Power Tools Market Size, Share, Trends, and Growth Forecasts 2025 - 2032

Power Tools Market Size and Trends Analysis

The global power tools market size is likely to be valued at US$ 35.27 Bn in 2025 and is expected to reach US$ 45.8 Bn by 2032, growing at a CAGR of 3.8% between 2025 and 2032. Factors such as evolution in battery technology resulting in the growing adoption of cordless power tools in residential and commercial activities worldwide, as well as a sudden surge in the Do-It-Yourself (DIY) community, are considered primary forces propelling the global power tools market.

Power tools are machines or devices operated by an external power source such as electricity, battery, or compressed air, designed to perform a range of tasks including cutting, drilling, grinding, fastening, and more. These devices are used in various industries such as construction, manufacturing, automotive, woodworking, and DIY (do-it-yourself) projects due to their greater speed, efficiency, and strength.

Key Industry Highlights:

• Growing residential and commercial construction activities in the emerging economies and rapid industrial automation are driving the market demand.
• Owing to their versatility in various industries such as construction, renovation, and repair works, drills & drivers dominate the market, holding around 25.8% in 2024.
• Based on mode of operation, electric tools continue to lead the power tools market, holding a share of 75% in 2024, due to their convenience and lower maintenance needs.
• Based on end-user segment, with over 50% market share, the construction and renovation segment continues to contribute to the market growth primarily due to a rise in infrastructure investments globally, especially in residential housing.
• Based on distribution channel, the offline retailer leads the market with 64% share, due to strong consumer trust in physical retail and immediate product availability.
• Mature geographies such as North America and Europe together hold more than 60% of the global market, growing steadily due to the increasing DIY culture, advanced home improvement tools, and strong online retail networks.
• Asia Pacific is the fast-growing region with rapid urbanization propelling increasing investments in the infrastructure & construction sector in China, India, and Southeast Asia.
• Increasing home renovation and DIY culture, with the growing penetration of online channels, is enhancing the accessibility of power tools.

Global Market Attribute	Key Insights
Power Tools Market Size (2025E)	US$ 35.27 Bn
Projected Market Value (2032F)	US$ 45.8 Bn
Global Market Growth Rate (CAGR 2025 to 2032)	3.8%
Historical Market Growth Rate (CAGR 2019 to 2024)	3.0%

Market Dynamics

Driver - Rapid Advancement of Battery-powered Technologies is Significantly Driving the Demand for Cordless Power Tools

In the past few years, the global power tools market has witnessed a significant technological shift from corded electric power tools to cordless tools, because these tools are flexible, convenient, cost-competitive, and have user-friendly features. The power tools offer these features without losing power and efficiency. The fast improvement and rapid penetration of batteries with high-energy densities have upgraded these corded power tools with safer and long-lasting outputs. These battery platforms are also widely compatible with tools, increasing convenience and reducing costs to the customers.

Consumers are also keen to invest more in these tools because of cutting-edge technologies and upgraded features such as high-energy output, battery lifecycle, and compact products. With consumer preference towards electric cordless power tools, companies in this segment are also investing in product development and technological innovations. For instance, in June 2025, Bosch Power Tools announced a new round of product additions to its growing 18V cordless and accessory portfolio with new tools and solutions engineered for power, versatility, and efficiency across a wide range of jobsite tasks.

Market demand for power tools is also supported by growing infrastructure as well as residential & commercial construction activities worldwide. Emerging economies such as India, Southeast Asia, Brazil, and China are undergoing rapid urbanization, encouraging construction-related industries to grow. Electric drills, drivers, grinders & sanders, and cordless saws are increasingly used in commercial and residential projects for precision and higher productivity.

Restraint - Geopolitical Tension, Tariff Pressures, and Supply Chain Realignment Triggers Power Tool Costs

The global power tools market is susceptible to a range of factors, including rising raw material costs, volatile supply chain, and geopolitical tensions. Rising geopolitical tensions between the major contributing economies negatively affect the overall market performance. Geopolitical situations, particularly tariff impositions and restricted exports, are affecting the global supply chain, accelerating production costs with disruption in the availability of crucial components, posing a greater risk to market growth. For instance, the tariff plans imposed by the U.S. government under President Trump’s order in April 2025 forced the leading global manufacturers to alter their trade strategies.

Companies in the market face increased operational pressures due to these tariffs. For e.g., Stanley Black & Decker, maker of DeWalt, Craftsman, raised prices in April 2025 and plans another hike in Q3 to offset U.S. tariffs, especially China-related tariffs. The company is accelerating supply-chain reconfiguration, shifting manufacturing from China to Mexico and Southeast Asia, aiming for zero China exposure by 2027 and improved USMCA compliance.

The uncertainties in the global supply chain due to geopolitical issues are escalating the operational complexity and pricing pressure. Such factors can limit the market penetration, especially among price-sensitive consumers and emerging market buyers.

