Power Tools Market Size, Share & Trends Analysis Report By Product (Drills, Saws, Wrenches, Grinders, Sanders), By Mode Of Operation (Electric, Pneumatic), By Application (Industrial, Residential), By Region, And Segment Forecasts, 2025 - 2030

Power Tools Market Size & Trends

The global power tools market size was estimated at USD 32.95 billion in 2024 and is expected to grow at a CAGR of 9.4% from 2025 to 2030. As governments worldwide undertake infrastructure development projects, the demand for power tools used in construction activities is anticipated to grow in the coming years. 

Such initiatives are expected to lead to aggressive investments in non-residential construction projects and subsequently drive the demand for power tools over the forecast period. The U.S. market dominated and accounted for a market share of 86.4% in 2024. The demand for power tools in the U.S. has been increasing steadily over the past few years, driven by factors such as the growth in the construction industry, the popularity of DIY projects, and the increasing adoption of power tools in industrial and manufacturing settings. Overall, the demand for power tools in the US is expected to grow in the coming years, driven by various factors across various industries and consumer segments.

The popularity of cordless power tools is growing noticeably amongst consumers. Battery-operated, cordless power tools, such as crimpers, hammer drills, impact drivers, impact wrenches, and circular saws, are used in construction, repair, and maintenance applications as well as in sanding, metalworking, and welding, among other tasks, and are widely being adopted across several end-use industries. Power tools powered by lithium-ion batteries are significantly gaining traction. They are expected to replace power tools operating on conventional batteries, such as nickel-cadmium (Ni-Cd) batteries and nickel-metal hydride (Ni-MH) batteries.

Technological advancements are influencing market growth. Companies are introducing technologically advanced products to enhance their efficiency. For instance, the Flexvolt battery offered by Dewalt automatically switches battery voltage depending on the tool you attach to it. An automatic voltage switch helps manually adjust the power before using different corded power tools. In addition to technological innovations, the increasing adoption of cordless tools that provide easy mobility and no external power source is driving market growth. The growing demand from household applications and the revival of industries in the near future are expected to uphold market growth over the forecast period.

Market Concentration & Characteristics

The power tools industry has seen significant innovation driven by advancements in battery technology, smart connectivity, and ergonomic design. Cordless tools, powered by high-capacity lithium-ion batteries, offer comparable performance to corded versions, enabling greater mobility and convenience. Integrating IoT features, such as Bluetooth-enabled diagnostics and tool tracking, enhances user efficiency and reduces downtime. Moreover, manufacturers focus on sustainability by developing energy-efficient motors and recyclable components, catering to professional tradespeople and DIY consumers seeking reliable, high-performance tools.

The threat of substitutes in the power tools industry remains moderate, primarily influenced by the availability of manual tools and outsourcing services. While manual tools are less efficient and labor-intensive, they may appeal to budget-conscious or infrequent users. Furthermore, some consumers may hire professionals instead of investing in expensive power tools, particularly for specialized tasks. However, modern power tools' increasing affordability, versatility, and user-friendliness continue to mitigate these threats, especially as DIY culture and home improvement trends gain traction.

Product Insights

The drills segment dominated the market in 2024 with a revenue share of 32.9% and is expected to continue leading over the forecast period. Drills are easy to use and cheaper than other power tools. They are commonly used in industrial and household applications. Drills are also prominently used as basic repair and maintenance tools, thus driving segmental growth. The product segment is bifurcated from drills into saws, wrenches, grinders, sanders, and others.

Wrenches is anticipated to grow at a healthy CAGR of 10.6% during the forecast period. Power wrenches reduce time and manual effort in fastening compared to traditional wrenches. Wrenches are prominently used in production plants to improve work efficiency. The automation of production facilities is a major contributor to the segment's growth. The saws segment accounted for a market value of USD 7.7 billion in 2024. The construction industry is a significant user of saws, and its growth has driven demand for saws. Construction companies use saws to cut and shape materials such as concrete, metal, and wood.

