Mining Equipment Market Poised for Growth
April 18, 2014
According to a recent report from Transparency Market Research, the mining equipment market is expected to reach $117 billion by 2018. This news lends credibility to another market study by Grandview Research that pegged global mining equipment reaching nearly $150 billion by 2020.
Increasing mining activities in developing countries and the rising demand for technically advanced solutions across the globe are just two factors that are used to determine the forecasts for mining equipment use.
Currently, iron ore projects planned in Brazil, Russia, Australia and Africa are expected to drive mining equipment in the coming years. Underground mining activities, including oil refineries and coal mining are being planned for many parts of Latin America and Asia Pacific regions that is also leading to high demand for specific mining equipment.
The mining drills and breakers market is expected to be the fastest growing market in the next decade due to the increasing demand from developing countries. Surface mining equipment holds the largest share of accounts, currently responsible for 37% of the entire mining equipment market.
Underground mining is second in market share and is expected to grow at a moderate rate from 2012 to 2018. Underground mining projects will see more demand for hydraulic shovels, cable shovels, continuous mining machines and drag lines.
Companies that will reap the rewards of high demand in mining equipment include Caterpillar Inc, Hitachi Construction Machinery, Joy Global and Komatsu Limited. It is estimated that the top 50 mining equipment companies hold more than 80% of the industry share.