Published Date : May 03, 2016
Rising extraction activities around the world is giving impetus to the global mining equipment industry. Mineral extractions have become a highly common activity across Asia Pacific in countries such as India, China, and Australia. This has been a primary factor contributing to the growth exhibited by the mining equipment industry in the region. Additionally, the global market for mining equipment is also likely to witness lucrative prospects in Brazil, Africa, and Russia.
Mining operations are generally carried out at ore locations. However, often these production locations have to operate in adverse conditions such as water shortage. This drives the need for efficient solutions, which in turn fuels demand for robust hardware.
Industry to Gain Impetus from Rising Demand for Food
The rising global population has increased the demand for food. This in turn has necessitated the use of mineral fertilizers for enhancing the agricultural yield, thus, emerging as a primary factor propelling the global mining equipment industry. On the flip side, despite the industry witnessing growth at an impressive rate over the last few years, negative environmental impacts of mining and drilling activities is likely to hamper its growth to an extent. The industry will also witness negative impacts from the stringent government regulations mandating certain standards in extraction and mining activities. Mishandling equipment such as earth movers, loaders, crushers, and drillers will also lead to heavy losses.
Adverse Environmental Impact of Mining Activities to Hinder Industry’s Progress
Adverse environmental conditions such as soil erosion and contamination, sink holes formation, and biodiversity loss are often associated with environmental extraction activities. The rising concerns relating to such negative impacts of mining activities will also threaten the growth of the industry in the forthcoming years.
The mining industry witnesses the prevalence of high competition, but is concentrated with several multinational companies accounting for the largest share in the market. The industry encompasses over 650 companies in total. However, only 50 of the leading companies account for the majority share in the market. Some of the most prominent enterprises operating in the mining industry are Caterpillar Inc., Komatsu Limited, Construction Machinery, Joy Global Inc., Sandvick AB, and Atlas Copco.