Global Market Outlook on Gearboxes and Crushers

  • The expected increase in metals output by 2.7 percent during 2015 to 2018 coupled with increasing industrialization is the key market drivers
  • Chinese slowdown, which reduced the commodity demand in the region, has adversely affected the commodity prices globally, thereby affecting the crushers supply market 

gearboxes-and-crushers-market-siz

  • The global crushers market is expected to grow at a CAGR of 5-6 percent between 2017 and 2019, owing to the constant rise in mineral production output, coupled with the increased demand from construction industry
  • Mining industries extensively use jaw and cone crushers, where Impact crushers are more popularly used for soft ores for aggregates industry, such as stone, recycled concrete and asphalt products (RAP)

Global Crushers Drivers and Constraints

  • Increase in urbanization and mining activities act a major drivers for this sector
  • Growth in infrastructure and energy sector investment especially in emerging economies and North America will add fuel to this market

Drivers

Commodity Demand/Price:

  • Commodity demand is a result of the global economic situation. The average commodity price is expected to grow between 5 percent and 6 percent until 2017, which is increase demand for crushers from mining.
  • However, sluggish increase in commodity demand will have a little significance on the demand for crushing equipment

Increase in Industrialization and urbanization

  • The increase in Industrialization and urbanization, especially in emerging markets will drive the aggregates industry. Construction industry along with conventional energy sector will progress primarily driven by the industrialization and urbanization, this will drive the demand for crushers in these sectors
  • India, China and Nigeria - together are expected to account for 37 per cent of the projected growth of the world’s urban population between 2014 and 2050. Global construction industry is also expected to grow at a pace of 4 percent to 6 percent between 2015–2018

Constraints

  • Mining Industry Slowdown: Reduction in mineral output from mines and closure of high cost mining operations due to current mining industry slow down is adversely impacting mine crushing equipment market

Market Driver-Commodity Price

  • Prices of key commodities are the best indicators of mining activities, which, in turn, evinces the demand for crushers
  • In Q4 2018, from October 2018 to November 2018, apart from iron ore and copper (which is expected to increase by an average of 5–6 percent, the average commodity prices for the rest is expected to decrease by an average of 3–4 percent as compared to last quarters’ average
  • Demand for commodities increased tremendously, as the economy recovered from economic recession in 2009. 2010 and 2011 saw a boom in mining activity, due to high demand for raw materials
  • Late 2013 and 2014 witnessed a slowdown in mining, resulting in the reduced demand for HME
  • Again, 2014–2015 witnessed reduced demand; however, it is expected to uptrend in the coming years. The average commodity prices for the rest is expected to decrease by 8–9 percent in H1 2019 when compared to same period last year