Benchtop Tools Market - Global Outlook & Forecast 2023-2028

INDUSTRY INSIGHTS

The global benchtop tools market was valued at USD 2.20 billion in 2022 and is expected to reach USD 3.01 billion by 2028, growing at a CAGR of 5.42%. With the rise in infrastructure development and construction projects, the demand for benchtop tools is expected to increase in the future, which will further drive innovations in the benchtop tools market. In addition to the construction industry, the high preference for DIY projects and home improvement activities has also accelerated the demand for user-friendly benchtop tools. The availability of easy-to-use benchtop tools has enabled consumers to complete a wide range of DIY projects with less effort and time, making it a more accessible hobby for people of all skill levels.

Benchtop tools refer to the power tools used on a workbench or tabletop. These include a wide range of sawing tools, sanders, planers, and grinders. DIY enthusiasts, hobbyists, and professionals who work on smaller-scale projects or in confined spaces often use benchtop tools. Technological advancements in recent years have led to the development of a wide range of benchtop tools that are more efficient, accurate, and user-friendly than traditional hand tools. The benchtop tools market has become increasingly popular in industrial and residential segments because they improve productivity, reduce labor costs, and provide better precision and safety. For instance, in the construction industry, benchtop tools have become essential for completing complex projects efficiently and quickly.

RISK FACTORS IN THE MARKET

Supply chain disruptions are considered a risk factor for vendors in the global benchtop tools market. Sometimes vendors have limited supplies and high prices during a market upturn. If suppliers can not purchase sufficient products at reasonable prices and quality products on time to meet customer demands, product shipments might be delayed due to product shortage.

Changes in consumer preferences and trends can significantly impact the benchtop tool market. For example, a shift towards more sustainable or environmentally friendly products can impact the demand. Additionally, government regulations or safety standards changes can significantly impact the market. For example, regulations to reduce carbon emissions can change product design, materials, and manufacturing processes.

MARKET TRENDS & OPPORTUNITIES

Increase In Infrastructural Development Projects
Infrastructure is a major sector that boosts the overall development of any nation's economy. There has been a significant rise in infrastructure development initiatives in several countries worldwide to cater to the rapid pace of urbanization and the considerable increase in demand for housing units in recent years. For instance, Saudi Arabia's latest budget shows that the government focuses on infrastructural reforms per the 2030 vision. The initiative aims to provide a dignified life for Saudi families by enabling them to own houses that match their requirements and financial capabilities. Thus, the surge in such infrastructure development initiatives will offer tremendous growth potential for vendors in the benchtop tools market.

Rising Popularity of Benchtop CNC Machines
Benchtop CNC machines have become increasingly popular, leading to demand for benchtop tools. CNC (Computer Numerical Control) machines are automated cutting machines that use a computer program to control their movement and cutting tools. CNC automatically operate parts such as lathes, grinders, routers, shapers, and other with the help of a computer rather than a human operator. They are often used in manufacturing, but benchtop CNC machines are smaller, more affordable, and designed for hobbyists and small businesses.

The availability of benchtop CNC machines has boosted the demand for benchtop tools for several reasons. First, benchtop CNC machines require tools, such as end mills, drill bits, and collets, specifically designed to work with the machine. These tools are often sold as part of a kit or bundle with the CNC machine, and users need to purchase additional tools as needed. This has led to an increased demand for benchtop tooling and accessories, which can be purchased from various online and offline retailers.

INDUSTRY INSIGHTS

Fluctuations in Raw Material Pricing
Raw material costs account for approximately 50%–60% of the overall cost of production in the global benchtop tools market. The prices of major raw materials used to manufacture benchtop tools—steel, plastic, and rubber—have been volatile over the last few years. The volatility of raw material prices poses a serious threat to vendor margins. Chinese manufacturers that offer cheap and high-quality bench tools have added to the worries of prominent vendors to comply with the growing demand and changing industry standards cost-efficiently. These factors burden vendors that strive to manufacture efficient benchtop tools at affordable prices to cope with the market's competition.

