Global underground mining equipment will reach US$30.5 billion by 2023 according to a market research study published last month by Credence Research.
Based on what the firm calls a “comprehensive analysis of market influencing and inhibiting factors related to underground mining equipment industry,” the report concludes that growing urbanization in the Asia Pacific region, the Middle East, Africa, and Latin America is driving up the demand for coal and coal energy.
Coal mining, in turn, is the main user of underground equipment. Only in 2015, this particular sector accounted for 40% of revenue share in the global underground mining equipment market. The sector has also been affected by China’s decision to increase its coal import volumes by 52% over the past year, which has impacted both supply and demand, as well as prices.
According to Credence Research, improving living standards and disposable income are increasing consumption of aluminum, copper, gold, and other commodities. Thus -they say- the outlook for underground mining equipment used in metal mining applications couldn’t be better.
The report says that demand for underground mining equipment is also rising in Europe, Japan and the US, since companies are replacing outdated machinery with more energy efficient solutions. They are looking to comply with labour safety rules and government regulations regarding greenhouse gas emissions.
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