Study forecasts mining equipment demand through 2019

Global demand for mining equipment is forecast to expand 7 percent annually to nearly $105 billion in 2019, according to “World Mining Equipment,” a study presented by The Freedonia Group. The demand for mining equipment will be supported by increases in manufacturing output, especially in the developing world, as well as renewed strength in construction activity in the developed world.

The study also says the developing world will continue to post robust gains in mining equipment demand, which is a result of overall lack of mechanization rates driving purchases.

Additionally, results from the study show that China is the largest national market for mining equipment, with sales more than doubling between 2009 and 2014. According to the study, advances will remain above average through 2019. Despite the size of China’s market, India will have the most gains.

“Although it will remain a much smaller market than China, India will record the fastest gains of any country, as there is still a significant need for mine mechanization,” says analyst Kyle Peters. “Mining output growth in India will be among the strongest in the world.”

Finally, the study reports that the developed countries of North America and Western Europe will experience more modest growth through 2019, although mining equipment demand in Western Europe will accelerate from the 2009-2014 period as the region’s construction industry rebounds from a decade-long decline. In these nations, the majority of mining activity is of aggregates, which require less capital spending per metric ton of output than metals or coal.