Mining Support Equipment Category Intelligence
Report Coverage
- SE Market Overview: UG Mining
- Market Driver-Commodity Price
- Cost Structure Analysis–Global
- Price Driver Analysis
Market Size
Global Market Size
$14.2 Bn
Market Size North America
$2.13 Bn
Market Size Asia Pacific
$6.32 Bn
Mining Support Equipment Market Trends
Category Intelligence on Mining Support Equipment 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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Industry Outlook & Drivers
Global Market Outlook on Mining Support Equipment
- The APAC will continue to dominate the SE market, in terms of size and growth prospects until 2022
- The global SE market is expected to grow by 2–2.5 percent CAGR between 2019 and 2022, owing to a rise in mineral production output, improving economic scenario in China, and increase in commodity prices
Mining Support Equipment Market Overview –Global
- The global SE market is expected to grow by 3-3.5 percent CAGR between 2017 and 2019, owing to the rise in mineral production output, coupled with the increased demand for commodities
- The steady upswing of demand from India and China and the adoption of smart technology in key production regions such as Australia would aid the support equipment market's growth
Mining Support Equipment Market Overview –Surface Mining
- In the global perspective, Caterpillar and Komatsu supply the majority of the dozers - 11,500 mining dozers, whereas 3,700 active wheel loaders with payloads ranging from 2 to 15 MT are from Caterpillar, Komatsu, and Joy Global/P&H (LeTourneau), which are used by mining companies globally
Mining Support Equipment Market Overview –UG Mining
- From a global perspective, UG wheel loader/LHD accounts for 85 percent of the SE market in the UG equipment category. It is expected to be the fastest-growing sub-segment in SE category for the UG equipment
- SE equipment in the UG category is expected to grow faster than SE equipment in the surface mining equipment category due to the increasing adoption of UG mining methods due to falling ore grades at open cast mines.
- Global economic growth, expected increase in exploration activity, increase in mechanization of mines, and a decrease in ore grades in surface mines could further drive the demand for SE in UG equipment
Global Demand by Application
- Demand growth is expected to come from metals, such as copper, nickel, zinc, and iron ore. The metal output is expected to increase by 3 percent CAGR between 2017 and 2019
- Demand is also expected to come from regions, such as India, China, and Africa. For instance, iron ore output in India increased by 8 percent in 2015–16 compared to the same period a year ago. This trend is expected to continue in the upcoming years
Downstream Demand Outlook
- Demand for SE is expected to improve, due to an increase in metal production, construction activities, and an upsurge in new mines
- In the UG mining equipment category, coal accounted for about 40 percent of revenue share in 2017
- Coal mining is one of the significant end-use industries in the surface mining equipment category
- Asia and Africa are going to be the fastest-growing regional markets for SE during 2017–2019
- Demand from large developing countries, such as India, China, and Indonesia, could increase the size of the market
- Global coal output is expected to reach 8.4 billion tons, growing at a CAGR of 1.6 percent until 2020
Mining Support Equipment Market Frequently Asked Questions
- What factor contributes to the growth of the global SE market and how it impacts China?
- According to Beroe’s report, the global SE market will grow by 3 – 3.5 percent CAGR reaching a valuation of $14.9 Bn due to the rise in mineral production output. Considerable growth will improve the overall economic scenario in China and increase commodity prices.
- What’s the average supply contract tenure and how does one determine it?
- The net supply contract tenure is between 5 – 7 years and it’s determined using the formula: Demand-based + price adjustment clause based on raw material prices.
- Who are the medium, low, and high maturity mining support equipment market regions?
- As per the mining support equipment market size shared by Beroe, both Europe and Africa happen to fall in the category of being the medium and low maturity market regions. However, the high maturity market is being dominated by North America and the APAC region.
- List the names of the top global suppliers in the industry?
- The top global supplier names from the industry are – Caterpillar, Komatsu, Sandvik, Joy Global, and Hitachi.
- What component drives the entire mining equipment market?
- The metal production output (2 – 3 percent) and commodity price (5 – 6 percent) drive the entire mining support equipment market.
- What’s the average market share of Support Equipment by activity?
- TFollowing the insights of the mining support equipment market research report, surface mining holds a market share of 34 percent while UG mining equipment holds a share of 15 percent.
- What contributes to the growth of the support equipment market's growth?
- As per the report, the steady upswing of demand from regions like India and China followed by the adoption of smart technology by Australia (major production region) will lead to the unparalleled growth of the support equipment market.
- How many mining dozers and active wheel loaders do key suppliers provide to mining companies from a global perspective?
- As per Beroe’s analysis report, both Caterpillar and Komatsu supply nearly 11, 500 mining dozers, while the number of active wheel loaders (with payloads) vary from 2 – 15 MT and are provided by Caterpillar, Komatsu, and Joy Global/P&H (LeTourneau).
- Why is it expected that Support Equipment (SE) in the Underground Mining sector will grow faster than the Underground (UG) surface mining category?
- The primary factors that would contribute to the faster growth of SE equipment in the UG sector compared to that in the surface mining category are: --reasing adoption of UG mining methods due to falling ore grades at open cast mines
--Global economic growth
--Considerable increase in exploration activities
--Increase in the mechanization of the mines
--The decrease in the ore grades in surface mines
- What percent share of the SE market does UG wheel loader/LHD account for in the UG equipment category?
- From a global perspective, UG wheel loader/LHD holds nearly 85 percent of the SE market in the UG equipment category. Beroe’s mining support equipment market news report also indicates that it can be the fastest-growing sub-segment in the SE category for the UG equipment in the coming years.
