Looking at the law of market development, every energy transition of mankind will bring a large number of dividend business opportunities, and will also give birth to the complete innovation of the entire industrial chain.
First, the amazing explosive power of power tools
For example, the large category of power tools has unexpectedly become the global invisible growth champion in the past two years. The main reason is that there is a large DIY population base in overseas markets: most European and American families have independent outdoor courtyards, and they prefer to DIY courtyards for the sake of repair costs. Therefore, the online sales of power tools have shown an amazing explosive force, which also makes this category full of imagination.
At present, the emerging business model of power tools is B2C shared leasing, and the rental market accounts for the highest proportion in Europe, especially the United Kingdom, at nearly one-third, while the United States and China are growing the fastest.
In recent years, China has also become the world’s largest power tool production base by virtue of its competitive advantages such as low production costs, complete industrial chain and high technical level, accounting for about 7% of the world’s output, and exporting overseas has become a popular choice for domestic brands.
According to Statista, the global power tool market was sold at $48.45 billion in 2022 and is expected to reach $56.1 billion by 2025, growing at a compound annual growth rate of about 6.7%. North America, a key market, is expected to gain more than 31% of the global market share by 2025, with China accounting for 20.3%.
Second, the new trend of power tool development
Different from other outlets that are chased by capital, in the development of power tools in recent decades, there has been no subversive innovation in the form of products. Especially after the gradual disappearance of overseas online dividends, the vulnerability of the brand is highlighted.
Many Chinese brands are beginning to realize that the core of whether they can rebuild the overseas market for power tools is — how to improve the energy efficiency of their tools. The creation of intelligent, lithium-electric, cordless, and ergonomic intelligent power tools has become an irreversible development trend, and industry giants have also poured into new tracks.
1. Why lithium battery?
Lithium batteries have longer running time, faster charging rate and higher power density, which not only kills nickel-metal hydride batteries for safety, but also perfectly solves the space limitations of traditional tools, making cordless power tools more versatile and efficient. At present, lithium battery power tools account for up to 85% of cordless power tools.
2. Why is it cordless and miniaturized?
The traditional method of power tools being powered by wires limits the working radius to a large extent. The cordless power tool is more compact and lightweight, which can adapt to the needs of a wider range of scenarios. At the same time, cordless tools have no cables, which greatly reduces the risk of electric shock and accidents, and makes the working scene safer.
At present, about 64% of the world’s cordless power tools are used, and the penetration rate is expected to be as high as 90% by 2025.
3. Why intelligence?
Intelligence greatly promotes the efficiency of inventory management and improves the overall performance of power tools. At present, mature big-name power tool brands have begun to deploy intelligent technology. For example, via Bluetooth connectivity, tool users can track and mark these power tools in real time.
When the tool is out of Bluetooth range, the user is alerted in a timely manner. In addition, it disables tool batteries outside of use to prevent unauthorized persons from using power tools, helping to reduce theft and improve tool planning and inventory management.
The development of smart power tools focuses on professional users, who are more willing to pay a premium for these special features, and intelligence is also contributing to the positive growth of the European and American markets.
4. Why ergonomics?
To make power tools easier and more comfortable to use, power tool brands often introduce models with ergonomic enhancements. For example, for impact wrenches that are only 1/2 inch, they are equipped with forward/reverse and power control systems, and the overall design is more user-friendly than the controls mounted on the back of the tool.
Ergonomic, easier accessory changes, lightweight design, and a comfortable grip will be the backbone of the innovative power tool market.
Although the above-mentioned functional points have become the mainstream development direction of power tools, in the actual product transformation, brands are also prone to encounter various technical difficulties: such as how to establish a safe and compliant protection mechanism in the process of charging and discharging lithium batteries?
3. Highlights of Tuya’s smart power tool solution
In order to help brands quickly achieve transformation, Tuya Smart has explored a set of mature experience and launched intelligent power tool solutions, covering professional power tools such as chainsaws, planers, impact wrenches, electric hammers, pruning shears, battery packs, nail guns, and electric drills. The solution integrates BMS hardware communication board, App terminal, Web management background and rich IoT lithium battery device ecosystem, a one-stop solution to help brand customers quickly achieve iterative upgrades of original tools, and build a global IoT platform for power tool brands to easily achieve digital transformation.
The solution has the functions of fleet transportation management, construction personnel management, inventory entry management, equipment data analysis, data dashboard, Lora/4G/Bluetooth communication solution, energy consumption usage, equipment analysis, dealer management and so on. It helps brands quickly advance from the 1.0 stage of lithium battery to the 2.0 stage of tool intelligent application, and reach the AI ecological linkage 3.0 stage at low cost and low threshold.
1. Lithium battery Link intelligent solution, efficient and reasonable
In order to lower the threshold for the intelligence of cordless products, Tuya BMS has specially developed the Battery Link intelligent solution for lithium battery tools and electrical products. It does not need to add an additional communication module, when the lithium battery tool/electrical appliance is connected to the battery pack, and then the communication module embedded in the battery pack will transmit the obtained information to the App, which can achieve intelligent control.
It has an independent control panel, which supports brand owners to customize and expand functions to create a brand-exclusive panel, and the second-level network activation function, after access, the app will automatically appear in the tool panel, and can remotely realize OTA upgrade services for battery pack tools/appliances, greatly improving the after-sales software operation.
2. Bluetooth induction lock technology to improve the safety of tools
In the actual operation of power tools, accidents caused by non-professional misoperation of tools often occur. In order to effectively ensure safety, Tuya BMS lithium battery can be automatically unlocked when professionals are near the tool, and automatically locked when they are far away from the tool, and the power tool status changes are pushed to the user’s app in real time, establishing a strong association with the tool.
This feature is suitable for larger construction sites or public spaces, and the app can proactively obtain the geolocation of the power tool to minimize the loss rate.
3. BMS IoT algorithm, easy data visualization
Tuya BMS lithium battery can quickly enable power tools to realize data visualization, and it supports real-time operation of intelligent monitoring, log statistics, fault alarm analysis, charge state estimation and other functions in the app/web background, providing professional public algorithm applications for brand customers.
The app can dynamically obtain the charge and discharge time estimation synchronously, and automatically report the detected battery health status and charge and discharge records, which greatly improves the safety performance of power tools.
4. PD fast charging function, the original chip selection is more abundant
Through the Tuya BMS, the lithium battery can also expand the ability of PD fast charging, and can be combined with the type-C port for voltage monitoring, log statistics, charge state estimation and other functions. Each brand can also independently choose the original manufacturer of mainstream PD chips, such as Zhirong/Nanxin/Suxin Micro and other chips with strong compatibility, combined with Bluetooth communication technology, you can realize the visualization of charging and discharging information.
5. Lithium battery tool management background to create exclusive brand characteristics
Tuya can provide personalized and customized tool management background according to the needs of different brands. Based on the powerful Tuya IoT PaaS platform, it can achieve rapid integration and reduce the costs and concerns of brands in developing IoT solutions such as integration, post-maintenance, and security management.
The power tool management platform includes the following functions: equipment management, personnel management, information analysis, project management and operation and maintenance, equipment positioning, energy consumption statistics, dealer management and other functions, providing a scientific basis for the brand’s power tool iteration in an all-round way.
In the future, Tuya will continue to make efforts to help customers realize the intelligence of power tools at low cost and low threshold, quickly build differentiated product competitiveness, and lead the arrival of a new era of intelligent power tools.