Global mining equipment market size is expected to reach USD 95.14 billion by 2022, growing at a CAGR of 4% from 2015 to 2022. Growing mining activities on a global level are expected to be the key driving force for the market over the next six years. Mineral extractions are particularly prevalent in Asia Pacific nations of China, India and Australia. In addition, iron ore projects planned in Brazil, Russia, Africa, etc. are expected to positively impact demand. Mining operations are primarily dependent upon ore locations; however, major production locations operate in conditions such as water shortage. This has given rise to the need for effective solutions as well as contributed to demand for robust hardware.
Steady rise in population has led to growing demand for food, thus necessitating need for mineral fertilizers to enhance agricultural yield. However, safety and security concerns related to heavy equipment is expected to hinder overall mining equipment industry growth. Mishandling of equipment such as crushers, drillers, loaders and earth movers may lead to heavy losses. Furthermore, environmental extraction may result in undesirable environmental conditions including soil erosion and contamination, formation of skin holes as well as loss of biodiversity. Raw materials include metal, steel, rubber, plastic, and iron. The industry comprises tier 2 and tier 1 suppliers, which are responsible for the production of components to be given to original equipment manufacturers (OEMs).
Europe mining equipment market by product, 2012 - 2022 (USD Billion)
Key product segments analyzed and reported in the study include drills & breakers, crushing, pulverizing & screening equipment, mineral processing machinery, surface machinery, and underground mining machinery. Crushing, pulverizing & screening equipment market revenue is expected to reach USD 17.22 billion by 2022, at an estimated CAGR of 4.9%. Surface mining equipment accounted for over 30% of the global revenue in 2014 and is expected to continue being the dominant product segment over the forecast period. This can primarily be attributed to growing demand for iron ore and bauxite, as well as to the numerous iron ore projects planned worldwide. It mainly consists of bulldozers, service and bulk trucks, front-end loaders, rear-dump trucks, and mobile maintenance equipment.
Underground mining machinery also accounted for considerable market share in 2014, and includes cable shovels, hydraulic shovels, long wall mining machines, as well as continuous machines. These are used for digging, and help reduce the amount of unwanted materials while extracting valuable material. Drills and breakers are employed in settings wherein breaking through the ground and subsurface materials is essential. Other equipment include parts for coal drills, portable drill rigs, as well as parts for roof bolters.
Key application segments analyzed in the report include metal, mineral and coal mining. Metal mining is expected to remain the largest application over the forecast period. This is mainly due to increasing resource exploration and activities, as well as high demand for precious metals such as gold, silver, platinum, etc. On account of the high degree of complexity and large scale of operations, metal mining requires significant investment. Metal applications are expected to grow at a CAGR of 4.4% from 2015 to 2022.
Coal mining is also estimated to be a fast growing segment, and includes coal winning machines, road headers and scraper conveyors. Growing population coupled with increased economic activity has considerably fueled demand for coal for heating and electricity generation purposes. The mineral application market is expected to exhibit relatively slow growth, primarily because of government restrictions on mineral extraction in numerous regions. Growing differences in import duties and tariff restrictions, as well as security concerns are expected to adversely affect mineral extraction.
China is estimated to dominate new mining equipment demand; it is the major source of commodities including bauxite and iron ore. Chinese market has benefitted from high domestic demand from metal and coal mining industries, with growth forecast of over 5%. China’s economy is dependent on energy and manufacturing; therefore, growing demand for natural resources has driven the market. North America and Europe mining equipment markets are estimated to lose share over the next few years, due to barriers such as government restrictions on coal extraction and coal fired power plants in the U.S. European metal mines compete globally and most metallic ores are imported to supply the European metallic industry. A small percentage of metal ores are extracted within Europe; it is still a relatively important producer of metals including copper, zinc, lead, chromium and silver.
The global industry is characterized by the presence of a large number of multinational corporations. Caterpillar Inc., Komatsu Limited, Hitachi Construction Machinery, Sandvik AB, and Atlas Copco AB dominated global mining equipment market share in 2014. Large production lines as well as professional manufacturing equipment are necessary for production, leading to high capital investment. On account of stringent safety standards, there exists strong need for skilled and trained personnel, and market entry aspirants must obtain safety qualifications for their products.
Key Chinese manufacturers include Zhengzhou Coal Mining Machinery Group, Northern Heavy Industries Group, China Coal Technology & Engineering Group, and China National Coal Mining Equipment. Investment in R&D activities and focus on innovation and technological development are the key growth strategies followed by companies operating in the market. Industry participants have also been participating in strategic collaborations in order to sustain and succeed in the ecosystem. Emphasis on mergers and acquisitions in order to strengthen product portfolio, and ensuring a global footprint are other strategies adopted by industry leaders.
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