Global Portable Tools Market Outlook
Players in the industrial automation and equipment industry continue to face an environment that remains hyper-competitive. Evolution in end-user demand is influencing players in the industrial automation and equipment landscape to optimize their manufacturing process. Sluggishness in the oil & gas industry, muted growth in automotive sales, and stagnancy in the agriculture sector have posed challenges to players in the recent past.
With the increase in oil rigs and natural gas projects being quoted, various companies are making reinvestments, to either cater requirement of preventative maintenance or for generating a better ROI. Investing in infrastructure development remains a top priority for the industrial automation and equipment companies, with improvements in energy- and operational-0efficiency gaining center stage.
Continuous advances are witnessed in the progressive integration of information technology (IT) and operational technology (OT), along with the evolution of business systems for handling real-time transaction processing. Building blocks are being offered by innovators, designed specifically for accomplishing the aim of ‘connected enterprise’. New intelligent nodes, operating at the network edge for improving efficiency and performance of manufacturing processes, are offered by rapid propagation of technologies & concepts associated with Internet of Things (IoT).
A major challenge encountered by the global industrial automation and equipment industry is absence of multi-vendor application portability. Innovation is stifled without open ecosystems offering portable applications to vendor platforms. On account of this, non-traditional suppliers have embarked on launching next-generation products that are embedded with IoT software.
Data Analysis and Projection
Data analysis and projections were made based on proprietary research frameworks and statistical analysis, which was further validated from industry participants. These frameworks include Y-o-Y growth projections, macro-economic factor performance, market attractiveness analysis, key financial ratios, and others.
For public companies we capture the data from company website, annual reports, investor presentations, paid databases. While for privately held companies, we try to gather information from the paid databases (like Factiva) and based on the information we gather from databases we estimate revenue for the companies. In addition, the team tries to establish primary contact with the companies in order to validate the assumptions or to gather quality inputs.
Standard Report Structure
Specific Report Inputs
In case of portable tools, the market is witnessing a steady growth due to expansion in manufacturing and availability of the tools. There is also a growing trend of DIY products that has encouraged people towards owning portable tools. However, automation and price fluctuations may still impact the market to a great extent. All such dynamics are being closely observed to get an idea of the future forecast for portable tools market. The report includes an in-depth analysis of every aspect surrounding the products involved in portable tools market and the demand supply chain of every portable tool available in the global market.
By Sales Channel
Construction activities to open new opportunity doors for power tools and personal protective equipment
City planners and real estate agents have been raising substantial demand for landscaping in commercial as well as residential areas, as the number of dwellers has increased drastically in the past decade. With increasing activities in construction and real estate industries, portable tools are expected to gain high traction in upcoming years. With a growing number of consumers ready to pay more for a space with more gardening area, the demand for landscaping is rising in order to provide an aesthetic appeal to residential and commercial properties.
Persistence Market Research’s recently published report on the global market for portable tools (2018-2026) discusses various types of tools, including hand tools, garage tools, power tools, lighting tools, and personal protective equipment.
Among all portable tool type segments, according to the report, personal protective equipment (PPE) segment will maintain a significant edge over other categories in terms of revenue generation. The PPE segment is foreseen to reach a value of over US$ 45,600 Mn by the end of 2026, growing at a CAGR of 5.2%. The forecast makes it a dominant segment in the market, whereas power tools is also identified to be a key segment.
Bolstering housing investments to provide massive scope for portable tools market to grow
Major urbanization and infrastructural growth is being predominantly observed in some of the top countries from developing economies, including India and China. These regions are anticipated to create highly attractive markets for portable tools in the coming years. Sales in Japan grew with the gradual recovery of investments in the housing sector and the demand for restoration following the Great East Japan Earthquake. Also, a large chunk of population usually migrates from rural to urban areas in an effort to achieve better lifestyle and acquire high-quality economic services including education, healthcare, and work opportunities among others. These urban areas require high maintenance and updated infrastructure, resulting in generating high demand for portable tools. Government support and increased outsourcing of manufacturing endeavors in developed regions will continue to propel industrialization in emerging countries, which is further anticipated to boost growth of regional markets over 2018-2026.
Increased automation may cause a major setback to the demand for portable tools in the global market
Various industries are increasing the use of the automation technology and thereby, lowering the need for manual control i.e. human labor, which is primarily attributed to the advantages of automation - reduced labor costs, mitigation for effects of labor shortage, reduced manufacturing lead time, and improved product quality. Governments in emerging countries such as China, India, South Africa, and Brazil, are progressively injecting funds for automating processes in the manufacturing sector. Increased adoption of industrial automation in these regions is mainly due to gradual rise in labor wages. However, inclination of manufacturers on cost-cutting for a competitive edge will decrease the labor workforce, which in turn will hamper the adoption of PPE during the next few years. It is expected to have the greatest impact on global portable tools market and all the products involved in it.
On the other hand, the market also has to face the fluctuation in prices of raw materials used for tools, especially gardening tools. The rise in the cost of raw materials used for gardening tools directly affects operational costs of the manufacturing process, which is a primary concern among manufacturers. It ultimately destabilizes the supply chain and product selling price. The market is foreseen to be predominantly influenced by this factor during the forecast period.
Tools (Hand, Power, Garage and Lighting Tools)
?Personal Protective Equipment