Power Tools Market to to be worth US$ 38.03 Bn by 2021
As per a new study by Transparency Market Research (TMR), the global power tools market exhibits a highly concentrated vendor landscape. The leading four players in the market, comprising Makita Corporation, Robert Bosch GmbH, Stanley Black and Decker Inc., and Hilti, held a share of around 70% in 2014. Of these, Robert Bosch GmbH emerged dominant accounting for just short of 30% of the market in 2014.
These companies are currently focusing on product innovation as the primary growth strategy. Among the various application segments, the leading companies have been capitalizing on opportunities exhibited by the construction industry. Besides this, the automotive industry has also been exhibiting lucrative prospects for the enterprises operating in the market.
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As per a TMR analyst, “The need for urbanization is a primary factor driving the global power tools market.” “The rapid development witnessed across emerging economies is creating demand for power tools in order to pace up the development process,” he added. These tools are used for various purposes such as drilling, screw driving, mining, chiseling, and sanding. Their demand is therefore expected to surge in countries witnessing robust infrastructural development such as India and China.
Since infrastructural development is at the core of urban development, the application of power tools across the construction industries of emerging economies is expected to rise considerably. TMR therefore expects the opportunities for sales of power tools to be extremely lucrative in Asia Pacific.
Besides this, the changing lifestyle and the increasing disposable income of the working class will encourage the uptake of power tools. As per TMR, the sales of power tools will increase due to the emerging do-it-yourself (DIY) trend. Encouraged by this new concept, common men across nations are investing on power tools to fix the minor faults in their electronics appliances or vehicles themselves. Such trends will augur well for the power tools market in the long run.
On the flip side, the high cost of maintenance has been threatening the growth of the power tools market. This condition applies particularly in case of developing countries where consumers may be unwilling to spend on the maintenance of the power tools. Opting for manual labor is thus a popular option, which in turn restraints the power tools market.
Nevertheless, the increasing investment in the infrastructural development in emerging economies will boost opportunities for sales of power tools in the near future. For instance, demand for power tools is significantly high in emerging economies of Asia Pacific such as India and China. These countries are currently reporting rapid economic development. Governments in these countries have been increasing their spending on infrastructural development, which in turn fuels demand for power tools from the region.
By application, the construction industry led the market with a share of 72% in 2014. As per TMR, the demand for power tools is poised to surge considerably in the automotive and electronics industry in the forthcoming years. In terms of technology, TMR forecasts the demand for electric power tools to increase at a considerable pace.
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