Cordless Electric Tools Continue to Gain Share from Plug-In Tools
Global demand for cordless electric tools is forecast to rise 7.9 percent per year to $10.1 billion in 2022. Cordless tools have already overtaken plug-in electric tools in the United States, and similar achievements are expected imminently in high-income markets worldwide. Technological improvements will be the main driver of increased market share for cordless electric tools. These products will achieve higher maximum power capabilities and longer run times and the declining price of lithium-ion batteries will make cordless electric products more affordable to operate. These and other trends are presented in “Global Power Tools,” a new study from The Freedonia Group, a Cleveland-based industry research firm.
Global demand for all power tools is forecast to rise 4.5 percent per year to $37.2 billion in 2022. Cordless electric tools represent the strongest sales opportunity, as they are expected to rapidly gain market penetration through 2022. Opportunities for plug-in electric tools are mainly found in fast-growing developing markets; growth in developed countries will be limited. Pneumatic tools will retain a significant market niche, particularly in environments where relying on cords is not inconvenient. Products such as hydraulic and powder-actuated tools will continue to find use due to their strong performance characteristics.
The construction market will be the largest driver of power tool demand growth through 2022, with significant gains expected in developed and developing countries alike. Demand gains in the motor vehicle aftermarket will remain steady, reflecting the continuous need for vehicle maintenance. Consumer demand will continue to be concentrated in developed nations where DIY activities are a popular hobby, although rising income levels will support the expansion of consumer markets in developing countries.
“Global Power Tools” (published 03/2019, 401 pages) is available for $6,600 from The Freedonia Group, https://www.freedoniagroup.com/World-Power-Tools.html.