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Global Power Tool Demand to Exceed $27 Billion in 2015

Cleveland 7/05/2011 06:52 PM GMT (WooEB)

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. 

pr@freedoniagroup.com
www.freedoniagroup.com

 

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