Global Market Outlook on Support Equipment

  • The APAC will continue to dominate the SE market, in terms of size and growth prospects until 2020
  • The global SE is expected to grow by 3-3.5 percent CAGR between 2017 and 2019, owing to the rise in mineral production output, improving economic scenario in China, and increase in commodity prices


SE Market Overview –Global

  • The global SE market is expected to grow by 3-3.5 percent CAGR between the 2017 and 2019, owing to the rise in mineral production output, coupled with the increased demand for commodities
  • Steady upswing of demand from India and China and adoption of smart technology in key production regions such as Australia would aid the support equipment market’s growth

SE Market Overview –Surface Mining

  • In the global prospective, Caterpillar and Komatsu supply 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

SE Market Overview –UG Mining

  • In global prospective, 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 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 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. 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 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 increase in metal production, construction activities, and 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 be 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