Base metals, for example, copper, aluminum, zinc, nickel, and lead assume a noteworthy job in the improvement of assembling, utilities, framework, and development areas. Development over these enterprises straightforwardly suggests the development of the base metal mining market also. In the previous couple of years, creating just as created locales have shown amazing advancement crosswise over regions, for example, urbanization, industrialization, and monetary improvement. These components have significantly expanded the global utilization of base metals, giving energy to mining exercises.
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.
Increased Consumption in Power Infrastructure to Bolster Market Position of Copper
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.
High Pace of Industrialization and Infrastructure Development to Enable Asia Pacific Take Top Spot
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.
The region has also witnessed the increased need to improve the infrastructure of the utilities sector to support the ever rising population and heightened rate of industrialization. Additionally, the region is also advancing in sectors such as transportation, manufacturing, and industrial equipment, which are some of the major consumers of base metals. Asia Pacific accounted for nearly 63% in the global base metal mining market in 2014 and is expected to continue its dominant stance in the near future as well.
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.