The global power tool accessories market is expected to grow at a CAGR of 6.55% during 2022-2027

New York, Nov. 10, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Power Tool Accessories Market - Global Outlook & Forecast 2022-2027" - https://www.reportlinker.com/p05953056/?utm_source=GNW
These accessories are mainly used in the automobile, aerospace, construction, electronics, and shipbuilding industries. They also have various household applications, such as the removal of paint, soldering of wire, thawing of pipes, and other DIY projects. The growth in the use and demand for Li-ion batteries and the rise in infrastructural developments has further surged the demand for cordless tools and batteries.

The power tools have been a convenient solution for workers across industries that also help eliminate manual labor. Industries like construction and automotive also serve as a source of innovation and product development for power tools and accessories. They also serve as forerunners in adopting the latest market trends. Power tools, which include drilling and fastening tools, demolition tools, sawing and cutting tools, and material-removal tools, have unlimited use across the industrial, commercial, and residential sectors. Such factors are a significant contributor to the power tool accessories market.

IMPACT OF COVID 19

The impact of COVID-19 was also seen in the power tools and the power tools accessories industry, as both markets saw major downfalls leading to plunging sales numbers. The sales went down as the demand for these tools and their accessories also plummeted. The supply chain for raw materials was highly disturbed.

The construction industry, one of the most important industries that make use and demand power tools and their accessories, was more or less completely shut, which had an immediate negative effect on the power tools and power tool accessories market. However, the restrictions were lifted as the pandemic got under control and the situation got better; the infrastructural projects were resumed, which stirred the demand for power tools once again, meanwhile also driving the demand for the power tool accessories market.

Though it suffered initially, the automobile industry soon saw the demand rising for automobiles spurring the demand for relevant machines and equipment for automobile manufacturing, including power tools and accessories. There is a rise in demand for precision parts by industries that involve precision, such as the aerospace, defense, and automobile industries. The defense industry remarkably boomed, given the current unrest caused due to the war between Russia and Ukraine. The U.S. has also committed to supporting Ukraine in its war against Russia, indicating more demand for weapons and equipment, leading to demand for power tools and accessories.

OPPORTUNITY & CHALLENGE ANALYSIS

Growth In Construction Industry

• The world is witnessing new developments and market trends in the construction industry. Technological transformation is a major factor influencing growth, and significant changes have been deployed throughout the industry, from design to installation. While the building projects are becoming more complex, stringent policies governing employee safety, utilizing advanced precision tools, energy efficiency, and enhancing productivity are some of the major concerns. Growth can be more concentrated in the real estate and residential sectors which are highly supported by low-interest rates and higher incomes. The growing population, rising demand for public construction activities, and rising investments in renewables and telecommunications are expected to fuel the growth in the construction industry during the forecast period, stimulating the demand of the global power tool accessories market.

Increasing Infrastructural Projects

• Power tools and power tool accessories are used for all types of construction projects, namely low rises, high rises, mass townships, etc. In many countries, governments are taking initiatives to provide affordable housing for all shortly. The rising number of residential building construction is expected to drive the demand for power tools leading to the demand for power tool accessories. For instance, in India, the government plans to provide housing for all by the end of 2022, which requires constructing around 30 MN low-cost houses and about 100 smart cities. It will lead to adopting modern, innovative, and green technologies and building materials for faster and quality construction of houses. It would also require necessary tools such as power tools and equipment such as power tool accessories to carry out the construction processes boosting the global power tool accessories market growth.

Fluctuations In Raw Material Pricing

• Raw material costs comprise approximately 50% to 60% of the overall cost of production in the power tools industry. The prices of primary raw materials used to manufacture power tools and their accessories, such as steel, plastic, rubber, fasteners, and batteries, have been volatile over the last few years. The volatility of raw material prices poses a severe threat to vendor margins. Other operating expenses, such as labor wages, also sharply increase. Chinese manufacturers add more worries to the company’s top line to comply with growing demands and industry standards. These factors burden vendors that strive to produce efficient power tools and accessories at affordable prices to cope with the competition in the power tool accessories market.

SEGMENTATION ANALYSIS

INSIGHTS BY ACCESSORY TYPE

Based on the accessory type, the drill bits accounted for the most significant revenue, which generated USD 2.08 billion in 2021 and is expected to reach USD 2.99 billion, growing at a CAGR of 6.18% in the global power tool accessories market. The volume of work carried out by corded and battery-operated drills have also penetrated DIY enthusiast, which can demand more replacement with the intensity of the workload.

The circular saw blades were the second-dominant segment as these tools are primarily used for wooden and metal works that need precision cutting. They are also used in DIY activities, as most vendors offer user-friendly cutting tools for home improvement and wood-crafting activities. The accessories used depend highly on the power tool and the work carried out. For instance, light tools like drills, drivers, and wrenches are being utilized for personal to professional purposes, demanding the need to replace bits and batteries. Similarly, the blades are the crucial components for wood and metal working where it is frequently changed in tools like a circular saw, reciprocating saw, band saw, and jig saws.

