Despite some short term weakness, the mining machinery market around the world is forecast to expand 8.6% per year through 2017 to $135 billion, according to the latest report from market research company the Freedonia Group. “Demand will be spurred on by the huge demand for mined materials in China, India, and several other developing nations as industrial output increases,” said the report. “Global patterns of investment in mining capacity will be determined in large part by these industrializing countries, as resource companies look to capitalise on new opportunities. Rapid gains in mining equipment demand will occur in large developing markets such as Brazil, China, and India, with China being the largest purchaser by a wide margin.
“Additionally, machinery demand will expand in other nations with large deposits of industrial materials, including Australia, Chile, Indonesia, and Peru.
The greatest sales growth through 2017 is expected in the Asia/Pacific market, fueled by substantial investments in new mine production capacity. Strong gains will also be recorded in Central and South America. International Mining expects Latin America to be the most dominant region.
Freedonia expects the Africa/Mideast region will post the next strongest market advances, followed by Eastern Europe, 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, though more emphasis on environmentally friendly sources of electricity will dampen thermal coal output.
“Metals mining will rise at the fastest pace through 2017, stimulated by steel and aluminum production. An expansion in construction spending and agricultural output as world population continues to grow will boost consumption of construction aggregates and fertiliserminerals like phosphate, as well as sales of related equipment.
“Growth in primary metals production and rising global energy demand will spur growth in coal mining machinery sales, as will ongoing efforts to mechanise coal mining operations in China. However, a shift away from coal as an electricity source in developed countries will restrain overall demand advances.
“Through 2017, demand for drills and breakers will climb at the most rapid pace of any product segment, as these units are used almost universally across all mining operations, especially during the exploration phase of a project. Additionally, the growing use of in situ mining techniques, where these products are a primary type of equipment employed, will further increase sales.
Like drills and breakers, comminution “and screening equipment is used in almost every kind of mining operation, and continued gains in world mining output will result in strong sales advances for these products.”
