ID: PMRREP35488
Format: PPT*, PDF, EXCEL
Last Updated: 15 July 2025
Industry: Industrial Automation
Number of Pages: 187
The global power tools market size is likely to be valued at US$35.27 Bn in 2025 to US$45.8 Bn by 2032 with a CAGR of 3.8% during the forecast period from 2025 to 2032.
Power tools are mechanized devices powered by electricity, battery, or compressed air, designed to perform tasks such as cutting, drilling, grinding, sanding, and fastening with greater speed and efficiency than manual tools. They are widely used in construction, manufacturing, automotive, woodworking, and DIY (do-it-yourself) projects. The power tools market is experiencing robust growth and transformation, aligning with technological advancements, consumer trends, and industry demands. Moreover, the market is witnessing a strong shift toward cordless, electric, and smart tools. This transformation is fueled by rising construction activities and DIY adoption, alongside increasing investments in infrastructure.
Key Industry Highlights:
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Global Market Attribute |
Key Insights |
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Power Tools Market Size (2025E) |
US$ 35.27 Bn |
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Projected Market Value (2032F) |
US$ 45.8 Bn |
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Global Market Growth Rate (CAGR 2025 to 2032) |
3.8% |
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Historical Market Growth Rate (CAGR 2019 to 2024) |
3.0% |
The power tools market is significantly driven by rapid growth in infrastructure development in the emerging economies, with the integration of industrial automation. The rapid urbanization is encouraging industries to grow in the regions. These industries are shifting towards automated industrial operations, driving the use of hydraulic and electric tools.
The large scale construction projects, supported by governments such as India’s Smart Cities Mission and China’s Belt and Road Initiative, are fueling the adoption of advanced tools. Electric drills, drivers, and cordless saws are increasingly used in commercial and residential projects for precision and productivity.
The market players are investing in product developments. 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. These toolboxes are essential in nailing, drilling, grinding and layout work, designed for tradespeople who demand performance and reliability in every application.
Rising geopolitical tensions, tariff impositions, and global supply chain disruptions are accelerating the cost of power tools, posing a significant restraint to market growth. The tariff plans imposed by the U.S. government under President Trump’s order in April 2025, forced the leading global manufacturers to change their strategies.
Stanley Black & Decker, maker of DeWalt, Craftsman, raised prices by high single digits 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 in price sensitive consumers and emerging market buyers.
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. This trend has grown in the COVID-19 pandemic and post-pandemic time due to the unavailability of the 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 for 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.
Drills & drivers are leading the power tools market, with a share of 17.8% in 2025, due to their versatility and general application across construction, renovation, and other industries. Their compatibility with electric and cordless platforms makes them more efficient and user friendly. Their dominance is supported by increasing infrastructure development and the growing DIY users.
The government initiatives in the growing infrastructure, 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. The enhanced safety features with the comfort of electric source are making 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 world market accessory, as well as the Blue Xtreme™ carbide-tipped drill bit. The new Bulldog Xtreme8™ concrete drill bit, which is compatible with all SDS-plus rotary hammers, debuted alongside Bosch Power Tools’ Blue Xtreme™ carbide-tipped drill bits, which includes either the PowerGrip Shank or the ¼ In. Hex Shank, depending on the bit’s diameter and length.
Electric tools hold the largest share of 41% in the power tools market, driven by their reliability, ease of use, and suitability across a wide range of applications. This equipment is 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.
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.
The manufacturers are innovating more electric tools to attract more consumers. For instance, in May 2025, Milwaukee Tool launched the M18 FUEL™ 7-¼" Rear Handle Circular Saw. Designed for the professional carpenter, remodeler, and general contractor, the new saw sets a new standard as the most powerful and fastest saw in its class. Featuring the latest in cordless innovation, the POWERSTATE™ Brushless Motor delivers 6000 RPM and maintains high speed under load.
The construction and renovation industry leads the global power tools market, fueled by ongoing urban infrastructure expansion, housing upgrades, and commercial development projects. The industry primarily used electric drills, drivers, and saws in various tasks. These tools are preferred due to their high efficiency and precision.
The government's missions and initiatives further drive the demand for power tools from the construction industry. Programs such as India’s Smart Cities Mission, China’s Belt and Road Initiative, and the EU Renovation Wave are investing billions into infrastructure renewal, energy efficiency retrofits, and new construction projects.
The global market players are developing new products for the construction industry. 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. From nailing and drilling to grinding and layout work, these toolbox essentials are designed for tradespeople who demand performance and reliability in every application.
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.
North America holds a dominant position in the global power tools market, with a share of 32%, driven by continuously growing construction activities, a mature DIY culture, and rapid adoption of advanced tools. The region, especially the U.S. market, benefits from strong residential and commercial renovation demand, supported by high disposable incomes and aging infrastructure.
The growing government initiatives are boosting the use of advanced digital power tools in the major industries. The U.S. Infrastructure Investment and Jobs Act allocated over $1.2 trillion for transportation, utilities, and public building projects, boosting the use of drills, saws, and fasteners on job sites.
The market players with an established presence in the region are focusing on product development. 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.
Europe is a steadily growing market for power tools, with a share of 29%, driven by a strong focus on sustainability and renovation of aging infrastructure. It has an established presence of global leading players, contributing to a considerable market share.
The government is encouraging the industries through their programs and initiatives to use electric tools, due to their advanced properties and safety features. 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 leading tool manufacturers are developing products continuously due to the continuously changing technology. For instance, in January 2025, Bosch Power Tools announced that it will launch more than 15 new products in the first quarter of 2025, the majority within its 18V category. Additionally, Bosch Power Tools will launch over 30 cordless tools, batteries, and chargers for the third year in a row, continuing to underscore the brand’s commitment to cordless and expanding its assortment across various trades.
Asia Pacific is the fastest growing region in the global power tools market, with the share of 24%, fueled by rapid urbanization, infrastructure development, and robust growth in the construction and manufacturing sectors. The rising middle class and growing e-commerce platforms are leading the DIY adoption in markets like India, China, and Southeast Asia.
The governments are investing heavily in infrastructure expansion through various programs and initiatives. Programs such as China’s Belt and Road Initiative, India’s Smart Cities Mission, and ASEAN’s Infrastructure Development Plans are driving large scale projects that require high volumes of industrial grade power tools.
The manufacturers are improving their market presence though investing in the product innovation. For instance, In October 2024, Makita Inc., a high-quality professional tool manufacturer, released a new 40V max XGT 9-inch power cutter designed to deliver more power and less vibration than previous models. The tool caters to general contractors, heavy industry professionals, and others.
The global power tools market is fairly fragmented by the presence of several well established players and a growing number of regional manufacturers. 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 the emerging regions, companies focus on affordability, distribution partnerships, and expanding offline and online retail network to penetrate the market.
Yes, the market is set to reach US$ 45.8 Bn by 2032.
Rising construction activities in the emerging economies and industrial automation drives the demand for the power tool market.
Increasing home renovation and DIY culture, with the growing penetration of online channels, is creating the opportunity for the market.
India is estimated to witness a CAGR of 4.1% in the forecast period.
Robert Bosch GmbH is considered the leading player in the Power Tools market.
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Report Attribute |
Details |
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Forecast Period |
2025 to 2032 |
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Historical Data Available for |
2019 to 2024 |
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Market Analysis |
US$ Million for Value |
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Key Regions Covered |
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Key Market Segments Covered |
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Key Companies Profiled in the Report |
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Report Coverage |
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Customization & Pricing |
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