NEW YORK, March 6, 2017 /PRNewswire/ --
In order to avoid adverse effects on critical operations due to conveyor downtime, proper maintenance and functioning of conveyor components is necessary in key industries
Conveyor systems are one of the most crucial parts used in mining, industrial and power industries, which also account for significant contribution to Australia's economy. With critical operations affected by conveyor downtime, proper maintenance and functioning of conveyor components is pivotal to end-user industries such as mining, industrial & automotive, pharmaceutical, food processing, and others (power, fertiliser, transport and logistics).
The Australia conveyor maintenance market was valued at US$ 542.6 Mn in 2015. The Australia conveyor maintenance market is estimated to be valued at US$ 558.7 Mn by 2016 and is estimated to touch a market valuation in excess of US$ 700 Mn by end of 2026 registering a CAGR of 3.1% over the forecast period (2016 – 2026). The market is projected to represent incremental opportunity of nearly US$ 200 Mn between 2016 and 2026.
Increase in mineral commodity production and new mining establishments to drive the Australia conveyor maintenance market revenue growth
Mining industry is one of the major contributors and drivers of the Australia conveyor maintenance market owing to extensive utilisation in mineral extraction, processing and transporting. The volatility in commodity prices in Australia has shifted focus of mining companies from trading to expansion of mineral resources. Mining companies are increasing mineral volume production, as a result of which production of prime commodities such as iron ore and coal production increased in 2015. This increase in production, extraction and processing is predicted to create a sustainable demand for maintenance services. Likewise new mining establishments and projects related to iron ore, gold and coal are estimated to start during the period 2016–2022, and are expected to create fresh revenue streams for suppliers and service providers.
Maintenance providers are expected to benefit by offering one-time maintenance services during the assessment period
Mining companies are aiming at reducing operating expenses and are therefore engaging in economic and flexible contract options. Rio Tinto, Glencore and Anglo American are among the leading mining companies in Australia that engage in multiple short-term contracts for different components and services. Although belt replacement maintenance depends on multiple factors such as operating loads, belt speed and other factors, belts with width 2000mm-2400mm require less frequent maintenance as compared to lower width belts. For components such as idlers & roller and pulley lagging, mining companies prefer opting for lowest price per unit as they require highest volume replacement.
Plant expansion and capacity addition in the mining sector to create lucrative growth opportunities
As the mining industry is witnessing relatively moderate growth, mining companies aiming at extracting high volume of coal and iron ore are expected to invest significantly in infrastructure and machinery. The clearance of a number of billion dollar projects that aim to expand existing operations or establish new plants is likely to create lucrative opportunities for both installers as well as maintenance service providers. With average service and maintenance contracts ranging from 3 to 5 years, service providers can focus on flexible service and component replacement packages.
Mining and coal handling and management of power plants to contribute significantly to the maintenance services market; however, the market is anticipated to be boosted by sales of replacement components
By end-use industry, the mining segment is likely to maintain its dominance throughout the assessment period and account for over 70% share by the end of 2026. Owing to declining demand from component services and maintenance services in coal fired plants, the others segment will likely hold a significant market share during the assessment period. Revenue from the mining segment is estimated to reach US$ 404.5 Mn by 2016 end and is projected to create incremental $ opportunity in excess of US$ 165 Mn between 2016 and 2026. Increasing mineral commodity production in Western Australia and New South Wales is anticipated to significantly boost the revenue of the segment.
Download the full report: https://www.reportbuyer.com/product/4665951/
Reportbuyer is a leading industry intelligence solution that provides all market research reports from top publishers
For more information:
Research Advisor at Reportbuyer.com
Tel: +44 208 816 85 48
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/conveyor-maintenance-market-mining-end-user-industry-segment-estimated-to-hold-maximum-revenue-share-by-2026-end-australia-industry-analysis-and-opportunity-assessment-2016-2026-300418939.html