FUELLING FOCUS
Savvy companies are rapidly supplanting outdated machinery with energy efficient alternatives to save costs
Photo by: Bloomberg
A recent trend in the global underground equipment market is the immense push to develop advanced and more effective mining equipment for transportation, excavation, washing and screening processes to help reduce energy costs.
US-based market research company Tailor-Made Reports (TMR Research) points out that this has led to savvy companies rapidly supplanting outdated machinery with energy efficient alternatives for better profit margins.
In its underground mining equipment (UME) market report released this month TMR Research highlights that the fast pace of urbanisation and rapid industrialisation worldwide have contributed to the growth in the global UME market. Both trends mean that massive amounts of energy are required, which has increased the need for coal required for power generation.
This growth in demand for coal has, in turn, boosted the need for UME, with the maximum demand for this equipment generated by the coal sector, adds TMR Research.
Meanwhile, improved living standards and associated higher spending capacity has led to increased sales of gold, aluminium, copper and other commodities. This has helped to further augment the demand for UME used for mining metals.
The report also points to government regulations pertaining to mining safety, employment, environment and equipment use having stoked demand for improved UME technology.
Based on geography, Asia Pacific dominates the global market with a leading share because of the increasing mining activities in the emerging economies of China, Australia and India, with China’s “insatiable demand for coal”, to a great extent, shaping the competitive dynamics in the market.
North America is another key market where a rising number of mining sites, especially coal-related projects, is bringing about high demand for specialised mining equipment, especially the Midwest, in the US, which is a major contributor to the region’s revenue.
The Middle East and Africa also considered to be important contributors, adds the report.
To present a detailed assessment of the competition prevailing in the global UME market, the report profiles important equipment manufacturers Sandvik AB, Komatsu, Volvo AB, Caterpillar, Joy Global, Hitachi Construction Machinery, Boart Longyear, Kennametal, Metso Corporation and thyssenkrupp.