The global base metal mining market size was valued USD 324.8 billion in 2018 and is expected to register a CAGR of 4.1% from 2019 to 2025. Increasing demand for base metals from construction, electrical and electronics, and automotive sector is projected to remain a key growth driver.
Growth of residential and non-residential construction sectors in Southeast Asia and other developing countries is projected to drive the demand for aluminum and copper products. Furthermore, emergence of electric vehicles and other commercial vehicles is expected to contribute to the demand. Automotive manufacturers are focusing on lightweight vehicles to abide by the emission regulations. This factor is anticipated to bode well for the growth in the near future.
The growth of the electronics and electrical segment is a key market driver. Metals such as copper, aluminum, zinc, and lead find wide application in the electrical and electronics industry. Demand from sectors such as electronic utilities, consumer electronics, and general electronics has witnessed a rise since the last decade.
Various copper products find significant application in day to day life. Copper’s aesthetic, chemical, and physical properties make it a useful material in various industrial, domestic, and high technology applications. After alloying with other metals such as tin, aluminum, or zinc, it can be used in highly specialized applications. Copper exhibits antimicrobial properties and is recyclable and energy efficient.
In terms of revenue, copper held the largest market share in 2018. Global demand for copper is anticipated to witness a rise in the forthcoming years owing to growing infrastructure and automotive sectors.
In terms of volume, nickel is projected to register the highest CAGR of 4.4% during forecast period. Nickel has the highest use in the production of stainless steel. The types of stainless steel such as ferritic, austenitic, and martensitic require nickel to be added in various proportions during their production.
Growth of the automotive industry is indirectly projected to drive the demand for nickel over the forecast period. Electric vehicles sector is a promising area for the application of nickel, and the growth of the sector is projected to boost the demand for nickel in the forthcoming years.
Zinc is anticipated to showcase high growth due to demand from galvanization industry. Zinc is primarily used for galvanization of steel in the automotive and construction sectors. It is also used in the production of bronze, brass, zinc-based alloys, and chemicals. Oxides and chemicals of zinc find use in tires, paints, and medical products. It is also used in die-casting alloys and semi-manufactured products.
Construction accounted for a revenue share of 39.9% in 2018. Copper is widely utilized in building and construction, interior design, and architecture applications. Properties, such as corrosion resistance, durability, and low maintenance, make it a suitable material for use in applications such as in-wall cladding, roofs, spires, domes, gutters, flashings, downspouts, and expansion joints.
The emergence of green buildings is projected to create opportunities for the use of copper products over the next seven years. Recyclability, long life, and thermal and energy efficiency make copper a sustainable material for green building application. High electrical conductivity of copper helps improve energy efficiency of fans, motors, lighting, and appliances.
The automotive segment is expected to witness a CAGR of 3.3%, in terms of volume from 2019 to 2025. Automotive is one of the primary industries for aluminum and copper. As per the Aluminum Association, aluminum content to account around 16% of total weight of vehicle by 2028. The components such as hoods, doors, bumpers, and crash boxes are projected to observe higher penetration of aluminum in the forthcoming years.
In terms of revenue Asia Pacific led with a base metal mining market share of 44.8% in 2018. Capacity expansion in the electronics segment is anticipated to have a positive impact on growth. Automakers are projected to face stiff competition owing to moderate growth in the sales of vehicles. Metals and mining sector is anticipated to register good earnings due to the attractive prices of metal regardless of the volatility in its prices.
The copper deposits in the U.S. have attracted investments of over USD 1.1 billion for mining operations owing to demand from Tesla and other small and medium-sized electric car manufacturers. Improved pro-mining policies coupled with the growing demand for electric vehicles that use double copper compared to internal combustion engines vehicles are the key factors driving the mining activities in North America.
Central and South America (CSA) is anticipated to witness significant growth, in terms of base metal consumption. CSA automobile sector is witnessing development due to low interest rates, economic stability, and credit finance availability. For instance, Brazil, which is the largest automotive market in the region, observed a production growth of automotive vehicles by nearly 25.2% from 2016 to 2017, as per the data published by OICA.
The global market is led by multinational players with base metal mining projects in several countries. Key participants include BHP; Freeport-McMoRan, Inc.; Antofagasta PLC; CODELCO; Zijin Mining Group Co., Ltd.; Norilsk Nickel; Vale; Glencore; Aurubis; and Anglo American.
Key players are collaborating with mid-tier or major miners to identify operating strategies and to leverage mining infrastructure. Many investors are focusing on the prices of copper as they have been registering an increase since recent years. In September 2017, First Quantum Minerals signed a deal with LS-Nikko Copper to acquire Korea-based Minera Panama. This will help First Quantum Minerals to boost the production of copper and related products.
This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global base metal mining market report on the basis of product, end use, and region:
- Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 – 2025)
- End-Use Outlook (Volume, Kilotons; Revenue, USD Million, 2014 – 2025)
- Electrical & Electronics
- Consumer Products
- Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 – 2025)
- North America
- The U.S.
- Asia Pacific
- Central & South America
- Middle East & Africa
- North America