The demand for enhanced safety standards and energy efficiency, together with technological improvements in monitoring and process control, will support growth in the European mining machinery market, says growth partnership company Frost & Sullivan.

A new report, titled ‘Analysis of the European Mining Machinery Market’, finds that the market earned revenues of $2.812-billion in 2011, and estimates this to reach $3.3748-billion in 2016. The research covers underground mining, surface mining and mineral processing equipment.

“The escalating demand for base metals is set to promote sales of mining machinery equipment. Technology improvements will motivate new equipment acquisition, reinforcing revenue growth trends,” notes Frost & Sullivan industrial automation and process control research analyst Raaj Thilak Raveendran in the report, which was published in January this year.

Machine manufacturers are continuously innovating in order to reduce cost while boosting mine site safety, profit- ability and efficiency for end-users. Improved functionalities, including condition monitoring and predictive maintenance, will encourage mining companies to invest in new machines.

Achieving a balance between technology and price is import- ant in this market. The demand for remotely operated machines and advanced safety features are major end- user requirements. Manufac-turers should cater to these demands, while offering competitively priced, complete life-cycle service options that enhance customer value.

“Lifecycle service options, improved functionalities and reduced per-ton costs are expected to sustain demand for mining machines over the forecast period. “This will be particularly important as the ongoing economic turbulence takes its toll on mining machinery sales, causing the market to enter a lean phase over the short term,” Raveendran explains.

An efficient sales and service network and brand reputation are also critical to maintaining sales prospects. Servicing of mining machines will become an essential part of revenue generation.

“Targeting emerging economies that are in the process of developing their mines can aid market share acquisition in the long term. Effective supply chain management and new contracts with distributors are vital to sustaining global market share,” he says.

The report is part of Frost & Sullivan’s power transmission growth partnership service programme.

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