The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic
The global mining equipment market size is anticipated to reach USD 368.99 billion by 2027, exhibiting a CAGR of 12.7% over the forecast period, according to a new report by Grand View Research. Growing trend of investment in renewable energy installations and deployment of innovative technologies are some of the key factors driving the market. Countries including India, Australia, and China are playing a significant role by meeting the growing demand for metals and minerals in order to increase their market share in the global minerals trade.
Adoption of automated solutions & robotics to reduce human intervention at the excavation sites for workforce safety is expected to drive the market over the forecast period. Furthermore, demand for base metals is expected to elevate due to growing trend of decarbonization and technological advancements, thereby fueling the market growth. Significant improvements in equipment efficiency, investments in the sector by Original Equipment Manufacturers (OEMs), coupled with the need for sustainable products, are expected to positively augment the market growth over the next few years. For instance, in May 2019, Rio Tinto entered into a partnership with Caterpillar, Inc., wherein Caterpillar supplied 20 autonomous 793F trucks, along with four autonomous blast drills, for the Koodaideri iron ore operation.
Remanufacturing has emerged as a vital aspect of increasing the competitiveness of major players. This can be attributed to strong demand for products during the commodity supercycle, thus allowing manufacturers to increase the overall annual shipments. In order to fit into this trend, several manufacturers have started providing remanufacturing services. For instance, Liebherr Group established a mining remanufacturing program that allows consumers to reduce the entire lifecycle cost of the machinery.
The evolution of the mining equipment market is linked to the changes in the mining sector, expansion of the existing mines, coupled with the commissioning of new projects. Manufacturers and companies are taking effective measures to ensure labor safety by digitizing the existing equipment. Despite the unsolved safety challenges and commodity price struggles in the industry, the emerging mining trends are expected to offer plenty of growth opportunities for this market. However, stringent emission norms and safety standards to address environmental concerns are the significant factors challenging the mining equipment industry growth.
Further Key findings from the study suggest:
- The global market is expected to witness noteworthy growth over the forecast period due to growing demand for the replacement of the mining equipment, which is attributed to increasing cases of aging, obsolescence, and risk of catastrophic failure
- The underground mining equipment segment is anticipated to register the highest CAGR of over 15% from 2020 to 2027 owing to increasing demand for brownfield projects and replacement of equipment
- Based on the application, metal mining is expected to expand at the highest CAGR over the forecast period due to increased demand for gold
- The mining equipment market is highly competitive due to presence of few players capturing a major share. Notable players include Komatsu Ltd.; Caterpillar, Inc.; Atlas Copco AB; and Sandvik AB