While demand will be restrained in the near term, mining machinery sales return to growth as the world economy recovers from the pandemic. Mine operators that delayed machinery purchases will replace outdated machines, invest in new equipment, and adopt advanced mining technologies, all of which will contribute to growth.
The Asia/Pacific Region to Account for Nearly all Growth, While US and Western European Markets Poised for Subpar Growth.
Through 2024, the Asia/Pacific region is expected to register faster growth and larger gains than any other region, accounting for nearly all of the increase in global product demand. China will be responsible for the bulk of regional gains during this time. China has more favorable growth prospects in part due to the losses its market recorded in recent years as well as its effective handling of the COVID-19 pandemic.
Through 2024, the US, Canada, France, Italy, the United Kingdom, Japan, and other nations with mature mining equipment markets are expected to perform relatively poorly. This is because of the severe impact COVID-19 had on most of these countries following a period of impressive market gains from 2014 and 2019.
New Mining Equipment Technology Helps Market Gains.
Technological innovation has played an important role in the mining machinery industry’s development because it allows manufacturers to comply with new regulations, improve equipment performance, reduce emissions, enhance operator safety and comfort, and expand their product portfolios.
Mining is Going Green!
Over the last few years, mining equipment manufacturers have invested heavily in sustainability initiatives by focusing on building more environmentally friendly production facilities, developing more fuel-efficient mining equipment, and incorporating advanced technologies to improve machine performance.
The mining machinery study is now available to download at the Freedonia Group.