Power tools market to 2021
The global power tools market demonstrates a highly-concentrated competitive landscape. In 2014, 70% of the overall market was occupied by four players; Robert Bosch GmbH, Makita Corp., Stanley Black & Decker Inc., and Hilti.
These players concentrate on developing user-friendly power tools to meet the expectations of end users. However, their focus is likely to shift towards technological innovations and the advancement of products over the next few years to maintain a competitive edge.
Boosted by the rising trend of do-it-yourself (DIY), the global market for power tools is likely to expand at a CAGR of 5.30% between 2015 and 2021, increasing from US$26.1 bn in 2014 to US$38.0 bn by 2021. With a share of 72%, construction applications led the demand for power tools in 2014. This segment is expected to continue its leading streak.
Geographically, the Asia Pacific has emerged as the leading contributor to the global power tools market. The region offers many opportunities and is expected to remain dominant in the coming years. The increasing number of infrastructure projects in China and India are likely to create opportunities for power tools manufacturers across the world. The Asia Pacific power tools market is expected to reach US$13.4 bn by the end of the forecast period.
Increasing urbanisation and the growing need for infrastructure development is also driving the demand for power tools. In addition, do-it-yourself (DIY), propelled by the changing lifestyle of consumers and the increase in their disposable income, is likely to boost the market substantially over the forecast period.
However, the European and North American markets have already reached maturity, and so the growth prospect is very low in these regions. Nevertheless, the changing lifestyle preferences of consumers are projected to maintain a steady demand in these regions over the next few years. The rise in construction activities will also support the demand for power tools here.
The market’s progress may be hindered by the high maintenance cost associated with these tools, which is likely to limit their uptake in the coming years. Concerns over the high energy consumption by these tools will also act as a restraint to growth.
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