Opportunity - Rising DIY Culture and E-commerce Penetration Open New Opportunities for Power Tools

According to a study conducted by the Home Improvement Research Institute (HIRI), the home improvement market in the U.S. is projected to reach US$ 690 Bn by 2029, with homeowner confidence and rising disposable income being the primary drivers. The rising popularity of DIY activities and growing e-commerce penetration are creating substantial opportunities in the power tools market. Consumers, especially in North America and Europe, are increasingly engaging in home improvements and woodworking tasks. The DIY trend grew rapidly in the COVID-19 pandemic and post-pandemic times.due to the unavailability of professional home improvement and renovation services.

On the other hand, the government initiatives, such as the EU Digital Single Market Strategy and India’s Digital India Programme, support online retail growth. These initiatives drive the market players to expand their product portfolio according to consumers’ demand through digital channels.

Market players are investing in product innovation to meet the demand of consumers. For instance, in March 2025, Milwaukee expanded its thin metal category lineup with the introduction of the M18 FUEL™ 10-Gauge Nibbler, the largest capacity cordless nibbler on the market. Delivering on user demands, the new Nibbler is optimized for prefab and onsite mechanical and HVAC work.

Category-wise Analysis

Product Insights

Drills & drivers are leading the power tools market, with a share of 25.8% in 2025, due to their versatility and general application across construction & renovation, metal fabrication, woodworking, and other industrial activities. Their compatibility with electric and cordless platforms makes them more efficient and user-friendly. Their dominance is supported by increasing infrastructure development and a rise in DIY users.

Fastening tools are also one of the major product segments in the market to witness a significant boost in demand, largely fueled by automation in the assembly lines, especially in high-precision industries such as automotive and aerospace. Other popular power tools, such as power saws, grinders & sanders, guns, and wrenches are experiencing significant growth with factors such as the shift towards DIY culture, home improvement projects, innovation in battery technology, and rise in manufacturing activities.

The government initiatives such as the U.S. Infrastructure Investment and Jobs Act (IIJA) and Europe’s Renovation Wave Strategy are driving demand for efficient and more precise tools. With the comfort of an electric resource and enhanced safety and user-friendly features make drills more indispensable in emerging markets where urbanization and affordable housing projects are accelerating.

The leading market players are investing heavily in product development. For instance, in April 2025, Bosch Power Tools introduced two products, including the new Bulldog Xtreme8™ 8-cutter SDS-plus concrete drill bit, a first to the world market accessory, as well as the Blue Xtreme™ carbide-tipped drill bit.

Mode of Operation Insights

Electric tools hold the largest share of 75% in the power tools market, driven by their reliability, ease of use, and suitability across a wide range of applications. These tools are mostly used in heavy-duty construction, industrial tasks, and home renovations. Their dominance is fueled by increased demand for safe and efficient solutions across various industries. With rapid improvement in battery capacity and product safety, cordless electric power tools are becoming the preferred choice amongst customers. Pneumatic and hydraulic fluid power tools are also preferred options over electric power tools in activities requiring high precision and force, especially for heavy-duty industrial activities and automation. These modes of operation are likely to grow with a CAGR of 4-5% between 2025 and 2032.

The government initiatives are also driving manufacturers and consumers to use electric tools. For instance, the EU Green Deal and India’s Make in India campaign encourage cleaner and electrified tools in manufacturing and construction. The U.S. energy codes, and worker safety standards encourage consumers to use sustainable electric-powered tools.

Application Insights

The construction and renovation industry leads the global power tools market, fueled by robust infrastructure expansion, housing upgrades & renovations, and commercial development projects. From fixing small things to big construction projects, power tools are the mainstays of the construction and renovation segment due to versatility, precision, and efficiency.

In the past few years, the global power tools market has also seen a profound cultural shift towards the Do-it-Yourself (DIY) segment. The DIY/Home improvement segment is expected to be one of the fast-growing applications in the global power tools landscape. A surge in DIY activities worldwide has been a major force behind the growth of cordless power tools in key economies such as North America and Europe. Power tools, especially the electric segment, have become an indispensable tool for DIY enthusiasts owing to their greater portability.

Other prominent applications of power tools, including metal working, wood working, and industrial, are also likely to contribute to the global market growth. These tools are preferred due to improved efficiency, ease of operation, and precision, offering a range of shaping, cutting, and finishing capabilities.

In 2024, Stanley Black & Decker's brand CRAFTSMAN® announced a range of products in its V20* line specifically targeting DIYers with additional features such as versatility, runtime & performance, and brushless motors. The company is also highlighting its BRUSHLESS RP™ line, a product line offering enhanced power and efficiency for DIY enthusiasts.

Distribution Channel Insights

Offline distribution channels remain the dominant segment in the power tools market, primarily driven by strong consumer trust in physical retail, product demonstrations, and immediate product availability. The specialty tool stores, hardware chains, and authorized dealers play a critical role in serving both professional contractors and industrial users.

