|Status : Published||Published On : Mar, 2021||Report Code : VREP3015||Industry : Energy & Power||Available Format :||Page : 178|
The global mining machinery market size was valued at USD 29 billion in 2020 and by 2025 it is projected to grow USD 36 billion at a compound annual growth rate (CAGR) of 4.4%.
Over the next few years, continuing digital mining progress is expected to change the main facets of mining. Increased investment is expected to trigger demand for mining equipment over the forecast period, along with government funding for digital mining innovation.
The driving forces are estimated to improve the mining machinery industry by increasing the use of electrical machinery in underground mining and increasing demand for metals and commodities.
In addition, the introduction of different innovations such as robotics and IoT decreases labour costs and the running time associated with mining operations, which is expected to raise demand for advanced mining machinery in turn.
Insights by Category
• Crushing, pulverizing, screening machinery
• Mineral processing Loader
• Surface mining machinery
• Underground mining machinery (electric shovels, hydraulic excavators, mining dozers, mining trucks, and drills)
Mining trucks segment is projected to be the largest segment of the underground mining machinery market. It is expected to reach around USD 10 billion by 2025. The market for mining trucks is strong since they are used to carry gravel, rocks, metals, and coal.
Insights by Propulsion
Diesel segment is projected to be the largest market during the forecast period
Value-wise, the diesel segment is projected to dominate the market during the forecast era, due to the high low-speed torque provided by diesel. Hence, relative to oil, it provides more energy for a given volume. Diesel engines consume relatively little fuel at idle speed. Hence, the most widely used fuel in mining equipment is diesel.
Insights by Application
The mineral segment by application holds the largest market during the forecast period.
The mineral segment is the largest and is estimated to rise during the forecast period at a CAGR of 4.33%. Across the Asia Oceania zone, barite, limestone, some semi-precious gem deposits, as well as other industrial mineral deposits, are present. It is also hypothesised that the area would drive the demand for mineral mining machinery.
Autonomous Mining Machinery, Insights by Mining Category
• Surface mining
• Underground mining
The largest share of total sales in 2019 was held by surface mining equipment and is expected to retain its lead over the projected period. Growing demand in developing markets for copper, iron ore, chromium, and diamonds is expected to provide avenues for growth in surface mining equipment over the next few years.
Electric Mining machinery, Insights by Type
• Mining Truck
Mining trucks, is projected to grow at the highest CAGR.
In order to run heavy mining equipment, new battery technologies are not mature enough. Therefore, the pattern of electrification of mining equipment concentrates more on underground mining.
Electric Mining machinery, Insights by Battery Type
• Others (lithium-ion phosphate, lithium titanite oxide, lithium manganese oxide, nickel-metal hydride, and solid-state battery)
Lithium-ion segment, by battery type, is projected to account for the largest market due to advantages such as long life, long charging cycle, and safety in all working conditions.
The demand for electric mining machinery is dominated by the lithium-ion segment as they provide an advantage over traditional ones, taking into account greenhouse emissions and protection in underground environments. Considering its benefits over lead-acid batteries, the mining industry is increasingly moving to the use of lithium-ion battery technologies.
Insights by Region
• North America
• South America
• Middle East & Africa
Because of its plentiful reserves and rising commodity prices, Asia-Pacific will dominate the mining equipment industry and this area provides a range of opportunities for mining companies as there is substantial potential for bauxite, iron ore, and coal discovery, while North America will see its growth rate due to advancements in automobile technology and the region is home to massive deposits
Automation and Electrification Driving the Market growth
It has been observed that profit margins can be improved by increasing efficiency. This forces companies to mount sensors and analyze data generated by them to automate and electrify mining equipment. The cost of industrial robotics has declined by 50 per cent since1990, while manual labour has increased by 80%. Mining activities are now fully automated, such as digging and hauling. By seeing improved efficiency and safety, operators are now reaping the benefits of automation.
