Outdoor power equipment market is mature and its growth is majorly dependent on factors like population and age distribution, consumption spending, housing and other constructions, geography, along with recreation and leisure activities. Technology, pricing patterns, environmental and regulatory issues, and trade activities also play a role, but more so for producers than the users of equipment. Finally, promotion campaigns and distribution channels exert an influence. The future of the outdoor power equipment market lies with robotics and battery technology. Battery powered equipment is much cleaner and has lower operating costs than equipment that runs on gas. Introduction of battery-powered equipment, both in residential and commercial sectors will drive the sales of the larger equipment, lawn mowers in particular. Demand for robotic lawn mowers will escalate in the coming years owing to their dropping prices, ease of use and improving technology.
The steady growth of the construction sector on a global level is a major driving force for the outdoor power equipment market. Technology, product design and pricing patterns influence the purchase of the outdoor power equipment by residential and commercial customers. Although outdoor power equipment are expansive in size and costly to possess for a normal purchaser, it is often found that adults will probably use their resources to purchase these equipment instead of leasing them for a restricted timeframe.
A recent Fact.MR study foretells the outdoor power equipment market to record an expansion at 3.5% CAGR over the forecast period (2018-2028). Outdoor power equipment continues to witness increased traction in tree care segment. However, innovations in battery technology for tree care equipment for better efficiency will gain impressive growth in the global marketplace.
Outdoor Power Equipment Market- Revival of Construction Industry
The downturn in the global construction industry from 2007 to 2009 has been of epic proportions, owing to which property rates fell and the residential construction almost came to a halt. The construction industry has shown some recovery in the last few years. The number of households directly impact the sales of the outdoor power equipment. According to Oxford Economics, emerging market in construction will more than double in size over the next decade, growing by an estimated 110% to become a $7 trillion market, representing a massive 17.2% of GDP in 2020. The strongest growth in the emerging markets will come from the Asia Pacific where the estimated growth will average 125% over the next decade. This is not surprising given the region’s high population growth. India and China are expected to show the highest growth rates in construction over the next decade.
Changing trends in the infrastructural activities are likely to boost the demand for outdoor power equipment. With the increasing urbanization, consumers will be progressively ready to spend their expendable earnings on durable goods, recreational activities such as golf and landscaping services helping augment the demand for residential and commercial outdoor power equipment. Changing infrastructural designs has led to the development of unique and unconventional household décor, which does not take up too much space. The focus is shifting towards compact and sustainable living. Builders and architects are tapping into opportunities that are arising from trends such as green housing and sustainable housing. These trends can be noticed in garden restaurants, housing with patio garden and small gardens where lawn care equipment, trimmers etc. are quite common.
Outdoor Power Equipment Market- Battery and Electric Technology Prevailing
The world is moving towards greener technologies. People are switching towards cleaner sources of energy with a view to reduce carbon emissions and facilitate environment safety. Recently, gardeners have become aware of the various benefits offered by electric lawn mowers over their gas-powered or traditional counterparts that contribute to around 5% of the total hydrocarbons in the atmosphere in urban areas. According to a CNBC report, in 2017, air pollution has resulted in more than four million deaths in 2015, half of which were from emerging economies of India and China. This has led to the development of stringent norms and regulations for reducing ill-effects of the emissions on the environment. For instance, the Paris Climate Agreement was initiated in which about 148 countries participated to reduce emissions form their respective regions. With this concern at hand, it becomes imperative for individuals to opt for eco-friendly solutions, which has influenced the adoption of electric lawn mowers during the period of forecast. In addition, albeit their capital intensive nature, reduced fuel consumption offsets the high initial cost of electric lawn mowers, making them a one-time investment for carrying out lawn mowing.
With emission standards getting stronger and consumers getting more environment conscious, a literal shift towards electric and battery powered equipment has been noted. Incorporation battery or electric technology reduces the operational cost of equipment and its weight.
Consumer preferences have also been noted to incline towards quality rather than lower prices. Many manufacturers and dealers agree that stocking up cheap product has been of no help. Most of the equipment in the big boxes today are at throwaway pieces. They are so cheap that consumers don’t expect to fix them. The big boxes may not even have parts available to fix them. A quality product offers more opportunity for future sales as well. If a manufacturer/dealer establishes good customer relationships from the beginning, they will return for maintenance and repair in the future.