According to Fortune Business Insights, in 2022, the global power tool market size was valued at about $26.6 billion and was projected to grow to $27.1 billion in 2023, with the ultimate growth projected to reach $36.8 billion in 2030. This estimated growth exhibits a 4.3% Compound Annual Growth Rate, or CAGR during the forecasted period.
In the DIY segment in particular, power tools have indicated the highest CAGR, which is because of increased adoption. This comes because of a high interest, trend and growth of the DIY enthusiast. Post Covid-19, many developing and developed countries have witnessed increased household developments and renovations. This is because people have been spending more time at home and therefore have identified areas in their homes that need reinforcement by way of repairing, rebuilding or even maintaining certain aspects of the house.
Given their efficiency and ease of use, preferred options are those that accommodate budget and time constraints, making them ideal for both handymen and homeowners aiming to tackle specific tasks themselves.
To further compliment this surge in interest in this segment, the technological advancements embarked on by some suppliers in ensuring that their power tool products are energy efficient has also proven beneficial to growth. Moreover, there is also great focus on power tool products being multipurpose machines that can be used for various applications in and around the DIY space. What has also been a high uptake in the market are cordless power tool products that have captured the hearts of many consumers owing to the ease in operating them on high torque as well as being easy to carry given their lightweight.
In the South African context, according to the South Africa Power Tools Market Research Report 2028, drilling and fastening power tools are expected to account for the largest share of the market. With end users preferring the cordless tools over the traditional tools, flexibility, compact and portable designs are a growing demand.
During and post the pandemic, buying habits have changed and this has given a rise to eCommerce. As a result, an expected surge in the sale of power tools through eCommerce channels is predicted. This method has demonstrated its convenience in buying power tool products within the DIY sector, as online sales often come with detailed descriptions outlining the properties and qualities of the items being sold. From this display of information, buyers make decisions to purchase and request delivery than to have to drive to hardware stores.
Moreover, discounts and other benefits offered on bulk orders by eCommerce marketplaces are also expected to make eCommerce platforms a preferred channel for buyers looking forward to procuring power tools.
Distributors, suppliers, direct sales representatives, and brick and mortar stores have traditionally been the primary sales channels to sell power tools. Most B2B customers have long-term relationships with sales representatives of power tool manufacturers. This being the case, it is suspected that the strong preference for direct sales channels can particularly challenge the growth of B2B eCommerce marketplaces. As such, any hesitance among buyers to embrace alternative procurement channels for power tools could potentially impede the growth of B2B eCommerce marketplaces in the power tools and accessories market throughout the forecast period, notes the B2B eCommerce Marketplaces Power Tools and Accessories Report.
With DIY and the professionals segment leading the pack in eCommerce purchases, the rising number of local manufacturers and construction projects are further adding to the increased and demand for power tool products.
Market product preferences
Regarding the power tool product preferences and trends in the DIY segment, the market has been further segmented into drills, saws, wrenches, grinders, sanders, and others. The report points to the drills segment accounting for the largest market share of over 30% in 2020 and it was expected to register the highest CAGR exceeding 20% over the forecast period.
The report mentions that the growth of the segment can be attributed to the wide application portfolio power drills can cater to in home improvement and industrial applications across various industries and industry verticals, such as automobile, energy and power, and aerospace. With the growing demand for lightweight electric drills, this bodes well for the growth of the segment over the forecast period.
The wrenches segment is anticipated to expand at a CAGR exceeding 19% over the forecast period. Cordless wrenches and air wrenches are increasing in popularity, and they are anticipated to drive the growth of the segment. Additionally, the growing preference for DIY tools for various applications in automotive repairs, such as removing lug nuts and frame or chassis bolts, is also expected to contribute to the growth of the segment.
Power tool products in South Africa
In the previous year, several power tool brands have done significantly well and have proven to serve the market with what it needs. With various power tool products available, ranging from cordless battery-powered products to electric products, the endless choices have certainly contributed to the uptake in the DIY market of these products.
