Advances in Li-ion Batteries Are Fueling Industry Growth in the Global Outlook and Forecast for the Cordless Power Tools Market for 2022 to 2027.

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Between 2022 and 2027, the market for cordless power tools is anticipated to expand at a CAGR of 10.67 percent.

Battery-powered portable tools known as cordless power tools are ideal for a variety of DIY projects around the home and office. Both brushed and brushless motors can be added to operate these small, wireless tools. The demand for cordless power tools is increasing as a result of the development of Li-ion batteries, but the market’s expansion is constrained by high operating and maintenance expenses.

Technology development has produced a number of tools and equipment that are employed in many different industries. Due to the demand for efficiency, power tools are exceeding traditional hand tools in both the professional and residential markets. For instance, there is a lot of pressure on the construction industry to provide cutting-edge products that minimise human labour.

The market for power tools is benefiting from the boom in infrastructure and building, which will also drive future advancements. The demand for user-friendly tools has increased as a result of rising manual labour expenses, DIY projects, and home renovation activities.

The two newest developments are Industry 4.0 and Smart Precision Manufacturing.

Traditional industrial automation architectures are gated ecosystems communities rather than fully open ecosystems, which creates a considerable barrier for multi-vendor integration. New and readily available industrial automation system architectures as well as cutting-edge technological applications emerged in the early months of 2016. The fundamental goal of this was to produce flexible, responsive, and efficient manufacturing. The development of advanced cordless power tools is also anticipated to benefit from this.

Rich opportunities are produced by Asian manufacturing’s rising prominence.

A small number of European nations and the US have continued to have a disproportionate amount of power in the manufacturing sector since the first industrial revolution in the late 18th century. These nations have historically had enormous influence over vital resources all around the planet. Through improvements in production methods, components, and end-user solutions, they were better positioned to promote industrial growth and innovation.

With the help of technology sharing, some of the biggest manufacturers of automobiles, aeroplanes, and defence equipment in the world are localising manufacturing more and more in APAC. The manufacturing industry in APAC is expected to receive investments totaling $1 trillion between 2010 and 2020. Additionally, up to 30% of the total expenditures that will support the expansion of the cordless tool market are made by US-based businesses.

Li-ion battery improvements are propelling the industry’s expansion.

Numerous improvements have been made in the batteries for greater backup capacity in response to the growing need for long-lasting battery life. The Li-ion batteries’ effectiveness and performance have significantly increased as a result. Additionally, it offers enhanced stability, safety, cyclability, and energy density. The desire for the highly efficient Li-ion batteries is growing even though changing them will add 10-49 percent to the cost.

Pricing Variations for Raw Materials May Impact the Market

The single highest cost for power tools is raw materials. These expenses make up roughly 50–60% of the total cost of manufacturing these products. Over the past few years, the cost of basic raw materials such as steel, plastic, rubber, fasteners, and batteries that are required to make power tools has fluctuated. The erratic price of raw materials seriously jeopardises vendor margins. Labor costs, such as wages, are one of the other operating expenses that have significantly increased.

MARKET SUBSECTIONS

In 2021, the drilling and fastening power tool market is projected to have 81.8 million units, making it the largest segment.

Drills, impact wrenches, impact drivers, screwdrivers, and nut runners are among the most often used cordless power tools for drilling and fastening. Most gadgets are used in combinations, and every industry employs the best set of these equipment. Driller applications, for instance, depend on the nature and type of job. Impact drills and wrenches produce results that are nearly identical. The effectiveness and general productivity of the tools make a difference, though. In 2027, 102 million units of cordless power tools for demolition are anticipated to be shipped.

From 2022 to 2027, the Brushed Motors market is anticipated to expand at a CAGR of 10.2%.

The design and manufacture of brushed motors are simple. Additionally, manufacturing is particular because there are few interior components. As a result, brushed DC motors are inexpensive overall. Compared to brushless motors, brushed motors are significantly more dependable and less expensive. However, brushed motors are less potent than brushless motors in terms of power.

  1. The V battery sector is the largest one in the overall market for cordless power tools.

Li-ion batteries are being produced by a number of companies, including Robert Bosch. Robert Bosch sells the BAT414 12 V Max lithium-ion 2.0 Ah battery. For the longest possible battery life, power, and runtime, BAT414 incorporates cutting-edge technology. It is a more portable and lightweight power tool battery and a perfect addition to the compact products from the Bosch 12 V series.

The largest market sector for cordless power tools is industrial end-users.

The hand tools market’s top revenue contributor in 2021 was the industrial end-user sector, and this pattern is anticipated to hold throughout the forecast period. The automotive, aerospace, electronics, energy, building and shipbuilding industries all make extensive use of hand tools. Due to the increased construction and restoration operations in the area, the construction sector generates the most revenue. The automobile industry, which requires the assembly of highly precise parts, comes in second.

North America now controls the majority of the global market for cordless power tools, and it is anticipated to expand at a CAGR of 9.3% over the forecast period.

In 2021, the largest market for cordless power tools was in North America. During the projected period, the area is anticipated to hold its position, with US sales accounting for the majority of revenue. Numerous significant industries are based in North America, including the automotive, building, aerospace, electronics, and packaging sectors. Due to the growing demand for environmentally friendly products, the automobile industry in North America has the largest percentage of electric vehicles worldwide.

Supplier Landscape

Low market concentration and fierce rivalry characterise the global market for cordless power tools. The current situation forces vendors to modify and improve their distinctive value propositions in order to have a significant market presence. At the moment, vendors dominate the relatively fragmented market for cordless power tools.

The market is distinguished by the presence of a variety of international and local sellers. Regional vendors will probably find it harder and harder to compete with these global businesses as international players expand their market share. Durability, technology, services, cost, and customization will be the only factors considered in the competition.

Business Dynamics

Opportunities & Trends in the Market

Demand for Industrial Heat Guns is Growing

Growing Asian Manufacturing Presence

Smart Precision Manufacturing and Industry 4.0

Market Growth Facilitators

Modernization of Li-Ion Batteries

An increase in DIY projects

Increase in Fastener Use

Market Limitations

Low-Cost Workforce in Emerging Market Economies

Price Variations for Raw Materials

Variability from High End Users

Major suppliers:

Black & Decker Stanley

Techtronic Businesses

Theodore Bosch

Makita

Hilti

The other notable participants are:

Co. Atlas

Tool Group Apex

Rand, Ingersoll

Snap-on

Holdings Koki

Emerson

Panasonic

Fortive

Positec

CHERVON

FEIN

FERM

AIMCO

Usaku Uryu

INTERSKOL

Festool

Kyocera

Unitec CS

Dynabrade

Husqvarna

STIHL

International Blount

Read more at: BusinessWire

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