Latin American mining equipment market to witness growth over 2014-2020

The global mining industry is expected to witness growth with a single digit CAGR over the next six years on account of the further expanding demand for metal and mineral commodities. In a recently published market report on global mining equipment market, Latin America has been identified as the region accounting for about 8% of the global mining equipment demand in 2013, and its contribution towards global mining equipment sales has been found to have registered at 15% for the same year.

The region serves as the prime destination for mining exploration and investment at a global level. The key reason which has accelerated the growth of the Latin American mining equipment market is the enhanced demand for the consumption of natural resources. In addition, foreign investment, especially from China, US, Canada and Australia, plays a significant role in the growth of the Latin American mining equipment market.

However, in the past few years, the mining industry and hence the mining equipment industry has been facing an economic crisis on account of the requirement for budget allocation in the maintenance of the mining industry and equipment. Mining equipment suppliers are being forced to sell off stock and diversify into other construction industries as demand plummets on the back of the resources downturn. But with surging demand and abundant availability of natural resources, rapid technological advancement, modernization of mining plants, stable legislations with a motivating legal environment, and efficient budget allocation with aftermarket revenue generation, newer opportunities for development are expected to arise catalysing growth of the Latin America mining equipment market.

Market segmentation of Latin American mining equipment, in the report has been done on the basis of equipment, application and countries. On the basis of equipment, the Latin American mining equipment market includes mineral processing equipment, surface mining equipment, underground mining equipment, mining drills and breakers, crushing and screening equipment.

On the basis of applications, the Latin American mining equipment market segmentation includes metal ore mining, coal mining and mineral mining. Chile, being the largest producer of copper, serves as a lucrative market for copper-based mining equipment.