New Zealand Power Tool Market SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (undefined)

New Zealand Power Tool Market Analysis

New Zealand Power Tool Market is estimated to be valued at US$ 167.2 million in 2024 and is expected to reach US$ 286.1 million by 2031, exhibiting a compound annual growth rate (CAGR) of 8% from 2024 to 2031. New Zealand power tool market encompasses a diverse range of tools used for various purposes, including construction, woodworking, metalworking, automotive repair, and DIY projects. Power tools are electric or pneumatic devices that are powered by electricity, batteries, or compressed air and are designed to perform tasks more efficiently than manual tools. The market includes both corded and cordless tools, with cordless tools gaining popularity due to their portability and convenience.

New Zealand Power Tool Market is segmented by Product Type (Drills, Saws, Sanders, Routers, Planers, and Others), End User (Professional, DIY, Industrial, Others) and Power Source (Electric corded, Cordless battery, Gasoline powered, and Pneumatic).

New Zealand Power Tool Market Drivers:

• Infrastructural development projects: Infrastructural development projects are poised to accelerate the growth of New Zealand's power tool market. As the government undertakes large-scale transportation, construction, and energy sector projects, demand for power tools from various end-use industries is projected to increase substantially. Some of the major infrastructural projects that are stimulating the power tool market include the expansion and modernization of rail and road networks, construction of new commercial buildings, hospitals, schools, and stadiums, the development of renewable energy farms and modernization of critical infrastructure in rural areas. For instance, the government plans to invest over US$ 8 billion by 2024 on transport infrastructure upgrades alone according to New Zealand Infrastructure Commission data from 2021. Similarly, around US$ 3.5 billion will be invested to modernize hospital facilities and buildings over the next five years as per the Ministry of Health, New Zealand's estimates for 2022-23.
• Easy availability of power tools: The easy availability and affordability of power tools is significantly contributing to the growth of New Zealand's power tool market. With Do it yourself culture gaining popularity in the country, more homeowners and general consumers are investing in power tools to carry out basic maintenance, repair, and construction work around their homes. This trend was further accelerated during the Coronavirus Disease of 2019 (COVID-19) pandemic lockdowns as people spent more time at home and wanted to carry out projects themselves. According to statistics from New Zealand Retail - an independent research organization in New Zealand, the annual unit sales of power tools such as drills, circular saws, and impact wrenches increased by 15% from 2020 to 2021.

New Zealand Power Tool Market Opportunities:

• Product innovation and technological advancements: Product innovation and technological advancements present significant opportunities for growth in New Zealand's power tool market. With renewable energy and sustainability becoming priorities for both homeowners and industry, there is demand for tools that are more energy efficient and environmentally friendly. Manufacturers that develop power tools with upgraded battery technologies requiring less frequent charging or run on alternative fuel sources like hydrogen fuel cells would have competitive advantages. This aligns with the New Zealand government's goal of 100% renewable electricity generation by 2030 as outlined in its Climate Change Response (Zero Carbon) Amendment Act 2019.
• Expanding product portfolio and catering to untapped markets: Expanding the product portfolio and catering to untapped markets provides significant opportunities for growth in the New Zealand power tool market. Currently, the market predominantly offers electric drills, saws, sanders, and other basic power tools. However, with the evolution of technologies, multiple specialized power tools have been developed globally for precise construction and woodworking applications. These include advanced angle grinders, dust extractors, laser levels, and more. Introducing such diverse and specialized tools in New Zealand has potential to unlock meaningful demand from professional contractors and hobbyists. As the construction, infrastructure, and agriculture sectors continue to strengthen significantly in New Zealand, contributing 19.3% to the GDP according to World Bank 2021 data, the usage of power tools across both commercial and DIY applications is likely to receive a substantial boost. Further, the positive migration trends (Net Migration in New Zealand increased to 31.84 thousands in 2021 from 26.05 thousands in 2020 as per data from Stats NZ) are expected to continuously fuel housing demand and residential projects over the next decade.

New Zealand Power Tool Market Restraints:

• Availability of cheaper Chinese imports: The power tool market in New Zealand is facing significant challenges in recent years due to the influx of cheaper Chinese imports. These Chinese power tools are priced significantly lower than those manufactured locally or imported from other countries like Germany, the U.S., or Japan. Consumers in New Zealand, like in many other countries, are highly price sensitive and look for value for money products. The substantially lower prices of Chinese power tools is proving to be a major attraction for consumers. This is impacting the sales of locally produced and imported high-end power tools from other countries negatively. As per data from Trade Map which is a trade statistics database of International Trade Centre, the import of power tools from China to New Zealand surged by over 35% between 2021 and 2022.
• Counter Balance: Ensure that all products meet New Zealand's safety and quality standards, which may be a concern with some imports, and leverage this compliance in marketing strategies. Implementing these strategies requires a deep understanding of the distinctive needs of the New Zealand market and the subtle factors driving consumer decisions. These initiatives can help to mitigate the impact of cheaper Chinese imports and secure a strong position in the New Zealand power tool market.
• Slow economic growth in some regions: Slow economic growth in key regions around the world is negatively impacting the growth of New Zealand's power tool market. Countries in Asia and Europe that traditionally import a large volume of power tools from New Zealand are seeing diminished demand as their own GDP growth has slowed considerably in recent years. With fewer construction projects getting started and households having less disposable income for home improvement activities, the need for power tools is dwindling abroad. This pattern is evident in data from organizations like the IMF and World Bank. For example, according to the IMF's World Economic Outlook from October 2022, China's Gross domestic product growth is projected to be just 3.2% in 2022 compared to 8.1% in 2021, as the property sector cools and COVID restrictions continue to weigh on activity.
• Counter Balance: Consider opportunities for local assembly or manufacturing to stimulate regional employment and reduce dependency on imports. Implementing these strategies amid slow economic growth involves a focus on cost-effectiveness, efficiency, and the added value of power tools while fostering community relations and stimulating local activity.

New Zealand Power Tool Market Overview:

The power tool market in New Zealand is experiencing steady growth, driven by factors such as increasing construction activities, infrastructure development, and the rising popularity of do it yourself(DIY) projects. Cordless tools are gaining traction due to their convenience and portability, while technological advancements such as brushless motors and improved battery technology are enhancing tool performance and efficiency.

There's a growing emphasis on sustainability, leading to demand for energy-efficient and environmentally friendly power tools. Competition among local and international brands is intense, with companies focusing on product quality, innovation, and brand reputation to gain market share. Overall, the New Zealand power tool market is poised for continued expansion, fueled by economic development and evolving consumer preferences.