MINING EQUIPMENT MARKET ANALYSIS

The global mining equipment market size was valued at USD 118,237.5 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 6.23% from 2023 to 2030.  The global mining equipment market is expected witness substantial growth over the forecast period. The growth is attributed to a number of factors, including the increasing demand for electric mine trucks and increased emphasis on acquiring mineral mines for the production of batteries. The market is driven by the rise in awareness of environmental concerns and strict government regulations on reducing carbon emissions.

Global Mining Equipment Market: Regional Insights

North America among regions is projected to show significant growth in the global mining equipment market during the forecast period. This can be attributed to growing demand for silver and gold in the U.S. and Canada. The U.S. is one of the major producer of oil, coal, and other metals. The demand for minerals and metals is growing in various industries in this regions, such as construction, manufacturing, and automotive. Moreover, mining activities are also increasing, which is leading to use of mining machinery. Along with this, the mining sector in Canada is showing strong growth, which is also expected to support growth of the global mining equipment market across North America region.

Furthermore, Asia Pacific is also projected to gain robust growth in the global mining equipment market during the forecast period, owing to rise in demand for metals such as nickel, bauxite, and copper in the region. Along with this, rise in demand for precious metals and minerals such as diamond, silver, gold, and platinum is leading to growing need for mining equipment in Asia Pacific, Thus, these factors are anticipated to boost growth of the market across this region.

Figure 1. Global Mining Equipment Market, Revenue Share (%), By Region, 2022

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Global Mining Equipment Market Drivers:

Growing demand for underground mining equipment to propel the market growth

Ore deposits are obtained from below the surface of the earth. The debris that is removed for uncovering required ore is difficult to do so through surface mining. Thus, underground techniques are utilized for such scenarios. There are various types of breakers and drills used in underground mining. Thus, several market players are focusing on development of novel breakers and drill applications in underground mining. For instance, in January 2019, Boart Longyear introduced DruftMaster series of drill bits intended for drifting and tunneling applications in the mining industry. Thus, these factors are expected to propel growth of the global mining equipment market over the forecast period.

Increase in consumption of natural resources in electronics industry to augment the market pace

The sales of mining equipment are increasing due to growing consumption of natural resources. The demand for these resources such as bauxite, iron ore, and titanium is growing all over the world. Moreover, Due to rising natural resources demand in emerging countries in Asia Pacific, such as China and India is creating demand for advanced mining equipment. For instance, according to the Coherent Market Insights, the mining equipment market in China is witnessing increased sales every year due to growing mining activities for silver, copper, titanium, iron, which are utilized in manufacturing of electronic equipment. Thus, the global mining equipment market is likely to witness strong growth in the coming future.

Global Mining Equipment Market Opportunities:

Growing demand for technologically developed mining equipment is expected to create lucrative environment for growth opportunities in the global mining equipment market during the forecast period. With technological development, high quality products, market players are provided with a great opportunity for strengthening their market presence. With novel advancements, the mining processes will become automized and easier needing lesser time. Moreover, use of advanced technologies such as artificial intelligence facilitate efficient and sale hole digging with drills. Thus, the demand advanced technology is increasing in mining equipment, which is creating various growth opportunities in the market.

Furthermore, market players are adopting autonomous and digitized systems for sustainable mining, which is also expected to provide them with multiple growth opportunities in the global mining equipment market during the forecast period. Major players such as Combitech, LKAB, ABB, AB Volvo, and Epiroc in collaboration are starting a project in the ore mine of northern Sweden. This project comprises control systems, efficient management systems, and improved mining equipment that can cater the future needs for sustainable mining industry. Thus, these factors are likely to support the market growth in the coming future.

Global Mining Equipment Market Trends:

Growing use of telematics is a major trend

Mining equipment market continues to witness technological developments and innovations. Various technologies are revolutionizing the industry including Internet of Things (IoT), automation, plasma technology, and 3D imaging. These machines are created with the use of technologies and materials that are capable of withstanding high temperatures and pressure. These machines are exposed to chemical substances and high radiation, which directly impacts the functioning parts. Market players are thus, focused on developing machines with capability of extracting specific metals and minerals, where they are using telematics. This ensures reduced downtime caused by malfunctions and it helps plan maintenance activities. Thus, this trend is likely to continue in the market over the forecast period.

