Study: Power tool demand to grow 4.8% per year

A new study from The Freedonia Group is forecasting global demand for power tools to reach $32.9 billion by 2018, indicating a growth rate of 4.8% per year.

The demand is expected to grow fastest in developing regions, or those gearing up for significant increases in construction activity.

China and India are predicted to see some of the most rapid growth. China's was the second largest national market for power tools in 2013 and accounts for 10% of global demand. Now through 2018, power tool growth will be nearly double the global average.

In the U.S. and much of Western Europe, an improved economy and healthier construction activity is due to increase power tool sales as well. However, the U.S. will see a decrease in its overall market share: it accounted for 24% of sales in 2013, but will make up one-sixth of global sales between 2013 and 2018, according to The Freedonia Group.

“The country is a significant market for power tools because it is home to substantial tool using industries such as construction, general manufacturing, and motor vehicle production and repair," said analyst Kyle Peters. "In addition, there is widespread interest in do-it-yourself activities, resulting in a sizable consumer market.”