1. Emergence and adoption of advanced and smart technologies driving market demand
Increasing focus on innovation and new product development by major power tools and OPE market players to increase differentiation and maintain a competitive edge is expected to drive further incremental growth of the industry in the future. Major market players have been launching new products equipped with advanced technologies to meet the diverse needs and preferences of end users. Additionally, IoT, sensor, or AI-enabled products are potential future growth areas due to their ability to enhance user experience. This technological advancement has the potential to increase productivity and drive the market demand for power tools and outdoor power equipment in various usage scenarios.
2. Increased demand for professional-grade power tools
Market demand for power tools and OPE products is also expected to increase owing to rising infrastructure and commercial construction activities, residential construction, and rising new home sales in the U.S. market, while rising demand for power tools for industrial projects is aiding market growth.
3. The demand for power tools in the Asia-Pacific region has increased significantly
The global demand for hardware tools is mainly concentrated in North America, Europe and Asia Pacific. Among them, the demand in the Asia-Pacific region is mainly concentrated in China, Japan and other countries. In terms of market segments, North America, Europe, Asia, and Latin America accounted for 35%, 30%, 8%, and 6% of the global market in 2018, and North America and Europe together accounted for 65% of the market. In 2020, the power tool market in Asia Pacific, North America and Europe accounted for 33%, 26% and 30% of the world. Compared with hand tools, the demand for power tools in the Asia Pacific region has increased significantly. The main consumer groups of high-end products are located in developed countries such as Europe and the United States. Take Stanley Black & Decker and Techtronics, the leaders in the tool industry, as examples. In 2020, the United States and Europe together contributed 79% of the revenue of the tool & storage business segment of the former, and 92% of the latter. % of turnover is realized in North America and Europe.