The battery power tools market is estimated to be valued at USD 27.3 Bn in 2024 and is expected to reach USD 50.6 Bn by 2031. It is projected to grow at a compound annual growth rate (CAGR) of 9.2% from 2024 to 2031. Key growth drivers for the battery power tools market include rising adoption of cordless power tools over corded ones owing to their convenience and portability.

Market Driver - Growing Demand for Cordless Power Tools Due to Convenience and Portability

The convenience and portability offered by cordless power tools has significantly grown demand in the past decade. Battery technology has advanced tremendously as well, allowing cordless battery power tools to run for longer periods on a single charge.

Lithium-ion batteries provide reliable power and can hold their charge for months when not in use. The ease of just changing out batteries instead of finding an outlet or extension cord to plug into has led to widespread popularity. Many professionals now rely primarily on cordless battery power tools for most of their tasks.

Manufacturers in the battery power tools market have invested heavily in expanding their cordless lineups in response to this growing demand. There are now cordless options available for every power tool category from drills, impacts and saws to sanders, grinders and lawn equipment.

Popular brands offer entire interconnecting systems allowing users to swap batteries between various tools. Going forward, dependence on corded infrastructure will reduce significantly across industries driving further demand.

Market Driver - Increasing use of Battery-Powered Tools in the Construction Industry for Enhanced Efficiency

The construction industry has especially benefited from the proliferation of battery-powered equipment witnessing improved productivity and reduced costs. Corded battery power tools have often been a nuisance on job sites, making work inconvenient due to limited mobility and wire management issues. Battery tools address these challenges directly, allowing workers and contractors unencumbered access to power anywhere. Being wire-free helps save a significant amount of time and effort normally spent in taping down or untangling extension cords. Ability to use tools high up or in tight spaces without worrying about wires also improves safety.

Leading construction companies have noted big gains like enhanced ergonomics, reduced injuries and worker fatigue using battery technology across their job sites. Smaller contractors also find significant value transitioning to cordless fleets lowering overall equipment costs and boosting efficiency. Going forward, continued improvements in battery life and energy density are expected to further fuel growth in demand from construction firms seeking enhanced margins.

Market Challenge - High Initial Cost of Battery-Powered Tools and Batteries

One of the major challenges currently faced by the battery power tools market is the high initial cost of the tools and batteries. While battery powered tools offer convenience of being cordless and portable over traditional corded power tools, their upfront cost is significantly higher. This higher cost acts as a deterrent for many consumers, especially for handyman and casual users who may not require heavy usage of power tools.

Battery power tool manufacturers also tend to price their battery powered tools at a premium over corded tools to recover additional costs involved in developing battery and charging technology. This higher initial investment leaves many users reluctant to switch from corded tools that have a lower upfront cost.

However, battery power tools market leaders are trying to address this by offering bundled deals and pricing discounts on combo kits containing both tools and battery packs.

Market Opportunity - Innovation in Lithium-Ion Battery Technology, Improving Performance and Longevity

One of the major opportunities in the battery power tools market is presented by continued innovation and technological advancements in the field of lithium-ion batteries. Industry leaders are heavily investing in R&D to develop new and improved lithium-ion battery cell chemistries that can enhance the performance as well as longevity of the batteries. The battery manufacturers are achieving reductions in size and weight of lithium-ion batteries while also improving their charge holding capacity and power delivery.

At the same time, they are working on battery management systems to efficiently control charging and discharging cycles, thereby extending the overall life of batteries. These ongoing innovations are helping to steadily augment the run-time of battery-powered tools with each charging cycle. Improved batteries are also helping to reduce charging times.

As a result of such developments, users benefit from longer working periods without recharging and also enjoy tools with more power and torque capacity close to corded tools. This enhances the value proposition of battery-powered tools.

Focus on innovation - Innovation has been one of the biggest drivers of growth in the battery power tools market. Companies like Bosch, Makita and Milwaukee have consistently introduced new products with improved battery technologies, more power and additional features.

