The global India Power Tool Market Growth Accelerated by...

The global India Power Tool Market Growth Accelerated by Infrastructural Projects

Veröffentlicht 2024-01-10 06:37:07

Power tools are electric operated tools which are used in industrial, commercial and domestic applications, owing to their advantages such as high efficiency and productivity. Power tools like drills, saws, lawn mowers, sanders etc. help perform tasks faster and more accurately as compared to manual tools. The Indian power tools industry is witnessing high demand owing to growth in industrialization, infrastructure development and construction activities in the country.

The global Indian Power Tool Market is estimated to be valued at US$ 873.49 Bn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
The growth of construction industry in India offers high market opportunity for power tools. India is witnessing huge investment in infrastructure development and construction of roads, highways, airports, metros, smart cities etc. The government's focus on 'Housing for All' initiative and 100 smart cities mission is further driving demand for residential and commercial construction. The construction industry in India is expected to reach US$ 1 trillion by 2025. This growing construction activity will augment the demand for power tools like drills, saws, sanders etc used in activities like framing, finishing, demolition etc. Power tools offer advantages of high efficiency, accuracy and productivity over manual tools, making them ideal for carrying out various operations in large infrastructure and construction projects. The booming construction industry thus presents significant market opportunity for power tools in India.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate due to the strong presence of established players and high capital requirements to enter this market.

Bargaining power of buyers: The bargaining power of buyers is high owing to the availability of substitute products from other manufacturers.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as key raw materials used in power tools such as steel, plastic and electronics can be sourced from multiple suppliers globally.

Threat of new substitutes: The threat of substitutes is low since power tools have unique functions that cannot be replicated by other products.

Competitive rivalry: The competitive rivalry is high due to the presence of numerous international and domestic players competing on the basis of product quality, features and pricing.

SWOT Analysis
Strength: The India power tool market is witnessing strong demand from sectors such as construction, automotive and electronics. There is a wide product portfolio available for both household and industrial applications.

Weakness: Fluctuating raw material prices increase the overall cost of power tools. Low selling price of some Chinese imports also impacts domestic manufacturers. Lack of standardized testing facilities hinders product development.

Opportunity: Growing infrastructure development and 'Make in India' initiative provide huge opportunities for market expansion. Increased consumer spending on home improvement activities will drive demand.

Threats: Volatility in crude oil prices affecting plastic and steel prices poses inflationary risks. Intense competition from global brands impacts domestic players.

Key Takeaways
The Global India Power Tool Market Size is expected to witness high growth over the forecast period supported by growth in industrialization and infrastructure development. The market size is projected to reach US$ 873.49 Bn by 2023 expanding at a CAGR of 6%.

Regional analysis: The western region currently dominates the market and is expected to maintain its leading position over 2023-2030. The availability of major raw materials and presence of major construction projects support market growth in this region.

Key players related content: Key players operating in the India power tool market are BASF SE, Chevron Phillips Chemical Company, LLC, Exxon Mobil Corporation, Ineos Group Ltd, LyondellBasell Industries N.V., Royal Dutch Shell plc, Saudi Basic Industries Corporation, China Petroleum & Chemical Corporation (Sinopec), The Dow Chemical Company , Lonza Group. These players are focusing on new product launches and capacity expansions to strengthen their market share.