Underground Mining Equipment Market Intelligence

Industry Outlook & Drivers

Global Market Outlook on Underground Mining Equipment

• The APAC region, primarily China, India and Australia, is expected to drive the Underground Mining Equipment (UGME) demand during 2016–2018. Coal and base metal exploration activities in these countries are expected to support the market during the period. LATAM and Africa are expected to be the other key demand areas for the UGME market
• Expected recovery of construction activity across major economies will potentially drive the demand for metals, thereby supporting an increase in metal prices. The same is expected to support the UGME market

UG Mining Equipment Market Overview-Global

• The global UGME market is expected to grow at a CAGR of 4 percent between 2017 and 2019, driven by the constant rise in coal mining, which constitutes to over 40 percent of UGME's demand. Iron ore exploration in Africa, Australia, and Brazil is expected to be the key supporting factor
• Increased infrastructural development projects and oil and gas/mineral exploration activities, primarily China, India and Australia, are expected to support the growth in UGME during the period. Rising commodity prices are also expected to support the market over the next couple of years

• Demand for underground mining activities is expected to increase over the next couple of years, due to the decreasing ore grades in open cast mines, thereby supporting the global market for UGME during 2017–2019
• Global economic growth, an expected increase in exploration activity in brownfield operations, and mechanization of mines are expected to further drive the demand for UGME

Global Demand by Application

• Demand growth is expected to arise from underground mining of metals, such as copper, nickel, zinc, and iron ore. The global metals output is expected to increase by an average of 2–4 percent during 2016–2018, thereby supporting the demand for UGME
• Increase in exploration activities in China, India, Brazil, Australia, and Africa are expected to be the key contributors to the UGME demand at the global level during 2017–2019

Market Driver- Commodity Price

• Prices of key commodities are the best indicators of mining activities and which in turn evinces the demand for mining equipment
• In Q3 2018, from July 2018 to September 2018, apart from coal , gold and Aluminum (which is expected to decrease by an average of 7-8 percent), average commodity prices for the rest is expected to increase by an average of 1-2 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 mining equipment

• Again, 2014–2015 witnessed reduced demand; however, it is expected to uptrend in the coming years. Apart from nickel prices, the average commodity prices for the rest is expected to increase by 6–7percent Y-o-Y from 2017 until 2018