The mining equipment market is a vital contributor to human development as it affects all our lives. The supply of mineral products has underpinned the growth of many industries over the millennium and it continues to benefit the world by meeting various needs of the society.
Growing Demand for Minerals
The need for minerals is never-ending, and shall remain strong as long as humans continue to exist. So, for satisfying the demands of development and discovery of new mines across the globe, even as recycling facilities keep improving and use of resources becomes more efficient, the demand for mining equipment in bound to rise.
It is this ever-increasing demand for minerals and the quest for new mining facilities that drives the global industry of mining equipment. After a rather oppressed growth during the global recession of 2009, the mining industry has regained its past glory over the last couple of years and is now observing swift growth, especially in developing economies.
Currently, Asia Pacific dominates mining equipment market in terms of demand on a global front, owing to huge growth of mining industry in China.
The most evident factors that drive demand from the mining equipment industry include the ever-increasing activities in the mining industry and rising demands from developing nations. Other major factors that also considerably contribute to the growth of the mining equipment market include factors such as the rising demand for technically advanced equipments, rising demand for mineral and metal commodities, and increasing use of minerals in the fertilizers industry.
However, the global outcry regarding concerns for environment security and ill-effects of mining activities on the workforce of this industry could restrain the growth of this industry to some extent in the coming years. Other issues also exist that may have a negative impact on the revenues garnered by this industry, including the disparity in tariff and import duties of products throughout the globe.
Mining Equipment Industry - Major Segments:
The mining equipment market can be broadly categorized into six equipments types, which include:
- Mineral processing machinery
- Underground mining machinery
- Surface mining machinery
- Crushing, pulverizing, and screening equipment
- Mining drills and breakers
- Other peripheral equipment
Amongst these segments, the segment of surface mining equipment currently leads the overall mining equipment market, garnering nearly 37% shares of the total global revenues in 2011. Demands for underground mining equipments acquired the second position in the industry.
Devices from all these categories find enormous applications majorly in the coal mining, metal mining, and mineral mining industries, which are the major application areas of the global mining equipment market and also its major revenue generators.
This equipment is imperative in most operations, where breaking through the ground and subsurface materials are necessary.
From a geographic perspective, the region of Asia Pacific leads the global mining equipment market. It held nearly 60% shares of this industry in 2012. Demands for mining equipment from China alone accounted for an estimated 50% share of the market.
Demands are expected to rise in the future for mining equipment due to many large iron ore projects planned in countries such as Brazil, Australia, Russia, Africa, and other regions. Demands are also steady from emerging economies such as Asia Pacific and Latin America owing to the huge extent of mining activities in oil refinery and coal industries in these regions.
Key Market Players
The industry has a quite competitive and concentrated outlook in terms of the companies dominating the mining equipment market-space. There are over 650 known companies that manufacture and supply mining equipment, but the top 50 companies hold more than 80% share of the industry.
The major players in the mining equipment market include renowned names such as Hitachi Construction Machinery, Caterpillar Inc., Komatsu Limited, Joy Global Inc., Atlas Copco and Sandvick AB, etc.
The global mining equipment industry has huge growth opportunities in the future due to the ever-rising mining activities and demands for mining and metal commodities. The mining equipment market, which had an estimated worth of USD 71.5 billion in 2012 could observe growth at a CAGR of 8.5% in the coming four-five years and reach a global value of USD 117.0 billion by 2018.