World power tool demand is forecast to increase 4.5 percent annually through 2016 to $28.1 billion. The primary factor in growth will be recovery in the bedrock US market, especially as a rebound in US housing starts increases the number of professional tool users. Cordless electric tools will post the strongest gains, as these types continue to displace plug-in models due to their convenience and to improvements in lithium-ion battery performance. These and other trends, including market share and product segmentation, are presented in World Power Tools, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Outside of the US, the best opportunities will exist in the developing countries of Asia. India will post the fastest gains, due to robust growth in construction; however, the nation will continue to comprise less than two percent of world demand. China will also record healthy growth, and is expected to overtake Japan as the second largest market behind the US. Power tool demand will continue to be greatest in industrialized countries, a byproduct of their sizable professional markets, as well as relatively affluent consumer bases.
Cordless electric tool demand will experience the most robust growth through 2016, advancing 8.3 percent per year. Due to their inherent convenience and mobility, cordless tools will continue to replace plug-in models. Technological improvements in the battery industry have increased the power and running time of cordless equipment, allowing these products to overcome historical price and performance disadvantages. Due to their lower weight and smaller size, lithium-ion batteries are rapidly displacing nickel-cadmium models.
In the aggregate, electric power tools account for the majority of all power tool demand, as they are used extensively by both professionals and consumers in most applications. Demand for pneumatic tools, which are used almost exclusively by professionals, will be spurred by rising motor vehicle production and construction spending. Demand for engine-driven and other tool types (e.g., hydraulic, powder-actuated) will benefit from a recovery in the world’s forestry industry, as lumber is a key material used in the construction industry. The continued need for these tools in niche applications, such as metal joining, will also support advances.
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.