Market Report: Cordless Drills
To:
CDT - Home & Yard
From:
Ed Santiago
cc:
C. Monte, B. Markovich, M. Connolly, L. Freeman, S. Perry, K. Rice, R. Piccoli, D. Stovall, D.
Vaccaro
Date:
3/3/10
Fast Facts
•
•
•
•
•
Black & Decker is the leading cordless drill brand with a 40% unit share
The top 10 cordless drill brands compromise a 91% unit share of the market
Home Depot is the leading retailer with 24% market share
Cordless drill purchases in 2007 were 7.8% versus 2.2% for cordless power tool combo kits
lithium-ion has a 75% share of the rechargeable battery market
Overview
Cordless drills have come a long way in the last 20 years and some have come full circle, ending
up about the same size as those small, early tools but with much better performance.1
Cordless drills became really popular when manufacturers introduced the lithium-ion (LI) battery
several years ago. These batteries combine huge energy with light weight and are slowly
replacing nickel-cadmium batteries. Tool companies launched their lithium-ion products with 28
and 36-volt models - tools that had great power but were also big and heavy. Now, virtually all
manufacturers have added smaller, lighter 18-volt models.2
Compact and subcompact cordless drills and tools in general are fast-growing categories in
part because of lightweight lithium-ion batteries. The market proved that most users don't need
a 36-volt drill; they'd rather have an 18-volt model with the weight benefit of LI. The benefits of
smaller tools become clear after spending a day using them.3
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Market Report: Cordless Drills
Ed Santiago
March 2010
Brands
The market for cordless drill is fairly tight. The top 10 brands compromise a 91% unit and a 94%
dollar share of the market, with nearly a 40% unit share going to market leader Black & Decker,
followed by Craftsman (15%), and DeWalt (12%) in 2009.4
Cordless Drills Market Share
Brand Name
Black & Decker
Craftsman
DeWalt
Ryobi
Makita
Skil
Hitachi
Ridgid
Milwaukee
Bosch
All Others
Total
2009
39.7%
15.1%
12.0%
9.6%
4.5%
3.4%
2.2%
1.5%
1.5%
1.5%
9.0%
100.0%
Unit Share
2008
38.5%
14.5%
11.5%
10.0%
4.7%
4.0%
2.0%
1.3%
1.6%
1.3%
10.6%
100.0%
2007
38.9%
15.5%
10.5%
8.0%
2.7%
5.5%
1.0%
0.9%
0.8%
1.5%
14.7%
100.0%
Dollar Share
2009
2008
2007
24.6%
24.3%
27.4%
15.4%
16.0%
18.2%
20.1%
20.3%
19.6%
9.8%
9.9%
7.6%
8.2%
7.7%
5.0%
3.1%
3.0%
4.6%
3.1%
3.6%
2.0%
3.0%
2.9%
1.8%
3.2%
3.4%
1.5%
3.0%
2.2%
3.0%
6.5%
6.7%
9.3%
100.0% 100.0% 100.0%
Source: Synovate DuraTrend, Feb. 2010
Black & Decker is the market leader in cordless drills, and Ryobi (28%) is the leader in the power
tool combo kits segment. Some manufacturers are strong in both of these segments as reflected
in their market share data.5
According to a 2008 Home Improvement Research Institute (HIRI) report, cordless drill purchase
incidences in 2007 were 7.8% versus 2.2% for cordless power tool combo kits, 8.4% versus 2.8 in
2005, and 12.2% versus 3.9 in 2003 respectively.6
Cordless Drills versus Power Tool Kits
Brand Name
Black & Decker
Craftsman
DeWalt
Ryobi
Makita
Skil
Hitachi
Ridgid
Milwaukee
Bosch
All Others
Total
Cordless Drills
Unit Share
2009
2008
2007
39.7%
38.5%
38.9%
15.1%
14.5%
15.5%
12.0%
11.5%
10.5%
9.6%
10.0%
8.0%
4.5%
4.7%
2.7%
3.4%
4.0%
5.5%
2.2%
2.0%
1.0%
1.5%
1.3%
0.9%
1.5%
1.6%
0.8%
1.5%
1.3%
1.5%
9.0%
10.6%
14.7%
100.0%
100.0%
100.0%
Power Tool Kits
Unit share
2009
2008
2007
11.8%
21.8%
21.7%
17.6%
18.3%
20.6%
11.0%
13.0%
13.8%
28.1%
23.6%
24.3%
3.2%
6.1%
2.5%
5.8%
2.2%
4.8%
1.2%
1.6%
0.9%
1.3%
2.1%
3.0%
2.7%
1.7%
1.2%
0.7%
0.7%
0.4%
16.6%
8.9%
6.8%
100.0% 100.0% 100.0%
Source: Synovate DuraTrend, Feb. 2010
