The India power tool market comprises of products such as drills, bandsaws, planers, sanders, and grinders that are used for various applications in industries such as construction, automotive, and shipbuilding. Power tools offer benefits such as improved efficiency, precision, and speed over conventional tools. They find wide use in drilling, cutting, shaping, routing, sanding, planing, grinding, and polishing of materials in various industries. The growing infrastructure development activities in India is one of the major drivers contributing to the increasing demand for power tools.
The India Power Tool Market is estimated to be valued at US$ 1006.27 Bn in 2024 and is expected to exhibit a CAGR of 6.0% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the India power tool market are BASF SE, Chevron Phillips Chemical Company, LLC, Exxon Mobil Corporation, Ineos Group Ltd, LyondellBasell Industries N.V., Royal Dutch Shell plc, Saudi Basic Industries Corporation, China Petroleum & Chemical Corporation (Sinopec), The Dow Chemical Company , Lonza Group. The key players are focusing on new product launches and expansions to increase their market share. For instance, in 2021 Stanley Black & Decker launched its first manufacturing plant in Tamil Nadu to cater to the demand from infrastructure and industrial sectors.
The growing demand from end-use industries such as construction, automotive, and shipbuilding is one of the major drivers for the India Power Tool Market Growth. Rapid infrastructure development and increased investment in the construction sector in India have been propelling the demand. Various government initiatives such as Smart Cities Mission and Housing for All by 2022 have boosted construction activities.
The market is also witnessing growth owing to increasing exports of power tools from India. Major global players are setting up manufacturing bases in the country to cater to both domestic and international markets. Availability of low-cost labor and growth of the DIY culture in India provides huge opportunities for market expansion for players.
Market drivers
The increasing infrastructure development activities is a major market driver for India power tools market. The Indian government's focus on infrastructure development through initiatives such as the National Infrastructure Pipeline (NIP) with an investment of $1.4 trillion by 2025 is driving the use of power tools for construction activities. Furthermore, growth in automotive and shipbuilding industries wherein power tools have wide applications is also supporting the market growth in India.
The current geopolitical situation is impacting the growth of the India Power Tool Market. With global supply chains still recovering from disruptions caused by the Covid-19 pandemic and ongoing international conflicts, construction companies in India face challenges in procuring power tools and essential raw materials from key manufacturing nations. Rising fuel and transportation costs due to high international crude oil prices have also pushed up input costs for Indian power tool manufacturers. Consequently, construction activity and infrastructure development projects in India slowed down in the last year. However, the government has recognized the infrastructure sector as a major economic growth driver. It plans to invest heavily in transport, energy and urban development over the coming years through initiatives like the National Infrastructure Pipeline. This is expected to drive demand for power tools across the country. To counter external headwinds, companies in the India Power Tool Market will need to focus on local sourcing and expanding domestic manufacturing capacities. Developing alternative supplier networks and improving energy efficiencies can help stabilize costs. Collaboration with industrial training institutes can enhance skill development for efficient power tool usage.
The India Power Tool Market is currently concentrated in the western and southern regions of the country which are more industrialized. States like Maharashtra, Tamil Nadu, Karnataka and Gujarat account for the largest shares of ongoing construction and real estate projects. Their developing manufacturing bases and busier urban centers with multiple infrastructure upgrade plans have propelled power tool adoption. However, the northern and eastern regions are poised for faster growth. The government's focus on expanding road and rail connectivity to remotest areas, combined with housing and smart city initiatives, are expected to drive power tool penetration in emerging state markets like Bihar, Jharkhand, West Bengal and Assam at double-digit rates over the forecast period.
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