How the India Power Tools Market is Positioned?

Power Tools is an import driven market in India. The expansion of manufacturingindustry, rising number of infrastructure projects in the country, increasing allocation ofbudget to the construction sector by the government has given the impetus to thepower tools industry in India. The power tools market has expanded in past few yearsowing to the increase in the end user’s such as metal and wood industry’s prosperity andalso at the same time the changing lifestyle and adoption of Do-It-Yourself productsincreasing the demand of power tools.. The Market for Power tools had witnessed arobust growth in past few years. Power tools market had increased from INR ~ Million inFY’2011 to INR ~ Million in FY’2016, growing at a CAGR of ~% during the period. TheMake in India initiative by the government has fostered the manufacturing sector whichhad attracted many companies to open their offices and start operations in India. Themassive growth of E-commerce sector had majorly driven the market of power tools.Additionally, increasing cheap imports from China has also catalyzed the growth ofpower tools market in India.

In India, the massive growth in construction sector, manufacturing sector, and e-commerce sector had majorly driven the market of power tools. The increase in demandfor portable products had also surged the demand of cordless power tools in theresidential sector of the country. Power tools have succeeded in changing the lifestylesof people especially in Tier 1 cities due to incline in DIY activities. It has also helped inmaking manufacturing and construction activities easier through portable power tools.Power tools have not only increased the efficiency but also have effectively speededprocesses thereby saving time and energy.

The Competitive landscape of vendors is diverse, from international companies, to fast-growing domestic companies. Examples include Bosch, Makita, Hilti, Hitachi Koki, FEINPower Tools and other organized players.

The power tools market has been segmented on the basis of technology. The four majorsegments are Electric, Pneumatic, Hydraulic and Powder-Actuated Power tools. In India,majority of the end users have been using electric power tools since it is cheaper andfinds application in various sectors. Additionally, most of the electric power toolsmanufactured by key players are available on online portals. The electric power tools hadcontributed to INR ~ million In FY’ 2016. The number of companies manufacturingelectric power tools is higher than any other kind of power tools.

The percentage share of electric power tools had increased from ~% in FY’2011 to ~% inFY’2016.The power tools market was also segmented based on demand from Tier 1, 2 and 3 citiesin India. Tier 1 cities had dominated the power tools market in terms of revenue inFY’2016. The vendor companies generated most of the revenues majorly from these citiesowing to excellent distribution networks in these cities.

Which Segments have Driven the Power Tools Market?

Electric Power ToolsElectric power tools were the most popularly used products out of all the types of powertools. The revenue from electric power tools was recorded to be around INR ~ million inFY’2011 which rose to INR ~ million in FY’2016. This rise was owing to the increase in PDIthat led to an increase in user’s propensity to spend. Electric breakers generatedmaximum revenues in the electric power tools segment in FY’2016 since they areexpensive as compared to other electric power tools. Organized sector dominated themarket of electric power tools in FY’2016. Most of the power tools were sold throughdealers rather than direct or online sales. Dealers contributed to INR ~ million in FY’ 2016.The construction industry created ~% of the revenues from electric tools in FY’2016followed by manufacturing industry and others. ~% of the end users was non-residentialin FY’2016 followed by residential end users.

The gradual shift in purchasing pattern of electric power tools from physical storesto online portals had fueled the growth of electric power tools in the country.On the basis of type of product, electric power tools market can be segmented byDrills, Screwdrivers, Routers, Planers, Grinders, Saws and Breakers. Electric breakerscontributed maximum to the revenues, around INR ~ million in FY’2016. Portableelectric power tools contributed INR ~ Million in FY’2016 as compared to INR ~Million by stationary counterparts. By application, bulk of the demand wasgenerated by the construction industry followed by the manufacturing industry andmetal working industry. Non-residential users generated about % of the revenues ascompared to residential users. Dealers contributed for higher revenues than directsales. Online sales generate the least revenue. The organized sector occupied agreater market share as compared to the unorganized sector in terms of revenue.

Pneumatic Power ToolsPneumatic power tools were the second largest revenue generator in the powertools segment. Its market accounted for INR ~ Million in FY’2011 which rose to INR ~Million in FY’2016. A vast majority of the demand for pneumatic power tools wasgenerated from the construction projects all across the country. Pneumatichammers contributed the most in the revenue from in FY’2016 since their cost ofmanufacturing was lesser than the others.

Organized sector dominated the market of pneumatic power tools in FY’2016. Most ofthe power tools were sold through dealers rather than direct or online sales. Dealerscontributed to INR ~ million in FY’ 2016.The construction industry created ~% of the revenues for pneumatic tools in FY’2016followed by manufacturing industry and others. ~% of the end users was non-residentialin FY’2016 followed by residential end users. This was owing to large number of non-residential projects which attracted the utilization of pneumatic power tools in thecountry.On the basis of type of products, pneumatic power tools market can be segmented bybuffers, nailing and stapling guns, buffers, riveting guns, nailing and stapling guns,sanders, wrenches and others. Stationary pneumatic power tools contributed INR ~Million in FY’2016 as compared to INR ~ Million by portable ones. By application, thelargest revenue was generated by the construction industry followed by themanufacturing industry and metal working industry. Non-residential users generatemore revenue than residential users. Dealers contributed for higher revenues thandirect sales as majority of the companies focused on their operation which includesmanufacturing the products rather than distributing it, which was mostly outsourced tothe dealers. The organized sector held a higher market share than the unorganizedsector owing to end user’s preference for branded and quality products.

