Cordless Power Tools Market Size and Share Analysis by Tool Type (Drilling and Fastening Tools, Sawing and Cutting Tools, Demolition Tools, Material Removal Tools, Routing Tools), Motor Type (Brushed Motors, Brushless Motors), Battery Voltage (12V, 18V, 20V, 40V, 40V and above), End-User (Industrial, Commercial, Residential) - Industry Trends and Growth Forecast to 2030

Market Overview

The global cordless power tools market size in 2021 was $21,233.4 million, and it is expected to advance at a CAGR of 9.2% during the forecast period, to reach $46,729.5 million by 2030. The primary factors driving the market growth are the expanding acceptance of cordless power tools, rising need for fastening tools in the industrial sector, and booming construction industry in developing nations.

Moreover, technological breakthroughs have resulted in the development of numerous tools and machines. Since battery-powered tools increase worker efficiency, they are widely replacing handheld and wired electric variants. Furthermore, the construction industry is under intense strain to use equipment that minimizes the requirement for human labor. The spike in infrastructure activities will, thus, act as a boon for the market in future. The rise in the cost of manual labor, increase in home repair activities, and growth in the number of DIY users also drive the demand for user-friendly products.

Market Scenario

The market is distinguished by intense competition, and to maintain a strong presence, businesses must modify and refine their distinctive value propositions. The market is now moderately fragmented, dominated by local vendors, and distinguished by the presence of numerous global and regional providers. Regional vendors are going to find it increasingly difficult to compete with global businesses as international players expand their market reach. The competition will be entirely on the basis of durability, technology, services, price, and personalization.

Furthermore, abundant raw material availability is crucial for cordless power tool manufacturers. Fluctuating raw material, components, and finished goods costs could create manufacturing interruptions, delays, inefficiencies, or an inability to market the products. Raw materials for cordless power tools can be found all around the world, and they are available at comparable prices with a variety of providers.

Increasing Manufacturing Prominence of Emerging Economies Creates Lucrative Opportunities

The cordless power tools market outlook is positive, as both the production capacity and demand are predicted to increase over the next decade. The rising automotive sales, rapid urbanization, and increasing number of government initiatives for infrastructure development have created opportunities for players to invest in emerging regions and gain profits from them.

The products’ demand in the construction industry is expected to increase over the forecast period with its expansion in emerging markets. The repair of historical structures and construction of new buildings are expected to drive the market growth during the predicted period.

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Tool Type Insights

Drilling and fastening tools are in great demand in a variety of industries, including construction and manufacturing. These tools are also employed in DIY residential and commercial projects. Hence, by the end of 2030, the category is predicted to account for more than 24% market share.

The sawing and cutting tools category is the second-largest, as these instruments are typically utilized for the precise cutting of wood and metals. They are also utilized in DIY projects, because most vendors sell user-friendly cutting instruments, such as jigsaws, for home improvement and woodworking.

To achieve the desired product shape and dimension, material removal tools are employed to clean undesirable material off of metals. The growing need for fabricated metal products is driving the expansion of the material removal tools market, particularly because cordless electric material removal tools are widely used in a variety of industrial applications.

Similarly, demolition tools are widely employed to bring down a variety of structures. Extensively used in the construction sector, demolition hammer tools are powerful enough to splinter wood walls, concrete surfaces, and tile flooring.

In the coming years, sales of routing tools will expand dramatically. For copying components, profiling edges, polishing veneer, cutting joinery, mortising inlays, and creating hinge mortises, routers are widely used in the woodworking industry. Price, performance, ergonomics, and runtime are some of the key deciding considerations in purchasing.

Cordless Power Tools Are Extensively Used in Construction Industry

The industrial sector accounted for the largest revenue share in the market in 2021, due to its frequent use of cordless power tools. The primary reason for the dominance of industrial applications is the acceptance of cutting-edge technology, especially in the construction sector. Due to the increasing construction and restoration operations, the construction sector generates the most revenue, followed by the automobile industry, which involves the assembly of high-precision parts.

Modern infrastructure projects have increased the demand for battery-powered tools in the construction sector because they promote worker safety, while offering better efficiency and accuracy. Cordless drills and cutters are common pieces of power equipment in the construction industry. Construction activities are expected to grow dramatically in developing countries, such as India and China, as a result of the strong government support and rising income levels, which will fuel the market's growth.

The residential end user category is expected to have the highest CAGR, of more than 9.9%, over the projection period. The growing popularity of the DIY culture is the main factor contributing to the cordless power tools market growth in this category.

The key factor behind the significant growth rate of domestic applications is the accessibility of user-friendly and simple-to-use cordless power tools. The number of renovation and remodeling projects is rising, which is causing an increase in the use of cordless power tools in the residential market.

Regional Insights

In the coming years, APAC will experience the fastest growth, at a more than 10.1% CAGR, due to the booming automotive industry in China and India, rising disposable income, and expanding construction and infrastructure development activities.

Europe is expected to grow strongly in the future as well, driven by the presence of a vast number of manufacturing facilities in regional nations, especially Germany and the U.K., and due to the advancements in technology. Innovative designs, combined with the ease of handling and enhanced operational efficiency, are expanding the market in Europe. Furthermore, the rising demand for power tools in construction and automotive sectors is propelling the industry forward. The increasing interest in home improvement, as well as the rising demand for comfort and safety, are driving the demand for cordless power tools among DIY enthusiasts.

North America is also a sizable shareholder, with a revenue share of over 28% in 2021. The cordless power tools market demand is being driven by the region's expanding infrastructure and industrial sectors and the presence of significant firms. Additionally, the lack of inexpensive labor encourages the adoption of the DIY ideology, which promotes the regional industry growth.

Additionally, the MEA and LATAM will have significant growth rates in the years to come, as a result of the expanding industrial sectors, including energy and construction. Additionally, a number of firms are diversifying their product lines in these regions due to the consistent expansion of the industrial sector.

To Increase Market Share, Companies Involving in Collaborations

Strategic alliances and mergers are being pursued by businesses to broaden their product offerings and gain a competitive edge. For instance,

• In November 2021, Metabo HPT and Drop Zone collaborated to provide cordless power tools for outdoor enthusiasts.

Companies are also investing in research and development, in addition to inorganic growth tactics, to produce and sell items with cutting-edge technology. For example,

• In January 2022, VTOMAN introduced an easy-to-use cordless power tool kit on Indiegogo, a crowdsourcing platform. The polymer ternary lithium battery used by VTOMAN offers quick charging in 1.5 hours.
• In March 2021, Lowe's Companies Inc. and Chervon introduced FLEX, a cordless power tool range.

Top Players in Cordless Power Tools Market Are:

• Apex Tool Group LLC
• Atlas Copco AB
• Hilti AG
• Ingersoll Rand Inc.
• Hitachi Ltd.
• Makita Corporation
• Robert Bosch GmbH
• Snap-on Tools Company LLC
• Stanley Black & Decker Inc.
• TTI Group

Global Cordless Power Tools Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Tool Type

• Drilling and Fastening Tools
• Sawing and Cutting Tools
• Demolition Tools
• Material Removal Tools
• Routing Tools

Based on Motor Type

• Brushed Motors
• Brushless Motors

Based on Battery Voltage

• 12V
• 18V
• 20V
• 40V
• 40V and above

Based on End-User

• Industrial
• Commercial
• Residential

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Spain
  • Italy
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa
  • Turkey
  • Saudi Arabia
  • South Africa