Global Mining Equipment Market
Breaking News: Komatsu completes the acquisition of Joy Global, a surface and underground mining equipment manufacturer for USD 3.7 billion. From now on, Joy Global will be referred to as Komatsu mining group.
The global mining equipment industry is poised to record a healthy CAGR of about 6.86 %over the forecast period. The mining industry contributes heavily to the GDP of any country, and the effect is observedin both the developed and emerging economies.
The mining industry has witnesseda severe downfall since its peak in 2011, andhas plunged about 73 %,accounting forabout USD 1.4 trillion shareholding value until the late 2016. However,the industry is currentlyexperiencing a positive phase, with commodity prices rising and augmenting the demand for raw materials. Majorly, the high priced metals like gold, copper, and other ores are expected to drive the market.
Mining is a major economic activity, through which minerals and rare metals are obtained from deeper layers of the earth. In a broader sense, mining can be regarded as the extraction of non-renewable resources, such as, metals, minerals. Coal,etc. Mining involves operations, such as, drilling, crushing, and pulverizing. The ever-increasing demand for these materials has caused themining equipment manufacturers to come up with better and more advanced equipment. The mining equipment manufacturers can look at opportunities, like the automation of machineryto attract customers for capturing a larget share of the market.The market is driven by the growing resource exploration and augmenting demand for raw materials.
Mining, as an industry, deploys large capital investment and among the total, over 1/3rd is formining equipment. Any country which hosts mining operations is bound to have monetary, labor employment, and local industry benefits. Among the beneficiaries, equipment and service suppliers are the largest ones, accounting for about 69 %of the benefits from any particular mining activity in the country. The value indicates a prolific market for mining equipment in the global scenario.
*Pacific excluding China, India
A transition has been observed from underground to the more economical, open pit mining, which is expected to drive the demand for mining equipment over the forecast period. Furthermore, the development of high-performance equipment, with increased automation, has made extraction of ores with declining grades comparatively cheaper. For example, Ericson, along with ABB and Volvo,use5G technology, with which they run loaders and excavators through the Kankberg mine in Boliden, Sweden. These equipment are fully automated and also pave the way for further adoption of automated machinery in mines, globally.
Owingto the new projects of thermal power energy, the demand for coal mining in China has increased drastically. However,as many small players are present in China, the inability of these players to purchase new equipment (owing to the lack of required capital) forces them to rent equipment for various projects and return it back to the suppliers.This indicatesa rise in the demand for rental markets for mining equipment. The trend is expected to extend to theAfrican and Latin American countries, Indonesia, etc. Some rental companies are also joining hands to increase their product portfolio. For instance, Emeco has merged with Orionstone and Andy’s Earthmovers, and has increased thefleet size to approximately 730 machines. The dependent markets (related to mining equipment), like OTR tire market, paints &coatings market, are also poised to record a stipulated growth.
Why purchase the report?
To know whether the declinein coal mining,owing to weak metallurgical and thermal coal prices, along with cheaper natural gas and existing stockpiles of coal mayhinder the market’sgrowth?
To know about the effects of the acquisition of Joy global,onthe mining equipment market
What the Report Offers
For ManufacturersFor Distributors
Historical price trends of raw materials Supply chain analysis
Labor laws in major countriesValue chain analysis
Government incentivesProduct differentiation
Bargaining power of distributers/dealers