Driven by high demand and an expanding hydraulic fracturing sector, as well as mounting pressures to reduce cost and improve quality, the global mining and oil and gas machinery manufacturing market reached a value of $265 billion in 2016 and will grow at a CAGR of 5.2% through 2020, according to a report by BCC Research. The global market is forecast to reach $324.1 billion by 2020.

The Asia-Pacific region is home to the largest market for mining and oil and gas field machinery manufacturing and accounts for nearly a quarter of the industry, according to the report. While the Middle East trails the Asia-Pacific region, Africa is expected to see the fastest growth in the market, with a CAGR of 6.5%.

The world’s largest market segment in terms of value is found in China, which is expecting 4.7% CAGR. China is now the world’s largest producer and consumer of coal.

Prior to 2016, the global mining and oil and gas field machinery manufacturing market grew slowly, seeing just 0.2% CAGR from 2012 to 2016. In 2012, the global market was worth $262.8 billion.

The market benefitted from low interest rates between 2012 and 2016, which created a flow of cheap investment money both in developed and developing countries. Low interest rates also encouraged borrowing and discouraged saving, which helped to drive markets.

“Globally, the rapid growth in shale oil production we’re expecting to drive growth of the oil and gas field machinery manufacturing market,” said Gordon Nameni, BCC Research senior editor. “According to PwC, shale oil production has the potential to reach almost 12% of the world’s total oil supply by 2035.”

A number of factors are conspiring to restrain growth in the global market, BCC Research said. Mining companies are increasingly turning to rented and leased equipment, which has the advantage of offering the latest technology without the need to make a major capital investment. Further, global trade restrictions are affecting growth. Brexit, for example, is expected to lead to more trade restrictions between the U.K. and parts of Europe, while the U.S. has said it will look to renegotiate many major trade treaties, such as the North American Free Trade Act.

Finally, with global warming a growing concern, many nations are promoting investments in renewable energy in favor of additional development in the oil and gas industry.