Cordless power tools are portable, battery-operated equipment for various commercial, residential, and other DIY activities. These compact, cordless tools can be installed with either brushed or brushless motors to operate.
New York, July 28. 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the publication of the report “Cordless Power Tools Market – Global Outlook and Forecast 2022-2027″ – https://www.reportlinker.com/p05881125/? utm_source=GNW
While the growth of Li-ion batteries is driving the demand for cordless power tools, high operation and maintenance costs are hampering the market growth.
Technological advancements have led to the development of several tools and machines used in all industries. Power tools are overtaking traditional hand tools in the professional and residential segments due to the demand for efficiency. For example, the construction industry is under great pressure to launch innovative tools that reduce human effort. The booming infrastructure and construction market is a boon for the power tools market which will also drive innovations in the future. Rising costs for manual labor, home improvement and DIY activities have driven the demand for user-friendly tools.
Key Winning Imperatives in the Global Cordless Power Tools Market
• Rising costs of manual labor, home improvement activities and DIY culture have increased the demand for user-friendly tools.
• The construction and automotive industries are the main drivers of cordless power tools.
• Innovations in battery technology have made Li-ion the first preference for providing battery backup for electronic devices. They have replaced traditional NiCd and NiMH batteries over the past decade.
• Power tools are outpacing traditional hand tools as professionals and home users try to work more efficiently.
Industry 4.0 and smart precision manufacturing are emerging trends
Traditional industrial automation architectures are not fully open, but are closed ecosystem communities that pose a significant barrier to multi-vendor integration. In early 2016, industrial automation architectures saw the emergence of new industrial automation system architectures and advanced technology applications. This was primarily aimed at creating efficient, responsive and flexible manufacturing. This should also support the growth of sophisticated cordless power tools.
The increased importance of Asian manufacturing creates lucrative opportunities.
Since the first industrial revolution at the end of the 18th century, the manufacturing sector has remained heavily dominated by a few European countries and the United States. These countries traditionally held immense control over critical resources around the world. They were better placed to foster industrial development and drive innovation through advances in production technologies, materials and end-user solutions. Some of the world’s largest manufacturers of automotive, aerospace and defense equipment are increasingly locating their production in APAC through technology sharing. An estimated $1 trillion is expected to be committed for investment between 2010 and 2020 in APAC’s manufacturing sector. Companies in the United States also contribute up to 30% of global investments that will help the cordless tool market grow.
Li-ion Battery Advancements Drive Industry Growth
Due to the increasing demand for long battery life, several advancements have been made to batteries for additional backup capacity. This has dramatically improved the performance and efficiency of Li-ion batteries. It also improved energy density, charge rate, cyclability, safety and stability. Although replacing Li-ion batteries incurs 10-49% additional cost, the preference for highly efficient Li-ion batteries is increasing.
Fluctuating commodity prices could affect the market
Raw materials are the biggest cost for power tools. These costs represent approximately 50-60% of the overall production cost of these products. Prices for primary raw materials used to manufacture power tools such as steel, plastic, rubber, fasteners and batteries have been volatile over the past few years. Commodity price volatility poses a serious threat to supplier margins. Other operating expenses such as labor salaries are also experiencing a sharp increase.
The drilling and fastening power tools market recorded 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 drivers. Most devices are not applied individually and each industry uses the optimal combination of these tools. For example, the application of drillers depends on the nature and type of work. Drills and impact wrenches give almost the same result. However, the difference is in the efficiency and overall productivity of the tools. Demolition Cordless Power Tools Market Expected to See 102 Million Units Shipment in 2027
The brushed motor market is expected to grow at a CAGR of 10.2% from 2022 to 2027.
The construction and design of brushed motors are simple. In addition, the manufacture is specific due to a small number of internal components. Therefore, the overall cost of brushed DC motors is low. Brushed motors are much more reliable and less expensive than brushless motors. However, based on horsepower, brushed motors are less powerful than brushless motors.
The 12V battery is the largest segment among others in the global cordless power tools market.
Several players produce li-ion batteries, such as Robert Bosch. BAT414 is a 12V Max 2.0 Ah lithium-ion battery offered by Robert Bosch. The BAT414 uses state-of-the-art technology for optimal battery life, power and autonomy. This is a more compact and lightweight power tool battery that is an ideal complement to the compact tools in the Bosch 12V range.
The industrial end user is the largest segment of 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 expected 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 one that generates the most revenue due to the increase in construction and renovation activities in the region, followed by the automotive industry, which involves the assembly of high-precision parts.
Segmentation by tool type
• Drilling and fixing tools
o Impact factors
o Impact wrenches
o Screwdrivers and nut drivers
• Sawing and cutting tools
o Reciprocating saws
o Circular saws
o Band saws
o Shears and nibblers
• Demolition tools
o Demolition hammers
o Rotary hammers
o Drill hammers
• Material removal tools
• Routing tools
o Dust extractors
o Heat and glue guns
o Layout tools
Segmentation by end user
o Other industry
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 cordless power tools market in 2021. The region is expected to maintain its position over the forecast period with revenue being primarily generated from the United States. North America is home to several major industries, including automotive, construction, aerospace, electronics, and packaging. The North American automotive sector has the largest number of electric cars in the world due to the growing demand for environmentally friendly products.
• North America
o United States
o United Kingdom
o South Korea
• Latin America
• Middle East and Africa
o Saudi Arabia
o South Africa
COMPANY & STRATEGIES
The global cordless power tools market is characterized by low market concentration and high competition. The current scenario pushes vendors to modify and refine their unique value propositions to achieve strong market presence. Currently, the cordless power tools market is moderately fragmented and vendor-dominated. The market is characterized by the presence of diverse global and regional vendors. As international players increase their footprint in the market, regional vendors will likely find it increasingly difficult to compete with these global players. The competition will be based solely on durability, technology, services, price and customization.
Main suppliers :
• Stanley Black & Decker
• Technology industries
The other top players are:
• Atlas Copco
• Apex Tool Group
• Ingersoll Rand
• Koki Holdings
• Uryu Seisaku
• CS Unitec
• Blount International
ANSWERS TO KEY QUESTIONS
1. WHAT WILL BE THE GLOBAL CORDLESS POWER TOOLS MARKET VALUE BY 2027?
2. WHAT ARE THE MAJOR INDUSTRIES USING CORDLESS POWER TOOLS?
3. WHICH REGION HAS THE MAXIMUM MARKET SHARE OF THE GLOBAL CORDLESS POWER TOOLS MARKET?
4. WHO ARE THE MAJOR PLAYERS IN THE POWER TOOLS MARKET?
5. WHAT ARE THE KEY DRIVERS AND TRENDS ENABLING MARKET GROWTH?
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