B2B E-commerce Marketplaces By Power Tools & Accessories Market Size, Share & Trends Analysis Report By Product (Drill, Saws, Wrenches, Grinders, Sanders), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global B2B e-commerce marketplaces by power tools & accessories market size was valued at USD 4.26 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 18.1% from 2021 to 2028. The growth can be attributed to the growing number of buyers and sellers approaching third-party e-commerce websites to buy and sell power tools. Bulk discounts, price transparency, and features to easily compare products on various parameters are some of the other factors that are also expected to contribute to the growth of the market over the forecast period. B2B e-commerce marketplaces refer to the third-party e-commerce websites facilitating the purchase of power tools and related accessories. Unlike first-party e-commerce websites, B2B e-commerce marketplaces support all the market players in the B2B value chain by connecting buyers and sellers and opening new sales channels for their partners to incorporate additional products to cater to the changing needs of the buyers.

The overall power tools market had to confront a decline in sales in H1/2020 in the wake of the outbreak of the COVID-19 pandemic. However, an increase in e-commerce sales across North America and Europe aided in a gradual market recovery. The outbreak of the pandemic particularly prompted businesses to consider alternatives, such as third-party digital channels for selling their products. As such, an upsurge in the number of sellers on third-party websites, such as Amazon.com, eBay, and Alibaba.com, particularly bodes well for the growth of the market.

Power tools, such as power drills, impact wrenches, saws, and grinders, are widely used across various construction activities. For instance, power drills are used for drywall installations, electrical fittings, boring holes, and driving screws, among other tasks; while impact wrenches, which envisage a heavy-duty, fastening device, are used extensively in repairs, equipment maintenance, and product assembly. Power tools help in simplifying heavy-load tasks and in increasing operational efficiency. Hence, power tools are used extensively in both industrial and household environments.

The demand for power tools used in construction activities shows no signs of abating as several governments around the globe are aggressively pursuing infrastructure development projects. Given the lockdowns, social distancing norms, and restrictions on the movement of people and goods in the wake of the outbreak of the pandemic, e-commerce channels are expected to play a vital role in catering to the growing demand for power tools. The discounts and other benefits offered on bulk orders by e-commerce marketplaces are also expected to make them a preferred channel for buyers looking forward to procuring power tools.

Distributors, direct sales representatives, and brick and mortar stores have conventionally been the primary sales channels to sell power tools. Most of the B2B customers have long-term relationships with sales representatives of power tool manufacturers. The strong preference for direct sales channels can particularly challenge the growth of B2B e-commerce marketplaces. As such, any reluctance of buyers to adopt alternative channels for procuring power tools can potentially hinder the growth of the B2B e-commerce marketplaces by power tools & accessories market over the forecast period.

Product Insights

Based on product, the market has been further segmented into drills, saws, wrenches, grinders, sanders, and others. The drills segment accounted for the largest market share of over 30% in 2020 and is expected to register the highest CAGR exceeding 20% over the forecast period. The growth of the segment can be attributed to the wide application portfolio power drills can cater to in home improvement and industrial applications across various industries and industry verticals, such as automobile, energy and power, and aerospace. The growing demand for lightweight, electric drills also bodes well for the growth of the segment over the forecast period.

The wrenches segment is anticipated to expand at a CAGR exceeding 19% over the forecast period. The increasing popularity of cordless wrenches and air wrenches is anticipated to drive the growth of the segment. Additionally, the growing preference for Do-It-Yourself (DIY) tools for various applications in automotive repairs, such as removing lug nuts and frame or chassis bolts, is also expected to contribute to the growth of the segment.

Regional Insights

North America accounted for the largest market share of more than 30% in 2020. The regional market is primarily driven by the U.S., which is home to more than 50 marketplaces offering power tools. Additionally, Amazon.com, eBay, and Walmart are some of the front runners in the U.S. B2B marketplaces in terms of customer base. These marketplaces allow buyers to purchase power tools in bulk at discounted rates. The gradual upsurge in the number of buyers and sellers approaching these marketplaces is expected to drive the growth of the regional market over the forecast period.

Asia Pacific emerged as the second-largest regional market in 2020. It is expected to expand at the highest CAGR exceeding 20% over the forecast period. The growth of the regional market can be attributed to the growing cross-border e-commerce sales across the ASEAN countries. The strong emphasis on striking affordable deals while purchasing products is also driving the preference for B2B e-commerce marketplaces. All these factors are expected to contribute to the growth of the regional market over the forecast period.

Key Companies & Market Share Insights

B2B e-commerce marketplaces by power tools and accessories accounted for a single-digit share in the overall B2B e-commerce marketplaces market in 2020. However, the market share is expected to increase significantly over the forecast period. The growth can be attributed to the adoption of Product Information Management (PIM) tools by e-commerce vendors to provide comprehensive information about the power tools on their websites. The B2B e-commerce marketplaces by power tools and accessories can be described as a fragmented market dominated by leading market players, such as Amazon.com, Inc; Alibaba.com; eBay, Inc.; and W.W. Grainger, Inc, among others.

Market players are pursuing innovative strategies to attract new buyers and stay ahead of the competition. For instance, Alibaba.com has shifted its focus toward small and medium businesses (SMBs) in the U.S. rather than focusing exclusively on large corporations. In July 2019, Alibaba.com launched a multipoint initiative aimed at creating domestic and international B2B marketplaces opportunities for small businesses to expand the customer base. Some of the prominent players operating in the global B2B e-commerce marketplaces by power tools & accessories market are:

• Alibaba.com

• Amazon.com, Inc.

• ChinaAseanTrade.com

• DIYTrade.com

• eBay Inc.

• eworldtrade.com

• Ferguson Enterprises, LLC.

• Flipkart.com

• IndiaMART InterMESH Ltd.

• Quill Lincolnshire, Inc.

• W.W. Grainger, Inc.

B2B E-commerce Marketplaces By Power Tools & Accessories Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the global B2B e-commerce marketplaces by power tools & accessories market report based on product and region:

• Product Outlook (Revenue, USD Million, 2017 - 2028)

  • Drills

  • Saws

  • Wrenches

  • Grinders

  • Sanders

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K

    • Germany

    • France

    • Rest of Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • Rest of APAC

  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America

  • Middle East & Africa