Challenges and Opportunities in the U.S. Power Tools Market |...

Challenges and Opportunities in the U.S. Power Tools Market

Posted 2025-01-29 06:35:47

The U.S. power tools market size is anticipated to reach USD 12.99 billion by 2028, expanding at a CAGR of 3.5%, according to a study conducted by Grand View Research, Inc. The spread of COVID-19 has resulted in a sluggish growth in the demand for power tools in 2020. The market is projected to recover steadily over the next couple of years with the resumption of various end-use industries across the globe. Moreover, the pandemic has propelled companies to adopt online sales channels, which has opened new avenues for market growth.

Power tools are widely used in the construction industry owing to the increasing number of new construction and renovation projects in the U.S. Similarly, infrastructure development in terms of modernizing aging infrastructure is also anticipated to propel the demand for power tools over the forecast period.

The U.S. market is characterized by the presence of several established players and a few small-scale manufacturers. Leading market players are investing aggressively in R&D to introduce new, innovative, and energy-efficient products to increase their market share and sustain competition. They are also adopting inorganic growth strategies, such as strategic partnerships and mergers & acquisitions, as a part of their efforts to gain a competitive edge in the market.

However, the fluctuations in raw material prices and trade war with China are expected to impede the market growth as manufacturers are highly influenced by these factors. Price fluctuations result in increased product cost, which restrains companies from offering competitive prices to attract new customers. Similarly, the trade conflict with China has forced manufacturers to find new manufacturing hubs, leading to supply chain disruptions to some extent.

Gather more insights about the market drivers, restrains and growth of the U.S. Power Tools Market

U.S. Power Tools Market Report Highlights

• Based on product type, the saws segment held a market share of over 25%. This is attributed to the high price of these products and their wide application in the wood, plastic, and metal industries

• The electric power tools segment is projected to record the fastest growth over the forecast period owing to the ease of charging, ergonomic design, and easy mobility of these tools

• The residential segment is poised for healthy growth of over 4% from 2021 to 2028. Increased DIY activities are expected to be the major contributor to the segment growth

• Aftermarket products are projected to witness a higher growth rate compared to their new counterparts as the demand for accessories and replacement parts have seen an upward trend in recent year

• Based on sales channel, the indirect channel segment dominated the market in 2020 and is expected to continue its dominance over the forecast period. The preference of industrial customers to buy tools from distributors and retail stores is expected to upkeep the segment growth