Increase in mining activities around the world
The increase in the mineral processing equipment segment of the mining equipment industry has led to a growing number of mineral discovery sites and the resulting demand for specialized processing machinery. Ground crushers, stone refining machines and large earthmover vehicles, such as bulldozers, excavators, dumper trucks, etc., are primarily the equipment used in mineral mining.
High use of electric machines in underground mining
In underground mining equipment, the use of diesel engines produces noise, heat, and fumes that can make working conditions much more unpleasant. It is also important to ensure adequate ventilation when using diesel-operated mining machinery. By using battery-operated or electronic mining equipment, zero exhaust and low maintenance costs guarantee better working environments. In underground mines, it solves the ventilation dilemma. The operator can operate in a comfortable, ergonomically built cabin in difficult underground conditions with easy and protected access to all service points, while not adding damage to the welfare of the operator. Zero emissions also guarantee reduced expenses for ventilation.
High demand for metals and commodities
The nations which are still developing demands a huge number of metals and materials and other resources for building their not only their infrastructure and but economy as a whole. There’s a huge potential market as far as these nations are concerned along with the developed ones.
Telematics in mining machinery
Companies are continually searching for process optimization, with an intensely competitive world in all markets, which in turn has raised the need for automation in the mining sector. For discovery and control of mines, drones are used. Drones ensure that areas are clear prior to explosions, track post-blast gases and increase overall site safety. The mining industry's automation and teleoperation technologies greatly increase efficiency and safety. Sales of modern mining machinery synchronised with telematics systems are thus anticipated to drive the demand for mining machinery.
Decline in mining machinery sales due to COVID-19
Due to the continuing effect of the COVID-19 pandemic on the mining industry, substantial price declines have occurred for major resources, with prices staying passive in some situations. The new business forecast predicts that it would take about 2-3 years for the mining sector to rebound. With slowing mining operations worldwide, the industry has also seen a decrease in sales of mining equipment.
Export of used mining machinery to developing countries
The use of modern mining machinery is dependent on mining sector funding, which, in turn, relies on the global economic scenario. Developing countries such as South Africa, Argentina and Peru, to name a few, typically opt for used mining machines because, if properly handled, they have a stable life cycle. Such equipment is shipped from industrialised economies in North America and Europe to South America, the Middle East & Africa and South East Asian nations, at a cheaper price relative to modern mining machinery. Sales of modern mining equipment are likely to be hampered by this.
Key Market Players
• AB Volvo
• Komatsu Ltd.
• Sandvik AB
• Liebherr-International Deutschland GmbH
• Hitachi Construction Machinery Co. Ltd.
• Terex Corporation
• Mining Machines JSC
• Atlas Copco AB, SANY GROUP
• Doosan Corporation
• Equipment North Inc.
• RTM Equipment
• DAKOTA EQUIPMENT MANUFACTURING INC.
• ASTEC INDUSTRIES INC.
• XCMG Group
• BEML Limited
• Hyundai Heavy Industries Co. Ltd.
• AARD Mining Equipment
In September 2020, Sandvik unveiled its AutoMine Concept car, which is based on the newest technology and designed to boost mining operations with brand new sensing capabilities and artificial intelligence.
In July 2020, to represent the company's unified emphasis on growth in these areas, Komatsu announced plans to rebrand its underground hard rock equipment, surface wheel loaders, and new line of blasthole drills. During its rebranding, it launched a few items.
In May 2020, To increase the Cat MineStar Solutions suite of technology, Caterpillar has introduced a new platform, MineStar Tip. For mining businesses, MineStar Edge provides an operating environment.
VynZ Research conducts extensive primary research to understand the market dynamics, validate market data and have key opinions from the industry experts. The key profiles approached within the industry includes, CEO, CFO, CTO, President, Vice President, Product Managers, Regional Heads and Others. Also, end user surveys comprising of consumers are also conducted to understand consumer behavior.
Source: VynZ Research
Source: VynZ Research