Global demand for surface mining machinery is forecast to rise 4.5% annually to $30.1 billion in 2022, due to:
- growing aggregates, coal, and other material strip mining activity, which is supported by advances in construction and manufacturing activity
- rising mechanization rates in developing nations around the world
- incorporation of new technologies into trucks, excavators, loaders, and other surface mining equipment, which will fuel price growth
Open strip mining continues to be the most economical way to extract surface deposits of many minerals, promoting high levels of demand for surface mining equipment globally through 2022 and beyond. In addition, most of the largest mining projects worldwide are surface mining projects, which tend to employ larger, higher value models than smaller mining operations. The adoption of new emissions standards and technical regulations will spur replacement product sales around the world and lead to the introduction of more sophisticated and expensive models. These and other trends are presented in Global Mining Equipment, a new study from The Freedonia Group, a Cleveland-based industry research firm.
On the other hand, advances will be restrained by the large number of surface mining machines already in use around the world and the widespread availability of previously used or remanufactured models by construction and mining firms. This competition is more important in the surface mining equipment market than in most others due to the versatility of many products included in this category.
Demand for all types of mining equipment is forecast to grow 4.4% per year through 2022, rebounding from the declines of the 2012-2017 period. A recovery in mined commodity prices will improve the financial position of mine operators and make equipment purchases more viable. Advances in construction, manufacturing, and agricultural activity will spur increases in the global need for certain mined commodities.
Global Mining Equipment (published 10/2018, 443 pages) is available for $6800 from The Freedonia Group. Please link citations to https://www.freedoniagroup.com/industry-study/global-mining-equipment-3629.htm.