Mining Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Mining Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The mining equipment market was valued at around USD 98 billion in 2020, and it is expected to reach USD 135 billion by 2025, registering a CAGR of about 5% during the forecast period (2021 – 2026).

The COVID-19 pandemic had an immediate impact on the global economy, and that impact goes across all industries, including mining. Significant price drops were observed across major commodities, while in some cases, prices remain passive. For example, the demand for metallurgical coal and thermal coal has decreased, while the demand for gold and iron ore has increased.

However, the market is expected to witness significant growth during the forecast period, as the increasing use of electric machinery in underground mining and increasing demand for metals and commodities occupy a major share in the market. The increasing need for mineral fertilizers to improve agricultural yield and the rise in construction of roads and railway tracks through hilly areas are expected to fuel the demand for mining activities in emerging countries such as India and China.

Ongoing digital mine innovation is expected to transform the key aspects of mining over the next few years. Increased investment and government support for the digital mine innovation are expected to trigger the demand for mining equipment over the forecast period. Improvements and innovations in extraction technologies and equipment have contributed to the betterment of ore grades, thus, extending the life of older mines.

Asia-Pacific is anticipated to be the largest market for mining equipment during the forecast period.

Key Market TrendsRise in Use of Telematics in the Mining Industry

Technological advancements and innovations are expected to drive the mining machinery industry growth. Several technologies that are revolutionizing the industry include automation, the Internet of Things (IoT), 3D imaging, and plasma technology. These machines are developed using materials and technologies that can withstand high temperatures and pressure. The machines are exposed to high radiation and chemical substances that can directly affect the functioning of the parts. The players in the market are focusing on such challenges and are developing machines that can be used for the extraction of specific minerals or metals.

The use of telematics in the mining industry has proven to be a game-changer. Internet of things (IoT) sensors provide feedback to the fleet manager, which ensures lower downtime due to malfunctions and helps plan maintenance activities. With an increasingly competitive environment across all industries, companies are constantly looking for process optimization, which, in turn, has increased the demand for automation in the mining industry. Drones are being used for the exploration and surveillance of mines.

Drones ensure that areas are clear before blasts, track post-blast fumes, and improve the overall safety of sites. BHP (Australia) has been using drones at its Australian mines for surveillance. Automation and teleoperation systems in the mining industry significantly improve productivity and safety. Thus, sales of new mining machinery synced with telematics solutions are expected to drive the mining machinery market.

Asia-Pacific is Expected to Lead the Market

Asia-Pacific is likely to lead the mining equipment over the forecast period. Many developing countries in the region have sizable coal-producing areas and significant coal and metal mining industries that need a substantial level of capital investment. Increasing demand for lower emissions, low cost, and high energy-efficiency machines is being witnessed in the region.

Asia-Pacific will dominate the mining equipment market due to its abundant deposits. This region offers a number of opportunities for the mining companies, as there is significant scope for the exploration of bauxite, iron ore, and coal. In contrast, North America will witness its growth rate due to advancement in automotive technology, and the region is home to large deposits of copper, gold, and iron, which provides exploration opportunities.

The growing availability of a lease-based model will encourage end users to use advanced machinery. A rapid increase in construction activity and manufacturing output in China, coupled with government efforts to boost the mechanization of mines, have led to the rapid growth of the mining machinery market in the country. Moreover, the Indian market is anticipated to witness steady growth owing to a rise in mining output growth and a significant need for mine mechanization.

Competitive Landscape

The mining equipment market is characterized by the presence of numerous international and regional players, resulting in a highly competitive market environment. Major players in the mining industry are now providing on-site solutions like components and equipment repair and services that include part support and even data analytics support. Many competitors in the mining equipment market adopted acquisition and business expansion as their key developmental strategies to develop their geographical foothold and promote their product technologies.

• In June 2020, Caterpillar Inc. acquired Marble Robot Inc., a robot and autonomy technology solution company based in California.
• In May 2020, Epiroc received an order from Codelco valued at more than USD 20 million for the supply of underground loaders, face drill rigs, rock bolting rigs, and mining trucks.

Some of the leading players in the market are Caterpillar, Liebherr-international, Atlas Copco Construction & Mining, Hitachi, Sandvik, Metso Corp., and Outotec. The leading players also have many subsidiaries that operate specifically for certain products and/or in different countries.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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