DUBLIN, Aug. 9, 2022 /PRNewswire/ — The “Cordless Power Tools Market – Global Outlook and Forecast 2022-2027” report has been added to ResearchAndMarkets.com’s offering.
The global cordless power tools market is expected to grow at a CAGR of 10.67% during 2022-2027
Cordless power tools are battery-operated portable equipment for various commercial, residential, and other DIY activities. These compact and wireless tools can be installed with either brushed or brushless motors for operation. While the growth in the Li-ion batteries stimulates the demand for cordless power tools, the high operational and maintenance costs hamper the market’s growth.
Technology advancements have led to develop several tools and machines used across industries. Power tools are outpacing traditional hand tools in the professional and residential segments due to the demand for efficiency. For example, the construction industry experiences high pressure to launch innovative tools that reduce human effort.
The surge in the infrastructure and the construction market is a boon to the power tools market that will also enforce innovations in the future. The rise in manual labor costs, home improvement activities, and DIY has pushed the demand for user-friendly tools.
Industry 4.0 and Smart Precision Manufacturing are the emerging trends
Traditional industrial automation architectures are not entirely open but are gated ecosystems communities that develop a significant obstacle for multi-vendor integration. In early 2016, industrial automation architectures witnessed the emergence of new and available industrial automation system architectures and advanced technology applications. This was mainly intended to create efficient, responsive, and flexible manufacturing. This is also expected to support the growth of sophisticated cordless power tools.
The increased Prominence of Asian Manufacturing creates lucrative opportunities.
Since the first industrial revolution in the late 18th century, the manufacturing sector has remained highly dominated by a few European countries and the US. These countries traditionally held immense control over critical resources worldwide. They were better poised to foster industrial development and drive innovation through advancements in production technologies, materials, and end-user solutions.
Some of the world’s largest automotive, aircraft, and defense equipment manufacturers are increasingly localizing their production in APAC with technology sharing. An estimated $1 trillion is set to be committed for investment between 2010 and 2020 in the manufacturing sector in APAC. Companies in the US also contribute as much as 30% of the overall investments that will help the cordless tools market grow.
Advances in Li-ion Batteries driving the industry growth
Due to the rising demand for long-lasting battery life, several advancements have been made in the batteries for extra backup capacity. This has dramatically improved the performance and efficiency of the Li-ion batteries. It has also improved energy density, charging rate, cyclability, safety, and stability. Though replacing Li-ion batteries will result in 10-49% of additional costs, the preference for the highly efficient Li-ion batteries is on the rise.
Fluctuation in Raw Materials Pricing Could Affect the Market
Raw materials constitute the single largest cost for power tools. These costs comprise approximately 50?60% of the overall cost of production for these products. Prices of primary raw materials used to manufacture power tools such as steel, plastic, rubber, fasteners, and batteries have been volatile over the past few years. The volatility of raw material prices poses a severe threat to vendor margins. Other operating expenses such as labor wages are also witnessing a sharp increase.
The drilling & Fastening power tools market witnessed 81.8 million units in 2021 and is expected to be the largest segment.
The most common cordless power tools are drilling and fastening, such as drills, impact wrenches, impact drivers, screwdrivers, and nut runners. Most devices are not applied individually, and every industry uses the optimum combination of these tools. For instance, the application of drillers relies on the nature and type of work. Impact drills and wrenches deliver almost the same result. However, the difference lies in the effectiveness and overall productivity of the tools. The demolition cordless power tools market is expected to witness a shipment of 102 million units in 2027
The Brushed Motors market is expected to grow at a CAGR of 10.2% from 2022 to 2027.
The construction and design of brushed motors are straightforward. Also, manufacturing is specific due to a small number of internal components. Hence, the overall cost of brushed DC motors is low. Brushed motors are much more reliable and less expensive than brushless motors. However, based on power, brushed motors are less powerful than brushless motors.
1. V battery is the largest segment amongst others in the global cordless power tools market.
Several players are producing li-ion batteries, such as Robert Bosch. BAT414 is a 12 V Max lithium-ion 2.0 Ah battery offered by Robert Bosch. BAT414 uses advanced technology for optimum battery life, power, and runtime. It is a more compact and lightweight power tool battery and is an ideal complement to the Bosch 12 V line compact tools.
Industrial end-user is the largest segment in the global cordless power tools market.
The industrial end-user segment was the largest revenue contributor to the hand tools market in 2021, and this trend is likely to continue throughout the forecast period. Hand tools are widely used in automotive, aerospace, electronics, energy, construction, shipbuilding, and other industries. The construction sector is the highest revenue generator due to the rising construction and renovation activities across the region, followed by the automotive industry, which involves the assembly of high-precision parts.
North America dominates the global cordless power tools market and is expected to grow at a CAGR of 9.3%during the forecast period.
North America was the largest market for cordless power tools in 2021. The region is expected to maintain its position during the forecast period, with revenue mainly generated from the US. North America is home to several large industries, including the automobile, construction, aerospace, electronics, and packaging. North American automotive sector is the highest number of electric cars in the world due to the rising demand for eco-friendly products.
The global cordless power tools market is characterized by low market concentration with high competition. The present scenario drives vendors to alter and refine their unique value propositions to achieve a strong market presence. Currently, the cordless power tools market is moderately fragmented and is dominated by vendors.
The market is characterized by the presence of diversified global and regional vendors. As international players increase their footprint in the market, regional vendors are likely to find it increasingly difficult to compete with these global players. The competition will be based solely on durability, technology, services, price, and customization.
Market Opportunities & Trends
- Rising Demand for Industrial Heat Guns
- Increasing 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
- Low-Cost Labor in Developing Economies
- Fluctuations in Raw Material Pricing
- High End-User Variability
- Stanley Black & Decker
- Techtronic Industries
- Robert Bosch
The other prominent players are:
- Atlas Copco
- Apex Tool Group
- Ingersoll Rand
- Koki Holdings
- Uryu Seisaku
- CS Unitec
- Blount International
For more information about this report visit https://www.researchandmarkets.com/r/adefkg
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