U.S. Power Tools Industry Overview
The U.S. power tools market size is anticipated to reach USD 12.99 billion by 2028, expanding at a CAGR of 3.5%, according to a study conducted by Grand View Research, Inc. The spread of COVID-19 has resulted in a sluggish growth in the demand for power tools in 2020. The market is projected to recover steadily over the next couple of years with the resumption of various end-use industries across the globe. Moreover, the pandemic has propelled companies to adopt online sales channels, which has opened new avenues for market growth.
U.S. Power Tools Market Segmentation
Grand View Research has segmented the U.S. power tools market based on product, mode of operation, application, type, and sales channel:
Based on the Product Insights, the market is segmented into Drills, Saws, Wrenches, Grinders, Sanders, Others.
- The drills segment held the largest revenue share in 2020, accounting for 31.4% of the overall market. Drills are one of the most popular tools in residential as well as industrial setups. They are widely used for applications that include holes drilling, home improvement, equipment maintenance, fixation of drywalls, and other operational activities. Additionally, drills are easier to operate and cheaper than other tools, which contributes to the large share of the segment. The advent of lightweight power drills is anticipated to upkeep the segment growth over the forecast period.
- The wrenches segment is projected to record a CAGR of 4.7% from 2021 to 2028. The growth of this segment is attributable to the ability of power wrenches to significantly reduce the time and effort required in fastening. Production and assembly units widely adopt power wrenches as they involve continuous assembling operations that require a lot of fastening and unfastening of bolts.
Based on the Mode of Operation Insights, the market is segmented into Electric, Pneumatic and Others.
- The electric segment was the most popular mode of operation in 2020, accounting for a revenue share of almost 60%. The segment is anticipated to continue its dominance over the forecast period due to the easy mobility offered by electric tools. The pneumatic segment is also expected to record healthy growth over the next seven years. Air-powered tools provide more speed and power compared to electric-powered tools. The RPM difference is a significant factor contributing to the growth of the pneumatic segment.
- The cordless sub-segment dominated the electric tools segment, accounting for over 60% of the overall segment share in 2020. The rapid adoption of Lithium-ion (Li-ion) batteries in power tools is anticipated to drive the demand for cordless electric power tools. These batteries are lightweight and long-lasting owing to their higher energy density. Therefore, such battery technologies are becoming popular among professional contractors and homeowners and are extensively used in harsh environments.
Based on the Application Insights, the market is segmented into Industrial and Residential.
- The industrial segment dominated the market in 2020, contributing 64.4% to the overall revenue. The large share is ascribed to the high adoption of power tools in the construction and automotive industries. Power tools help in improving operational efficiency by reducing the time associated with redundant tasks in these industries. As automotive manufacturers continue to increase their production capacities, the use of power tools has become necessary to manage the volume of work operations. Similarly, the need to reduce the time associated with construction jobs whilst maintaining quality has also accelerated the demand for power tools in the construction industry.
- The residential segment is poised for healthy growth, recording a CAGR of over 4% over the next seven years. The growing trend of DIY activities in the country is the primary factor anticipated to drive the segment growth. People are undertaking home improvement projects such as kitchen remodeling, landscaping activities, and patio or deck renovation, which augments the demand for power tools. Furthermore, innovations in power tools to provide a lightweight and easy-to-use power drills and hammers are expected to upkeep the growth of the residential segment.
Based on the Type Insights, the market is segmented into New and Aftermarket.
- The demand for new tools surpassed that of aftermarket products in 2020, contributing almost 74% to the overall market revenue. Technological advancements primarily drive the demand for new products as companies are focused on introducing suitable products for the U.S. market. Power tool manufacturers in the country are introducing products with dust extraction systems that are compliant with the U.S. Department of Labor’s OSHA standards.
- Power tool manufacturers also provide enhanced solution offerings that ease the process of integrating their products with AI platforms to transfer knowledge and train workers.
Based on the Sales Channel Insights, the market is segmented into Indirect Channel and Direct Channel.
- The indirect sales channel segment led the U.S. market for power tools in 2020, accounting for a 61.7% share of the overall revenue. The segment encompasses independent distributors, retailers, mobile tool distributors, industrial distributors, home centers, and retail lumberyards. Home Depot Product Authority, LLC and Lowe’s contributed a large share to the market revenue. Since these stores offer products catering to several categories, customers generally revisit the stores several times a month and buy tools from them regularly.
- The direct sales channel segment includes companies’ sales representatives and online sales websites. The segment is projected to record the fastest growth from 2021 to 2028, catapulted by the COVID-19 pandemic, which has propelled companies to focus on online sales in 2020. Moreover, there is a growing preference among end users for procuring tools through online channels as it saves time and offers convenience in the buying process.
Key Companies Profile & Market Share Insights
Some of the prominent players operating in the U.S. power tools market include,
- Apex Tool Group
- Atlas Copco AB
- Hilti Corporation
- Ingersoll-Rand PLC
- Makita Corporation
- Robert Bosch Group
- Stanley Black & Decker
- Techtronic Industries Co., Ltd.
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