High Maintenance Costs And Fluctuating Raw Material Prices Pose Challenges To The Outdoor Power Equipment (OPE) Market Despite Growing Demand


(MENAFN- PR Newswire) DUBLIN, Nov. 10, 2023 /PRNewswire/ -- The "Global Outdoor Power Equipment market (by energy Source, Type, Sales Channel, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)" report has been added to
ResearchAndMarkets's offering.

The global Outdoor Power Equipment (OPE) market is poised to achieve a market value of US$36.41 billion by 2023, exhibiting a robust Compound Annual Growth Rate (CAGR) of 6.30% during the forecasted period.

Understanding Outdoor Power Equipment (OPE)

Outdoor Power Equipment (OPE) refers to a category of equipment equipped with small motors or engines primarily used for outdoor tasks. These include devices like brush cutters, edgers, chainsaws, and power rakes. OPE is widely used by lawn and plant care providers, as well as landscape service providers for both commercial and residential purposes.

Market Segmentation

The global OPE market is segmented as follows:

  • Energy Source: The market divides into four segments: gas-driven, cordless, parts & attachments, and corded. Gas-driven equipment leads the market due to the presence of renewable fuel gas resources like ethanol fuel, while cordless OPE is gaining popularity for its portability and convenience.
  • Type: Segmenting into lawn mower, chainsaw, trimmer & edger, blowers, tillers & cultivators, snow throwers, and other outdoor power equipment. Lawn mowers dominate the market, followed by trimmers and edgers, driven by the development of parks and small-scale gardens to mitigate pollution effects.
  • Sales Channel: The market bifurcates into offline and online sales channels. Offline channels currently dominate due to the reliance on retail outlets, but the online segment is projected to register the highest CAGR.

    Geographic Coverage

    The global OPE market comprises four regions: Asia Pacific, North America, Europe, and the Rest of the World. North America holds the largest share, with significant contributions from the United States, Canada, and Mexico. Asia Pacific is expected to witness substantial growth, driven by rapid urbanization and infrastructure development.

    Drivers: Falling Costs of Lithium-Ion Batteries

    Environmental awareness is driving the adoption of OPE with lithium-ion batteries, which are eco-friendly and cost-effective. The declining prices of these batteries have been instrumental in promoting the growth of battery-powered outdoor power equipment. Innovations in lithium-ion battery technology contribute to customer loyalty and greater demand for such equipment.

    Challenges: High Maintenance Costs and Fluctuating Raw Material Prices

    Regular maintenance, recalibration, and repair requirements for outdoor power equipment tools increase ownership costs. High maintenance costs and fluctuating raw material prices pose challenges to market growth. Consumers in developing countries may opt for more affordable alternatives, affecting the market.

    Trend: Growing Popularity of Do it Yourself (DIY) Trend

    The increasing popularity of home improvement projects, including gardening, is driving the demand for outdoor power equipment. The DIY trend, amplified by online platforms and a surge in stay-at-home activities during the pandemic, presents significant opportunities for OPE retailing.

    The COVID-19 Impact

    The COVID-19 pandemic initially disrupted the OPE market, but later, as operations resumed across industries, demand for various outdoor power equipment witnessed strong growth. The market saw increased interest in DIY equipment and do-it-for-me (DIFM) services, particularly in the residential and commercial segments.

    Analysis of Key Players

    The global OPE market is relatively concentrated, with the top 5 players accounting for over 60% of the total market share. Key players include Robert Bosch GmbH, Techtronics Industries Ltd., Chervon Holdings Limited, Stanley Black & Decker, Inc., Husqvarna Group, Briggs & Stratton Corporation, The Toro Company, Makita Corporation, Honda Motor Co., Ltd., Deere & Company, Ariens Company, and Yamabiko Corporation.

    Top Impacting Factors

    Growth Drivers

    • Rapid Urbanization
    • Growing Number Of Golf Club
    • Falling Costs of Lithium-Ion Batteries
    • Inclining Construction Activities

    Challenges

    • High Maintenance Costs and Fluctuating Raw Material Prices

    Trends

    • Technological Advancements
    • Gardening Trend
    • Growing Popularity of Do it Yourself (DIY) Trend

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