According to a report from Arizton Advisory & Intelligence, Chicago, the U.S. market for cordless power tools is expected to grow at a compound annual growth rate (CAGR) of over 9.49% between 2020 and 2026.
In 2020, the largest segment of the market consisted of industrial end-users contributing 74.52% of the total market revenue, and this segment is likely to remain dominant through 2026. Cordless power tools are widely used in construction, automotive, aerospace, electronics, energy, shipbuilding and other industries.
The construction industry is estimated to be the highest revenue generator due to the rise in construction and renovation activities, accounting for $721.42 million, followed by the automotive industry (which involves the assembly of high-precision parts) at $642.78 million. In addition, the rising use of precision parts and a surge in consumer traffic is expected to drive the demand for cordless power tools in the aerospace industry. Accordingly, aerospace is expected to generate revenue of $487.15 million during the forecast period.
In terms of geographical regions with the greatest expected growth, the South leads the cordless power tools market in United States, accounting for 31.68% of the market. This growth is driven by new construction projects and construction projects in the planning phase. Revenue in this region is anticipated to grow at a CAGR of 10.02% to reach $2 billion between 2020 and 2026.
In second place is the Western region, with a market share of 27.77%. This region is expected to generate $0.74 billion in incremental revenue.
In terms of tool type, according to the report, drilling and fastening tools, demolition tools and sawing and cutting tools are likely to contribute to more than 55% of the market’s incremental growth in the next few years. In 2020, the highest revenue was created by sales of drillers and fastening tools, accounting for a revenue share of 26.43%, or $0.94 billion. This is expected to grow at a CAGR of 7.88% to reach $1.48 billion during the forecast period, adding $0.54 billion to the market by 2026.
The fastest-growing segment is impact wrenches, which is expected to grow at a CAGR of 8.52% between 2020 and 2026. Furthermore, according to the report, sales of this tool type will contribute the highest revenue to the market—$164.98 million by 2026.
The report noted several reasons why cordless tools are increasing in popularity.
“The cordless power tools are preferred over corded power tools as they allow free movement, easy handling, and better storage,” the report stated. “Furthermore, advances in battery technologies and technological innovation, such as Li-ion batteries and Wi-Fi or Bluetooth connectivity, are supporting the growth of cordless power tools.