WELLESLEY, Mass., Dec. 14, 2017 (GLOBE NEWSWIRE) — Driven by high demand and expanding hydraulic fracturing sector, as well as mounting pressures to reduce cost and improve quality, the global mining and oil & gas machinery manufacturing market reached a value of $265 billion in 2016 and is expecting a compound annual growth rate (CAGR) of 5.2% through 2020, according to a report by BCC Research. The global market is forecast to reach $324.1 billion by 2020.
The Asia-Pacific region is home to the largest market for mining and oil & gas field machinery manufacturing and accounts for nearly a quarter of the industry, according to the report Mining and Oil & Gas Machinery Manufacturing: Global Markets to 2020. While the Middle East trails the Asia-Pacific region, Africa is expected to see the fastest growth in the market, with a CAGR of 6.5%.
Research Highlights
- The world’s largest market segment in terms of value is found in China, which is expecting a 4.7% CAGR. China is now the world’s largest producer and consumer of coal.
- Prior to 2016, the global mining and oil & gas field machinery manufacturing market grew slowly, seeing just 0.2% CAGR from 2012 to 2016. In 2012, the global market was worth $262.8 billion.
- The market benefitted from low interest rates between 2012 and 2016, which created a flow of cheap investment money both in developed and developing countries. Low interest rates also encouraged borrowing and discouraged saving, which helped to drive markets.
“Globally, the rapid growth in shale oil production we’re expecting to drive growth of the oil and gas field machinery manufacturing market,” said BCC Research Senior Editor Gordon Nameni. “According to PwC, shale oil production has the potential to reach almost 12% of the world’s total oil supply by 2035.”
Companies mentioned in this report include Schlumberger, Caterpillar, Komatsu, National Oilwell Varco, Sunbelt Rentals, Emeco, United Mining Rentals, Halliburton, TechnipFMC, Atlas Copco, Weatherford International and General Electric, among others.
Market Being Restrained by Popularity of Rental Equipment and a Reduction in Free Trade
A number of factors are conspiring to restrain growth in the global market, the report noted. Mining companies are increasingly turning to rented and leased equipment, which has the advantage of offering the latest technology without the need to make a major capital investment. Further, global trade restrictions are affecting growth—Brexit, for example, is expected to lead to more trade restrictions between the U.K. and parts of Europe, while the United States has said it will look to renegotiate many major trade treaties, such as the North American Free Trade Act. Finally, with global warming a growing concern, many nations are promoting investments in renewable energy in favor of additional development in the oil and gas industry.
About BCC Research
BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. For more information about BCC Research, please visit bccresearch.com. Follow BCC Research on Twitter at @BCCResearch.
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