Base Metal Mining Industry is the Next Big Thing| Fortune
The global Base Metal Mining Market size is anticipated to reach USD 431.1 billion by 2025, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 4.1% during the forecast period. Advancements in mining technologies coupled with increasing automation are projected to boost the growth.
Rising demand for smartphones, drop in the product prices, and product innovation and differentiation are some of the factors catalyzing growth of various products in electrical and electronics sector. Introduction of autonomous driving features in vehicles and various innovative technologies coupled with rising demand for smartphones and computers is driving the semiconductor industry, where base metals have a wider scope of application.
Apart from silver, copper exhibits the best electrical conductivity. Its properties such as corrosion resistance and good thermal conductivity makes it suitable for a wide range of electrical and electronics applications.As per the reports by the Indian Bureau of Mines, around 50% of copper is used in electrical and electronics sector in Asia Pacific while the number stands at 25% in U.S.
Growth of construction sector in various countries can largely be attributed to continuous support schemes offered by the governments. For instance, to encourage first-time homebuyers, in 2016, Indonesia’s central bank scrapped 15% minimum mortgage down payment scheme and relaxed its rule for loan disbursements. In 2019, Indian government in its interim budget proposed tax benefits for buying a second house. Skim Pinjaman Perumahan (SPP) program of Malaysian government assists low income people to get subsidiary for their houses. This in turn is projected to drive the demand for base metals in construction sector.
Investments in smart technologies to control cost and improve efficiency are projected to remain an important trend in the forthcoming years. The shift toward low carbon economy and strict emission regulations is anticipated to have an impact on environmental standards and lead to the scrutiny of mining activities. Automation is another key area that is likely to help miners reduce costs by eliminating labors.
Robotics technology in mining sector is projected to create numerous opportunities over the forecast period. It is still an emerging technology in the sector and can be used to perform various tasks such as blasting, drilling, loading, bolting mine roofs, and hauling. The use of robotics rescue operations is another promising area in this sector.
The application of 3D imaging technology is helping enhance the efficiency for the exploration of mines. The technology helps capture spatial data by using laser lights. Ventilation engineers, rock engineers, and safety officers have started using 3D laser scanning technology in mining exploration and related activities.
Further key findings from the report suggest:
- Aluminum is expected to witness a CAGR of 3.3% from 2019 to 2025 due to growing usage of aluminum content in vehicles to enhance their efficiency
- In terms of volume, copper accounted for 21,063.5 kilotons in 2018 and is projected to expand at a CAGR of 4.3% during forecast period
- Construction application accounted for a revenue share of 39.9% in 2018 and is expected to witness considerable growth over the forecast period. Rising construction activities and increasing need of housing are expected to fuel the growth
- Central and South American base metal mining market is expected to witness the second fastest growth on account of investment in new mining projects in the region
- Asia Pacific is projected to remain the largest region for base metal market over the forecast period owing to the demand from construction and automotive sector