Global demand for mining machinery is forecast to expand 8.6%year through 2017 to US$135 billion (€100 billion) despite some sales weakness in the short term.
Rapid gains in mining equipment demand will occur in large developing markets such as Brazil, China, and India, with China being the largest purchaser. These and other trends are presented in World Mining Equipment, a new study from The Freedonia Group, a Cleveland, USA-based industry market research company.
While metals account for a smaller share of mine output than minerals and coal in volume terms, machinery used in metals mining represents the largest segment of the global market. This is due to the large amount of ore that typically must be removed per tonne of primary metal product output. Demand for metals mining equipment will also rise at the most rapid pace through 2017, stimulated by steel and aluminum production. An expansion in construction spending and agricultural output as the global population continues to increase will boost consumption of construction aggregates and fertilizer minerals such as phosphate rock, as well as sales of related equipment.
“The greatest sales growth through 2017 will occur in the large Asia/Pacific region, fuelled by substantial investments in new mine production capacity in several nations,” says Raskind.
Strong gains will also be recorded in South America, as mining companies look to develop the region’s sizable deposits of bauxite, copper, and iron ore.
The dissipation of copper oversupply issues that existed in 2012 and 2013 will allow prices to recover and boost associated mining equipment demand in areas rich in copper, such as Chile and Peru.
The Africa/Mideast region will post the next fastest advances, followed by Eastern and Western Europe, and North America. In developed areas, a recovery in construction spending and manufacturing output will boost demand for nearly all types of mined materials, although an increased emphasis on environmentally friendly sources of electricity will dampen thermal coal output.
| Item | 2007 | 2012 | 2017 | 2007 - 2012 | 2012 - 2017 |
|---|---|---|---|---|---|
| Mining Equipment Demand | 48'050 | 89'500 | 135'000 | 13.2% | 8.6% |
| North America | 9'830 | 13'700 | 16'950 | 6.9% | 4.3% |
| Western Europe | 6'555 | 5'575 | 7'300 | -3.2% | 5.5% |
| Asia/Pacific | 200'000 | 54'750 | 88'600 | 22.3% | 10.1% |
| Central & South America | 3'960 | 6'645 | 10'150 | 10.9% | 8.8% |
| Eastern Europe | 4'000 | 4'200 | 5'480 | 1.0% | 5.5% |
| Africa/Mideast | 3'705 | 4'630 | 6'520 | 4.6% | 7.1% |
© 2014 by The Freedonia Group, Inc.
World Mining Equipment (published 01/2014, 524 pages) is available for $6,300 from The Freedonia Group, Inc. For further details or to arrange an interview with the analyst, please contact Corinne Gangloff by Tel: +1 440 684 9600 or Email: %$Linker:
