Market Potential Assessment of the Electric and Battery Powered Demolition Tools
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Quick overview
The demand for Electric & Battery Powered Demolition Tools is expected to witness a spurt due to the construction activity globally. The post-pandemic market correction is providing a further boost. The engagement was focused on providing insights on the market opportunity, competition, and customers to a power tool manufacturer.
Client success details
This engagement helped the client understand the market potential of demolition tools, thereby strategizing on the initiatives to be taken for a market entry. Following questions were answered during the engagement:
The demolition tools holds 10–15% of the power tools market and is expected to grow at a 5% CAGR for the next 5 years owing to the need for connected tools and improved ergonomics- How big is the market opportunity?
- Who are the key players operating including tier 2 and local tools manufacturers?
- Which are the different customer segments that prefer/use the electric and battery-operated tools?
- What are different types of sales channels prevalent in the market? What is the profitability range of these sales channels?
FutureBridge conducted extensive secondary and 400+ telephonic interviews with tool manufacturers, customers, dealers/distributors to provide insights. The output included the following
- A market entry strategy focusing on inorganic growth and the routes to enter the market
- Recommendations on 5 key companies to acquire and gain a competitive edge in specific countries
The client was able to develop a strategic roadmap for the next 2–10 years. A specific country was prioritized for making an entry by adopting a robust in-house sales channel. In the first year, the client was able to gain a 5% market share in a specific country. They expanded in the specific region and witnessed 20% y-o-y top-line growth.
