Material Handling Equipment (MHE) Market Intelligence

Material Handling Equipment (MHE) Market Description

The APAC will continue to dominate the MHE market in terms of growth prospects and is expected to grow at a rate of 3 to 6 percent until 2020. Mine automation is the key trend domination the MHE market since both mining and construction customers are increasingly looking to optimize their cost due to fluctuating commodity demand. The shift of market focus from product to service has been witnessed as an emerging trend in all the major regions to optimize buyer’s total cost of ownership. Key end-users such as coal industry is expected to increase the market demand by 1 to 2 percent by CAGR until 2022, and metal production is expected to increase demand by 2 to 3 percent.

The report also provides an overview of drivers and constraints impacting the industry, followed by market drivers impacting commodity prices. It also gives regional market outlook in areas such as North America, EMEA, APAC, Europe, and South America, followed by Porter’s five forces analysis on factors such as supplier power, buyer power, barriers to new entrants, the intensity of rivalry, and the threat of substitutes.

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.

Report Coverage

Key Global Supplier Profiles
Cost Structure-Conveyor Systems
Price Driver Analysis
Recent Technology Development

Material Handling Equipment (MHE) Market Trend, Analysis & Forecast

Category Intelligence on Material Handling Equipment (MHE) covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

Global Market Outlook on Material Handling Equipment

APAC will continue to dominate the market in terms of growth prospects, which is expected to grow at 3–6 percent annually until 2020
Shift of market focus from product to service has been witnessed as an emerging trend in all the major regions to optimize buyer’s total cost of ownership

material-handling-equipment-market-size

Global Material Handling Equipment (MHE) Market Maturity

Key trend, which is expected to influence MHE would be the automation of mines. Both mining and construction customers are increasingly looking to optimize their cost due to fluctuating commodity demand

MHE Market Overview

Global Material handling equipment is expected to grow at a CAGR of 3-4 percent until 2019, driven by increasing demand from emerging countries such as India, Indonesia, China and other South East Asia
Key end users such as Coal is expected to increase by 1–2 percent by CAGR by output during 2018–2022, while metal production is expected to increase by 2–3 percent during the same period
Belts and accessories used for conveyors constitutes around 23 percent of the $32.5 Billion global material handling equipment market share. Accessories include belts, rollers, structures, pulleys, scrapers, conveyor drives and skirting
Increasing mineral output growth rate coupled with expected increase in exploration activity and automation of mines could further drive the demand for mine material handling equipment

Global MHE Drivers and Constraints

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, with an increase in demand for MHE from mining industry.

Automation of Mines

Decline in the commodity prices and fluctuation s in the demand has forced the mining companies to go for automations of mines in order to improve their profit margin and cost savings which will result in increasing adoption of MHE in mines

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 material handling equipment demand

Non-mining Sectors

Shutdown of thermal power plants around the globe and sluggish demand from other sectors such as infrastructure had driven down the demand for material handling equipment in the recent years

Market Driver-Commodity Price

Prices of key commodities are the best indicators of mining activities and which in turn evinces the demand for HME
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) 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 the 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 in the previous year