SEGMENTATION INSIGHTS

INSIGHTS BY PRODUCT
The sawing tools product segment accounted for the largest revenue share in the global benchtop tools market, accounting for over 42% in 2022. Factors such as affordability, technological advancements, and versatility in sawing tools likely play a significant role in the segment's revenue generation in the global industry. As more & more people are engaged in DIY & home improvement projects, the demand for sawing tools may increase. These tools are often used to cut wood, plastic, and other materials for home improvement and renovation tasks. Following this, Bench Drill press accounts for the second-highest share in the market. The bench drill press is placed on a workbench or table and is smaller than larger industrial drill presses. It finds usage in home workshops, garages, and small-scale manufacturing setups.

INSIGHTS BY END-USERS
The global benchtop tools market serves various end users, including industrial and residential. Industrial end users include construction, aerospace, metalworking, woodworking, automotive, and jewelry. Industrial end-user is the major contributors to the global benchtop tool market growth and generated the maximum revenue in the global industry in 2022. The scenario is expected to remain consistent throughout the forecast period due to the rise in demand for sophisticated tools and the rise in precision manufacturing. However, renovations, retrofits, and DIY activities are expected to drive the demand for benchtop tools in the residential segment. The growth is expected to be more evident across regions such as APAC, Latin America, and the Middle East & Africa.

INSIGHTS BY DISTRIBUTION CHANNEL
The offline distribution channel dominated the global benchtop tools market in 2022. Factors such as product demonstration, trust & security, instant gratification, accessibility, and others are driving the growth of this segment. The online channel holds a relatively low market share. Also, vendors are expected to increase their online presence through e-commerce platforms and collaborations with other e-commerce firms. Furthermore, the surge in sales through the online channel began due to lockdown implications on offline stores during the pandemic, leading to a shift in consumer preference.

GEOGRAPHICAL ANALYSIS

The global benchtop tool market has a strong demand from the industrial and residential segments. The major regions driving the market's growth are North America, Europe, and Asia Pacific. North America accounted for the highest share of the global benchtop tool market in 2022. Increased construction activities and rising disposable income would drive the market for benchtop tools in the region, as disposable income plays a significant role in discretionary spending. In the U.S., the demand for benchtop tools is driven by the overall economic growth in the country. The stable economic growth in the U.S. is expected to increase commercial and industrial facilities activities, which, in turn, will drive the need for benchtop tools.

Factors such as the high popularity of the DIY culture in North America and the surge in home improvement projects across APAC will drive the demand for benchtop tools during the forecast period. Additionally, the rise in green building regulations, the surge in manual labor costs, high disposable incomes, and the rise in immigration rates will propel the global benchtop tool market during the forecast period.

COMPETITIVE LANDSCAPE

The global benchtop tool market is highly competitive, with several key players operating in the industry. The market is characterized by intense competition, rapid technological advancements, and increasing demand for high-quality products. Some of the major players in the global benchtop tools market are Robert Bosch, Stanley Black & Decker, Makita Corporation, Techtronic Industries, Koki Holdings, and Hilti. These companies compete based on product quality, price, innovation, and brand recognition. The market is anticipated to continue to be highly competitive in the coming years as companies focus on developing new and innovative products to meet the life-changing needs of their customers. 

Many sellers in the benchtop tools market offer goods at competitive costs with comparable technical aspects, such as length, width, and cutting methods. This will likely escalate the price competition among vendors throughout the forecast period. The threat of entry by inferior goods into the market is real. With sporadic bursts of competition from other local sellers, the major vendors in the market constantly vie for the top spot. The presence of a variety of international and local sellers marks the market. Regional vendors will probably find competing with these global players more challenging as international players increase their foothold in the market. The competition will be solely based on features such as durability, lifespan, tool performance, price, and customization.