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The global power tool market size—estimated to be $34.3 billion in 2021—is projected to grow 5.7% annually, reaching $45.2 billion by 2026, according to a recent forecast by MarketsandMarkets.
The hottest products? Cordless electric tools, drilling and fastening tools, and those intended for pro users.
Tops by Power: Electric Tools
Based on mode of operation, the electric segment held the largest share of the power tools market in 2020 and is expected to continue making gains through 2026. The growth of electric tools will be fueled by innovations in battery technology and the growing adoption of cordless tools among industrial and residential users.
Currently, most manufacturers are focusing on producing cordless tools powered by lithium-ion (Li-Ion) batteries. Stanley Black & Decker, for example, recently introduced the DeWalt PowerStack 20V MAX—stacked Li-Ion pouch cell batteries for the construction industry. They are said to provide 50% more power from a battery that’s 25% more compact and 15% lighter.
“Our groundbreaking dependable lithium-ion battery pack represents a new threshold of cordless power tool performance, helping to further realize the full potential of the cordless jobsite of the future,” said Jaime Ramirez, executive vice president and president of Global Tools & Storage for Stanley Black & Decker.
Soon after, Flex Power Tools unveiled its own stacked battery technology, which had been in the works for five years.
A common thread has been manufacturers rolling out comprehensive cordless platforms—entire suites of tools that can be powered by the same batteries and chargers. DeWalt has its MAX and FlexVolt systems, Makita the XGT, Hilti the new Nuron platform, Bosch Profactor, Metabo MultiVolt, Milwaukee RedLithium. Their promotions and marketing slogans (Makita, “One System;” Bosch, “High Power, One Battery;” Milwaukee, “Everything Fits”) stress the idea of “one system fits all.”
Tops by Type: Drilling and Fastening Tools
By type, drilling and fastening power tools currently hold the largest share of the market and are estimated to retain that lead during the 2020-2026 forecast period, primarily due to their adoption in specific industries. Electric drilling and fastening tools are used by professionals and DIYers, while most pneumatic drilling and fastening tools are used in industrial environments, such as automotive and aerospace manufacturing plants.
Tops by Market: Pro Applications
According to the study, power tools are more often used in industrial/professional applications, and are rising extensively in prominent industries such as construction and automotive. The construction industry accounts for the vast majority of power tool demand, due to professionals heavily relying upon them for all manner of projects and uses.
The resumption of construction activities across the world following the outbreak of the pandemic has led to a surge in demand for power tools. Additionally, the growing industrial expansion, as well as rising repair and maintenance operations, have contributed to the growth of the market.
Tops by Region: Asia Pacific
APAC is expected to hold the largest growth rate of the global market during the forecast period, in great measure due to rising road construction and infrastructure activities, especially in emerging economies such as India, Singapore, China and Japan.
