Mining Equipment Market (2024 - 2030)

Mining Equipment Market Summary

Increased investment, along with government support for digital mine innovation, is expected to trigger the demand for mining equipment during 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. The global outbreak of the COVID-19 crisis has made serious economic impacts across various industries, including the mining sector. The lower levels of economic activity due to the lockdown restrictions during the pandemic had significantly affected the demand for coal. In the coming years, the mining sector is expected to transform into a climate-smart industry. As a result, the mining companies are now looking forward to adopting electrification rather than conventional fuels like diesel.

Crushed rock, cement, gold, construction, industrial sand, gravel, iron ore, copper, and many more commodities regularly mined in the U.S. Thus, the rising demand for coal, gas, and oil sands, along with technological developments, is expected to drive this industry in the U.S. Some of the key manufacturers in the U.S. are Caterpillar Inc.; Metso Qutotec; Komatsu Ltd.; Boart Long year Ltd; Sany Group; and Liebherr.

The mining industry requires a large amount of energy to extract and protect resources, including a variety of refining and concentration processes. The decrease in the average copper ore grade has led to an increase in energy consumption and total material production, thereby propelling the demand for high-performance mining equipment.

The incorporation of artificial intelligence (AI) in mining equipment increases their efficiency, along with enhancing the productivity of mines and ensuring the safety of miners. Smart data and machine learning have also been adopted in the global mining industry across the world. The technological advancements are anticipated to propel the market demand throughout the forecast period.

Integration of automated technology in mining operations is expected to boost the demand for innovative mining equipment for firms to remain competitive. The demand for these automated solutions and equipment is expected to be higher in developed markets as the use of advanced technology requires highly skilled labor and strong network connectivity.

Market Concentration & Characteristics

The current stage of market growth for mining equipment is accelerating and the growth rate is medium. The mining equipment market exhibits a certain level of innovation attributed to the incorporation of the latest extraction technologies. This integration of advanced equipment has played a role in improving ore grades, consequently extending the operational life of older mines.

The mining equipment market is also characterized by a high level of merger & acquisition (M&A) and partnership activity by the market players. This is due to several factors, including launching advanced products, increasing customer base in the market, and maintaining a strong brand position in the market.

Government support for developing industries such as manufacturing, power, and infrastructure is expected to augment market growth. Energy-efficient equipment is being adopted due to the stringent regulations being implemented by authorities worldwide to reduce the environmental impact of greenhouse gases. To lower the concentration of emissions from fossil fuels, they also want to reach CO2 emission and fuel efficiency goals. This is leading to the adoption of new regulations, which is fostering market expansion.

There are few direct or external replacements for mining equipment. However, a notable challenge to the market arises from the emergence and adoption of alternative technologies and solutions that offer comparable or improved functionalities. Potential substitutes include the preference for electric alternatives over fossil fuel-powered equipment and the shift towards robotics and automation in place of manually operated machines.

End-user concentration is a significant factor in the market. The increasing demand for electric, highly automated equipment creates opportunities for companies that focus on developing advanced mining equipment’s in line with the growing preference for smarter and environmentally safe offerings. Buyers in the mining equipment market consider factors such as pricing, product quality, features provided, and the brand name before buying the product. Buyers generally enter into long-term contracts with suppliers to provide mining equipment.

Equipment Type Insights

The surface mining equipment type segment led the market and accounted for a 38.9% share of the global revenue in 2022. During the forecast period, rising demand for iron ore, coal, diamonds, and chromium in emerging nations is anticipated to open new opportunities for surface mining equipment. As the use of this equipment spreads, it has enabled selected mining activities that involve the exploration of high-quality resources and the construction of embankments and stable surfaces.

Underground mining has changed its operating systems through the evolution of equipment. The mine transportation system is crucial to underground mining. The sturdy manufacturing and high impact force of underground mining equipment make it an efficient piece of equipment for subterranean operations and therefore, fueling the demand for underground mining equipment during the forecast period.

The crushing, pulverizing & screening equipment type segment is expected to register a CAGR of 4.3% during the forecast period. Owing to the rise in demand for fixed and wheeled product lines, manufacturers of processing equipment for crushing, pulverizing, and screening anticipate stronger sales. The demand and use of mobile crushing, pulverizing, and screening processing equipment are also anticipated to increase, contributing to the expansion of the global market.

The drills & breakers systems equipment type segment accounted for a 6.9% share of the global revenue in 2022. The mining drills & breakers are anticipated to rise during the forecast period owing to the global expansion of mining activities coupled with technological advancements such as IoT, automation, infrared, optical micro cameras, and artificial intelligence.

