BOULDER, Colo., May 17, 2012 (BUSINESS WIRE) — These are critical times for the mining industry. Even as demand for mineral resources rises, driven by emerging economies, mining companies are under ever-increasing pressure from governments, customers, and other stakeholders to operate in a sustainable manner. Many of the key industry players in the mining sector have developed energy saving strategies and are investing directly into renewable energy infrastructure. According to a new report from Pike Research, worldwide investment by the mining industry on renewable energy and energy conservation will reach approximately $8.4 billion by 2016 and nearly $20 billion by 2020.
Under a more aggressive scenario, in which the global economy expands more rapidly and policy mandates pertaining to climate change are more robust, spending could reach $15.6 billion by 2016 and $30 billion annually by 2020, the cleantech market intelligence firm forecasts.
"Buoyed by consistent increases in major mining commodity prices, overall market capitalization in the mining industry has soared by 26%, and mining company executives are becoming increasingly more sensitive about rethinking traditional mining industry approaches to obtaining and consuming energy," says research director Kerry-Ann Adamson. "Accordingly, the mining industry is positioned to address energy costs and climate change from a position of economic strength."
The Asia Pacific region, which has seen its market share of the worldwide mining sector increase to 44% in the last decade, will see the greatest investment in renewable energy in the mining industry through 2020, at $9.4 billion. In the United States, the market will reach $4.6 billion in the same year. In general, Pike Research anticipates that investments in, and purchases of, renewable energy technologies from the mining industry will range from 10% to 20% of total energy expenditures during the forecast period.
Pike Research's report, "Renewable Energy in the Mining Industry", provides a detailed examination of energy consumption dynamics in the global mining industry, along with an analysis of the market opportunity for greater utilization of renewable energy. The study assesses the market drivers and policy issues that are influencing mining companies' increasing interest in renewable energy, along with a review of the technology issues associated with each option. The strategies of key industry players are profiled in depth and market forecasts through 2020 are provided for renewable energy investment in the sector. An Executive Summary of the report is available for free download on the firm's website.
Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets. The company's research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors. For more information, visit www.pikeresearch.com or call +1-303-997-7609.
SOURCE: Pike Research