World mining equipment market is expected to touch USD 150 billion by 2022 and forecasted to grow at a CAGR of 7.9 percent during 2016-2022; Asia-Pacific is likely to be the largest market of mining equipment during this period. India, China, Australia, and Indonesia are likely to be the main revenue-generating countries in Asia-Pacific region, said a latest report published by Allied Market Research.
The report named ‘World Mining Equipment Market- Opportunities and Forecasts, 2015-2022’ said, growth of the mining equipment in Asia-Pacific will drive by increasing demand of coal for generating electricity and rising demand of technologically advanced mining equipment. Construction of roads and railway tracks through hilly areas will also play crucial role in growing the mining equipment market.
India has already accelerated its speed to spread the road network across the country, government has planned to spend Rs 7 lakh crore to develop National Highways of around 50,000 km in the next 5 years, which will help such equipment to drive the market, as the report suggests.
There are various types of mining equipment which used for different type of mining, these include, mineral processing equipment, surface mining equipment, underground mining equipment, mining drills & breakers, crushing, pulverising & screening equipment, and other mining equipment, the demand of such equipment would rise when specific types of mining will start taking place in different regions of the country.
Mining drills and breakers are anticipated to witness impressive growth in coming years due to their increasing application in metal mining, said the report.
Mining excavator, Dragline, Drills, Roof Bolters, Continuous miners, Longwall miners, Rock dusters, Shuttle cars, Loader, Mobile Crushing plant, Grinding equipment, Cone Crusher, Scoops, Cranes, Dump trucks, Tippers and other different mining equipment sale is expected to drive on the back of rising mining activities in various mineral rich states and coal mining in different Indian state to produce electricity.
For the current financial year, Indian government set a target of 598 million tonnes of coal for Coal India Ltd (CIL) which accounts 80% of domestic coal output. In June itself, CIL produced 42.72 million tonnes of coal and having a goal to produce 1 billion tonnes of coal by 2020. Recently government has said; it had allocated 75 coal mines, which indicates the requirement of mining equipment in the country for next five years.
Recently passed National Mineral Exploration Policy (NMEP) in Cabinet in favour of mineral mining will definitely drive the mining in mineral rich states which would boost the mining equipment in the country, Initially, the steps would encourage the private and foreign companies to participate in the transparent e-auction process for 100 potential mineral blocks over the next six months in mineral rich states of the country.
It shows along with coal mining, different mineral mining will also drive the mining equipment market in the country.
Source: Information has been obtained from Allied Market Research & Government release