Market Report: Cordless Drills
Ed Santiago
March 2010
Page 2
Prices
The industry average price for cordless drills has increased each of the last three years:
•
•
•
2009 - $64.77
2008 - $63.83
2007 - $57.38
Drills in the $50 - $80 range have had the highest unit/dollar market share.7
Cordless Drills Price Range
Price Bins
Unit Share
2009
2008
$10 to $19.99
10.5%
12.4%
$20 to $29.99
16.0%
15.8%
$30 to $39.99
14.8%
13.4%
$40 to $49.99
10.6%
11.9%
$50 to $79.99
21.1%
20.0%
$80 to $99.99
10.5%
9.8%
$100 to $149.99
8.3%
8.7%
$150 to $199.99
6.0%
5.2%
$200 to $249.99
1.9%
2.4%
$250 to $299.99
0.2%
0.4%
Total
100.0% 100.0%
2007
15.4%
17.8%
13.6%
12.3%
19.1%
8.5%
7.4%
4.2%
1.5%
0.2%
100.0%
Dollar Share
2009
2008
2007
2.7%
3.3%
4.4%
6.4%
6.4%
8.0%
8.3%
7.5%
8.7%
7.5%
8.5%
9.8%
21.4%
20.0%
21.2%
15.0%
14.1%
13.8%
15.7%
16.3%
15.3%
16.0%
14.2%
12.8%
6.5%
8.0%
5.3%
0.6%
1.7%
0.7%
100.0% 100.0% 100.0%
Average Price ($)
2009
2008
2007
16.58
16.93
16.51
25.83
25.74
25.70
36.34
35.80
36.70
45.81
45.79
45.65
65.58
63.76
63.47
92.36
91.62
92.94
122.19 119.73 118.93
172.43 174.52 175.78
215.79 214.76 209.46
250.00 250.00 250.00
100.00 100.00 100.00
Source: Synovate DuraTrend, Feb. 2010
Distribution
For cordless drills Home Depot is the leading retailer with a 24% market share in 2009, followed by
Lowe’s (16.2%), Sears (15.2%), and Wal-Mart (12.2%).8
Cordless Drills Retail Share
Retailer
Home Depot
Lowes
Sears
Wal-Mart
Hardware Store Other
Internet/On-Line
Manufacturer Direct
Target
Menards
Ace Hardware
Disc Dept Store Other
Kmart
Costco
True Value/Truserv
Home Center Other
All Others
Total
2009
24.2%
16.2%
15.2%
12.2%
4.9%
4.2%
4.0%
2.9%
2.6%
2.3%
2.1%
1.5%
1.2%
1.0%
0.9%
4.6%
100.0%
Unit Share
2008
24.6%
14.4%
15.4%
13.4%
4.6%
3.7%
3.4%
3.3%
2.3%
1.8%
3.9%
1.3%
1.1%
0.7%
0.9%
5.2%
100.0%
2007
20.7%
14.4%
15.0%
14.2%
5.7%
3.3%
2.7%
2.7%
2.5%
2.3%
5.3%
1.9%
1.1%
0.4%
0.6%
7.2%
100.0%
2009
28.1%
20.0%
17.2%
6.9%
4.2%
5.6%
3.2%
1.3%
2.6%
2.2%
0.9%
0.9%
1.3%
0.5%
1.0%
4.1%
100.0%
Dollar Share
2008
2007
30.4%
27.0%
17.6%
17.5%
17.9%
19.3%
7.6%
9.1%
3.3%
3.6%
4.9%
4.2%
3.6%
2.3%
1.9%
1.5%
1.8%
2.3%
1.6%
1.7%
1.8%
2.3%
0.9%
1.6%
0.9%
0.8%
0.6%
0.4%
0.8%
0.7%
4.4%
5.7%
100.0%
100.0%
Source: Synovate DuraTrend, Feb. 2010
Market Report: Cordless Drills
Ed Santiago
March 2010
Page 3
Seasonality
December accounts for the highest level of purchases at nearly 15%. However in the last two
years seasonal purchases were down from 2007 levels.9
Cordless Drills Seasonality
Month
Unit Share
2009
2008
2007
January
8.7%
8.6%
7.1%
February
8.5%
7.8%
6.8%
March
7.6%
8.5%
7.0%
April
6.0%
7.3%
6.1%
May
9.3%
8.0%
7.7%
June
8.8%
9.4%
7.3%
July
6.9%
7.1%
8.3%
August
7.0%
7.4%
7.6%
September
7.0%
6.7%
7.1%
October
5.6%
6.3%
7.2%
November
9.7%
9.5%
10.2%
December
14.7%
13.5%
17.5%
Total
100.0% 100.0% 100.0%
Source: Synovate DuraTrend, Feb. 2010
More power tools (both cordless and corded) by far are first-time purchases rather than
replacements but accessories by their very specific nature are generally for replacement
purposes.10
Audience Profile
Overall, power tool and accessory purchasers are male while females are now a bit more likely
to make a purchase of a cordless tool as one that is corded. According to HIRI the two most
popular items purchased by females were cordless power screwdrivers (33.4%) and cordless drills
(33.2%).11
The average age for all power tool & accessory products’ buyers is 49.9. The heaviest buying
incidences fall in the range of 35-64 years of age and account for 69.2% of the total.12
Power tool purchasers place a heavy emphasis on home improvement books and magazines
but rely a bit heavier on magazines when seeking product/project information. Internet usage