Application Insights

The coal mining application led the market and accounted for a 37.8% share of the global revenue in 2022. The mining equipment is expected to witness significant growth in coal mining applications. The growth is attributed to its increased demand for electricity generation. Coal mining equipment has expanded its purposes and adoption as the excavation of coal has boomed.

Owing to constantly improving technology, mining for rare earth metals has recently gained traction. The current high levels of investment in new technology recommend that for large metal mining operations, there is a focus on long-term value. In addition, newer methods of exploitation will emerge to maximize production cost-effectively.

Underground mining equipment is used to excavate hard minerals, usually those containing metals such as ore containing gold, silver, copper, zinc, and nickel. For instance, the 3D geological model shows the size and shape of the mineral deposits, making it easier to devise mining and exploration strategies.

Regional Insights

Asia Pacific led the market and accounted for a 35% share of the global revenue in 2022. The increasing shift toward clean energy resources and the adoption of electric vehicles in developing countries such as China and India are expected to drive market growth in the coming years.

North America region is likely to expand at a CAGR of 4.1% during the forecast period. Rising mineral mining activity, increased use of cutting-edge mining equipment, and government initiatives in North America are the major drivers boosting market growth. In addition, the shift from traditional underground mining to cutting-edge, cost-effective open-pit mining is anticipated to drive the demand for these products during the forecast period.

Europe is likely to develop at a CAGR of 4.5% during the forecast period. The manufacturers growing emphasis on carrying out underground mining activities, reducing carbon emissions, and increasing worker safety in Europe has resulted in a rise in demand for the electrification of underground mining equipment.

Central & South America accounted for an 8.6% share of the global revenue in 2022. The region is expected to gain traction in the coming years as sizeable investments are boosting mineral exploration activities. This, along with favorable mining regulations for overseas investors particularly in Colombia, Peru, Brazil, and Chile, is aiding the regional market growth.

Key Mining Equipment Company Insights

Some of the key players operating in the market include Komatsu Ltd., Liebherr, Epiroc, Boart Longyear and Caterpillar Inc.

• Caterpillar Inc manufactures and sells mining and construction equipment, industrial gas turbines, diesel and natural gas engines, and diesel-electric locomotives for construction, energy & resource, and transportation industries. Furthermore, the company has established strong sales channel globally.

• Deere & Company invest significantly in research & development to stay at the forefront of emerging trends and technologies in construction equipment. For instance, in 2022, the company invested USD 1,912 million in research & development activities.

Guangdong Leimeng Intelligent Equipment Group Co.,Ltd, Northern Heavy Industries Group Co., Ltd., and Vipeak Mining Machinery Co. Ltd are some of the emerging market participants in the mining equipment market.

• Guangdong Leimeng Intelligent Equipment Group Co.,Ltd, offers intelligent mining integrated solutions and manufacturing large-scale crushing and screening equipment. The company's product line includes Mobile Crusher, Vibrating Screen & Transfer Machine, Sand Making & Washing Machine, Stone Crusher, and Spare Parts.The products of the company are used for various purposes, such as mining engineering, smelting engineering, building materials industry, highway engineering, railway engineering, construction engineering, water conservancy engineering, airport runway engineering, bridge engineering, and chemical engineering.

• Northern Heavy Industries Group Co., Ltd. is merged with Shenyang Heavy Machinery Group Co., Ltd. and Shenyang Mining Machinery Group Co., Ltd. in 2006. The company is engaged in Construction, Agriculture, and Mining Machinery Manufacturing industries. The company's product line includes segments such as mining equipment, bulk material handling, cement plant, ore dressing plant, pellet plant, and spare parts.

Recent Developments

• In July 2023, Komatsu Ltd. planned to launch PC210LCE-11 and 200LCE-11 models, and 20-ton electric excavators powered by Li-ion batteries. These machines will be launched in Japan and Europe. The introduction of these models marked a strategic move for Komatsu to tap into the electric construction equipment market. This initiative aligns with the company's broader commitment to achieving carbon neutrality by 2050.

• In July 2023, Liebherr joined forces with Leica Geosystems to provide an extensive range of machine control systems tailored for hydraulic excavators. These systems serve as driver assistance tools, enhancing the efficiency, safety, and productivity of construction projects.

• In July 2023, Metso Corporation entered into an agreement to acquire Brouwer Engineering, an Australian company. The diverse bulk material handling equipment of Mesto lineup aligns well with Brouwer Engineering's expertise in electrical and control systems. The collaboration aimed to provide customers with a holistic range of solutions by combining their respective capabilities.

• In June 2023, Epiroc introduced a mobile hydraulic powerpack for blast hole drills. The product is designed to improve the efficiency of the electric drill. A wagon-mounted powerpack enables off-grid operation for electric drills for without requiring the need for electrical infrastructure.

Mining Equipment Market