Growing mining equipment demand to raise global market valuation by US$117 bn by 2018

According to a recent market research report, the global mining equipment market is estimated to be worth US$117 bn by 2018. The overall market was worth US$71.5 bn in 2012 and is projected to grow at a CAGR of 8.60% during the forecast horizon.

Mining is an important sector and contributes massively to the world economy in terms of revenue. The sector also supplements the economy by generating employment and providing resources to other industries. Mining activities across the globe have witnessed a steady rise in the past couple of years. This, in turn, has fuelled the demand from the global mining equipment market. The demand for mining equipment is especially high across developing countries. The report points out that the primary reason for the surging growth of the global mining equipment market is the increasing demand for metal and mineral commodities. Increasing consumption of fertilizer minerals, along with rising demand for technologically advanced mining equipment in developing countries, will further propel the global mining equipment market.

However, the report states that concerns related to safety and environment security will restrain the market during the forecast horizon. Differences in import duties and tariff restrictions are also expected to hinder the growth of the global mining equipment market. The overall market has a huge opportunity to grow with increased focus on research and development by key players. The industry is also witnessing a rising trend of mergers and acquisitions among the key players.

On the basis of equipment type, the global mining equipment market has been segmented into mining processing machinery; mining drills and breakers; crushing, pulverizing, and screening equipment; mineral processing; surface mining; underground mining; others. The demand for mining drills and breakers is the highest among these segments. The underground mining equipment segment holds the second largest share in the market. The surface mining equipment segment accounted for a 37% market share in 2012.

The report studies the global mining equipment market across four key regions: Asia Pacific, Europe, North America, and Rest of the World. Asia Pacific dominated the overall market in 2012 with a market share of more than 60%. In Asia Pacific, China is a key market for mining equipment, along with India and Indonesia. Presently, Asia Pacific and Latin America lead the overall mining equipment market in terms of coal mining and other underground and surface mining activities which include bauxite mining as well.

The companies which have been identified as key players in the global mining equipment market include Hitachi Construction Machinery, Caterpillar Inc., Sandvik AB, Joy Global Inc., Atlas Copco Ab, and Komatsu Limited.