Power Tool Batteries Market

Power Tool Batteries Market Outlook (2023 to 2033)

According to Fact.MR’s newly published industry report, worldwide demand for power tool batteries has reached a market valuation of US$ 2.5 billion in 2023 and is estimated to climb to US$ 6.5 billion by the end of 2033. The global power tool batteries market is predicted to soar at a CAGR of 10% from 2023 to 2033.

Band saws, circular saws, crimpers, hammer drills, impact drivers, and impact wrenches all operate on power tool batteries. These batteries are an addition to the tools since they lessen trip and shock hazards and boost workers' productivity because they are lightweight and portable.

Growing customer preference for cordless power tools, caused by a rise in the need for equipment that is more portable, has been highlighted as the key trend in the market for power tool batteries. Modern battery-powered tools can operate for longer periods between charges, which is creating opportunities in the power tool batteries market.

• Drills are among the most widely utilized power tools in a variety of fields and applications. Due to their versatility and great demand, they are required for drilling holes, driving screws, and securing materials. Additionally, cordless drills' appeal is greatly attributed to their portability.

Users can work in remote regions or places without a power source thanks to the improved flexibility and portability offered by cordless power tool kits. Because of the rising need for cordless power tool options among consumers and professionals, power tool batteries are in high demand.

During the forecast period, factors such as rising battery-powered power tool adoption and the rapidly expanding automotive industry are forecasted to propel the market. The market for power tool batteries is dominated by lithium-ion batteries as a result of rising demand from the automotive sector.

It is predicted that the market will experience significant growth due to key innovations in power tool batteries, increased demand for fastening tools, and the development of smart, linked power tools in the automotive and energy industries. Demand for power tool batteries is rising as a result of the surging popularity of DIY projects and the growing emphasis on sustainability and energy efficiency.

Report Attributes	Details
Power Tool Batteries Market Size (2023)	US$ 2.5 Billion
Projected Market Value (2033)	US$ 6.5 Billion
Global Market Growth Rate (2023 to 2033)	10% CAGR
Market Share of Lithium-ion Batteries (2023)	60%
Market Share of North America (2023)	40%
Key Companies Profiled	BYD Co. Ltd. Hitachi, Ltd. Ryobi Limited Samsung SDI Techtronic Industries Makita Corporation LG Chem Ltd. Sony Corporation Panasonic Holdings Corporation Hilti Corporation

What are the Key Trends Pushing the Sales of Power Tool Batteries?

“High Requirement of Power Tools in Construction Industry”

Power tools are widely used in the construction industry due to the expansion of the sector and the demand for effective instruments for a variety of tasks. Cordless power tools make it easy and efficient to perform fundamental tasks such as cutting, chipping, drilling, hammering, and grinding. As a result, the market is anticipated to develop as power tools become more prevalent in the construction sector.

Construction sector demand has increased as a result of enhanced infrastructure projects, particularly in emerging countries, which has bolstered power tool sales. Power tool use has been encouraged by recent advances in batteries, motors, and other technology, which have increased product efficiency. Along with strong government backing and rising income levels, the construction industry is estimated to rise significantly, which will drive the market for power tool batteries.

“Emergence of Smart and Connected Power Tools”

The Internet of Things and the use of intelligent connected technologies in assembly line operations have led to the connection of every piece of equipment in the factory. Technological advancements and the adoption of smart manufacturing methods have led to the development of smart power tool equipment. Leading tool manufacturers give top importance to the production of smart and connected power tools.

• Milwaukee Tool Corporation recently unveiled ONE-KEY, a digital platform for tools and equipment. Users can customize the torque and speed settings on this cloud-based platform for certain purposes.

“Increasing Focus on Energy Efficiency and Environmental Sustainability”

The market for power tool batteries is also being driven by the rising emphasis on sustainability and energy efficiency. Power tool batteries provide a more efficient and ecologically friendly alternative to conventional corded power tools as sustainability and energy efficiency becomes more crucial factors to consider.

Governments and organizations worldwide are emphasizing energy efficiency and environmental sustainability. Power tool batteries can minimize environmental effects and cut energy usage by doing away with the need for a power cord. Therefore, it is anticipated that demand for power tool batteries would increase as sustainability and energy efficiency become more important.

What are the Major Challenges Faced by Suppliers of Power Tool Batteries?

“Availability of Counterfeit & Low-Quality Products and High Maintenance Cost of Power Tool Batteries”

The cost of raw materials, parts, or finished items can fluctuate, which can result in production halts, delays, inefficiencies, or an inability to market products. The market for power tool batteries can face challenges related to counterfeit and low-quality products. These products, often available at lower prices, cannot meet the safety standards or deliver the expected performance.