L&G Tools mentions that in its Fragram range, the entry level 650W has done incredibly well in the past year, owing to its power to size ratio. L&G Tools says that its affordable entry level grinder comes with a 2-year warranty and incredible after sales service, which is beneficial for customers. Moreover, its Trade Professional 1050W 115mm Angle Grinder has also done exceptionally well, which can be attributed to its features and attributes such as the external brush cap, three position auxiliary handle and spindle lock.
Although sales for its cordless range have increased on the industrial range side, it is not nearly as popular as their corded counterparts. A notable trend that the company has seen is that South Africans are still very hesitant to invest in cordless technology. This can be attributed to the fear of batteries running out before a task is complete and batteries might take longer to charge, especially if we are on stage 6 or higher with continues interruption on the grid. L&G Tools are trying to overcome the hesitation with our one battery platform, where majority of our cordless power tools operate on a one interchangeable battery platform. This will enable the consumer to always have more than one battery on hand.
L&G Tools offers the option to purchase from its range of DIY Fragram power tools with a 2-year warranty, as well as its industrial range Trade Professional which comes with an impressive 3-year warranty. With a DIY as well as industrial range from one supplier, there is no need to deal with more than one supplier to complete your power tool category in store, as L&G Tools offer a complete solution. The after sales service is certainly one of its value-add offerings that set L&G Tools apart in the market.
The company has also dedicated its customer care department who assist with warranties and returns, with service centres placed strategically across South Africa to ensure its products are collected and assess in time. There is also have an onsite spares department dedicated to ensuring spares are readily available for the range.
As a company celebrating its 46 years of existence, we have strong supplier relationships internationally with our manufacturing partners allowing us to provide unrivalled expertise and latest product technologies to our customers. We have heavily invested in looking into ranges and products that have key value-added features that set them apart in the market.
Trade Professional Cordless power tools use to offer a battery and charger as part of the purchase, however since the brands presence has increased over the years a demand was raised to invest in skin only units. This provides customers with the benefit of purchasing the standalone unit at a reduced price, as they may already possess a battery and charger that can be used interchangeably across units.The company recently introduced its first skin only unit in the market, with the rest of the rollout happening in the months to come.
The industrial Makita cordless battery operated LXT range is expanding, and the category is growing. Cordless drill kits sold well as anyone converting from 220v AC to DC tools would start with a drill kit. The most popular tools are drills, angle grinders, rotary hammers, impact drivers, sanders and circular saws. There is also an increase in battery operated garden tools.
With Makita having over 100 years research and development experience in the power tool industry and having had battery technology for 45 years, brushless motor technology improves all the time. Makita has managed to produce tools with performance on par with conventional electric 220v tools. The range is constantly expanding with new innovative models being launched on a regular basis
Matus has found that most consumers have a huge interest in most of the Hikoki 36V cordless power tools.
The Hikoki 36V cordless drills and grinders have increased in popularity due to constant load shedding. Consumers have realised the need to switch over from traditional corded to cordless units. One of the many benefits of going cordless is that there is no down time during loadshedding. Productivity basically remains the same.
The ongoing innovation and technological advancements is consistently generated by Hikoki. One of these innovative products is our AC/DC Adaptor which converts any 36V cordless tool to a corded unit.
Ryobi has seen a great interest from the market in its One Plus Ranges. The two most popular products from the One Plus Range have been the Ryobi Cordless 18V Li-Ion Drill Kits: XD-180 and XHD-1820K.
The Ryobi ranges are set apart in the industry for three main reasons. The first is the compatibility and range expansivity – within the One Plus Range, the entire collection operates seamlessly by utilising a single battery across the range. This makes it versatile and easy for consumers to switch between activities to get their projects done in shorter timelines. The second is the quality assurance, guarantees and extra measures taken by the Ryobi Strike Team to educate and provide after sale services to customers. The third is pricing, Ryobi strives to give customers high value products, at the most affordable price possible.
In 2023, there was a visible shift in the market. Mainly a focus on Alternative Energy and all aspects that align with solutions to this. To increase interest in this segment, Ryobi is set on improving innovation of the products, both new and old to the range. Building, and solidifying customer loyalty and boosting customer awareness through demonstrations, workshops, and videos about our ranges on how to use Ryobi products.
