Market Challenges And Opportunities

Global Power Tools Market Drivers:

Growing adoption of cordless power tools to drive growth of the global power tools market during the forecast period

Globally, the adoption of power tools has increased significantly in the recent past. This is owing to major advantages offered by cordless tools over corded tools such as portability, lightweight, and less equipment to carry. Corded power tools essentially bulky in handling, and since they are connected to a power source, users find it difficult in maneuvering the tool. Furthermore, corded power tools are connected to an electric source and if there is no electricity offered, these tools cannot be used. This can pose a major challenge when construction begins. Besides, corded power tools require frequent replacement of cords since faulty cords can pose a potential safety hazard to uses. For instance, to avoid this kind of threats in October 2022, Panasonic, a manufacturer of electrical products launched their new Cordless Impact Driver EY1PD1 with a very short body length of only 98mm for high power impact tightening even in narrow areas. Cordless power tools can be maneuvered easily and are lightweight, hence they are more convenient to operate. Therefore, these factors are expected to drive growth of the global power tools market during the forecast period.

Rapid growth of the infrastructure sector, especially in emerging economies to propel the global power tools market growth over the forecast period

The infrastructure sector is growing rapidly, especially in emerging economies such as China, India, South Africa, and Brazil. According to the India Brand Equity Foundation (IBEF), India is expected to become the third-largest construction market globally by 2023. According to the same source, India is expected to invest around US$ 1.4 trillion on infrastructure during 2019-2023 for the sustainable development of the country. Rapid infrastructure development has led to increased demand for various power tools such as electric drill machine, hammer drill, impact driver, electric screwdriver, rotary hammer, and many more. Thus, these factors are expected to propel the global power tools market growth over the forecast period.

Global Power Tools Market Opportunities:

Need for standardized, simplified accounts receivable processes

Growing demand for power tools software due to various factors such as working capital of firms, more invoice disputes, less agent productivity among others is expected to create significant growth opportunities in the global power tools market during the forecast period. Increasing number of firms across industries are reviewing accounting automation systems, as companies cannot wait and manage manual accounting challenges. Other factors such as slower collections of deposits, and need for standardized, simplified accounts receivable processes is also creating demand for accountable receivable automation. Thus, these factors will bring several growth opportunities in the market during the forecast period.

Growing adoption of artificial intelligence technology

Moreover, growing adoption of artificial intelligence technology is also anticipated to create lucrative environment for growth opportunities in the global power tools market during the forecast period. With increasing use of cloud-based technology, AI adoption continued at a stable pace in 2022, with more than a third of companies (35%) reporting the use of AI in their business, a four-point increase from 2021. A major driver of adoption was accessibility that made AI easier to implement across the organization, though companies are also looking to AI to help them increase automation of tasks and reduce costs. The gap in AI adoption between larger and smaller companies also grew significantly. Larger companies are now 100% more likely than smaller companies to have deployed AI in their organization, compared with only 69% in 2021.

Global Power Tools Market Restraints:

High purchase and maintenance cost to restrain growth of the global power tools market during the forecast period

Although, power tools offer efficiency and speed in construction activities, it requires timely maintenance operations. The batteries in cordless power tools need to be inspected and changed routinely. Besides, power tools are significantly more expensive than a hand-operated tool and hence only construction companies and workers often purchase these tools instead of casual users. Therefore, these factors are expected to restrain growth of the global power tools market during the forecast period.

Constant fluctuations in raw material prices to hamper the global power tools market growth over the forecast period

Another major impeding growth of the market is the constant fluctuations in the raw material prices. Raw materials used in power tools include steel, plastic, rubber, and copper. The prices of these raw materials have witnessed constant fluctuations in the recent past, owing to changing economical dynamics. Thus, these factors are expected to hinder the global power tools market growth over the forecast period.