World Demand for Power Tools to Exceed $32 Billion in 2018
Global demand for power tools is forecast to increase 4.8 percent per year through 2018 to $32.9 billion, an improvement from the gains recorded between 2008 and 2013. Advances will be fastest in the world’s developing areas, where significant and increasing levels of construction spending are expected. China and India, which are in the process of modernizing their housing stock, will see particularly rapid growth in power tool demand. Among developed nations, power tool sales will be boosted by improved economic conditions and increasing construction activity in the United States and throughout much of Western Europe. Electric tools account for the vast majority of total power tool sales, a reflection of their ease of use compared to other power tool types. These and other trends are presented in “World Power Tools,” a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
In 2013, the United States was the world’s largest consumer and second largest producer of power tools, accounting for 24 percent of sales and 12 percent of output. Between 2013 and 2018, the U.S. market will account for approximately one-sixth of additional global sales. As analyst Kyle Peters notes, “The country is a significant market for power tools because it is home to substantial tool using industries such as construction, general manufacturing and motor vehicle production and repair. In addition, there is widespread interest in do-it-yourself activities, resulting in a sizable consumer market.”
China was the second largest national market for power tools in 2013, with 10 percent of global demand, and was the largest producer, with one-third of global output. In addition, power tool growth in China through 2018 will be nearly double the global average. However, India will post even more rapid gains among major countries, albeit from a very small base. Both countries have extremely low power tool market penetration rates, with widespread adoption limited by the high initial purchase price of power tools compared to non-powered hand tools. Poverty and unreliable electric grids also play a role, particularly in rural areas. In both countries—and elsewhere in much of the developing world—the availability of low cost laborers utilizing hand tools has also adversely affected power tool sales, as it is often less expensive to pay additional laborers than it is to purchase and train laborers to use power tools. China, India and many other developing countries hold substantial pools of potential power tool users, which will fuel demand going forward as their economies continue to grow.
“World Power Tools” (published 01/2015, 407 pages) is available for $6,500 from The Freedonia Group, Inc. For further details, contact Corinne Gangloff at (440) 684.9600 or email@example.com. Information may also be obtained through www.freedoniagroup.com.