Global demand for power and hand tools is forecast to increase at a CAGR of 4.7% through 2025 to US$ 67 billion


Global demand for power and hand tools is forecast to increase at a CAGR of 4.7% through 2025 to US$ 67 billion. Demand for power tools will outpace that of hand tools and account for nearly 69% of overall revenues of the power and hand tools market by 2025. Sales of power and hand tools will be higher in household as compared to industries as DIY trend gains traction in developing regions.

Convenience and efficiency are two key factors ramping up demand for power tools vis-à-vis hand tools. Preference for power tools is more pronounced in developed regions vis-à-vis developing regions. While hand tools market is expected to expand at a CAGR of 3.5% through 2025, the power tools will amplify at 5.4% during the same period.

Power Tools Market Size, Trends, and Forecast

 The power tools market was valued at US$ 26.2 billion in 2014, and it is forecasted to reach US$ 29 billion by the end of 2016. The macro-economic factors driving the power tools market include resurgence in the housing sector, surging automotive sales in emerging markets of Asia Pacific and Latin America. Demand for power tools is also linked to the broader urbanisation trend, as infrastructure development, such as transportation and related maintenance services require the use of power tools.

Request Free Report Sample@

Adoption of power tools is also robust in the semiconductor industry. As demand for consumer electronics grows exponentially, manufacturers are under increasing pressure to deliver finished goods in a time bound manner. Power tools which get more done quickly are witnessing adoption at a brisk pace.

READ  Global Rainwater Harvesting Market: Overview

Key trends in the global power tools market include,

  • Power tools are fast outpacing hand tools in both developed and developing regions.
  • Hand tools, which were once the preferred choice for first-time users and DIYers, are giving way to power tools.
  • Low-priced power tools are witnessing high demand, whereas expensive power tools are currently limited to professionals.
  • China-based manufacturers are fast gaining control of the market, owing to their competitively-priced range of products and wide range of offerings. China is the largest exporter of power tools globally, and the trend is expected to continue during the forecast period as well.
  • Innovation has brought down the prices of cordless power tools, owing to which demand has shot up. Ease of convenience and enhanced mobility are expected to ramp up demand for cordless tools during the forecast period as well.
  • Lithium-ion batteries are fast replacing Ni-Cd batteries in cordless power tools as the former are lightweight and have higher runtime than the latter.

Hand Tools Market Size, Trends, and Forecast

 The global hand tools market was valued at US$ 14.3 billion in 2014, and it is expected to reach US$ 15.4 billion by 2016. During the period 2015-2025, the hand tools market is expected to expand at 3.5% CAGR – 1.9% lower than that of power tools market. Demand for hand tools is expected to be supported by small scale industries and home-based projects where power tools are not a necessity.

Hand tools represented 35% revenues of the overall power and hand tools market in 2015; however, growing preference for power tools is forecasted to eat into the market share, and by 2025, hand tools’ share will reduce to 31.1%.

READ  Aussie dollar surges toward .77 cents on the back of strong oil price

Send An Enquiry@

Key trends in the global hand tools market include,

  • Hand tools manufacturers are looking at untapped opportunities in developing regions, especially in Tier II and suburban areas, where high price and lack of availability of power tools is creating favourable conditions for power tools.
  • Non-branded, low-priced hand tools – manufactured in China – have permeated the market, resulting into lower revenues for leading players.
  • Asia Pacific and Latin America will continue to be lucrative regions for hand tools, especially in countries where power tools have not yet permeated the market completely.

This post has been seen 180 times.


Future Market Insights is the premier provider of market intelligence and consulting services, serving clients in over 150 countries. FMI is headquartered in London, the global financial capital, and has delivery centres in the U.S. and India.