amount of power tools. In addition, there is widespread interest in do-it-yourself (DIY) activities, resulting in a sizable consumer power tool market. China, the second largest single country consumer of power tools in 2013, will achieve faster growth and account for one-quarter of additional global sales through 2018. However, India will post the fastest power tool sales gains between 2013 and 2018, albeit from a very small base. Both countries have an extremely low market penetration for power tools, with more widespread purchases limited by the high initial purchase price of power tools compared to non-powered hand tools. Poverty and unreliable electric grid also play a role, particularly in rural areas. However, this low base creates a large pool of potential power tool users, which will fuel demand.
Cordless electric power tools to grow the fastest
Electric tools account for the vast majority of total power tool sales, benefiting from their widespread use across the professional and consumer markets. In addition, cordless electric models will post the most robust growth in through 2018. Steady improvements in cordless battery technology, such as the adoption of lithium-ion batteries, has increased the power and run time of cordless tools. Power tool producers have also begun to design an entire line of tools around one battery structure, which increases convenience by reducing the number of spare batteries needed at the job site or around the home.
Construction spending to fuel key professional market
The professional market for power tools accounts for the larger share of global sales compared to the consumer market. The intensity of product use varies from country to country, as power tools face varying degrees of competition with hand tools depending on factors such as a country's level of industrialization, rate of construction spending, and the cost of labor. Advances for professional power tool sales will be bolstered by the solid, and sometimes accelerating, growth in construction spending through the forecast period. In the developed world, market penetration is much higher so more purchases are replacement and upgrade transactions. In the consumer
market, power tools growth is tied more closely to personal spending levels and cultural preferences.
Study coverage
This upcoming study, World Power Tools presents historical demand data (2003, 2008, 2013) plus forecasts (2018, 2023) by product, electric power source, market, world region, and for 25 countries. The study also considers market environment factors, evaluates company market share and profiles 35 global industry players.
Read the full report: http://www.reportlinker.com/p01104565-summary/view-report.html
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