The rise of DIY projects has contributed to the increased demand for sanders. Sanders are useful for sanding down surfaces such as walls, furniture, and floors, which are common in home renovation and improvement projects. Advancements in sanding technology have made sanders more efficient, easier to use, and more versatile. For example, random orbital sanders can sand in circular patterns, reducing the risk of leaving scratches or marks on the surface being sanded.

Application Insights

Industrial applications held more than 62.1% of the revenue share in 2024. These include automotive, construction, aerospace, and logistics tools. Increased technological innovation and adoption of advanced technologies among these industries are crucial for the dominance of industrial applications over the residential segment. The automotive and construction industries have the highest adoption of power tools, thus driving the segment’s growth.

Overall, the demand for power tools in industrial applications is expected to continue growing due to the increasing adoption of automation, the need for productivity and efficiency, the demand for precision, technological advancements, and safety considerations. As manufacturing, aerospace, and automotive industries continue to grow, the demand for power tools is expected to increase, driving the segment’s growth.

The residential application segment is projected to witness the highest CAGR of 10.4% during the forecast period. The growth is primarily attributed to the growing trend of DIY culture. The availability of user-friendly and easy-to-operate power tools is vital for the considerable growth rate of household applications. Renovation and remodeling of construction projects are growing, leading to increased product utilization in the residential sector.

Homeowners are increasingly choosing to renovate their homes, which is driving the demand for power tools. They are essential for many home renovation tasks, such as cutting, drilling, sanding, and painting. Also, there is increased awareness among homeowners about the benefits of using power tools. Homeowners are realizing that power tools can save them time and effort and help them achieve professional-level results.

Mode Of Operation Insights

The electric mode of operation segment accounted for the largest revenue share of around 66.0% in 2024. The demand for electric power tools is increasing due to their convenience, efficiency, safety, durability, technological advancements, and cost-effectiveness. As more people take up DIY projects and home renovations, and as industries such as construction and manufacturing continue to grow, the demand for electric power tools is expected to rise.

The pneumatic mode of operation accounted for a market revenue share of 26.6% in 2024. The demand for pneumatic power tools is increasing due to their high power and torque, durability, cost-effectiveness, safety, and versatility. As industries such as automotive, construction, and manufacturing continue to grow, the market demand for pneumatic power tools is expected to rise.

The cordless electric mode held a significant share in 2024 and is expected to dominate the market throughout the forecast period. Many power tool manufacturers are modifying their product portfolios and increasing their cordless power tool offerings for their customers. Moreover, cordless tools are user-friendly and easy to use for industrial and household applications. The advent of powerful battery packs has increased the power of electric tools. The electric model of operation is further segmented into corded and cordless. Pneumatic tools do not generate emissions or produce hazardous waste, making them environmentally friendly and compliant with regulatory standards.

Regional Insights

Asia Pacific held the largest market share of 35.6% in 2024. Due to the flourishing automotive industry in countries such as India and China, the region is projected to witness the highest CAGR over the forecast period. Increasing disposable income and growing construction & infrastructure development activities are major factors influencing the growth. Low production costs and availability of cheap labor are leading multinational companies to set up production facilities in developing countries, such as China and India. Moreover, government efforts to boost local production, support manufacturers, reduce the import of goods, and become self-sufficient are expected to boost the industrial sectors and further fuel the growth of power tools over the forecast period.

China Power Tools Market Trends

The power tools market in China is attributed to rising government investments in infrastructure projects, including railway construction, data centers, and ongoing belt and road initiatives, which are expected to drive the demand for power tools in the coming years. In addition, the Chinese government’s initiatives to boost the manufacturing sector are expected to fuel the demand for tools in industrial sectors. For instance, in 2015, China’s government started an initiative named "Made in China 2025" to upgrade the manufacturing base with the development of ten high-tech industries, which include electric cars, aerospace engineering, high-tech maritime, rail infrastructure, biomedicine, artificial intelligence, advanced robotics, information technology, and telecommunication. China’s goal to reduce dependence on foreign technology and promote Chinese manufacturers is expected to boost China's manufacturing and industrial sectors, thereby increasing the requirement for power tools, further fueling market growth.