for this purpose stood at 48.2% in 2007.13
Industry Update
In September power tool manufacturers finally agreed on industry-wide standards for measuring
tool torque and horsepower. These standards will give tool buyers a dependable method to
compare and evaluate product specifications.14
Developed by the Power Tool Institute (PTI), the voluntary standards address cordless and
corded power drills, drill/drivers, and screwdrivers. A second set of standards applies to all tools
rated in horsepower. The standards are published on the PTI Web site
(http://www.powertoolinstitute.com) and are available for use by both member and
nonmember manufacturers.15
Market Report: Cordless Drills
Ed Santiago
March 2010
Page 4
In November, Makita became the first manufacturer to announce that it had begun
implementing torque testing procedures under the new standards for all of its cordless drills,
drill/drivers, and hammer-drills.16
An ongoing trend among all tool manufacturers is improving the usability and ergonomics of
their products by:
• Making their handhelds lighter - aided now by lithium ion batteries.
• Employing soft-touch grips for more comfortable extended use.
• Adding quick-change collars for fast removal and insertion of bits.
• Having onboard lights for better visibility while working in low-light spaces.
• Using LED indicators showing various operating conditions.17
Lithium-ion versus Nickel cadmium
NiCd battery use in consumer electronics is declining partly due to the preference for other
rechargeable batteries - particularly lithium ion (Li-ion) batteries, which have already replaced
NiCd batteries to a large degree in laptops and cell phones. Demand for rechargeable lithium
batteries continued to gain market share over rechargeable non-lithium batteries for use in
cordless tools, portable computers and telephones, and video cameras.18
According to Advanced Rechargeable Battery Market: Emerging Technologies and Trends
Worldwide , a report from market research firm SBI: "The portable rechargeable battery market,
of which lithium-ion has a 75% share, is the fastest growing segment of the rechargeable battery
market, showing world market growth of 20% in 2008. Ni-Cd batteries, still important for power
tools and back-up systems, will decline rapidly in market share by 2013 due to stricter
environmental controls on cadmium."19
Competitive Coverage
There are several publications that review power tools, including;
•
•
•
•
Tools of the Trade
Taunton’s Tools Guide
Popular Woodworking
Popular Mechanics
Customer Relations Information
There were only 42 hits in our customer relations database on “cordless drills” since March 2009.
Many subscribers are upset about the cost of replacement batteries, while others want a wider
selection of cordless drills tested.
Market Report: Cordless Drills
Ed Santiago
March 2010
Page 5
1
“The New Standard,” Tools of the Trade, Winter 2009
“Cordless Drill Reviews,” Popular Mechanics, 12/2008
3
Ibid.
4
Synovate DuraTrend, Feb. 2010
5
Ibid
6
Hand and Power Tools: Consumer Market, Home Improvement Research Institute, 2008
7
Synovate DuraTrend, Feb. 2010.
8
Ibid.
9
Ibid.
10
Hand and Power Tools: Consumer Market, Home Improvement Research Institute, 2008
11
Ibid.
12
Ibid.
13
Ibid.
14
“New Torque Standards,” Tools of the Trade, Winter 2009
15
Ibid.
16
Ibid.
17
“Power Tools: Building Up When Economy's Down,” Incentive, 6/2009
18
U.S. Geological Survey, Mineral Commodity Summaries, January 2010
19
“The shrinking power tool…” Industrial Distribution, 11/1/09, By Alison Lutes
2
Market Report: Cordless Drills
Ed Santiago
March 2010
Page 6