Key Takeaways
- Anticipate market shifts by knowing that new battery technology is reshaping power tool design and sales.
- Understand that power tool sales are projected to decrease in 2025 before showing positive growth from 2026 through 2029.
- Support environmental responsibility by considering brands that invest in sustainable and energy-efficient power tool technologies.
- Discover that home centers remain the primary purchase location for power tools, with most buyers planning specific home projects.
Due to a number of issues, including inflation, the high cost of raw materials, and a weaker construction sector, power tool sales in the United States have been weak during the last year.
With the introduction of new technology and changing consumer tastes, this product category has seen substantial change in recent years. Just improved battery technology has revolutionised power tool manufacturing and distribution.In order to create cutting-edge power tools, features, and accessories that cater to changing consumer preferences as well as new safety and environmental regulations and standards for this product category, brands must be aggressive with research and development, even with a slightly more optimistic outlook in the forecast.
What is the Market Forecast for Power Tools?
More than just house building, remodelling, and gardening, there is something called power tools, that are just utilized in a number of other industries and sectors. These sectors may include the automotive industry, oil and gas sector, and aerospace sectors.
The Home Improvement Research Institute (HIRI) actually provides further information on power tool sales forecasts in their March 2025 U.S. Size of Market Report. These forecasts are directly linked to growth rates as a result of tools product category overall. Power tool sales are expected to fall in 2025. These sales will also likely impact both the professional and consumer market sectors. Despite the category having grown for several years in a row. The power tool market will then definitely anticipate to demonstrate a positive growth rate from 2026 to 2029 once they’ll get recovery in 2026.
According to Heeri Research, the professional market for power equipment, equipment and goods has increased rapidly since 2015. For example, the commercial market, an estimated $ 9.4 billion in 2015, to an estimated $ 9.4 billion by $ 4.5 billion, while the consumer market was estimated to reach $ 5.7 billion in 2015 and is expected to reach $ 2029 billion.
According to research by Fortune Business Insights, by 2032, the size of the power equipment industry worldwide is expected to reach $ 40.2 billion. In 2022, with an estimated 35% worldwide market share, the Asia-Pacific sector is now leading the power tools business. Robert Bosch are GMBH, Maqita Corporation, Stanley, Black and Decker Inc., and Hilty Corporation Power Tools leading companies in the industry.
Depending on how they work, electrical appliances come in many market groups, but the electric segment – which includes both cordless and corded instruments – is currently and possibly the most popular. Over the next few years, hydraulic power tools are also estimated to increase some.
Trends and Innovations in the Power Tools Industry
The power equipment zone, which includes out of doors energy system (OPE), is displaying indicators of enlargement, so it’s vital to understand the inner and outside drivers using the marketplace.
An define of a few current strength device developments and upgrades which can be predicted to have an enduring effect on product sales and industry improvements over the next several years is furnished below:
1. Construction Expansion as a Key Driver of Growth
The increase of the electricity equipment marketplace globally is ordinarily being pushed by the growth of the residential and business constructing sectors. The want for power equipment will increase in tandem with the increase of the construction quarter. It will even have an impact on the sort of products created due to the fact specialists in the creation industry like items that can be utilized in lots of ways.
When compared seriously to different parts of the world, such as Asia Pacific, the Middle East, and Africa, wherein there are greater opportunities for urbanisation and infrastructure funding, construction hobby in the United States is increasing slowly. Nonetheless, energy gear are still in excessive call for inside the US from both professional contractors and do-it-yourself families.
2. The Impact of Cordless Power Equipment
The acceptance and spread of cordless electricity gadget for the duration of the past few years, facilitated by using advancements in fabric science and battery era, has had a huge effect at the energy device area. Purchases of battery-operated and cordless screwdrivers, saws, and combination programs have improved at some point of this time. Not to say how quickly battery-powered OPE has improved in the client market over the past ten years.
