U.S. Power Tools Market Summary

The U.S. power tools market size was valued at USD 10.14 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 3.5% from 2021 to 2028. In the first half of 2020, the market faced challenges due to the spread of COVID-19, which caused a decline in orders, temporary shutdown of manufacturing facilities, disruption in global supply chains, and reduced consumer spending on non-essential goods. However, demand improved significantly in the second half of the year as restrictions eased and economic activity resumed, leading to modest year-on-year growth. Post-COVID-19, the market is anticipated to achieve steady growth over the forecast period, supported by the recovery and expansion of major end-use industries, particularly construction, manufacturing, and automotive.

Power tools significantly reduce manual effort as they operate on external power sources such as electricity, compressed air, or rechargeable batteries. Their ease of operation and high efficiency make them indispensable for applications across production lines, assembly operations, repair services, and maintenance tasks, where precision and speed are critical. Furthermore, they provide advantages such as portability, improved productivity, and reduced time and labor costs. These benefits are expected to strongly influence their increasing adoption across both residential and industrial sectors in the coming years.

Key Market Trends & Insights

• Based on products, the U.S. power tools market is segmented into drills, saws, wrenches, grinders, sanders, and others. Among these, the drills segment accounted for the largest revenue share of 31.4% in 2020. Drills are widely popular due to their versatility and usability in both industrial applications and household projects, making them a fundamental tool in construction, woodworking, and DIY activities.
• By mode of operation, the electric power tools segment dominated the market in 2020, contributing nearly 60% of total revenue. The segment is projected to maintain its dominance throughout the forecast period as electric tools offer enhanced mobility, user convenience, and improved safety features compared to traditional manual or pneumatic tools. Increasing battery efficiency and the availability of cordless models further support growth in this category.
• In terms of product lifecycle, the demand for new tools significantly outpaced aftermarket sales in 2020, accounting for nearly 74% of total market revenue. This trend is primarily driven by rapid technological advancements, as companies continuously introduce new product lines tailored to the evolving needs of the U.S. market. The growing emphasis on ergonomics, energy efficiency, and smart features is boosting the appeal of new-generation power tools.
• By distribution channels, the indirect sales segment led the U.S. power tools market in 2020, holding a 61.7% revenue share. This segment includes independent distributors, industrial suppliers, mobile tool dealers, home centers, retailers, and retail lumberyards. The wide network of distributors and their ability to provide immediate availability and after-sales services have strengthened this channel’s dominance.
• The industrial application segment dominated the market in 2020, contributing 64.4% of total revenue. High adoption in the construction and automotive industries is a key factor driving this share, as power tools help reduce redundant manual work, improve operational efficiency, and accelerate project timelines. Growing infrastructure projects and the demand for advanced vehicles are expected to further fuel the need for power tools in these industries.

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Market Size & Forecast

• 2020 Market Size: USD 10.14 billion
• 2030 Projected Market Size: USD 12.98 billion
• CAGR (2021- 2028): 3.5%

Key Companies & Market Share Insights

Prominent players operating in the market include Stanley Black and Decker.; Robert Bosch Tool Corporation; Makita Corporation; Techtronic Industries Co. Ltd.; Hilti Corporation; and Emerson Electric, Co.; among others. Product upgrades and new product developments are the key growth strategies adopted by these players to strengthen their market position. Techtronic Industries Co. Ltd., Robert Bosch Tool Corporation, and Makita Corporation are some of the key vendors engaged in offering innovative products and upgrades. For instance, in July 2020, Techtronic Industries Co. Ltd., through its MILWAUKEE brand, launched M12 FUEL HATCHET 6 pruning saws equipped with REDLITHIUM batteries.

Similarly, in December 2020, Makita Corporation launched angle grinders with a non-removable guard. The non-removable guard is intended to ensure safety while operating tools at job sites. In light of these factors, the demand for power tools is expected to witness significant growth over the forecast period. Many vendors are also focused on inorganic growth strategies such as mergers & acquisitions to increase their customer base and strengthen their foothold in the market. For instance, in June 2021, Hilti Zimbabwe, one of the subsidiaries of Hilti Corporation, merged with Lighting World, a lighting and electrical manufacturer. This enabled the company to open a new shop and repair center in Lighting World’s Harare showroom. The merger is expected to help the company increase its customer base and international market presence.

Key Players

• Apex Tool Group
• Atlas Copco AB
• Hilti Corporation
• Ingersoll-Rand PLC
• Makita Corporation
• Robert Bosch Group
• Stanley Black & Decker
• Techtronic Industries Co., Ltd.

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Conclusion

The U.S. power tools market is set to experience consistent growth in the years ahead, driven by technological innovations, rising efficiency demands, and the recovery of key industries such as construction and automotive. The increasing shift toward electric and cordless tools highlights the growing preference for user convenience, mobility, and safety. The dominance of the industrial segment underscores the importance of power tools in boosting productivity, while expanding distribution networks ensure accessibility across all consumer groups. With ongoing advancements and steady demand from both professional and residential users, the market will remain a vital component of the U.S. industrial landscape.