Mining equipment: Key market research findings
- Optimization of efficiency by renting energy-efficient mining equipment
- Benefits of renting mining equipment for short duration projects and small mining companies
Technavio has released a new market research report on the global mining equipment rental market, to its rental equipment portfolio. The global mining equipment rental market is expected to grow at a CAGR of 3% during the forecast period. The high cost of capital, overhead cost, and maintenance cost attached with the ownership of mining equipment have led end-users to rent mining equipment such as continuous machines, longwall machines, hydraulic shovels, and cable shovels. APAC dominates the global mining equipment rental market owing to increased need for mined products from industries such as steel, construction, agriculture, chemicals, and electrical utilities.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“Of late, many rental mining equipment companies are providing energy-efficient mining equipment. The inclusion of energy-efficient equipment saves energy and time, thus enhancing productivity. Every 1% improvement in mining productivity achieved by energy-efficient mining equipment can potentially save nearly $150 million. Energy-saving policies implemented by countries worldwide also create a demand for advanced energy-saving mining equipment for transportation, excavation, washing, and screening processes,” says Anju Ajaykumar, Lead Analyst, Heavy Industry, Technavio Research
Renting mining equipment is a cost-effective alternative to owning such equipment, especially for short duration projects. It offers several advantages such as higher financial flexibility, reduced maintenance cost, and low cost of ownership, and hence are highly beneficial for small-scale mining companies and contractors. Reduction in transportation, storage, and compliance costs are some of the other benefits associated with renting a mining equipment. Renting mining equipment also helps overcome other expenses associated with ownership, such as hiring trucking services for hauling large equipment and machinery.
The leading vendors in the global mining equipment rental market include Atlas Copco, Caterpillar, Komatsu, Hertz Equipment Rental, and Sunbelt Rentals. This market is fragmented with regional and local rental companies accounting for majority of the market share. The rental companies focus on two main areas which include product diversification and upgrade of product portfolio, to increase their profit margins. Moreover, large rental companies are focusing on M&A to strengthen their position in the market.
A more detailed analysis is available in the Technavio report, Global Mining Equipment Rental Market 2016-2020
We can customize reports by other regions and specific segments upon request.
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