Power Tool Battery Market Report 2026

The power tool battery market size has grown rapidly in recent years. It will grow from $3.03 billion in 2025 to $3.35 billion in 2026 at a compound annual growth rate (CAGR) of 10.6%. The growth in the historic period can be attributed to rise of cordless tools adoption, advancements in rechargeable battery chemistry, increasing industrial automation, growing DIY consumer market, improvements in battery safety standards.

The power tool battery market size is expected to see rapid growth in the next few years. It will grow to $4.96 billion in 2030 at a compound annual growth rate (CAGR) of 10.3%. The growth in the forecast period can be attributed to demand for higher energy density batteries, integration with smart power tools, expansion in electric mobility applications, regulatory incentives for eco-friendly batteries, adoption of modular battery systems. Major trends in the forecast period include fast-charging battery technology, lightweight & compact battery design, extended battery lifespan & durability, smart battery management systems, modular & interchangeable battery packs.

The rising do-it-yourself (DIY) home improvement activities are expected to drive the growth of the power tool battery market going forward. Do-it-yourself (DIY) home improvement activities refer to individuals personally performing tasks to repair, renovate, or enhance their homes without hiring professional services. The increase in DIY home improvement activities is driven by the rising cost of professional labor, encouraging homeowners to undertake projects themselves to reduce expenses. DIY projects, including small repairs, renovations, and home upgrades, enable homeowners to save on labor costs while completing tasks independently. Cordless power tools, powered by reliable and high-performance batteries, support these activities by offering portability and ease of use. For example, in February 2024, according to the Home Improvement Research Institute (HIRI), a U.S.-based nonprofit organization, roughly 61% of homeowners reported plans to begin at least one home improvement project within the next 90 days, signaling strong near-term renovation intent. Therefore, the rising do-it-yourself (DIY) home improvement activities are fueling the growth of the power tool battery market.

Innovations such as tabless cell battery technology are advancing to enhance energy efficiency, extend runtime, and improve overall tool performance. Tabless cell batteries eliminate traditional tabs, enabling faster charging, better heat management, and higher power output. For instance, in June 2024, DeWalt Industrial Tool Company, a US-based manufacturing company, launched the XR POWERPACK 8 Ah battery (model DCB2108) featuring this technology, delivering 50% more power and a longer lifespan compared to conventional cylindrical batteries. The battery also offers a rugged overmolded base for impact and weather resistance, an LED state-of-charge indicator, and full compatibility with 20V MAX tools and chargers, exemplifying the industry’s focus on high-performance, durable solutions that drive adoption of cordless power tools.

In May 2023, Bosch Power Tools, a Germany-based manufacturer of power tools and power tool batteries, partnered with FEIN and Rothenberger to launch the AMPShare - Powered by Bosch multi-brand battery alliance across North America. Through this partnership, Bosch, FEIN, and Rothenberger aim to combine their respective strengths in cordless technology, integrating Bosch’s 18V battery platform with FEIN’s and Rothenberger’s professional-grade power tool engineering to offer tradespeople a unified battery system that improves compatibility, efficiency, and performance across various tool categories. FEIN GmbH is a Germany-based power tool company known for its high-precision industrial tools, while Rothenberger AG is a Germany-based manufacturer specializing in pipe tools and HVAC equipment.

Major companies operating in the power tool battery market are Bosch Limited., Panasonic Corporation, LG Energy Solution Ltd., Samsung SDI Co. Ltd., Stanley Black And Decker Inc., Techtronic Industries Co. Ltd., Hilti Corporation, Milwaukee Electric Tool Corporation, EVE Energy Co. Ltd., Makita Corporation, Snap-on Incorporated, Einhell Germany AG, Festool GmbH, SunPower Corporation, BAK Power Battery Co. Ltd., Great Power Energy And Technology Co. Ltd., Highstar Battery Co. Ltd., Hitachi Ltd., Lishen Battery Co. Ltd., Tenpower Technology Co. Ltd.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have influenced the power tool battery market by increasing import costs on raw materials like lithium, cobalt, and nickel, affecting production expenses and supply chain efficiency. High-capacity batteries and lithium-ion segments are particularly impacted, especially in regions such as North America and Europe, which rely on imported components. While tariffs have raised costs, they have also encouraged local manufacturing and investment in alternative materials, potentially fostering innovation and domestic production capabilities.

The power tool battery market research report is one of a series of new reports that provides power tool battery market statistics, including power tool battery industry global market size, regional shares, competitors with a power tool battery market share, detailed power tool battery market segments, market trends and opportunities, and any further data you may need to thrive in the power tool battery industry. This power tool battery market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

A power tool battery is a rechargeable energy storage unit that supplies the electrical power required for cordless tools to function without being connected to an external power source. It stores electrical energy in chemical form and converts it into electricity to power motors, offering flexibility and convenience across various applications.

The main types of power tool batteries include lithium ion, nickel cadmium, nickel metal hydride, and other types. A lithium ion battery is a rechargeable energy storage unit that uses lithium ion chemistry to deliver high energy density, extended runtime, and lightweight performance for cordless power tools. These batteries are commonly used in tools such as drills, saws, lawn mowers, impact wrenches, and other equipment. They are available in capacities ranging from one ampere hour to two ampere hours and below one ampere hour, and they serve a wide range of end users across industrial, commercial, and residential sectors.North America was the largest region in the power tool battery market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the power tool battery market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the power tool battery market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The power tool battery market consists of sales of lead-acid batteries, battery packs, cordless drill batteries, battery chargers, and graphene batteries. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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