Cleveland, OH − Global demand for mining machinery is forecast to expand 8.6% per year through 2017 to US$135 billion, despite some sales weakness in the short term, according to Freedonia Group analyst Matt Raskind.
“Gains will be spurred by voracious demand for mined materials in China, India and other developing nations as industrial output increases,” says Raskind. Rapid gains in mining equipment demand will occur in large developing markets such as Brazil, China, and India, with China being the largest purchaser.
“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 forecasts.
He adds that 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 dissipation of copper oversupply issues that existed in 2012 and 2013 will allow prices to recover and boost associated mining equipment demand in areas rich in copper, such as Chile and Peru.
The Africa/Mideast 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, although an increased emphasis on environmentally friendly sources of electricity will dampen thermal coal output.
These and other trends are presented in World Mining Equipment, a new study from The Freedonia Group Inc., a Cleveland-based industry market research firm. Details can be found at freedoniagroup.com.