The global outdoor power equipment market was valued at USD 46.53 billion in 2021, and it is projected to grow significantly, reaching USD 76.61 billion by 2030 at a compound annual growth rate (CAGR) of 5.9% from 2022 to 2030. This anticipated growth can be largely attributed to a rising preference for cordless outdoor power equipment, as consumers seek products that provide greater portability and flexibility for various tasks. Cordless equipment has gained traction in recent years, particularly because it allows for easy maneuverability without the limitations of cords and cables.
The market's expansion is also driven by factors like increasing urbanization, growing disposable incomes, and the steady rise of infrastructure projects, which fuel demand for outdoor power tools. Additionally, landscaping services are seeing heightened demand, as people increasingly invest in enhancing their outdoor spaces for both aesthetic and functional purposes. Environmental awareness has also had a significant impact on this market, with consumers and manufacturers favoring eco-friendly options. For instance, lithium-ion battery-powered equipment is gaining popularity for its reduced environmental impact and high energy efficiency. To meet this demand, companies are innovating around lithium-ion technology; for example, in 2021, Techtronic Industries introduced red lithium-ion batteries in its cordless tools, which offer faster performance and extended battery life compared to conventional options.
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Another contributing factor is the growing interest in gardening, especially among younger demographics. Many young adults are now choosing to grow their own vegetables, fruits, and herbs, even if they live in compact urban spaces with limited outdoor areas. This shift has led to increased demand for compact, lightweight, and easy-to-use gardening equipment tailored for smaller spaces. The lawn and garden industry has responded by creating user-friendly, portable equipment that meets these unique needs.
The pandemic also significantly boosted the market for outdoor power equipment, as more people engaged in home improvement and gardening projects. Companies like The Toro Company, Husqvarna, and ANDREAS STIHL AG & Co. KG saw an increase in profits due to the stay-at-home trend, which extended the gardening season and led to a surge in equipment sales.
End-use Segmentation Insights:
The outdoor power equipment market is divided into two main segments: residential and commercial. In 2021, the residential segment accounted for more than 49.37% of the market share. The demand within this segment is driven by homeowners’ growing interest in gardening and outdoor activities, with many individuals spending more time on DIY gardening projects, a trend that grew during the pandemic. This increase in DIY outdoor activities has spurred sales of outdoor power equipment designed for residential use.
The commercial segment, on the other hand, is projected to grow at a CAGR of 5.3% throughout the forecast period. This growth is largely due to the rise in smart city developments and urbanization worldwide. According to the 2019 World Urbanization Prospects report from the United Nations Department of Economic and Social Affairs (UN DESA), the global urban population, which was 55.7% at the time, is expected to rise to 68.4% by 2050. As more urban areas are developed and green spaces are integrated into city planning, the demand for commercial outdoor power equipment is likely to increase. Moreover, the expanding popularity of golf and the rising number of golf club facilities are expected to further drive demand for outdoor power equipment in the commercial sector, as maintenance of these facilities requires specialized tools and machinery.
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