The Ingco brand always prides itself in being a brand that supplies Professional Tools Made Affordable. This has been the bedrock value proposition that has improved the lives of South Africans, giving everyone the opportunity to own and use a quality, professional tool at an affordable price.
Some of the brands that have done well in the previous year are the INGCO 20V 300 Nm Impact Wrench Kit (CIWLI2038); INGCO 20V Rotary Hammer Kit (CRHLI202287) and the INGCO 20V Impact Driver (CIRLI2017).
In 2024, the whole INGCO range will be upgraded to SUPER INGCO. The range will become even more industrial at an even lower price. The strongest value proposition in the market will become even stronger.
Tork Craft’s TCA G0230 Angle grinder is a powerful and versatile tool with a 2400W motor and 230mm accessory diameter. Its popularity can be attributed to the high-performance capabilities and ergonomic design making it perfect for a wide range of cutting and grinding applications. The adjustable blade guard offers maximum protection while the rotatable handle and easy blade change coupled with its customisable left, right or top handle fitting options has ensured the increased popularity of this tool during 2023.
Tork Craft’s continuous investment in finding solutions and tweaking products for optimum performance mean consumers are guaranteed the best tool for the task and it is this investment that is ensuring the increased popularity of all the power tools in the Tork Craft range.
Tork Craft’s offering is continuously expanding and is so well merchandised that consumers cannot miss the brand in-store which helps to ensure that consumers looking for power tools are drawn to the Tork Craft range. We capitalise by increasing our slice of the cake through creative marketing, great value, superior quality and exceptional after sales service.
On the other hand, the Festool FES577010 CIRCULAR SAW TS 55 FEBQ-PLUS-FS offers absolute precision cuts, maximum power and extreme durability. The unprecedented working speed with no loss of Festool reliability has made this saw a best seller in 2023. It saws at up to twice the speed whilst the new generation of cutting blades guarantees perfect cutting quality with maximum cutting performance. The availability of accessories such as guide rails, angle stop, splinter guard and extraction system ensure the TS 55 provides best work results and a top-class sawing system for any challenge.
Festool is a company that is inspired by craftspeople and boasts a 90-year company history whilst embracing a forward-looking approach by continuously evolving to meet the demands of a global future. This mindset sets Festool apart and is the reason why it is the discerning power tools users’ company of choice.
Festool introduced its first circular saw in 1930 and nearly a century later has continuously looked at ways of improving safety, performance, ergonomics, precision and portability. This consistent focus on innovation will ensure that the Festool brand will continue to be the brand of choice by those demanding reliability and quality.
Some of the most popular products in the past year for Positec has been the products from its Worx as well as the Kress brands.
The Worx cordless 5 in 1 Sandeck WRX WX820.9 converts to a finishing, orbital, detail, finger and curved area sander in seconds.
The replaceable multi head means one unit for all sanding work making any sanding solution very affordable.
The versatility of this tool has made it a best seller for consumers and as it forms part of the Worx Powershare battery range ensuring both portability and economy.
The Kress Krosspack system offers customers one battery for all consumer needs with batteries compatible with all Kress 20V products. Kress Krosspack products are therefore available in “tool-only” versions making them more affordable. The Kress Krosspack batteries are available as 20V Max 6.0Ah or 4.0Ah Lithium-ion with indicator.
The multi sander with its easy conversion for different sanding tasks is a unique tool that is both versatile and powerful whilst being lightweight. This is a tool that saves time and money – a combination that will always be successful.
Kress Krosspack is a solution for DIYers feeling the effects of the tight economy, batteries are expensive so having the option of a tool only purchase sets this product apart. Consumers are looking for value for money and Kress offers this
Worx is a solution driven company that listens to its customers – its continuous innovation will ensure it capitalises on all opportunities going forward.
Kress provides trade professionals access to quality tools at the right price. All its cordless tools are brushless ensuring a trouble free longer lifespan. The onboarding of companies like ACDC as distributors will ensure that Kress keeps growing.