Abstract
Global demand to rise over 3% annually through 2013
Global demand for power tools is forecast to exceed $28 billion in 2013 on
annual gains approaching four percent. Despite presently being mired in a
recession, the bedrock US market will provide the best opportunities,
accounting for over one-third of the additional demand generated between 2008
and 2013. Recovery in US demand will reflect a turnaround in the current
housing crisis, as well as continued enthusiasm for DIY projects by US
consumers. US power tool sales will also benefit from the introduction of
improved products, especially cordless electric models.
The BRIC economies -- Brazil, Russia, India and China -- will all fare well.
Demand in China and India will rise over six percent per annum, benefitting
not only from continued gains in construction expenditures, but also from
rising industrial production. Gains in Russia and Brazil will exceed the
global average, benefitting from strong gains in improvement and repair
construction activity; many of the buildings built during the USSR period
(specifically 1950' s and 1960' s) are currently in need of repair.
Power tool production to continue shift to Asia/Pacific
Production of power tools is expected to continue to shift to the Asia/Pacific
region, largely driven by Chinese manufacturing. China is projected to account
for one-third of global shipments in 2013, with a significant share exported
to the US. Eastern Europe is also forecast to account for an increasing share
of global production, owing to increased trade with Western Europe.
Electric tools to remain dominant over other types
Electric tools (plug-in and cordless) will continue to comprise the vast
majority of sales, due to their frequent use in both consumer and professional
applications. Demand for pneumatic tools will continue to suffer from the fact
that they are overwhelmingly used in the professional market. However, rising
global industrial output will create opportunities.
Consumer tool demand to outpace professional market
Professional users accounted for the majority of the world power tool market
in 2008, due to their use of a greater variety of more expensive tools
compared to consumers. The professional market will remain dominant due to the
rising levels of capital investment globally, which will boost construction
expenditures. In addition, rising industrial output will create opportunities
in the professional market. However, gains in consumer tool demand will
outpace those of the professional market, based on the ongoing popularity of
do-it-yourself activities in developed nations, and the rising standards of
living in developing countries. Tool producers will continue to target the
consumer segment with a variety of marketing approaches, including strategies
aimed at women.
Study coverage
This new Freedonia industry study, World Power Tools, presents historical
demand data plus forecasts for 2013 and 2018 by product, market, world region
and for 25 countries. The study also considers market environment factors,
evaluates company market share and profiles 27 industry players.
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