HomeBusinessBase Metal Mining Market will witness Expansion at a Healthy 5.01% CAGR By 2023.
Base Metal Mining Market will witness Expansion at a Healthy 5.01% CAGR By 2023.
February 22, 2021
Base metals such as copper, aluminum, zinc, nickel, and lead play a major role in the development of manufacturing, utilities, infrastructure, and construction sectors. Growth across these industries directly implies the growth of the base metal mining market as well. In the past few years, developing as well as developed regions have exhibited excellent development across areas such as urbanization, industrialization, and economic development. These factors have substantially increased the global consumption of base metals, providing momentum to mining activities.
Transparency Market Research states that the market for base metal mining will witness expansion at a healthy 5.01% CAGR over the period between 2015 and 2023. Volume-wise, the market will demonstrate a vigorous rise from 103.33 MMT in 2014 to 160.19 MMT by 2023.
High paced development activities in the power production and distribution industry will be key to the overall global consumption of copper in the next many years. In developed regions such as Europe and North America, the urgency to replace ageing infrastructure and the need for integrating renewable power sources with conventional models will be the key demand drivers for copper. In developing regions such as Asia Pacific, the need to improve power distribution infrastructure to align it with technological advancements and rising load requirements will help increase the consumption of copper in the sector. In terms of volume, the market for copper is expected to rise at a favorable 4.30% CAGR over the period between 2015 and 2023.
Aluminum, which is presently the most widely consumed base metal, will benefit the most from its use in the automotive industry. The heightened focus of automobile companies on the development of light-weight and thus energy-efficient vehicles will be a major driver of aluminum mining activities across the globe. Aluminum held a dominant share of 53.73% in the global base metal mining market in 2014 and is expected to account for a 54.35% share in the global market in 2023.
Asia Pacific is presently the dominant region for the global base metal mining market. The region has presented significant growth opportunities for the market in the past few years, majorly owing to the excellent pace of industrialization and urbanization. The stabilizing economies and rising disposable incomes of the population in developing countries such as India and China have resulted in the increased demand for new construction projects and infrastructure development activities.
In the highly consolidated global base metal mining market, Glencore Plc. held nearly 68% share in the market in 2014. Other key vendors in the market include Freeport-McMoRan, Inc., CODELCO, BHP Billiton Limited, Antofagasta PLC, and Alcoa Inc.