The global mining equipment market is anticipated to rise at a compound annual growth rate (CAGR) of 8.5% through to 2015, to reach a market value of 92 billion.
Demand will be stimulated by an increase in mining output growth as global manufacturing activity and construction expenditures accelerate in a generally favourable economic climate, particularly in developing countries.
Higher demand will also be seen as commodity prices are expected to remain high by historical standards, which has already brought about a rise in resource exploration and development activity - directly contributing to higher mining machinery sales.
Additionally, the effort to boost mine equipment performance and mechanization in the massive Chinese market, as well as the need for greater productivity in sprawling, high-labour cost mining projects in Australia and Canada, will contribute greatly to growing overall equipment demand.
Asia-Pacific is set to remain extremely important to the global mining equipment market, and the area is expected to remain dominant and grow the fastest throughout the next three years. The region is expected to be driven by strong increases in mine production and mining machinery sales across China, India and Indonesia.
Competition promises to be fierce in the next few years amongst the titans of this industry as they pull out all the stops to fight for market control.
A few companies that have been making impressive strides in the market space are Joy Global Inc, and Caterpillar Inc. Joy Global has recently pulverized Wall Street analysts' estimates with equipment orders on an uptrend at 43%. While Caterpillar is forging ahead to expand its grip on the mining industry worldwide as it announced an investment worth close to 700 million to begin manufacturing the new range of 125-ton to 800-ton mining shovel models and boost production of its trucks. The company's net income rose to 2.32 a share from 1.47 last year.
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