Global power tool demand to hit US$33 billion
By Helen Wright28 January 2015
Research company Freedonia Group has forecast a 4.8% increase in global demand for power tools per year between 2013 and 2018, reaching a value of US$32.9 billion (€29 billion) by 2018. This compared to annual growth between 2008 and 2013 of 2.9%.
It said advances would be fastest in the world’s developing areas, where significant and increasing levels of construction spending were expected.
China and India
It highlighted China and India as expected to see particularly rapid growth in power tool demand, as these countries were in the process of modernising their housing stock.
China was the second largest national market for power tools in 2013, with 10% of global demand, and was the largest producer, with one-third of global output. In addition, Freedonia said power tool growth in China through 2018 would be nearly double the global average.
However, it said India would post even more rapid gains among major countries, albeit from a very small base.
Freedonia said the Asia Pacific region in general was forecast to record 6.8% annual growth between 2013 and 2018, reaching a value of US$9.7 billion (€8.5 billion).
US and Western Europe boost
Among developed nations, Freedonia said power tool sales would be boosted by improved economic conditions and increasing construction activity in the US and throughout much of Western Europe.
In 2013, the US was the world’s largest consumer and second largest producer of power tools, accounting for 24% of sales and 12% of output. Between 2013 and 2018, the US market will account for approximately one-sixth of additional global sales.
The North American market in general was forecast to see 3.5% growth between 2013 and 2018, reaching a value of US$8.9 billion (€7.8 billion).
In Western Europe, demand for power tools was expected to increase 3.8% in the forecast period to US$9.1 billion (€8 billion) by 2018, while demand in Eastern Europe was forecast to rise 4.4% per year reaching US$2.7 billion (€2.4 billion).
In Central and South America, demand for power tools was expected to increase 5.4% per year between 2013 and 2018 to reach a value of US$1.3 billion (€1.1 billion), while demand in Africa and the Middle East was expected to increase 7.4% per year to US$1.1 billion (€969 million).