The smart mining market was valued at US$ 9,334.5 million in 2020 and is projected to reach US$ 23,055.4 million by 2028; it is expected to grow at a CAGR of 13.3% from 2021 to 2028. Increasing demand for minerals and metals leads to growing need for the expansion of mining activities that drives the growth of the smart mining market.
Rising adoption of autonomous equipment, increased concerns about safety and security, and growing environmental concerns are factors boosting the growth of the smart mining market. Furthermore, smart mining technology is considerably safer and environment-friendly as compared with the traditional mining technology. In the wake of COVID-19, the mining & metal companies have got impacted adversely. For instance, logistics disruptions such as the transport and shipping restrictions have adversely impacted the market growth. Russia and countries in the Middle East & Africa have stopped taking metal shipments from China; this factor has disrupted trade inside Europe. Furthermore, due to shortage of upstream supplies, such as machine components, chemicals, and critical consumables, business of metal & mining has drastically impacted ability to operate. Due to low availability of materials coupled with logistics disruptions, the smart mining market has been negatively impacted.
Based on component, the software and solutions segment is expected to grow at the highest CAGR in the global smart mining market during the forecast period. Smart mining software use different algorithms, artificial intelligence, and the statistical database, which provide the appropriate use of knowledge, autonomy, and technology to facilitate low operating costs, improved safety, and high mining productivity. Smart mining tools and technologies help reduce overall costs, and streamline the processes. Moreover, the integration of advanced IIoT technologies and mining is likely to form the backbone of a fleet of fully autonomous haul trucks, drills, and excavators, which can enable additional savings, reduce fuel and staffing costs, and maximize operating performance. Mines can meet production goals by avoiding disruption and maximizing efficiency, thereby efficiently responding to the market demand.
The COVID-19 outbreak has severely disrupted the supply chain and manufacturing of mining equipment, including the hardware component of mining. The emergence of COVID-19 virus across the globe, followed by lockdown scenarios, has led the mining industry experts to analyze that the industry would face at least a quarter of lag in mining equipment supply chain. This disruption is expected to create tremors till mid-2021. The mining industry is likely to pick up pace soon after the governments across the globe steadily lift the various containment measures in order to revive the economy. The production of the mining equipment and is anticipated to gain pace from 2022, which is further foreseen to positively influence the mining industry, including hardware components of mining.
The overall smart mining market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the smart mining market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry experts, such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants, such as valuation experts, research analysts, and key opinion leaders, specializing in the smart mining market.
ABB Ltd.; Alastri; Caterpillar Inc.; Intellisense.io; Hitachi, Ltd.; MineSense; Rockwell Automation, Inc.; SAP SE; Trimble Inc. are among the key players operating in the market.