According to a new report published by Allied Market Research, titled,"Mining Equipment Market by Type and Application: Global Opportunity Analysis and Industry Forecast, 2018 - 2025,"the mining equipment market accounted for $106,853.0 million in 2017, and is expected to reach $188,773.0 million by 2025, growing at a CAGR of 7.2% from 2018 to 2025. In 2018, Asia-Pacific dominated the global market, in terms of revenue, accounting for about 65.0% share of the global market, followed by North America.
The mining equipment is used to dig and move heavy and bulky loads in the mining industries. It includes drill rigs, crawlers, crushing & processing equipment, dumpers, excavators, finishing equipment, graders, mixers, trucks, trenchers, loaders, and dozers. It is majorly used in surface and underground mining operations. Moreover, it is also used for lifting and shifting operations in the construction sector. The key factor that drives the mining equipment market includes rise in mining activities to meet the demand for metal and minerals. Moreover, as compared to the other regions across the world, the economy of the EU region has drastically shrunk over the past couple of years, which has affected the mining industry. Thereby affecting the mining equipment industry adversely.
The surface mining equipment segment accounted for the highest share of about 30.0% in the mining equipment market in 2017, and is expected to grow at a CAGR of 6.4% during the forecast period. In terms of application, metal mining sector is expected to contribute the highest market share in the coming years. Moreover, increase in emphasis on mineral mining sector is expected to provide wide growth opportunities to small players in developing economies.
In 2018, Asia-Pacific registered the highest rate in the mining equipment market, and is expected to continue this trend during the forecast period, due to expansion of coal and metal mining in the region. For instance, Atlas Copco had invested $13.4 million for the expansion of the factory in Hyderabad, India, doubling its capacity. The plant manufactures drilling consumables for surface mining applications.
Key Findings of the Mining Equipment Market:
- In 2017, the surface mining equipment segment dominated the global mining equipment market, in terms of revenue, and is projected to grow at a CAGR of 6.4% during the forecast period.
- The metal mining segment is projected to grow at a CAGR of 9.1% during the forecast period.
- Asia-Pacific is projected to register the highest growth rate in the years to come.
The major players, such as AB Volvo, Caterpillar Inc., Deere & Company, Doosan Corporation, Epiroc AB, Hitachi, Ltd., Komatsu Ltd., Liebherr-International AG, Metso Corporation, and Sandvik AB, have focused on developing new products to strengthen their presence in the market. Moreover, these companies expand their business by acquiring small businesses to sustain the intense competition. For instance, Epiroc acquired Mining Products (Proprietary) Limited, a South African manufacturer of rock reinforcement products for underground mining. Through this acquisition, Epiroc expanded its presence in South Africa.