Published on : May 30, 2016
The global power tools market is expanding at a rapid pace thanks to the rising demand for urbanization in emerging economies. Power tools find application in construction and manufacturing industries for reducing the workload and increasing output. Due to the rising demand from across industries, the global power tools market is expected to rise at a CAGR of 5.3% between 2015 and 2021.
According to a report published by Transparency Market Research, the global power tools market stood at US$26.13 bn in 2014 and is expected to reach US$38.03 bn by the end of 2021. The market is considerably gaining from the rapid urbanization and industrialization witnessed in developing countries such as India and China. Additionally, the growing concept of modernization will also significantly boost the demand for power tools worldwide.
Demand from Manufacturing and Construction Industries Boosts Market for Power Tools
A power tool is a device used predominantly in the manufacturing and construction industry for performing tasks such as screw driving, drilling, chiseling, and sanding. It is actuated by a power source and a separated mechanism. Electric motor is one of the most commonly used power tool. It is used across various end-use industries to perform various tasks with ease. Other than the aforementioned functions, power tools are also used for heating, polishing, shaping, painting, and other purposes. These tools are also used for household purposes such as cooking and cleaning.
Asia Pacific to Continue Dominating Global Power Tools Market
Geographically, the global market for power tools is segmented into North America, Asia Pacific, Europe, and Rest of the World. Among the regions, the growth reported by the market in Europe and North America has become stagnant, since these regions already have a developed infrastructure. Nevertheless, the market sees lucrative prospects in Asia Pacific. The rapid urbanization and industrialization witnessed in India and China are responsible behind the rising demand for power tools from Asia Pacific. The region led the global power tools market in 2014, accounting for a share of 30%.
Based on application, the global market for power tools is classified into construction, automobile, electronics, and aerospace. Of these, the construction industry dominated the market in 2014 and is expected to maintain its lead over the next few years.