JOHANNESBURG (miningweekly.com) – The global mining equipment sector is forecast to grow at a compound annual growth rate of 7.9% between 2016 and 2022, to reach a value of over $150-billion by 2022.

This was according to a new report published on Monday by global market research company Allied Market Research (AMR) titled ‘World Mining Equipment Market – Opportunities and Forecasts, 2015 – 2022’.

The report highlighted that the major factors boosting demand for mining equipment included the rising demand for metal and mineral commodities and the increasing consumption of natural resources such as coal, diamonds and uranium.

Moreover, it stated that the increasing need for mineral fertilisers to improve agricultural yields supplements the global mining equipment market. The report, however, noted that major challenges for players operating in the market were increasing costs of raw materials and strict government regulations.

Nonetheless, AMR commented that the rising demand for technologically advanced mining equipment, the increasing use of coal for heating and electricity generation and the increasing construction of roads and railway tracks through mountainous areas presented “various opportunities” for market growth.

The report noted that the global mining equipment market was segmented on the basis of equipment type, application and geography.

It was categorised into six equipment segments, namely mineral processing equipment; surface mining equipment; underground mining equipment; mining drills and breakers; crushing, pulverising and screening equipment.

The report noted that, by application, the market was segmented into metal mining, mineral mining and coal mining. “Geographically, the market is classified into North America, Europe, Asia-Pacific, Latin America, and Europe, the Middle East and Africa.”

AMR stated that Asia-Pacific was expected to be the largest market of mining equipment during the forecast period, with India, China, Australia and Indonesia likely to be the main revenue-generating countries in the region.

Companies profiled in the report included capital equipment manufactures Caterpillar, Komatsu, Sandvik, Joy Global, Hitachi, Atlas Copco, AB Volvo, Doosan Group, Metso and Liebherr Group.