In 2015, the conveyor maintenance market in Australia valued at US$ 542.6 Mn. The Australian conveyor maintenance market is estimated to be worth $558.7 million in 2016 and will be worth more than $700 million by the end of 2026, growing at a CAGR of 3.1 percent between 2016 and 2026. The market is expected to provide additional opportunities.
Conveyor systems are one of the most important components used in the mining, industrial, and power industries, all of which contribute significantly to Australia’s economy. With critical operations impacted by conveyor downtime, proper conveyor component maintenance and operation is critical for end-user industries such as mining, industrial & automotive, pharmaceutical, food processing, and others (power, fertilizer, transport, and logistics).
The mining industry is one of the major contributors and drivers of the Australian conveyor maintenance market owing to its extensive utilization in mineral extraction, processing, and transporting. The volatility in commodity prices in Australia has shifted the 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 expected to generate a long-term demand for maintenance services. Similarly, new mining establishments and projects related to iron ore, gold, and coal are expected to begin between 2016 and 2022, creating new revenue streams for suppliers and service providers.
Mining companies seek to reduce operating costs by pursuing cost-effective and flexible contracting options. Rio Tinto, Glencore, and Anglo American are among Australia’s leading mining companies that have multiple short-term contracts for various components and services.
Although belt replacement maintenance is dependent on a variety of factors such as operating loads, belt speed, and other factors, belts with widths ranging from 2000mm to 2400mm require less frequent maintenance than narrower belts. Mining companies prefer the lowest price per unit for components such as idlers and rollers and pulley lagging because they require the highest volume replacement.
Australia Conveyor Maintenance Market Segmentation
By Conveyor Type
By Service Type
- Component Fixing
- Maintenance Services
By Component Type
- Conveyor Belt
- Roller and Idler
- Others (Skirting clamps, pulley lagging, fastener, impact beds & splicing kits )
By End-use Industry
- Industrial and automotive
- Food Processing
- Others (Power, Fertiliser, transport, and logistics)