It said that “Advances will be fueled by continued demand for commodities such as iron ore and copper. In addition, the ongoing global thirst for energy will boost global coal output. China and India will be leading sources of mining equipment demand. However, just as importantly, these nations will continue to fuel demand for mined products throughout the world, thereby providing opportunities for machinery producers.”

The study said that China has shown strong growth in mining equipment demand, a direct result of investment in its local mining industry. For example, coal output nearly doubled from 2001 to 2006, reflecting the nation’s intense need for energy. China is also a major source of commodities such as iron ore and bauxite. Other major Asia/Pacific markets for mining equipment include Australia and India. Like China, India has experienced major growth in coal output in recent years. Australia, a leading producer of bauxite and iron ore, is a major source of commodities for its developing Asian neighbors.

It said that demand for mining equipment in Asia is expected to post strong gains, as region’s rising population and industrial output will lead to increased energy and raw material needs. Africa will post healthy gains, benefiting from rising demand for precious metals and copper. Growth in demand for mining equipment in Latin America will reflect increased mining investment in nations like Peru and Chile. Eastern Europe will also post gains, benefiting from gains in the large Russian market.

Growth in North America and Western Europe will lag the industry average, reflecting the maturity of these markets. However, the largest producers of mining equipment are generally found in the United States and the industrialized nations of Western Europe. Such countries have a long history and extensive expertise in the development of capital equipment industries of all types, which many have leveraged in mining machinery. China has quickly emerged as a major producer, due in large part to the nation’s growing mining industry. China has become a net exporter of mining equipment, shipping products to both developing nations and mature markets such as the US.