April 14, 2024
India Power Tool Market

India Power Tool: Going Strong Booming Construction Sector

The power tool industry in India has seen tremendous growth over the past decade, mainly driven by growth in infrastructure and construction activities across the country. Various government initiatives such as ‘Housing for All by 2022’ and investments in road, railway and urban infrastructure have propelled demand for power tools from construction companies.

The domestic manufacturing of power tools has also grown significantly. Major global brands such as Bosch, Milwaukee, Makita and Stanley Black & Decker have set up manufacturing units in India to cater to the increasing demand. Several Indian companies like Atlas Copco and Ingersoll Rand have also expanded their manufacturing footprint. This has provided a boost to the ‘Make in India’ initiative and created numerous jobs locally. Power tools that were earlier imported are now being manufactured in India at competitive prices.

Rise of organized players

Online sales and organized retail have emerged as a big growth driver in recent times. Traditional unorganized players accounted for over 80% of the market until a few years back. However, the influx of MNC brands, global sourcing by Indian brands, and exclusive brand outlets opened by organized chains have shrunk the unorganized segment considerably. Online platforms like Amazon and Flipkart have made India Power Tool easily accessible even in tier 2 and tier 3 cities. This has helped customers make an informed choice.

Major types of power tools

Corded power tools dominate but cordless gaining popularity

Corded electric tools continue to have a larger share of around 60% of the market owing to higher power and longevity of use compared to cordless tools. However, the cordless segment is witnessing impressive growth of over 15-20% annually due to advancements in lithium-ion battery technology. Cordless solutions are gaining preference for their flexibility of use, ease of handling and portability.

Drilling and fastening biggest categories

Drilling machines and fastening tools together account for over 50% of total power tools sold annually. Other major categories include circular saws, angle grinders, jigsaws, sanders, planers and nibblers. Professional users still prefer corded power tools for construction tasks while DIY users are opting more for cordless solutions. The demand is robust across all categories from both individual users as well as from industrial clients.

Impact of covid-19 and way forward

Short term decline but strong underlying demand

The power tools market was temporarily impacted during the initial months of the covid-19 pandemic when construction activities and industrial production came to a grinding halt across the country due to lockdowns. Both manufacturing and sales declined sharply in the April-June quarter of 2020. However, pent up demand coupled with rising infrastructure spending helped the sector bounce back quickly in subsequent months.

Online sales emerge as a silver lining

The lockdown accelerated the shift towards online platforms for purchases of power tools. Both appliance and hardware retailers as well as individual brands saw manifold growth in their own online channels and marketplace sales during the period. This has boosted overall sector revenues. Going forward, omnichannel retail strategies combining online and offline will become more important for power tool companies in India.

Safety, efficiency and affordability driving demand

With rising spend on public infrastructure and continuous growth in real estate, housing and industrial construction, demand for power tools in India is expected to remain robust over the long term. Continued emphasis on safety, efficiency and value for money will make power tools an essential tool for consumers as well as commercial users across the country. Both international brands and domestic manufacturers are well poised to tap into this large market opportunity.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it