Hydraulic Power ToolsHydraulic power tools market was about INR ~ million in FY’2011 which inclined to INR ~million in FY’2016. The increase in imports from China was one of the major reasonsbehind this increase. Demolition hammer was the most popular tool in this segment whichwas largely used in the construction projects all across the country.Since the demolition hammer find applications on concrete, brick wall and masonry all ofwhich form parts of construction activities, the construction industry created ~% of therevenues from pneumatic tools in FY’2016 followed by manufacturing industry andautomobile sector. Stationary products were preferred over portable ones owing to higherpower and torque generated by them. Organized sector was responsible for generatingmost of the demand for hydraulic power tools in FY’2016. Most of the power tools weresold through dealers rather than direct sales since most companies opted for indirectchannels of distribution. Dealers generated revenues worth INR ~ million in FY’2016. ~% ofthe end users was non-residential in FY’2016 owing to limited usage of the demolitionhammer in residential sector.Stationary hydraulic power tools contributed for INR ~ million in FY’2016 as compared toINR ~ million by portable ones. By application, the largest revenue was generated by theconstruction industry followed by the manufacturing industry and automobile industry. Theorganized sector contributes more than the unorganized sector to the revenue of Hydraulicpower tools owing to high commercial usage of the tool.

Powder Actuated Power ToolsPowder-Actuated Power tools generated the least revenues in the power tools segment.The market was worth INR ~ million in FY’2011 which subsequently rose to INR ~ million inFY’2016. Powder-Actuated tools are fasteners used to join hard substances like metals. Theonly type of tool included in this segment is the nailing and fastening gun largely used inthe construction projects all across the country. ~% of the revenue was generated fromstationary powder-actuated power tools in FY’2016. This was because powder-actuatedprocesses require high power which is usually not provided by portable devices. Powder-actuated tools relatively generated most revenue from unorganized players among all thefour types of power tools. Dealers generated more revenue since they are preferred incases of bulk sales and commercial end users were responsible for the bulk of thepurchases. ~% of the revenues in FY’2016 was generated by construction industry followedby manufacturing industry and metal sector.Non-residential end users were far more than residential users owing to the hazardousnature of the product. Stationary powder-actuated power tools contributed to INR ~million in FY’2016. Dealers contributed for higher revenue than direct sales owing todealers providing a fair comparison among different brands of the same product. Theorganized sector contributed for maximum revenue as compared to unorganized sector.Powder-actuated tools relatively generated most revenue from unorganized playersamong all the four types of power tools.

How is the Competition Structured in India POWER TOOLS Market?

India Power Tools market is dominated by few large multinationals. These companies areoffering wide variety of products and excellent after sales services to the customers.Bosch India was a leading player in the industry in FY’2016. The company was a trustedbrand name in the country and generated revenues worth INR ~ million in FY’2016 inoverall Power Tools market in the country. Stanley Black & Decker was the second largestplayer in India with the revenue generation of INR ~ million in power tools industry in thecountry. The company has three brands under Stanly Black & Decker with plans toenhance localization to 50 percent and set up manufacturing plants in India. FEIN had arelatively less market share with a revenue generation of INR~ million since itmanufactured only electric power tools.Most key players imported their products from China, Germany and other countries whileBosch manufactures ~% of its products in India.

What are the Future Prospectes for India power tools market?

India Power Tools Market is expected to increase from INR ~ million in FY’2017 to INR ~million in FY’2021, growing at a CAGR of ~% during the period. The market is anticipatedto be driven by the FDI inflows of international companies to benefit from the Make inIndia initiative. The rise in number of smart cities such as in the future will alsoaccelerate the demand of power tools in the construction industry.The increasing construction projects and manufacturing units of companies developingpower tools in Tier 2 and 3 cities is due to increase the demand of power tools leading toincrease in revenue. Innovations in design ( a shift from corded to cordless power tools),technology and quality will also trigger the demand power tools by various end usersespecially in the residential sector.

Companies Covered in the Report List of Companies

Major Players Bosch IndiaStanley Black&Decker IndiaHitachi KokiHiltiMakitaFEIN Power Tools

Key Factors Considered in the Report

Comprehensive analysis of the India Power Tools market and its segmentsListed major players and their positioning in the marketIdentified major industry developments in last few years and assessed the future growthof the industryDecision making process by different sectors to select the Power Tools firm.

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https://www.kenresearch.com/energy-and-utilities/power/india-power-tools-market-statistics/46154-103.html

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