The power tools market in India is increasingly gaining traction due to rising infrastructural projects in the country. Power tools that are used for manufacturing, assembly and finishing functions find extensive usage in residential and non-residential construction activities. Tools like drills, saws, grinders, sanders etc assist in fastening construction work and enhancing productivity. The Indian government's thrust on development of smart cities, mass housing projects and road connectivity has spurred demand for advanced power equipment from construction sector. Moreover, growth of ancillary industries like fabrication and automotive has also augmented sales of power tools.
The Global Power Tool Market in India is estimated to be valued at US$ 1006.27 Bn in 2024 and is expected to exhibit a CAGR of 6.0% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the India Power Tool Market Size 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. The demand for power tools is anticipated to surge in construction activities as well as manufacturing sector. Furthermore, introduction of lithium-ion powered tools and advancement in cordless technology is expected to revolutionize the power tools market.
Growing demand: The demand for power tools has witnessed robust growth owing to increasing infrastructure and construction projects in the country. Government initiatives for housing and smart city missions have significantly driven their consumption. Moreover, expansion of manufacturing sector and focus on ‘Make in India’ is further propelling the power tools requirement.
Technological advancement: Introduction of lithium-ion batteries and advancement in cordless technology has enhanced the functionality of power tools. They offer advantages like greater efficiency, ease of use and flexibility compared to traditional corded tools. Manufacturers are focusing on development of lightweight power tools with advanced ergonomics and improved capabilities.
Market Trends
Customizability - There is a growing demand for power tools that offer customizability and multipurpose usage. Manufacturers are developing modular tools with interchangeable fittings to perform varied tasks with same equipment.
Cordless technology - Lithium-ion powered cordless tools have emerged as a key trend with their convenience of use sans power cords. They offer advanced battery life and are gaining widespread adoption in construction as well as industrial applications.
Market Opportunities
Infrastructure boost - Highway projects, smart city missions and expansion of rail and metro networks present lucrative opportunities for power tools industry. Timely completion of infrastructure projects will accelerate tool requirements.
Rural electrification - Government's target of 100% rural electrification offers scope for power tools in micro, small & medium construction businesses. It can enhance productivity of small contractors.
Impact of COVID-19 on India Power Tool Market
The outbreak of COVID-19 pandemic since beginning of 2020 has significantly impacted the growth of India Power Tool Market. The imposition of nationwide lockdown led to closure of all industrial activities along with construction and manufacturing sectors which are major end users of power tools. This resulted in decline in demand for power tools during 2020 and first half of 2021. The supply chains were disrupted due to restrictions on movement of goods and people. This created shortage of raw materials and components for production. The manufacturers faced challenges in terms of labour shortage, cash flow problems and delays in projects.
However, with gradual lifting of lockdown restrictions and resumption of economic activities from second half of 2021, the demand started recovering. The infrastructure, construction and real estate sectors gained momentum which boosted the demand from power tool users. The government initiatives like production linked incentive schemes for boosting local manufacturing further aided the recovery. The companies now focus on expanding online sales channels, prioritizing safety of workers and ensuring supply chain resilience. Adapting to new working models, focusing on rural markets and export opportunities will be the future strategies to achieve sustained growth in the coming years.
Pacific region is currently the largest market for power tools in India in terms of value. States like Maharashtra, Tamil Nadu, Gujarat, Karnataka and Andhra Pradesh account for over 50% share due to strong industrial base, infrastructure projects and urbanization. The eastern region covering West Bengal, Odisha, Bihar is witnessing higher growth rates driven by government investments in roads, rail and mining sectors development.
The southern region is emerging as the fastest growing market for power tools in India. States like Telangana, Kerala are developing as IT/ITeS hubs with increasing commercial and residential construction. Initiatives for developing smart cities and upgrading transportation infrastructure will further accelerate demand from power tool users in the region over the forecast period.
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