Segmentation by Accessory Type
• Drill Bits
• Screwdriver Bits
• Router Bits
• Circular Saw Blades
• Jig Saw Blades
• Bandsaw Blades
• Abrasive Wheels
• Reciprocating Saw Blades
• Batteries
• Others

INSIGHTS BY END USERS

The industrial end-user segment comprising major contributors such as automotive and construction industries generated the maximum revenue in the global power tool accessories market. The scenario is expected to remain consistent throughout the forecast period owing to the rising demands for sophisticated tools from the industries alongside the growth in precision manufacturing processes. Cordless power tools are widely used in automotive, aerospace, electronics, energy, construction, shipbuilding, and other industries. However, renovation, retrofit, and DIY activities are expected to drive the market for power tool accessories in the residential and commercial segments. The growth can also be more evident in APAC, Latin America, and the Middle East & Africa region.

The industrial power tool accessories market’s end-user segment contributed 74.32% of the total market revenue in 2021, under which the construction industry accounted for USD 2.75 billion, followed by the automotive industry at USD 1.15 billion in 2021. The automotive industry segment is expected to grow at the fastest CAGR of 7.40% globally. This can be due to the extensive use of drillers and fastening tools with bits and batteries for assembly activities. The industry also extensively uses heat guns, glue guns, and cutting tools which further widen the utilization of accessories.

Segmentation by End-user
• Industrial
o Automotive
o Aerospace
o Electronics
o Energy
o Construction
o Shipbuilding
o Others
• Commercial
• Residential

GEOGRAPHICAL ANALYSIS
The rising economic development, growth of industrial sectors, and increased demand for convenience tools have contributed to the growth of the global power tool accessories market. Battery-operated power tools have widespread use across the residential and industrial sectors, leading to the sales and replacement of batteries. APAC accounts for the largest global market share of 30.17%. Large-scale initiatives, such as automobiles, construction, electronics, and aerospace, drive the region’s Li-ion-operated power tools market. It is also estimated that more than half of the global spending in the construction industry will come from APAC countries, especially in China, India, Singapore, and Indonesia, during the forecast period that is supporting the growth of power tools and their related accessories.

North America is the second largest market for power tool accessories and is estimated to generate USD 5.88 billion by 2027. The region is expected to maintain its position during the forecast period, with revenue primarily generated from the U.S. market, the region’s largest economy. North America is home to several large industries, including the automobile, construction, aerospace, electronics, and packaging. The rising new well efficiencies and low cost of production have made the U.S. the hub for investments in the oil and gas sector. It is also estimated to be the region of a more active exploration and production deal market for the oil industry.

Segmentation by Geography

• North America
o US
o Canada
• Europe
o UK
o Germany
o France
o Spain
o Italy
• APAC
o China
o Japan
o South Korea
o Australia
o India
• Latin America
o Brazil
o Mexico
• Middle East & Africa
o Saudi Arabia
o UAE
o Saudi Arabia
o Turkey

COMPETITIVE LANDSCAPE

The global power tool accessories market is characterized by low market concentration, with high competition among the players. The present scenario drives vendors to alter and refine their unique value propositions to achieve a strong market presence. Currently, the industry is highly fragmented and is dominated by vendors, such as Stanley Black & Decker, Bosch, and TTI, alongside numerous domestic tool manufacturers who produce accessories in various shapes and designs that replicates the product from a renowned vendor. These major vendors have a global presence in three major regions North America, APAC, and Europe.

Other vendors provide products with similar technical specifications like length, width, and cutting techniques at low prices. The global power tool accessories market confronts the threat of infiltration with low-quality products, thereby increasing the industry’s proliferation. The major vendors also continually compete for the leading position in the industry, with occasional competition coming from other local vendors. The industry is characterized by the presence of diversified global and regional vendors. As international players increase their footprint in the market, regional vendors are likely to find it increasingly difficult to compete with these global players. The competition will be based solely on durability, lifespan, tool performance, price, and customization.

The global power tool accessories market’s future will rely on the new product features in addition to the brushless motor technology. For instance, Bosch is the only vendor that offers cordless power tools that support inductive charging techniques. Further, similar strategies have been adopted by Stanley, and Milwaukee introduced Bluetooth-enabled batteries in their tools. These batteries can be paired with android and IOS phones that are more useful for contractors. It will substantially reduce the number of accidents and injuries as the tool warns during times of high temperature

Key Vendors
• Stanley Black & Decker
• Robert Bosch
• Techtronic Industries Company (TTI)
• Makita
• Hilti

Other Prominent Vendors
• Apex Tool Group
• Snap-on
• Koki Holdings
• Fortive
• Positec
• Chervon
• Fein
• FERM
• AIMCO
• Festool
• CS Unitec
• Dynabrade
• Husqvarna
• Stihl
• Blount
• KYOCERA
• INTERSKOL
• Panasonic
• URYU SEISAKU
• Atlas Copco
• Ingersoll Rand
• Emerson

KEY QUESTIONS ANSWERED

1. How big is the global power tool accessories market?
2. What is the projected global power tool accessories market share by 2027?
3. What is the growth rate of the global power tool accessories market?
4. Which region dominates the global power tool accessories market?
5. What are the key driving factors in the power tool accessories market?
6. Who are the key players in the global power tool accessories market?
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