Heavy Commodity Demand Rewards the Stakeholders in Mining Equipment Market

Let us trace back to the original source of all components of consumer commodities that are used daily in domestic, commercial, or industrial scenario. One eventually land up on minerals, metals, and chemicals obtained through mining activities. The mining equipment market deals with all pertinent machinery that find use in different activities around the world. The ongoing growth of population and complementary increase in commodity demand consequentially motivates further extraction projects. Moreover, technological advancements have enabled the integration of multiple functions into a single apparatus. The progress of pipeline business verticals, such as infrastructure, development, and construction, has contributed positively in terms of market share. The industry looks forward to share the profit margins resulting from the increasing costs of raw materials required for the production of commercial and industrial goods. 

Mining equipment market tendencies

Under a generalized regard, the recent commodity super cycle stands as the basic reason for the hyped demand for fuel, wood, metals, and minerals. A detailed approach leads market analysts toward more specific market drivers. For instance, heavy coal consumption is a debatable, yet inevitable, part of the power generation parcel. Similarly, there exists an unending demand for processed wood in the form of paper and pulp. The case remains as it is for raw metals and minerals that find diverse industrial and agricultural applications. Riding on the tailwind of huge profit margins from these segments, the world mining equipment market size expanded by leaps and bounds. 

According to the latest report by Allied Market Research, the mining equipment market is expected to reach $150 billion by 2022. Analysts estimate the net CAGR of 7.9% during 2016–2022 for the industry. Asia-Pacific is projected to surface as the largest consumer as well as manufacturer in this segment. Rapidly developing economies of India, China, Australia, and Indonesia are expected to generate the maximum revenue during the forecast period.

Segmented review of the industry

Keeping up with the sundry operational demands in metal, mineral, and coal mining segments, the mining equipment market has diversified its offerings. The machineries offered by the industry vendors are classified according to their functions. The extensive list comprises mineral processing equipment; surface mining equipment; underground mining equipment; mining drills & breakers; crushing, pulverizing, and screening equipment. Each of these come at a hefty price—around a million for a simple bulldozer. The extreme costs of ownership are seldom borne by the mining companies. Leasing and asset financing institutions help these companies manage the procurement of machinery. Eventually, operational costs and efforts are reduced, which enables them to focus on their mining ventures. Extended cooperation from financial institutions in this regard motivates local players and new entrants to enter the complex mining industry.

Safety and sustainability concerns gain center

For anyone who knows the mining industry is well aware of the highly hazardous environment in which the equipment operators are required to perform. Regular training is necessary to keep the operators updated with the modified versions of mining equipment. At times even the veteran professionals tend to experience difficulties in carrying out various procedures. The lack of training modules bears the hazards of unfortunate on-site accidents. A detailed description of the machine design as well as the safe limits and environment to be maintained is communicated through these modules. Equipment manufacturers are responsible as far as the provision of these modules are concerned. 

Previously, safety concerns topped the list of growth restraints associated with the mining equipment market. Next in line of barriers stood stringent government regulations. The latter, however, have only evolved to become stricter than they ever were. Over the tide of times, manufacturing practices and manufactured mining equipment have emerged smarter. Both tend to stick to the germane guidelines specified by authorities as a part of their responsibility toward building a sustainable socio-environmental system.

Opportunities in mining equipment market 

The mining equipment market will continue to register a positive growth graph in terms of production volumes. Ceaseless expansion product portfolios through novice launches indicate toward both demand and necessity drivers. Modern-day mining machineries, prove to be more efficient when tested on parameters such as working space, operational & maintenance costs, functionality, and fuel consumption. 

Given that enough attention is paid toward the sustainable resource management, the market is growth bound in the present decade. In spite of present low in the commodity super cycle projected by research firms, business stakeholders will continue to reap profits through judiciously channelized investments.
 

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