Power Tool Batteries Market Size, Share, and Industry Analysis, By Battery Type (Lithium-ion, Nickel-Cadmium, and Nickel-Metal Hydride), By Tool Type (Drills, Saws, Lawn Mower, and Others), By End User (Residential, Commercial, and Industrial), and Regional Forecast, 2026-2034

The global power tool batteries market size was valued at USD 2.91 billion in 2025. The market is projected to grow from USD 3.19 billion in 2026 to USD 6.66 billion by 2034, exhibiting a CAGR of 9.64% during the forecast period.

Power tool batteries are essential components for providing energy to cordless power tools, enabling them to work without plugging into a mains power supply. The battery-inbuilt features in the power tools enhance the ability to work in remote areas where access to electricity is limited.

The rise in construction activities owing to the rising population, urbanization, industrialization, and other factors leads to the demand for power tools for performing drilling, cutting, sawing, and many other functions. According to the World Bank, the total value added to the industrial sector, including the construction sector, increased from USD 22.32 trillion in 2020 to USD 27.76 trillion in 2022. Nowadays, major construction is taking place in the outer regions of the cities owing to the rising population density in the cities of developed and developing nations. Cordless power tools, powered by batteries, are gaining traction in the market due to their offer of mobile and flexible characteristics.

Moreover, the limited battery life and the need for regular recharging have been significant concerns, restricting the expansion of the power tools batteries market across the globe. This limitation can hinder the workflow, mainly in remote construction sites, where continuous use over long periods is common, and electricity availability is limited. The frequent recharging of the power tools also affects the long-term lifespan of the battery. It degrades the battery capacity over time, leading to reduced runtime and necessitating earlier replacement.

Additionally, the outbreak of the COVID-19 pandemic negatively impacted the market growth due to the temporary halt in construction activities. The shortage of labor and unavailability of construction materials owing to lockdowns and the COVID-19 regulations slowed down the usage of power tools, further constraining the market growth.

KEY INSIGHTS

The report includes the following key findings:

• Recent Advances in the Power Tool Batteries Market
• Key industry trends
• Regulatory Landscape for the Power Tool Batteries Market
• Key Industry Developments (Mergers, Acquisitions, and Partnerships)

SEGMENTATION

ANALYSIS BY BATTERY TYPE

Based on battery type, the power tool batteries market is segmented into Lithium-ion, Nickel-Cadmium, and Nickel-Metal Hydride. Lithium-ion batteries hold a dominant market share due to their higher energy density, lower weight, and longer lifespan compared to older battery technologies. The technological advancements in Li-ion batteries and rising research and development in this segment have propelled their adoption in the market. The nickel-cadmium batteries hold a marginal share in the market due to their lower energy density, heavier weight, and environmental concerns associated with cadmium, a toxic heavy metal. Nickel-metal hydride batteries hold a considerable share of the market due to their specific applications and their lower cost and durability.

ANALYSIS BY TOOL TYPE

Based on tool type, the market is segmented into drills, saws, lawn mower, and others. Drills hold the largest market share as they are the most widely used battery-powered tools, encompassing both professional and consumer markets. The versatility of drills for various applications, such as construction, carpentry, renovation, and others, contributes to their significant market share. Battery-powered saws are the second leading segment and have a strong presence in the power tool market. These tools are gaining traction due to their portability and ability to handle various cutting tasks without the limitations of cords. Battery-powered lawn mowers are increasing in the market, driven by the trend toward eco-friendly and quieter landscaping tools. These mowers offer an alternative to gas-powered options, appealing to consumers seeking sustainability and convenience.

ANALYSIS BY END USER

Based on the end user, the power tool batteries market is segmented into residential, commercial, and industrial. The residential segment accumulates the major share in the market due to the rising number of DIY (Do it Yourself) enthusiasts and homeowners using power tools for various home improvement projects, repairs, and gardening tasks. This segment represents a significant share of the power tool batteries market due to the vast number of households engaging in these activities.

The commercial segment is growing at the fastest rate owing to the rising commercial places, such as corporate offices, educational institutions, hospitals, and others. These sectors are gaining huge traction from the governments of developing nations, such as India, Saudi Arabia, and Indonesia, further resulting in the growth of the commercial sector. The Industrial segment also holds a notable share in the market as it encompasses heavy-duty use cases, such as large-scale construction projects, manufacturing, and industrial maintenance. A battery-powered power tool is required in these areas for drilling, cutting, assembling, repairing, and maintenance tasks, further necessitating the demand for power tool batteries.

REGIONAL ANALYSIS

The power tool batteries market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America holds the dominant share in the market owing to the presence of extensive residential, commercial, and industrial infrastructures. The industrial sectors such as manufacturing, automotive, construction, and others thrive resulting in the huge demand for power tools batteries. Asia Pacific is projected to grow at the fastest rate owing to the presence of a high number of developing economies, such as India, Indonesia, China, South Korea, and others. The expansion of the infrastructure facilities, owing to the rising population, industrialization, and urbanization, would lead to the growth of the market. Europe holds a notable share of the market with an extensive rise in the renewable sector, automotive, and other industries. The expansion of these industries fuels the need for power tool batteries.

Latin America is receiving vast FDI from other nations across the globe which is leading to the development of the commercial and industrial sector in the region, which is resulting in the growth of the market.

The Middle East and Africa governments have set different targets for expanding tourism, IT, manufacturing, and other sectors to reduce dependence on oil and gas. The rising infrastructure in the region, owing to the government's strong focus on developing non-oil and gas sectors, will lead to the demand for power tool batteries in the forthcoming years.

KEY PLAYERS COVERED

Key players in the global power tool batteries market are Andreas Stihl AG, BYD, E One Moli Energy Corp., Hilti AG, Husqvarna AB, Ingersoll Rand Inc., LG Chem Ltd., Makita Corp., Panasonic Holdings Corp., Robert Bosch GmbH, Samsung SDI, and Techtronic Industries Co. Ltd.

KEY INDUSTRY DEVELOPMENTS

• In March 2024, CEENR announced plans to introduce a One-For-All battery solution for power tools that work across multiple brands. The company also announced its compatibility with the 18V and 20V Max cordless power tool brands.
• In November 2023, Bosch introduced a new ProCore 18V+ cordless power tool battery which incorporates tabless 21700 lithium-ion cells. The new Bosch ProCore 18V+ 8Ah battery shares many similarities with their current 8Ah battery but features improved battery cells. The updated battery pack reportedly delivers the same ~90A maximum current and ~1500W peak power output as the existing 8Ah model but is capable of sustaining high power demands for extended periods.