About Mining Equipment Rental
Mining equipment is used to extract natural resources such as coal, metals, and minerals. Some of the minerals and metals extracted include iron ore, bauxite, titanium, copper, gold, platinum, sand, gravel, salt, and other non-metallic products. Rental mining equipment constitutes a significant share of the global mining equipment market. The high cost of capital, maintenance cost, and overhead cost attached with the ownership of mining equipment have compelled end-users to rent mining equipment instead.
Technavio’s analysts forecast the global mining equipment rental market to grow at a CAGR of 3.77% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global mining equipment rental market for 2017-2021. The report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Mining Equipment Rental Market 2017-2021
Technavio recognizes the following companies as the key players in the global mining equipment rental market: Atlas Copco, Caterpillar, Hertz Equipment Rental, Komatsu, and Sunbelt Rentals.
Other Prominent Vendors in the market are: AMECO, EMECO, Eqstra, H&E Equipment Services, McDowell, United Mining Rentals, United Rentals, and SMS Rental.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Emergence of deepsea mining. Onshore mineral rich mines are nearing exhaustion, which has shifted the focus on offshore mining activities. The seabed is rich in mineral content, and deepwater mining is not as new as it seems. The oil and natural gas industry has forayed into such mining activities long ago and has already recognized deepwater and ultra-deepwater as mainstream oil extraction activity. Now, the mineral mining industry is following suit. The bottom of the ocean is rich in precious metals and other resources, including diamonds, gold, and cobalt. This makes it crucial to develop technology that can facilitate deepsea mining to cater to the increasing demand for minerals and metals.”
According to the report, one of the major drivers for this market is Rental advantages of mining equipment. Companies that function in a specific industry are business rivals and will seek to out space the others in a bid to obtain the largest market share. This is possible if a business is successful in formulating a potent pricing strategy, which involves poring over balance sheets and other aspects of the business to devise an effective budgetary control. It has been evaluated that significant cost savings can be achieved if equipment, for the purpose of mining, are taken on rent instead of being purchased. Renting mining equipment for short-term projects has turned out to be an economical move.
Further, the report states that one of the major factors hindering the growth of this market is CAPEX depreciation in the mining industry. Many mining companies have delayed the investments in new mining projects due to decline in commodity prices. The prices of aluminum, coal, copper, and iron ore have been declining for the past few years. Exploration is considered to be the lifeline for any mining project. But due to high volatility in commodity prices, the investments toward exploration activities have reduced considerably.
Atlas Copco, Caterpillar, Hertz Equipment Rental, Komatsu, Sunbelt Rentals, AMECO, EMECO, Eqstra, H&E Equipment Services, McDowell, United Mining Rentals, United Rentals, and SMS Rental.
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