LONDON–(BUSINESS WIRE)–According to the latest research study released by Technavio, the global mining equipment rental market is expected to reach over USD 62 billion by 2020.
This research report titled ‘Global Mining Equipment Rental Market 2016-2020’, provides an in-depth analysis of market growth in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments, including coal mining, metal mining, mineral mining.
Request sample report: http://bit.ly/1QrpYD4
“Benefits of renting mining equipment for short duration projects and small mining companies primarily drives this market. The cost of financing is the biggest deterrent to owning a mining equipment. Mining companies or contractors require a large credit source or loan in order to purchase a mining equipment. With the annual interest rate registering an increase from approximately 3% in 2011 to 5.6% of the equipment cost in 2014, the cost of financing a mining equipment has increased,” said Anju Ajaykumar, one of Technavio’s lead analysts for tools and components research.
“Another major factor is the amount of funds left for use toward other projects or business ventures after opting to purchase mining equipment. Therefore, purchasing mining equipment can have an adverse impact on the liquidity of a company and may also hinder its ability to procure finances in the future. In sharp contrast to this, the financial flexibility offered by rental mining equipment facilitates revenue growth of mining companies,” added Anju.
Global mining equipment rental market by application 2015
Source: Technavio research
Global mining equipment rental market by coal mining: largest segment
The global mining equipment rental market by coal mining was valued at USD 20.63 billion in 2015. Coal forms a significant part of global energy production. It catered to about 30% of the global energy demand in 2015, and thus, the power industry is the main end-user of mined coal products. Many manufacturing plants also use coal in industrial furnaces and ovens. With growing urbanization in many developing countries, there is an increased need for power, generating more demand for coal.
Global mining equipment rental market by metal mining: second largest segment
The global mining equipment rental market by metal mining was valued at USD 18.88 billion in 2015. Metals are classified into two key segments based on the type of mined products:
• Industrial metals
• Precious metals
The industrial metals segment includes bauxite, chromium, cobalt, copper, iron ore, lead, manganese, nickel, tin, titanium, vanadium, and zinc. Iron ore accounts for the majority of industrial metals and its demand is growing at a rapid rate in many developing countries. The emergence of manufacturing industries in developing countries such as India, China, and Brazil is playing a significant role in the growth of this segment.
Global mining equipment rental market by mineral mining
The global mining equipment rental market by mineral mining was valued at USD 13.3 billion in 2015. The global demand for rental mineral mining equipment is driven by the construction industry worldwide. Increased consumption of sand, stone, and gravel in this industry is the key factor driving the demand for such equipment. This segment also includes non-metallic materials such as salt, potassium, silica, sodium sulfate, sulfur, mica, diamond, gypsum, and graphite.
Browse related reports:
Purchase any three reports for the price of one by becoming a Technavio subscriber. Subscribing to Technavio’s reports allows you to download any three reports per month for the price of one. Contact email@example.com with your requirements and a link to our subscription platform.
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
If you are interested in more information, please contact our media team at firstname.lastname@example.org.