Power tools require routine maintenance of their moving parts. They need to be calibrated regularly to operate correctly. Regular maintenance is required for the tools to perform properly. High maintenance costs are restraining the growth of the power tools batteries market. Additionally, the cost of owning power tools rises as a result of the requirement for upkeep and repairs.

How are Emerging Companies Improving their Market Position?

“New Manufacturers Focusing on Cathode and Anode Microstructure Enhancement to Enable Quick Charging”

Manufacturers of cells can now meet the expanding performance, affordability, and safety requirements thanks to innovations in the Li-ion battery production process. New companies are focusing on recent developments to enhance the cathode and anode microstructure to enable quick charging.

• To speed up the charging of high-energy density cells, the Swiss start-up Battrion creates and sells fabrication methods for lithium-ion batteries. The company's proprietary method enhances the negative electrode's microstructure, removing the bottleneck for quick charging by improving on a single stage of industrial battery manufacturing processes.

Why is Demand for Power Tool Batteries Increasing Rapidly in North America?

“High Spending on Consumer Electronics in the Region”

• In 2023, North America is leading the overall market, holding 40% share.

North America is a prominent market for power tool batteries, driven by the presence of a strong construction industry and the adoption of advanced power tools. The demand for high-capacity lithium-ion battery packs is on the rise in the region.

Growing adoption of electric vehicles and rising spending on consumer electronics are driving market growth. The surging need for power tools in the mining and oil and gas sectors is boosting the power tool batteries market share.

Country-wise Insights

How are Sales of Power Tool Batteries Faring in the United States?

“Government Initiatives to Support Adoption of Energy-efficient Power Batteries”

The United States is a mature market for power tool batteries, characterized by a strong presence in manufacturing industries and a focus on energy efficiency. The demand for lightweight and compact power tools powered by high-performance batteries is driven by the residential building sector.

Rising popularity of DIY projects is supporting market expansion. The convenience and ease of use offered by cordless power tools have attracted DIY enthusiasts, leading to an increased demand for power tool batteries. Government initiatives and regulations further support the adoption of energy-efficient power tools and batteries.

What Makes China an Attractive Market for Producers of Power Tool Batteries?

“Rapid Increase in Infrastructure Development Projects”

The market in China is predicted to have positive growth as a result of an increase in infrastructure development projects as well as a migration in the manufacturing base of businesses due to the availability of low-cost labor. Rapid urbanization, high demand for industrial battery chargers, and a rise in automobile sales are the main factors propelling market growth.

Key producers are heavily investing in developing better power tool batteries to increase tool efficiency, therefore product demand is anticipated to rise throughout the projection period. Market expansion is fueled by expanding government initiatives to enhance industrial manufacturing facilities.

Category-wise Insights

Why Do Lithium-ion Power Tool Batteries Account for Higher Sales?

“Lithium-ion Batteries Preferred Due to Their High Energy Density”

Based on type, the market is divided into lithium-ion, nickel-cadmium, nickel-metal hydride, and others.

• Lithium-ion power tool batteries account for 60% share of global revenue.

Innovative battery solutions used in power tools are lithium-ion batteries. Environmentally friendly, lithium-ion batteries are lightweight and have a high energy density. The market is anticipated to be driven by the rising demand from end-user industries, including construction, automotive, and industrial.

Li-ion batteries are rechargeable batteries that come with safety circuits to guard against overheating, are easy to use, have longer run durations, and can be charged in a variety of ways. For portable electronic applications, lithium-ion batteries are widely employed, and cordless power tools have gained popularity.

Power tool power sources such as traditional nickel-cadmium and nickel-metal hydride batteries are quickly replaced by lithium-ion batteries. The increased use of cordless power tools with high-density batteries that can operate for longer without charging is a result of developments in battery technology.

Competitive Landscape

As per this new industry analysis by Fact.MR, a market research and competitive intelligence provider, top manufacturers of power tool batteries are making significant R&D investments to diversify their product offerings, which will spur further market expansion. Important market developments include new product releases, quality control, greater investments, and collaboration with other organizations.

For instance :

• In 2019, modern cordless power tools, including a wireless screwdriver powered by lithium-ion batteries, were introduced by Bosch Power Tools. According to Bosch, these power tools will increase worker convenience for the workforce four times over the use of conventional screwdrivers.

Key Segments of Power Tool Batteries Industry Research

• By Type :

  • Lithium-ion
  • Nickel-cadmium
  • Nickel-metal Hydride
  • Others

• By Tool :

  • Drills
  • Saws
  • Lawn Mowers
  • Impact Wrenches
  • Others

• By Application :

  • Residential
  • Commercial
  • Industrial

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa