quotThe greatest sales growth through 2017 will occur in the large AsiaPacific regionquot according to Freedonia Group analyst Matt Raskind quotfueled by substantial investments in new mine production capacity in several nationsrdquo

"The greatest sales growth through 2017 will occur in the large Asia/Pacific region," according to Freedonia Group analyst Matt Raskind, "fueled by substantial investments in new mine production capacity in several nations.”

Global Mining Machinery Sales to Hit $135 Billion

Trends by region, mine output Variables include population, construction spending, agricultural output

Global demand for mining machinery is forecast to expand 8.6% annually through 2017, rising to $135 billion, according to a new study released by The Freedonia Group Inc. This increase will be achieve despite some short-term sales weakness in the short term.

World Mining Equipment is a new study produced by the Cleveland-based industry market research firm, identifying changes in demand and other trends in the industrial sector.

“Gains will be spurred by voracious demand for mined materials in China, India, and other developing nations as industrial output increases,” observed Matt Raskind, a Freedonia analyst. 

Rapid gains in mining equipment demand will occur in the large developing markets (e.g., Brazil, India, and particularly China.)

In tonnage terms, metals account for a smaller share of mine output than minerals and coal, but machinery used in mining metals represents the largest segment of the global market.  This is due to the large amount of ore that typically must be removed per metric ton of primary metal product output. 

Demand for equipment used to mine metals will rise at the most rapid pace through 2017, stimulated by steel and aluminum production. 

Driven by increasing global population, an expansion in construction spending and agricultural output will boost consumption of construction aggregates and fertilizer minerals (e.g., phosphate rock), as well as sales of related equipment. 

“The greatest sales growth through 2017 will occur in the large Asia/Pacific region,” Raskind reported, “fueled by substantial investments in new mine production capacity in several nations.” 

Demand for mining equipment will increased significantly in in South America, as mining companies seek to develop deposits of bauxite, copper, and iron ore in the region.  Copper oversupply issues (prevalent in 2012-2013) are seen declining over the course of the market study, allowing prices to recover and drive demand for associated mining equipment demand in areas rich in copper, such as Chile and Peru. 

Africa/Mideast, followed by Eastern and Western Europe, and North America will follow as the regions post the next fastest increases in demand for mining equipment.  In developed regions, a rebound in construction spending and manufacturing output will drive demand for nearly all types of mined materials. An increased emphasis on natural gas and other fuel sources friendly will impact thermal coal output.

To learn more or to buy the full report, World Mining Equipment, contact the www.freedoniagroup.com.

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