Expand product range - Leading players have succeeded by offering a wide range of products beyond traditional drills and saws. Milwaukee in particular has focused on expanding into new categories like lawn care equipment. In 2021, it launched several new outdoor power tools including string trimmers, hedge trimmers and chainsaws.

Strengthen brand loyalty - Major brands invest heavily in promotion and reinforcement of brand loyalty through professional training programs and specialized warranties for professional users. For example, Bosch has long offered extensive training and certification programs that have boosted brand loyalty among tradespeople.

Focus on battery compatibility - A big focus area has been maintaining consistency across battery platforms so that customers can use the same batteries across an expanding range of tools from the same brand.

Insights, By Product Type: Portability driving Cordless Drills' dominance

In terms of product type, cordless drills contributes 25.4% share of the battery power tools market in 2024, owning to its unparalleled portability. Cordless drills are lightweight and compact, making them extremely convenient for both commercial and domestic users to carry around from one site to another. Their rechargeable battery system allows users to work anywhere without the hassle of long power cords, giving them maximum flexibility. This has made cordless drills the go-to choice for tasks requiring frequent movement such as fixing/assembling furniture, hanging shelves, picture frames or outdoorsy DIY projects.

Cordless drills also offer users better access to tight work spaces than corded drills due to the lack of trailing wires. Their portability has paid rich commercial dividends, cementing cordless drills' status as the leading product in the battery power tools market.

Insights, By End Use: Industrial Applications Drive Adoption in the Professional Sector

In terms of end use, industrial contributes 51.4% share of the battery power tools market in 2024. This is largely because of established applications in professional construction, manufacturing and commercial maintenance. Battery power tools have significant uses across diverse industrial verticals for tasks like assembly line works, material handling, packaging etc. Their increasing power capacities have further expanded industrial usage from lighter duties to medium-heavy applications.

For commercial contractors and facility managers, the availability of powerful cordless systems with swappable batteries has provided a reliable alternative to corded tools, enabling workflow continuity. Overall, established applications coupled with growing construction and manufacturing sectors have propelled battery power tools' penetration among industrial professional users.

Insights, By Distribution Channel: Online Shopping Driving New Customers for Battery Power Tools

In terms of distribution channel, online contributes the highest share of the battery power tools market on the back of growing patronage from new-age users. Today's buyers extensively research and compare products online before purchasing. Being featured extensively on leading e-commerce marketplaces has increased battery power tools' visibility to a wider audience globally.

Online reviews and video demonstrations help buyers understand product specifics virtually before buying. This reduces the risk usually associated with high cost power tool purchases especially for new users. Attractive online-only deals and cashback offers also make these tools more affordable for price-conscious buyers. The ease and convenience of online shopping has found many new takers for battery power tools from niche professionals and enthusiasts, apart from traditional industrial users.

• In 2023, the cordless power tool segment saw a 15% growth in battery power tools market share, driven by increasing demand in both residential and industrial applications.
• The Asia-Pacific region accounted for over 30% of the global battery power tools market share in 2023, primarily due to the high demand from countries like China and India.

The major players operating in the battery power tools market include Apex Tool Group, Atlas Copco AB, Hilti Corporation, Snap-On Incorporated, Stanley Black and Decker, Techtronic Industries, Ingersoll-Rand PLC, Hitachi Ltd., Makita Corporation, and Robert Bosch GmbH.

• In November 2024, Stanley Black & Decker introduced a new line of cordless drills designed with improved ergonomic features, enhancing user comfort. The new drills are expected to capture additional market share in the residential sector.
• In October 2024, Techtronic Industries launched an upgraded battery-powered saw with an extended battery life, which is expected to be particularly appealing to construction and industrial users. This move expands their footprint in the professional market.
• In 2024, Makita Corporation introduced an innovative battery-powered grinder that reduces vibration, providing a more comfortable user experience. This product launch is seen as a step forward in making professional-grade tools more user-friendly.

• By Product Type
  • Cordless Drills
  • Cordless Saws
  • Cordless Grinders
  • Cordless Sanders
  • Others
• By End-use
  • Industrial
  • Residential
• By Distribution Channel
  • Online
  • Offline