Published on : Dec 02, 2016
Many countries, especially the developing ones such as China, Australia, and India are facing a surge in mining activities. Strong growth is also expected in countries such as Russia, Brazil, Australia, and Africa. This growth in mining activities is consequently leading to a heightened demand for mining equipment. The demand for shedders, loaders, crushers, and drillers are increasing due to mining activities such as drilling and earth moving, thus driving the global mining equipment market. The growing financial stability is also expected to give an impetus to the increased mining activity.
The world population is growing by the day and this is creating a heightened demand for minerals. The growing population is leading to an increased demand for food and this is causing farmers to opt for mineral fertilizer so as to enhance their agricultural yield. It is estimated that this trend will continue and also drive the global mineral equipment market.
Safety and Environment Security Concerns to Hamper Market’s Growth
The equipment used for mining such as earth movers, crushers, water-jet pumps, shedders, loaders, and drillers are complex to operate and thus, require skilled workforce. Any form of mishandling these equipment may cause heavy loss. In addition to this, environment concerns within the mining industry such as soil erosion, formation of skin holes, loss of biodiversity, and contamination of ground water, soil, and surface water by chemicals from mining processes are expected to hamper the growth of the market.
The variation in import duties and tariff restrictions by governments are different in each country and this is another problem hindering the growth of the mining equipment market. While China and Japan have less stringent import duties and restrictions for mining equipment, India, Brazil, and Russia impose strict import duties. These differences create an unfavorable environment for the import and export of products and is posing a challenge for the growth of the mining equipment market.