Global mining equipment service market to grow at a CAGR of 3-4 percent
Source: Press Release
Thursday September 6th, 2018
- Latest report on Mining Equipment Services category from Beroe Inc
- Report provides data and information for Procurement and Sourcing managers
The global mining equipment service market is expected to grow to $158.1 billion in 2018 and procurement managers will increasingly opt for outsourcing maintenance services in order to focus on core activities, according to a latest report published by procurement intelligence firm Beroe Inc.
Equipment services market is highly fragmented; however for mining equipment, the OEMs and their authorized dealers constitute the majority of the market followed by global distributors. Key regions for mining service include North America and Australia.
Procurement or sourcing managers in the mining industry will have to benchmark best practices in the outsourcing space while keeping a tab on the evolving automation technologies.
Holly Springs, North Carolina-based Beroe said the report can be accessed by procurement professionals on its recently launched on-demand market intelligence platform Beroe LiVE: https://beroeinc.co/PRnewsy
Key findings from the report:
- The global HME service market, valued at $31 billion in 2016, is expected to register a growth of 3-4 percent CAGR to $33 billion in 2018
- The market for drills and breakers is expected to grow at the fastest rate due to their varied applicability and increase in demand from developing regions
- Due to depleting ore grade in surface mines, global mining is witnessing an increasing shift towards underground mining
- Demand for underground mining equipment is expected to grow at about 5 percent CAGR compared to that of surface mining equipment at 7.6 percent until 2017
- APAC accounts for the highest portion of demand for mining equipment driven by production regions such as China and Australia
The category intelligence report on MRO Mining Supplies lets users understand the current scenario and trends in the global mining equipment service market.
The study has been done based on key technology trends, market outlook, and engagement and pricing models. The extensive research methodology for the study included:
- Inputs from industry experts with at least 20 years of experience
- Category-specific licensed subscriptions
- Personnel involved in various stages of the value chain (buyers, suppliers, intermediaries)
APAC accounted for over 59 percent of global mining equipment demand in 2014. The demand is expected to grow at an estimated CAGR of 8.42 percent during the forecast period. Surface mining equipment accounts for about 36 percent of the global mining equipment market and is expected to remain in the similar range (34 percent to 38 percent) until 2017.
While the U.S. and Canada markets have been pioneers for mining equipment and maintenance services, they have become highly competitive with more than 2,400 suppliers in the industry for mining equipment and services. Also, the prolonged recession in mining industry, shortages of occupational labor such as technicians, engineers and managers have become major challenges.
The Beroe report shows that buyers are increasingly outsourcing a majority of their non-core maintenance activities. They look forward to innovation in asset management and investment optimization in collaboration with maintenance service providers.
Globally, bundled service sourcing strategy is widely adopted to achieve spend visibility and cost savings. The contract period ranges between 2–3 years, with an option of contract extension based on performance linked with SLAs, says the report.
The major features of the report are:
- Global Market Maturity
- Global Market Overview for Mining Equipment
- Global Market Overview for Equipment Maintenance Services
- Global Market Trend and its implication
- Regional Market Outlook
- Market Drivers and Constraints
- Porter’s Five Forces Analysis
- Supply Market Outlook - Supply Trends and Insights
- Key Global Suppliers
- Key Regional Suppliers
- Key Global Supplier Profile
- Supplier SWOT Analysis
Cost and Pricing Analysis
- Cost Break-up
- Pricing Models
- Price Driver Analysis
- Approaches to Cost Savings
Procurement Best Practices
- Sourcing Model
- Category Strategies
- TCO Analysis
- Industry Best Practices
- Repair and Maintenance Services Engagement Models
- Best Practices
- Key Performance Indicators (KPIs)
- Key Negotiation Levers
- Technology Advancement - Mining Equipment Maintenance
- Market Innovation and Trends
About Beroe Inc:
Beroe's unique business model involves providing market intelligence and analytics to the procurement teams of businesses across the globe. Beroe leverages its deep domain expertise in 300 + categories across 14 industries. It boasts of more than 80 of the Fortune 500 companies as its clients.
To learn more about Beroe Inc, please visit www.beroeinc.com