According to research conducted by market research giant the Freedonia Group, the global demand for mining plant and equipment is due to expand 8.6 per cent per year through to 2017 to US$135 billion despite short-term sales weakness
?Gains will be spurred by voracious demand for mined materials in China, India and other developing nations as industrial output increases,? Freedonia Group analyst Matt Raskind predicted.
Rapid gains in mining equipment demand will occur in large developing markets such as Brazil, China and India, with China the largest purchaser. These and other trends were presented in a new study called World Mining Equipment.
While metals account for a smaller share of mine output than minerals and coal in volume terms, machinery used in metals mining represents the largest segment of the global market. This is due to the large amount of ore that typically must be removed per tonne of primary metal product output.
Demand for metals mining equipment will also rise at the most rapid pace through to 2017, stimulated by steel and aluminum production.
Spending, consumption to increase
An expansion in construction spending and agricultural output as the global population continues to increase will boost consumption of construction aggregates and fertiliser minerals such as phosphate rock, as well as sales of related equipment.
?The greatest sales growth through 2017 will occur in the large Asia-Pacific region, fuelled by substantial investments in new mine production capacity in several nations,? Raskind explained.
Strong gains will also be recorded in South America, as mining companies look to develop the region?s sizable deposits of bauxite, copper and iron ore.
The Africa/Middle East region will post the next fastest advances, followed by Eastern and Western Europe and North America.
In developed areas, a recovery in construction spending and manufacturing output will boost demand for nearly all types of mined materials. However, an increased emphasis on environmentally friendly sources of electricity will dampen thermal coal output.
Sources: Freedonia Group, Aggbusiness Europe