Growing demand for aluminum, iron, and copper in Europe is a growing trend

The demand for these metals in European region is creating strong need for mining equipment. With this growing demand for copper, iron, and aluminum, mining activities are growing all over the world. Thus, high level machineries and technologies are in use for these mining exploration and extraction activities in Europe, which in turns is driving growth of the mining equipment market in the region. For instance, MetsoOyi, has developed a novel predictive maintenance solutions for mining equipment which is intended for helping maximize performance and uptime of commination circuits. Thus, this trend is expected to support growth of the market during the forecast period.

Global Mining Equipment Market Restraints:

Stringent regulations by governments to impede the market growth

Laws and regulations by various governments around the world impact metal and mining industries significantly. Due to such regulations, the market faces issues such as delay in mining permit by government authorities, which further slows down the mining process of new projects. Moreover, tariffs and government regulations are becoming strict with respect to the mining industry. The growing awareness regarding environmental impact of mining is leading to implementation several regulations and rules on players in the mining industry. Thus, these factors are expected to hinder growth of the global mining equipment market over the forecast period.

Incompetent infrastructure for crushing and screening industry to hinder the market growth

Crushing & screening industry face various challenges, among which inadequate industrial infrastructure is a major challenge. This is associated with poor infrastructure facilities such as good roads, constant power supply, water supply, rail & airport links, housing, sanitation needs, and industrial training requirements. For instance, in emerging countries such as India, the lack of infrastructure to support these activities is significant. Moreover, there are various other issues linked to inappropriate shortage of power and roads that create challenges for the crushing & screening industry. Thus, these factors are expected to impact the demand for mining equipment in the coming future, which is likely to hinder the market growth. However, the technological advancements in these regions will support growth of the market in the near future.             

 Figure 2. Global Mining Equipment Market, Revenue Share (%), By Type, 2022

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Global Mining Equipment Market Segmentation:

The global mining equipment market report is segmented into Type and Application.

Based on Type, the market is segmented into Mineral Processing Equipment (Portable, Stationary); Surface Mining Equipment (Articulated dump truck, Crawler dozer, Crawler excavator, and Others); Underground Mining Equipment (Hydraulic excavators, Mining dozers, Underground haulers, and Others); Mining Drills & Breakers (Drills, Breakers); Crushing, Pulverizing & Screening Equipment (Portable, Stationary), and Others. Out of which, Mineral Processing is expected to dominate the global market over the forecast period and this is attributed to the rise in demand for metals and minerals due to ever growing population around the world and new consumers from emerging countries. Along with this, technological developments are expected to create demand for special mineral concentrations, and this is likely to support the market growth in the near future.

Surface Mining Equipment segment is also expected to witness significant growth in the near future and this is owing to the growing adoption of novel technologies leading to rise in demand for mining equipment for the development of construction and mining sector. The growing population is driving the projected to infrastructure development for end users. This in turn is driving the demand for mining equipment, which is expected to boost the market growth.

Based on Application, the market is segmented into Metal Mining, Mineral Mining, and Coal Mining. Out of which, Metal Mining is expected to dominate the global market over the forecast period and this is attributed to the growing demand for metals due to rapidly growth of mechanical equipment, automobile, and infrastructure sectors in recent years. This has led to rise in mining industries, which is further supporting growth of this segment.

Mineral Mining segment is also expected to witness significant growth in the near future and this is owing to the rise in demand for minerals in emerging countries such as China and India, as industrial sector of these countries is witnessing strong growth. Moreover, demand for various minerals is also increasing in green energy technologies need for low-carbon future. Thus, the segment will witness strong growth in the market.  

Global Mining Equipment Market: Key Developments

In March 2020, Volvo Construction Equipment announced the launch of novel DD128C compactor, which has high frequency and higher productivity. This machine consists 1400 mm diameter drum and auto reversing hydraulics.

In June 2020, Caterpillar announced the acquisition of Marble Robot, Inc, an autonomy and robot technology solution provider based in California. With this acquisition, the company delivers commitment to the next generation of jonsite solutions.

Global Mining Equipment Market: Key Companies Insights

The global mining equipment market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global mining equipment market are Epiroc Ab, AB Volvo (Volvo Construction Equipment), Doosan Corporation, Caterpillar Inc., and Deere & Company

*Definition:

Mining equipment is a broad category of heavy machinery used in the extraction of metals, minerals, and coal. It varies in size and functionality to match different mining activities. Its applications include dredging, excavating, mining, and quarrying.