Europe Power Tools Market Trends

The power tools market in Europe is expected to grow at a CAGR of 9.7% over the forecast period. Europe comprises many developed economies, such as Germany, the UK, Russia, Italy, and France, with well-established construction sectors. According to the European Commission, the economy depends on its construction industry. The region is characterized by several large-scale construction companies, including Saipem, Balfour Beatty, Strabag, Hochtief, Bouygues, ACS, and Vinci.

Germany power tools market held the largest market share in the European market. The automotive industry in Germany is one of the largest in Europe in terms of revenue and volume, owing to the specific and innovative nature of country-based manufacturers and suppliers. Germany is one of the major markets in Europe for aerospace manufacturers owing to growing innovation, competence, and technological support offered by key players. This is expected to maintain the demand for power tools in the aerospace and automotive industries.

North America Power Tools Market Trends

The power tools market in North America is expected to meet around one-third of the global operational fleet requirements, resulting in an increased demand for airframe and other aircraft parts over the forecast period. Furthermore, commercial aircraft are expected to witness the highest demand over the forecast period owing to the increasing passenger and freight traffic. Since the commercial aircraft manufacturing industry in Asia is relatively small, a large number of aircraft are imported from North America. This is expected to boost market growth in North America.

The U.S. power tools market is increasing owing to the flourishing aerospace, construction, and automotive industries. The U.S. has a huge aerospace production owing to the presence of manufacturing facilities for all major industry players. The major manufacturers of aerospace & defense products in the country are Boeing, Lockheed Martin, and Airbus.

Latin America Power Tools Market Trends

The power tools market in Latin America is expected to grow significantly over the forecast period. Emerging economies, such as Argentina, Brazil, and Peru, are witnessing population growth coupled with rapid urbanization. These factors are triggering the construction of residential and commercial units in Latin America, fueling the demand for power tools in the region. A rise in the development of single-family houses in Latin America also contributes to the growth of the residential construction market. The rising percentage of single parents is anticipated to drive the demand for single-family housing units in Latin America from 2025 to 2030.

Middle East & Africa Power Tools Market Trends

The power tools market in the Middle East & Africa is expected to grow significantly over the forecast period. The oil and gas industry in the Middle East plays an important role in contributing to its economy. Power tools are used in the oil and gas industry's exploration, drilling, and production activities. Moreover, countries in the Middle East are also focusing on industrialization and diversifying their economies to reduce their reliance on the petroleum sector. This is expected to boost the manufacturing sector of the Middle East, including electronics and automotive, increasing the demand for tools and equipment and thereby fueling the demand for power tools.

Key Power Tools Company Insights

Some key players operating in the market include Atlas Copco and Hitachi Koki Co., Ltd.

• Atlas Copco AB manufactures power equipment, compressors, and industrial machines.

• Koki Holdings Co., Ltd. manufactures and sells power tools. Major brands include HIKOKI, Metabo HPT, and Metabo.

Stanley Black & Decker & Hilti Corporation are some emerging market participants in the Power Tools market.  

• Stanley Black & Decker offers hand and power tools with related accessories, fastening systems and products, services, and equipment for various industries such as oil & gas and infrastructure, security systems, and healthcare solutions.

• Hilti Corporation is a technology company focused on product development and manufacturing, logistics, sales, and servicing of technological equipment.

Recent Developments

• In March 2023, the company launched its new product, GBH 18V-22 Professional. The product is compact and lightweight, offering superior safety and protection. Furthermore, it is optimized for overhead installation work, fitting seamlessly on a rotary hammer.

• In June 2023, DEWALT, a Stanley Black & Decker brand, launched two new seal-headed ratchets. The products protect against automotive solvents and oils and are generally used in the electrical, mechanical, MRO services, and automotive sectors.

Power Tools Market Report Scope

Global Power Tools Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global power tools market report based on product, mode of operation, application, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Drills

  • Saws

  • Wrenches

  • Grinders

  • Sanders

  • Others

• Mode of Operations Outlook (Revenue, USD Million, 2018 - 2030)

  • Electric

  • Pneumatic

  • Others

• Applications Outlook (Revenue, USD Million, 2018 - 2030)

  • Industrial

  • Residential

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa