The global outdoor power equipment market, valued at $22.32 billion in 2019 is expected to grow at a CAGR of 3.4%, reaching 428.96 million by 2027, according to a new study by Polaris Market Research. Not surprisingly, the study reports that the future of the market is dependent on battery technology and the use of robotics. The adoption of robotic lawnmowers is expected to increase over the coming years, due to price reduction, improvement in the technology, and ease of use.
Factors affecting market growth include global rising housing and construction activities, a surge in consumer spending, and significant changes in recreational and leisure activities. Specific growth drivers are:
- Consumer preference for green spaces, such as gardens and lawns, is growing significantly in urban areas and innovative ways to bring urban greenery into the mainstream cities are being explored.
- Do it Yourself (DIY) attitude is a rising trend. The availability of ergonomic designs and stringent regulations regarding periodic maintenance of properties in private and community premises is driving adoption.
The saws segment is expected to witness significant growth over the forecast period. With consumers preferring cordless devices, vendors launched interchangeable batteries and are also offering two batteries to enable charging one battery while the other is in use. As a result, the demand for cordless outdoor power equipment is expected to witness substantial demand.
Based on the power source, the electric-powered segment accounted for the largest share in 2019. The growth is attributed to advancements in battery technology, the development of high-performance long-lasting batteries, coupled with urbanization and government-backed construction projects. In addition, with the increasing consumer preference for green technology, the demand for electric-powered equipment is expected to witness substantial growth.
Geographically, North America is the largest revenue contributor, followed by Europe and the Asia Pacific. In 2019, North America accounted for over 40% of the global market. There are over 50 companies operating in the U.S. alone. This makes the competition tough. With the growing competition and increasing product innovation and differentiation among the manufacturers, there is an increasing rivalry amongst the competitors.
Like any other product, e-commerce has also encroached on the outdoor power equipment industry. Consumers prefer shopping online and several e-retailers now offer online consulting. This has also made manufacturers directly sell their products via online channels and hence, increase their profit margins.
According to the report, some prominent players in the market include: Briggs & Stratton Corp., Ariens Company, Stanley Black & Decker, Inc., AL-KO KOBER GROUP, Husqvarna AB, Schiller Ground Care, Yamabiko Corp, Techtronic Industries Company Ltd, Emak S.p.A., Honda Motor Company, Ltd., Excel Industries, Inc., CHEVRON (China) Trading Co., Ltd., Andreas Stihl AG & Company KG, MTD Holdings Inc., and Makita Corp.