The power tools market in India has seen tremendous growth in the past few years and is expected to witness an even stronger rise in the coming years. Various factors like increasing construction activities, growth in infrastructure development projects, and rising disposable incomes are fueling the adoption of power tools across different end-use industries in India.
Growing Construction Industry
The construction industry in India has emerged as the key driver for the power tools market with rising infrastructure spending and focus on housing for all. As per industry estimates, the construction sector in India is expected to grow exponentially by 2030 on the back of various investment initiatives announced by the government such as Smart Cities Mission, Housing for All, 100 Smart Cities Project, etc. This boom in construction activities is generating high demand for power tools from sectors like earthmoving, material handling, cutting, drilling, etc. Leading global brands like Bosch, Stanley Black & Decker, Atlas Copco, and Techtronic Industries are catering to this rising need through their wide collection of corded, cordless and pneumatic tools.
Coherent Market Insights dives deeper into the key aspects shaping the dynamics and future of this profitable market in India Power Tool Market.
Rising Infrastructure Development Projects
Mega infrastructure development projects around metro rail networks, highways, airports, dedicated freight corridors, and Bharatmala highway projects are further propelling the uptake of heavy-duty power tools in India. Earthmoving, lifting and material handling equipment like excavators, loaders, dozers along with cutting, drilling and fastening machines are witnessing increased purchases from the infrastructure sector. The growing developmental works related to roads, railways and transport are opening new potential avenues for market players to penetrate with their advanced technological power solutions.
Growing Demand from Manufacturing Sector
The manufacturing sector in India has expanded impressively in recent times due to initiatives like Make in India and industrial corridor development projects. The ever-growing demand for metalworking, cutting, fastening and precision power tools from manufacturing industries like automobile, electronics, machinery, appliances etc. offers lucrative prospects. Several new plants and facilities are emerging across tier-1 and tier-2 cities which augurs well for suppliers of tools required for assembling, fabricating and processing functions. The rising local production and exports are propelling manufacturers to adopt productivity-enhancing power equipment at their production sites.
Impact of Government Policies & Initiatives
The pro-growth reforms and policies introduced by the Indian government are creating a favorable macroeconomic environment facilitating the expansion of the power tools industry. The simplified GST rates, production-linked incentives for target sectors along with the focused attention on ‘Ease of Doing Business’ have boosted manufacturing activities and infrastructure spending. Furthermore, initiatives to develop industrial clusters and smart cities have improved rural-to-urban migration and employment opportunities which are enhancing consumption ability of the populace to purchase power tools. Proactive support from the government through policy shifts is anticipated to further accelerate the adoption of power tools across industries.
Impact of Technological Advancements
Technological advancements are revolutionizing the power tools landscape through smarter, lighter and more efficient solutions. The integration of advanced features like brushless motor, lithium-ion batteries, Bluetooth connectivity, sensor-based controls and augmented reality interfaces are augmenting productivity and fueling new purchase decisions. Cordless power tools enabled by lithium ion batteries are gaining popularity over traditional corded counterparts owing to portability, flexibility and similar performance attributes. Furthermore, artificial intelligence, IoT connectivity and 3D printing capabilities are expected to transform the power tools industry with more customized, adaptive and automated tools in the future. The rapid technology infusion would continue reshaping usage patterns and market dynamics in India.
Market Outlook
The Indian power tools market demonstrates highly promising growth prospects with rising income levels, expansion of the infrastructure and construction sector along with massive developmental projects. Various supportive initiatives by the Indian government targeted towards advanced manufacturing, housing construction, infrastructure development and rural-urban connectivity would sustain this upward momentum in the long-run. The robust underlying demand drivers indicate that India is poised to emerge as a highly remunerative market globally for power tools, attracting global manufacturers to expand their footprint. While North America and Europe currently dominate the global power tools market, India has potential to become a future hotspot for market growth and presents lucrative opportunities for industry stakeholders.
