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Global mining equipment demand set to grow |
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Written by Newswire
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CLEVELAND, OH — Global demand for mining equipment (including separately sold parts and attachments) is projected to increase 4.9 percent per year through 2013 to US$58 billion. China and India will be leading sources of mining equipment demand. However, just as importantly, these nations will continue to fuel demand for mined products throughout the world, stimulating mining equipment demand in other countries as well. These and other trends are presented in "World Mining Equipment," a new study from The Freedonia Group, Inc., an industry research firm.
Prices for mineable commodities, especially metals like copper and iron ore, increased significantly during the 2003-2008 period, driving efforts to mine materials, thus generating demand for mining machinery. However, commodity prices dropped during the fourth quarter of 2008, reflecting the world macroeconomic slowdown. These conditions have prevailed during 2009, but recovery is expected by 2013.
China has shown strong growth in mining equipment demand, a direct result of investment in its local mining industry. For example, coal output more than doubled from 1998 to 2008, reflecting the nation's intense need for energy. China is also a major source of commodities, such as iron ore and bauxite. Other major Asia/Pacific region markets for mining equipment include India and Australia. Like China, India has experienced major growth in coal output in recent years. Australia, a leading producer of bauxite and iron ore, is a major source of commodities for its developing Asian neighbours.
China will be the primary driver of demand gains, accounting for one-half of new mining equipment demand through 2013. Other developing nations in Asia, the Africa/Mideast region and Latin America, which have extensive mineable resources, are projected to exhibit solid growth in mining equipment demand, with the mature markets of Western Europe and North America trailing.
For more information about the study, visit www.freedoniagroup.com.
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