The global mining equipment market is expected to reach US$95.14 billion by 2022, according to a new study by Grand View Research, despite a slowdown over the last two years due to reduced CAPEX expenditure by mining companies on the back of weak demand for commodities.
The slowdown has been primarily concentrated around new project development and expansion projects with leading mining OEMS, such as Caterpillar, Sandvik and Atlas Copco reporting substantial drops in their revenues.
According to Grand View’s forecast, the mining industry is expected to start its recover post 2017 as new sites are opened – particularly in untapped regions of Africa and Latin America.
Mining equipment market breakdown
Opencast mining equipment contributed over 30% of overall market revenue in 2014, according to Grand View and is expected to continue dominating the market to 2022 on growing demand for bauxite and iron ore.
On the commodity side, metal mining in forecast to drive market growth to 2022 on increased demand for precious metals, while Grand View also sees growth from the coal sector due to “growing demand for coal in electricity generation and heating.”
Regionally, untapped regions in Africa and Latin America are expected to trigger recovery in the mining equipment industry, although China will dominate the market through to 2022 on high demand from the country’s coal and metal industries. Meanwhile, Europe and North America will lose market share due to barriers such as government restrictions on coal-fired power plants.
Written by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/mining/23072015/recovery-in-mining-equipment-market-expected-from-2017-2614/