Battery Power Tools Market size was valued at USD 27.09 billion in 2024 and is set to exceed USD 63.71 billion by 2037, registering over 6.8% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of battery power tools is evaluated at USD 28.56 billion.
The reason behind the growth is the rising demand for effective and suitable tools across different industries. In line with the U.S. Energy Information Administration (EIA) published in 2022, industrial energy consumption in non-OECD nations increases by 1.5% year on average between 2012 and 2040, whereas it increases by 0.5% annually in OECD nations. 73% of the energy provided by the global industrial sector in 2040 will come from non-OECD industrial consumption, accounting for 67% of the industry's energy delivery in 2012.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
6.8% |
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Base Year Market Size (2024) |
USD 27.09 billion |
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Forecast Year Market Size (2037) |
USD 63.71 billion |
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Regional Scope |
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Motor Type (Brushed Motor, Brushless Motor)
Brushed Motor segment is predicted to account for battery power tools market share of around 70% by 2037. The expansion of the automotive industry and rising consumer demand for brushed motors globally will help this segment to have a massive revenue share by the end of 2037.
According to the ACEA - European Automobile Manufacturers’ Association published in June 2023, with 14.7 billion tons of products delivered annually and 74.4% of freight moved over land, trucks, and vans provide the commodities and services that are taken for granted on a daily basis. These vans and trucks use brushed motors to work properly.
Electromechanical equipment that relies on motor brushes for operation includes electric motor brushes, generators, alternators, and power tools. They are necessary for the electrical current flow between the rotating and stationary components of these devices.
Tools (Drills, Saws, Lawn Mower, Impact Wrench)
In battery power tools market, drills segment is anticipated to account for revenue share of more than 40% by the end of 2037. This expansion will be noticed due to the implementation of cordless drills because of their convenience and portability by people across the world.
Global projections by Research Nester indicate that the number of cordless drill tools sold in the home and commercial markets worldwide will exceed 600 million yearly by 2027, more than twice as much as was the case in 2015.
Technology (Lithium-Ion, Nickel Cadmium)
By 2037, lithium-ion segment is expected to dominate battery power tools market share of over 65%. The increasing advancement in lithium-ion technology will propel the expansion of the battery power tools industry globally.
In line with IEA (2023), the demand for automotive lithium-ion (Li-ion) batteries grew by almost 65% to 550 GWh in 2022 from around 330 GWh in 2021, mostly due to a rise in the sales of electric passenger cars, with new registrations rising by 55% in 2022 compared to 2021.
Our in-depth analysis of the global battery power tools market includes the following segments:
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Motor Type |
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Tools |
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Application |
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Mode of Operation |
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Technology |
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End-User |
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Battery Voltage |
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APAC Market Statistics
Asia Pacific industry is predicted to hold largest revenue share of 35% by 2037. The quick urbanization trends in the APAC region will drive the market of battery power tools in this region.
According to the ESCAP (2022), between 2010 and 2050, it is predicted that South-East Asia's urban land area will quadruple. Compact, mixed-use, green, and all-encompassing spatial urban patterns are more efficient from a planning standpoint and help build more sustainable cities.
Battery power tools are especially in actual demand in China, driven by the rising advancement of residential infrastructure. While still higher than the 5.1 percent increase in 2019, fixed asset investments expanded by 4.9 percent in 2021, up from 2.9 percent in 2020.
In Japan, battery power tools will encounter massive growth because of the rising advancement of the manufacturing of residents in this region. According to the Asian Development Bank published in 2019, the Tokyo Nagoya-Osaka-Kyoto-Kobe mega-region in Japan is evaluated to have 60 million people living in it.
The battery power tools sector will also be huge in Korea due to the presence of manufacturers and exporters of electrical appliances namely cordless drills. With USD 217 billion in electrical machinery and electronics shipped in 2022, South Korea ranked third globally in this category of exporters.
North American Market Analysis
The North America region will encounter massive growth in the sector of the battery power tools market during the anticipated period. Moreover, the battery power tools sector will increase by a significant CAGR till 2037.
This growth will be noticed mainly due to the rising expansion in the construction industry in this region. It is foreseen that in 2026, the total value of construction projects implemented in the United States which includes non-residential, residential, and non-building segments will begin to increase once more.
The battery power tools market has expanded in the U.S. as a result of the presence of the large automobile industry. Light truck market share reached a record-breaking 79.3 percent in 2022, up 3.4 percent from the previous year.
The Canadian battery power tools sector will grow mainly due to the rising demand for EVs. Since 2020, sales of electric cars have surged in Canada. In 2023, there were almost 1.6 million electric vehicles sold in Canada, a 60% increase over the 1 million sold in 2022.
To increase their battery power tools market presence, businesses are using a range of tactics, including collaborations, mergers and acquisitions, product and service launches, and regional growth. Some major participants in the battery power tools industry are:
Author Credits: Dhruv Bhatia
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