The growing infrastructure in the emerging economies and improving supply chain drive manufacturers to expand their global footprint through acquisitions and partnerships. For instance, in October 2023, The Hilti Group expanded its software business by acquiring 4PS Group, which specializes in providing business management solutions for the construction industry. Together, Hilti and the 4PS Group strengthen their position to drive the digital transformation of the construction industry.

Regional Insights

North America Power Tools Market Trends

North America represents the largest market for power tools and holds over 30% share in the global power tools market in 2024. The growth in the region is riven by growing repair & renovation activities in the residential sector, new construction projects in the commercial segment, and a resounding echo of DIY culture. The U.S. power tools market primarily benefits from strong residential and commercial renovation demand, supported by high disposable incomes and aging infrastructure.

The region saw a substantial growth for cordless electric power tools owing to the stringent government policies related to noise pollution, IoT Integration, and the integration of Industry 4.0 practices. Electric-based drilling and fastening tools hold a major chunk, with offline being the most popular distribution channel, because of the tangible experience of the products in the stores, anchoring customer trust.

The region is also home to power tool makers having a global presence, fostering product innovation and IoT integration. For instance, in January 2025, Hilti North America, a global leader providing innovative tools, technology, software, and services to the commercial construction industry, introduced the DD 150-U-22 Cordless diamond core rig, two DSH 600/700 cut-off saws, and PR 4/40/40G-22 Rotating Lasers to expand the all-on-one Nuron battery platform with innovation that meets the needs of contractors.

Sustainability and Renovation Policies Propel Power Tools Market in Europe

Green and sustainable construction has long been the foundation of Europe's environmental goals. The region is one of the pioneers in adopting power tools with eco-friendly features and practices to lessen the overall environmental impact. There has been a significant growth in demand for power tools due to the active renovation and maintenance activities in the residential sector, infrastructure development, and a rise in industrial activities in Central and Eastern parts of Europe.

DIY is another major driving factor for the demand for power tools in the region. Countries such as Germany, France, and the U.K. have a strong DIY culture, with a strong preference for home improvement activities by homeowners. On the other hand, Spain, Italy, Poland, and Portugal have more preference towards Do-it-for-me (DIFM), with home growers opting for professional services over DIY.

The government is encouraging the industries through their programs and initiatives to use electric power tools, as they have a lower environmental impact, reduced emissions, and quieter operations. Government initiatives such as the EU Renovation Wave Strategy, aiming to double building renovations by 2030, and Germany’s Climate Neutral Building Plan are driving the demand for cordless tools across residential and commercial sectors. The European Power Tool Association (EPTA) also acknowledges cordless electric power tools as the fast-growing category in the power tools segment, reflecting greater portability and safety of these devices.

Rising Urbanization and Manufacturing Expansion Drive Power Tools Growth in Asia Pacific

Asia Pacific is the fast-growing region in the global power tools market, with a share of 24%, fueled by strong demand from the new & renovation construction sector, infrastructural developments, as well as product benefits such as increased penetration, affordability, and ease in availability of power tools. The region witnessed growing customer awareness of these power tools, encouraging DIY culture in the region.

Rising middle-class population, growth in disposable income levels, and increasing e-commerce platforms are paving the way for embracing DIY or home improvement activities in markets such as India, China, and Southeast Asia. This shift in the culture from DIFM to DIY enthusiasts is likely to boost the demand for compact, versatile, and cross-compatible power tools in the region.

Competitive Landscape

New product innovation and strategic collaboration have been the ongoing theme in the global power tools market over the last decade. The market is dominated by companies with a global footprint, and regional manufacturers also hold a significant space. The market is shifting towards product innovation, battery technology, and enhanced product durability. Leading companies are heavily investing in R&D to launch next-generation cordless tools and modular platforms that address both professional and consumer demands.

In developed economies, the market is driven by brand loyalty, aftermarket services, and safety standards, while in emerging regions, companies focus on affordability, distribution partnerships, and expanding offline and online retail networks to penetrate the market.

Recent Industry Developments

• In May 2025, Milwaukee Tool introduced the latest advancement to their circular saw blade line-up. Designed for professional framers, carpenters, remodelers, roofers, and general contractors, the 7-1/4 inches 24T NITRUS™ Carbide Framing & Demolition Circular Saw Blade delivers the best-in-class cutting solution for framing and demolition applications, offering the fastest cuts and longest life.
• In June 2025, Bosch Power Tools announced a new round of product additions to its growing 18V cordless and accessory portfolio with new tools and solutions engineered for power, versatility, and efficiency across a wide range of jobsite tasks. From nailing and drilling to grinding and layout work, these toolbox essentials are designed for tradespeople who demand performance and reliability in every application.

Companies Covered in Power Tools Market

• Atlas Copco AB
• Emerson Electric Co.
• Enerpac Tool Group
• Hilti Corporation
• Ingersoll Rand
• Stanley Black & Decker Inc.
• Robert Bosch GmbH
• Makita Corporation
• Apex Tool Group
• Techtronic Industries Co., Ltd.