World
power tool demand is projected to rise 4.4 percent per year through 2015,
reaching $27.3 billion.
The pace of growth will be most rapid in the developing countries of
Asia, where rising incomes and advances in residential and nonresidential
building construction activity will bolster demand. The US market will also provide solid growth
opportunities, reflecting a turnaround in the current housing crisis, as well
as continued enthusiasm for do-it-yourself projects by US consumers. These and other trends, including market
share and product segmentation, are presented in World
Power Tools, a new study from The Freedonia Group, Inc., a
Cleveland-based industry market research firm.
China
will post the strongest gains, as the nation continues robust growth in
construction expenditures.
India will also record strong gains in power tool demand, averaging 9.0
percent annually through 2015. Outside
of Asia, the most promising opportunities are in Eastern Europe, where rising
fixed investment activity will boost demand.
The relatively mature markets of Japan and Western Europe will continue
to see gains that considerably lag the global average, reflective of their
below-average outlooks for construction expenditures.
Electric
tools (plug-in and cordless) dominate world demand, representing over 70
percent of power tool sales in 2010. Electric tools (most notably hand drills)
will remain the leading type of power tool, due to their frequent use in both
consumer and professional applications.
Cordless products will continue to post the best gains, as improved battery
technology increases their performance advantages.
Professional
demand will grow more rapidly than consumer demand through 2015 as many nations
experience recovery in construction activity. Professional users account for more than
two-thirds of power tool sales, reflecting the greater concentration of
expensive power tools among this group.
Given the amount of use, professionals will spend more on better quality
tools, since the initial investment often pays off over the long run through
better performance and longer tool life.
Consumers, on the other hand, are more likely to shop by price, and
rarely have need of expensive tool systems like pneumatics and hydraulics.
The Freedonia
Group is a leading international business
research company, founded in 1985, that publishes more than 100 industry
research studies annually. This industry analysis provides an unbiased outlook
and a reliable assessment of an industry and includes product
segmentation and demand forecasts, industry trends, demand history, threats
and opportunities, competitive strategies, market share determinations and
company profiles.
