The global mining equipment market is highly competitive in nature with a large number of multinational companies across the value chain, Transparency Market Research (TMR) finds in a new research study. Caterpillar Inc., Komatsu Limited, and Hitachi Construction Machinery are the prominent companies operating in the global mining equipment market and are expected to dominate the market in the coming years.
In 2012, these companies collectively accounted for a 62% share in the global market. These companies are emphasizing on mergers and acquisitions to retain their position in the market.
According to the research study, the global market opportunity for mining equipment is projected to reach a value of US$117.04 bn by the end of 2019. On the basis of equipment type, the surface mining equipment segment is projected to lead the global market and account for a 34.4% share in 2019.
The robust growth in mining activities and the rising number of iron ore projects in various regions are expected to drive the surface mining equipment segment in the next few years. Although the demand is expected to grow at a steady pace, the key products, such as bauxite and iron ore will continue to hold a massive share of the market in the coming years.
There has been a high demand for mining equipment in Asia Pacific, which is expected to be the dominant region in the forecast period, followed by Rest of the World. APAC is projected to account for a 66% share in the global market by the end of 2018, thanks to the significant rise in mining machinery sales and mine production across India, China, and Indonesia.
On the basis of application, the metal mining segment is projected to lead the global mining equipment market, reaching a value of US$49.39 bn by the end of 2018. The rising demand for precious metals, including platinum, bauxite, silver, and gold is the primary reason driving the metal mining segment.
Additionally, the growing demand for commodities globally is indirectly boosting the demand for metal mining worldwide.
A substantial rise in mining activities, especially in several emerging nation, such as Australia, China, and India is augmenting the growth of the global mining equipment market, states a TMR analyst. The rising consumption of mineral fertilizers is also estimated to fuel the growth of the global market in the near future.
Mineral fertilizers offer several benefits in agriculture, such as crop protection and enhancement in productivity. These fertilizers are obtained primarily from the processing of ores acquired from mines. Technological innovations and the advent of new equipment varieties are expected to accelerate the growth of the global mining equipment market throughout the forecast period.
"The complicated architecture of mining equipment has a number of security and safety issues, which could restrict the growth of the global mining equipment market in the coming years," says a TMR analyst. As mishandling of mining equipment, such as drillers, earth movers, crushers, shedders, and others may result in heavy losses, the lack of a skilled and experienced workforce is another factor dampening the growth of the global market. Nevertheless, the increasing number of mergers and acquisitions and rising focus on research and development activities are projected to act as an opportunity for the global mining equipment market.
This information is based on the findings of a market research report published by Transparency Market Research, titled "Mining Equipment Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2012 - 2018."
Source: Press Release / SBWire
10 November 2017