When it comes to consumer preferences and what they seek for in power tools and equipment, power supply is typically a significant aspect. Lightweight, portable tools that are convenient to store and move to various job locations are in greater demand, but they must not sacrifice power—a feature that has previously been overlooked, particularly by professionals. Although pros are receptive to the advantages of cordless technology, which offers a greater range of applications, they frequently wait for manufacturers to provide a high-quality product that meets their needs. Manufacturing companies should keep investigating and introducing innovative technologies that extend battery life and outperform its non-battery competitors in order to make cordless power tools even more enticing and useful.
For instance, Robert Bosch GmbH made enhancements to its beloved Ixo Classic screwdriver, such as a 30% reduction in charging time. This kind of feature increases comparative value and reduces downtime, which improves the product’s usefulness.
3. Dealing with High Costs of Materials and Maintenance
For producers, raw material market volatility presents a hurdle. Continuous price swings on the worldwide market have an impact on common materials needed to produce power tools, such as steel, aluminium, and semiconductor chips.
Furthermore, the complexity of new technology is frequently linked to increased maintenance expenses. Consumers may find it more difficult and expensive to keep up with routine maintenance and to repair or replace parts on power tools, which also affects manufacturers and merchants and the expectations placed on them. Power tool firms have the chance to preserve their market share and brand loyalty by addressing and reducing these issues.
4. Home Centers Remain the Go-to Supplier
According to the results of HIRI’s Product Purchase Tracking Study, home centres are the most popular source for power tools and accessories. More than two-thirds of transactions take place in-store, with the majority of the remaining transactions occurring online. Power tools are usually purchased by customers who want to make scheduled repairs, replacements, or additions to their homes. When it comes to buyer motivation or the planned application of the product, emergency initiatives are far less prevalent.
Every quarter, SELECTUM, which was created in collaboration with the North American Hardware and Paint Association (NHPA), offers a more thorough examination of the performance of independent channels. The Q4 2024 statistics, which pertain to overall product sales, support our findings in the market for power tools in particular.
5. Millennial and Boomer DIYers are Significant Buying Groups
According to HIRI research, Millennials and Baby Boomers, who make up roughly two-thirds of power tool buyers, are the two age groups driving sales. Another 25% comes from the much smaller Gen X generation.
When thinking about how to reach these do-it-yourself audiences, this is crucial. Since power tools might be more scary for do-it-yourself homes, including them in tutorials and how-to films gives both current and potential consumers the knowledge and confidence they need. Since over 90% of customers conduct “extensive” or at least “some” research before buying a power tool, websites should also include customised message and comprehensive product information. Since most demographics are impacted by inflation and the growing cost of living, it’s also critical to communicate a product’s long-term worth rather than only competing for the lowest price.
6. Seasonality Impacts Outdoor Power Equipment Purchases
Seasonality and weather have a significant impact on when individual customers buy OPE and when their projects start, according to data from HIRI’s Product Purchase Tracking Study: Lawn and Garden. Given that many homeowners are getting ready for tasks that will take place in late spring and early summer, it should come as no surprise that the majority of power tool purchases for outdoor landscaping and renovation projects occur during the second quarter of the year.
7. Sustainability and Safety Influence the Power Tools Market
In the electricity tools area, sustainability and protection are vital factors. Top players like Robert Bosch—in conjunction with other groups like Techtronic Industries Co. And Atlas Copco AB—are investing in modern technologies and power-efficient energy tools due to the fact clients are shifting toward extra sustainable manufacturers and those that are devoted to environmental obligation.
Regulation compliance and safety requirements, inclusive of UL certification, which certifies that a product satisfies nearby and national protection and environmental criteria, must additionally be taken into consideration. Although the marketplace for cordless power gear has been transformed by lithium-ion batteries, we’ve visibly regulated our bodies and enacted new recommendations and regulations, and this fashion is probably going to retain.
For instance, by 2027, the European Union (EU) plans to establish minimum standards for durability and electrochemical performance metrics. As of June 2024, professional welding equipment in China must bear an energy efficiency label; there will be a two-year transition period. The planned Active Injury Mitigation (AIM) regulation, which mandates finger detecting technology in table saws within three years, is another example.
8. Demand for Innovative Power Tools
In the future, power tool brands will need to be ready to face changing consumer habits and market conditions. This entails creating and deploying cutting-edge battery systems, multifunctional goods and equipment, and extra accessories to lay a strong basis for future expansion.
Over the past few years, leading power tool makers have made developments similar to these. Among Makita’s noteworthy product innovations are the sophisticated outdoor XGT 40VMax machines and an enhanced 18 Gauge 2″ Brad Nailer with improved ergonomics.
In 2018, Robert Bosch and Triax Technologies collaborated to create a tracking device that allowed professionals and construction companies to find tools and equipment while also keeping an eye on safety data and how they are used on job sites.
Companies will be better equipped to handle market volatility and other issues that affect the power tools sector if they keep creating cutting-edge items to satisfy customer demand. We can be of assistance there.
Researching Customer Usage and Attitudes Toward Power Tools
At SELECTUM, our market research specialists will offer you specialised qualitative and quantitative research that is suited to your business and market niche and produces results that go beyond simple statistics. The power tools industry is influenced by a number of internal and external elements, so it’s critical to learn more about what, where, and why your target clients buy in order to choose which strategic objectives to focus on in the upcoming year.
Frequently Asked Questions
What is the current sales trend for power tools in the U.S.?
Power tool sales in the United States have been slower recently due to factors like inflation and a weaker construction industry. Sales are expected to see a downturn in 2025, but the market is forecast to recover and show positive growth from 2026 to 2029.
How are cordless tools changing the power tool market?
Cordless power tools, thanks to better battery technology, are greatly influencing the market by offering users more portability and convenience. Manufacturers are focusing on extending battery life and power to meet the demands of both DIY users and professionals who need reliable performance without a cord.
What challenges do power tool manufacturers currently face?
Manufacturers are dealing with the high and unstable costs of raw materials like steel and aluminum. Additionally, as tools become more technologically advanced, the increased complexity can lead to higher maintenance costs for consumers, which manufacturers must consider.
Where do most people buy their power tools?
Home centers are the most popular places for purchasing power tools and accessories. The majority of these transactions happen in physical stores, often driven by planned home repair, replacement, or improvement projects rather than emergency needs.
Which age groups are most active in buying power tools for DIY projects?
Millennials and Baby Boomers are the two main age groups driving DIY power tool sales, accounting for about two-thirds of these purchases. This makes it important for companies to provide clear instructions and demonstrate product value to these engaged consumers.
How does seasonality affect outdoor power equipment sales?
Sales of outdoor power equipment (OPE) are strongly influenced by seasons, with most purchases occurring in the second quarter of the year. This peak aligns with homeowners preparing for late spring and early summer landscaping and outdoor renovation projects.
Are sustainability and safety important in the power tool industry?
Yes, sustainability and safety are very important considerations. Consumers are increasingly choosing brands committed to environmental responsibility, leading companies to invest in energy-efficient tools. Safety regulations, like those for battery standards and finger-detecting technology on table saws, also guide product development.
Why is ongoing innovation critical for power tool brands?
Continuous innovation helps power tool brands meet changing consumer preferences and market conditions, such as demand for better battery systems or multi-functional tools. Developing new products allows companies to navigate market ups and downs and maintain a strong position.
Do professionals view cordless tools differently than DIY users?
While both groups appreciate cordless convenience, professionals have historically been more cautious, waiting for cordless technology to match the power and durability of corded tools. Manufacturers are now creating high-performance cordless options that meet professional standards, increasing their adoption in demanding job environments.
What kind of research do consumers typically do before buying a power tool?
Most consumers, over 90%, conduct either “extensive” or “some” research before purchasing a power tool. This highlights the need for brands to provide comprehensive product information, how-to guides, and clear demonstrations of value on their websites and other platforms.
