The India power tool market consists of various electric tools that assist electric motors for functions like drilling, sawing, fastening, material removal, and routing. Power tools offer advantages like ease of use, improved productivity and accuracy compared to manual tools. The growth in infrastructure projects like roads, buildings, airports has fuelled the demand for power tools in construction activities. Furthermore, growth in manufacturing sector and automotive industry has also propelled the need for power tools.
The India power tool market is estimated to be valued at US$ 1006.27 Bn in 2024 and is expected to exhibit a CAGR of 6% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the India Power Tool Market Demand 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. Key players like BASF SE offer wide range of power tools like drills, impact wrenches and sanders.
The rapidly growing construction industry in India owing to increased infrastructure development projects, housing projects and industrialization has been driving the demand for power tools. Between 2018-2022, the construction industry in India witnessed a CAGR of over 7%. This growth in construction activities has significantly boosted the consumption of power tools for operations like drilling, sawing and fastening.
The Indian power tool market is also witnessing expansion in rural areas. Growing rural electrification and development projects launched by the government aims to improve living standards in villages. This has led to increased utilization of power tools for farming and construction activities even in tier 2 and tier 3 cities. Key players are focusing on penetrating into semi-urban and rural markets which are expected to offer new growth opportunities.
Market key trends
Cordless power tools are gaining more preference over corded power tools owing to advantages like mobility, ease of use and safety. Leading manufacturers are focusing on developing advanced lithium-ion battery powered tools that offer longer runtime and improved power compared to nicad battery operated tools. Furthermore, growing demand for multi-functional power tools has led to introduction of tools that can be used for various applications with attachment of different heads. This has enhanced convenience and productivity of end-users.
Porter’s Analysis
Threat of new entrants: The high capital requirement for entering the power tools market restricts the entry of new players.
Bargaining power of buyers: The large number of buyers and their substitutable options give them strong bargaining power over existing players.
Bargaining power of suppliers: The presence of many component suppliers weakens their individual bargaining power against power tools companies.
Threat of new substitutes: The availability of non-electric or manual tools poses a threat of substitution to power tools manufacturers.
Competitive rivalry: Intense competition exists among existing major players to cater to the demand and gain higher market share.
The geographical region where the India Power Tool Market is concentrated in terms of value is South India. The states of Tamil Nadu, Karnataka, Andhra Pradesh and Telangana contribute over 40% of the total market revenue. This is due to increasing industrial development and construction activities in these states.
The Western region of India including states of Maharashtra and Gujarat is emerging as the fastest growing market for power tools. This is because of strong growth in manufacturing sector, warehousing facilities and real estate construction in major cities like Mumbai, Pune, Ahmedabad etc. The demand from infrastructure and renewable energy projects is further driving the market in this region.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it