Base Metal Mining Market Size, Share & Trends Analysis Report By Product (Aluminum, Copper, Zinc, Lead), By End-Use (Construction, Automotive), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global base metal mining market was valued at USD 551.03 billion in 2022 and is expected to expand at a compounded annual growth rate (CAGR) of 3.8% from 2023 to 2030. Rising demand for base metals from the electrical & electronics and automotive industries is projected to drive the market growth. Base metals are widely used in the manufacturing of electrical & electronic components. For instance, copper exhibits the best electrical conductivity of all metals after silver. The properties of copper include corrosion resistance and good thermal conductivity, which makes it suitable for use in a wide range of electrical & electronic applications. Thus, rising demand for electrical & electronic goods is expected to aid product demand across the forecast period.

China is one of the leading producers & consumers of base metals in the world. Factors such as the widespread presence of numerous manufacturers and end-users in the country, increasing production of electronics, growth in construction activities, and rising penetration of electric vehicles (EVs), are factors attributable to the market growth.

Increasing government efforts to revive the construction & infrastructure industry are expected to increase the consumption of products across the forecast period. For instance, in July 2022, china’s government announced that it would set up a state infrastructure investment fund of CNY 500 billion (~usd 74.69 billion) to revive the flagging economy by spurring infrastructure spending in the country.

Furthermore, growth in global EV production is anticipated to provide lucrative opportunities for metals like nickel, copper, and aluminum. For instance, in august 2021, the U.S. president passed an executive order aimed at making all new vehicles 50% electric by 2030. Owing to this, many automobile manufacturers are shifting focus toward EV production. For example, in October 2021, Bentley motors announced that all its cars produced are likely to be plug-in hybrids by 2026 and electric by 2030.

The rapid growth in the market, however, faces hindrances from laws and regulations. Mineral deposits containing sulfides such as copper, gold, zinc, lead, and aluminum, when mined have the potential to produce acid mine drainage. These minerals, when exposed to water and oxygen, result in the formation of sulfuric acid. By bringing down groundwater's ph and dissolved metal concentration, acid mine drainage has the potential to impair water quality. As a result, rigorous environmental laws are imposed on the mining of base metals, which hinders mining activities.

Product insights

Based on product, the copper segment held the largest revenue share of more than 29.0% in 2022 in. according to the USGS, the global copper reserves amount to 880 million tons. The global demand for copper is anticipated to grow over the coming years owing to the demand from the infrastructure and automotive sectors.

Aluminum held the second-largest share of the global market in 2022. The global smelter production for aluminum was 69,000 kilotons in 2022. The world resources of bauxite are estimated to be around 55-75 billion tons and are enough to meet the global demand over the coming years. Due to its lightweight characteristic, aluminum is widely adopted in the automotive industry. Thus, growing auto production coupled with the rising penetration of EVs is anticipated to boost aluminum demand.

Nickel is another crucial segment of the market. it is largely used in the production of stainless steel. Further, it is widely used in the production of superalloys, which find use in applications that face extreme conditions and high temperatures in various industries such as power generation, automotive, and aerospace.

Nickel-based superalloys are gaining significance owing to their performance and thus witnessing investments. For instance, the six-year advanced ultra-supercritical (AUSC) component testing (COMTEST) project managed by NETL was completed in February 2022. The project enabled manufacturers to manufacture nickel super alloy components on a commercial scale, which will be needed for more efficient thermal power plants in the future.

End-use insights

Based on end-use, construction dominated the global market with a revenue share of over 41.0% in 2022. Base metals are widely used in building & construction, interior design, and architecture applications. Increasing investment in the construction of smart cities across the world is expected to augment the consumption of base metals across the forecast period.

For instance, in June 2022, the Egyptian government announced a plan to construct 15 new fourth-generation cities in the country in the coming years. Similarly, in September 2022, the Saudi Arabia government announced a plan to build 200 smart cities and 4,000 factories across the country.

The automotive segment is expected to register a CAGR of 3.9%, in terms of revenue, during the forecast period. The base metals including aluminum, copper, nickel, and lead are widely used to manufacture various automotive components such as doors, batteries, and bumpers. Rising demand for lightweight vehicles is increasing the penetration of aluminum in automotive production. The aluminum association estimates that by 2028, aluminum will make up about 16% of all vehicle weight.

The consumer goods segment is projected to grow at a CAGR of 4.5%, in terms of revenue, across the forecast period. Base metals are widely used in the manufacturing of consumer goods such as utensils & cutlery, pans, pots, kitchen appliances, taps, clothes iron, toaster ovens, soldering irons, grills, and baseboard heaters. Growing consumer spending, population, and awareness about the use of high-quality goods are propelling segment growth.

Regional Insights

Asia Pacific dominated the market and accounted for over 42.0% share, in terms of revenue, in 2022. The dominance is attributed to rising investments in various end-use industries such as electrical & electronics, automotive, and construction across the region. For instance, in august 2022, the state government of Bengal approved 5 new industrial parks and 18 units worth INR 60 million (~USD 0.75 million). The 18 units are likely to be set up in the existing VIDYASAGAR industrial park.

Over the forecast period, North America is anticipated to register a CAGR of 4.2%, in terms of revenue. The growth is expected to be driven by the rising penetration of EVS and growing demand for electrical and consumer goods. For instance, in august 2021, in a joint statement, ford motor company, general motors, and STELLANTIS announced that they are targeting 40-50% of annual vehicle sales to be electric by 2030 in the U.S.

Europe is projected to witness a CAGR of 2.9%, in terms of volume, over the forecast period. The demand for base metal in the region is anticipated to increase as a result of the rising demand for sustainability and the reduction of carbon, which has propelled the investment in the construction of green buildings and EVS.

To improve energy efficiency in buildings throughout the EU, the European Commission introduced a renovation wave in 2020. A doubled renovation rate is envisioned by 2030, along with an increase in energy efficiency and resource conservation. As a result, 35 million buildings could be renovated by 2030, leading to lucrative opportunities for the base metals industry.

Key Companies & Market Share Insights

The market is fragmented in nature with the presence of numerous players worldwide. Acquisitions, mergers, and collaborations are a few key strategies adopted by the market players. For instance, in February 2022, develop, an Australian mining company agreed to buy the Woodlawn copper project for USD 243.8 million. With this acquisition and the Sulphur springs project, the company aims at holding major significance in the overall base metals industry. Some prominent players in the global base metal mining market include:

• BHP

• Freeport-McMoRan, Inc.

• Antofagasta Plc

• Codelco

• Zijin Mining Group Co., Ltd.

• Norilsk Nickel

• Vale

• Aurubis

• Glencore

• Anglo American

Base Metal Mining Market Report Scope

Global Base Metal Mining Market Segmentation

This report forecasts volume and revenue growth at global, regional & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, grand view research has segmented the global base metal mining market report based on product, end-use, and region:

• Product Outlook (Volume, Kil0tons; Revenue, USD Million, 2018 - 2030)

  • Aluminum

  • Copper

  • Lead

  • Nickel

  • Zinc

  • Tin

  • Tungsten

• End-Use Outlook (Volume, Kil0tons; Revenue, USD Million, 2018 - 2030)

  • Construction

  • Automotive

  • Electrical & Electronics

  • Consumer Goods

  • Others

• Regional Outlook (Volume, Kil0tons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Norway

    • Russia

  • Asia Pacific

    • China

    • India

    • Australia

    • Philippines

    • Indonesia

  • Central & South America

    • Brazil

    • Chile

    • Peru

  • Middle East & Africa

    • Bahrain

    • UAE