The Mineral Processing Equipment Market is anticipated to register a CAGR of over 4% during the forecast period (2020 - 2025).
- Globally, advancements in the machinery and equipment for mining have increased the production of minerals, such as iron, copper, and other ores. This growth has seen large scale expansions and projects. With the increase in infrastructure and manufacturing sectors, the demand for mining equipment has gone up, resulting in an increased level of mining activity in various regions.
- China and the United States are the most significant major coal-producing counties. However, China saw its sales slump between 2012 to 2016. Although in 2019, Australia and Russia saw a steady increase in coal production in the past decade. Also, Iron ore and Bauxite remain the fastest growing industries in the mineral processing equipment market.
- Today, investors purchase and hold mineral investments as well. Through mutual funds and shares, minerals investments are available to most of the public. However, challenges like difficulty involved in developing and expanding mining activity, strict government regulations such as environmental concerns, increase the cost of mining, and safety standards can restrain the market growth.
Key Market Trends
Demand for Sustainable Equipment is Driving Market Growth in Europe
Demand for copper is predicted to increase by 2.6% annually until 2027, while lithium by almost 650% by 2027. Even rare earth metals will see a growth of 3.5% per annum, rising to 149,500 metric tons in 2019. But various governments like the EU Parliament and the Council have started legislating targeted CO2 emissions post 2019. The parliament had earlier proposed a 20% reduction in CO2 emissions between 2020 - 2025. But now parliament has voted to increase the reduction rate to 40%. Also, stringent restrictions have been put under this new law.
Due to falling ore grades at the surface level, the past mining of equipment is not workable with current climatic disruptions and government regulation. This gives rise to sophisticated analytical techniques and equipment. New technologies are being explored to be even able to detect more significant concentrations of the minerals in a small surface area. These technologies include laser fluorescence scanning and portable X-ray fluorescence that can determine levels of minerals and allow differential leaching techniques used for exploration.
However, the mining industry had been under pressure with falling commodity prices and declining cash flow. As a result, conducting a pre-feasibility study to determine the theoretical economics of the ore deposit has become even more critical. This is being achieved with breakthrough research with the help of technology innovations that are transforming the essential aspects of mining. All these developments are expected to help demand for mining processing equipment.
Iron and Bauxite poised to be the fastest-growing minerals
Iron is critically essential to the construction and other manufacturing industry. In the construction industry, 90% of all refined metal is accounted for by steel. Although, falling ore grades and high production costs are hindering production in some parts of the world.
In 2019, the global iron ore production increased from 3.3 billion tones in 2012 to 3.6 billion tonnes. Also, crude iron production has remained stagnant for over a decade but hasn’t seen a slowdown in demand. Iron production in Brazil and Australia has seen a massive increase, with companies investing in new mines to replace older ones. For instance, BHP approved a 4 billion USD for iron ore related projects in Western Australia, indicating a growth for iron ore processing equipment.
Bauxite is a key component in the production of aluminum. In 2019, India, Brazil, China, Australia, and Guinea produced 276.1 million tons and were all seeing an increase in bauxite production since 2012. Surprisingly, Guinea was the fourth-highest producer of aluminum. Other West African countries had seen a rise in bauxite production almost double from 17.8 million tons in 2016 to 30.8 million tones in 2019. The increasing demand of these metals will see a rising mining activity which will help demand for new mineral processing equipment.
The Mineral Processing Equipment Market comprises of global players such as the FLSmidth & Co. A/S, Komatsu Ltd., Metso Oyj, FEECO International, Inc. and Multotec Pty Ltd. To have the edge over its competitor’s equipment manufacturers are making joint-ventures, partnerships, launching new products with advanced technology.
In June 2019, Komatsu Ltd., through its wholly-owned subsidiary in Australia, has agreed to acquire Immersive Technologies Pty Ltd., a Western Australia-based mining workforce optimization company. Immersive develops, manufactures, and sells mining equipment simulators for training machine operators for surface and underground mines. They use simulators and provide training solutions designed to promote operational optimization by proposing recommendations.
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Table of Contents
1.2 Scope of the Study
4.2 Market Restraints
4.3 Porters Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.2 By Equipment
5.2.4 Drills & Breakers
5.3 By Application
5.4.2 North America
5.4.4 Latin America
5.4.5 Middle-East and Africa
6.2 Company Profiles
6.2.1 FLSmidth & Co. A/S
6.2.2 Komatsu Ltd
6.2.3 Metso Oyj
6.2.4 FEECO International, Inc.
6.2.5 Multotec Pty Ltd.
6.2.6 McLanahan Corporation
6.2.7 Sandvik AB
6.2.8 ThyssenKrupp AG
6.2.9 Outotec Oyj
6.2.10 Nordberg Manufacturing Company