Home » Underground Mining Equipment Market to Witness Unprecedented Growth by 2033, Says FMI Report

Underground Mining Equipment Market to Witness Unprecedented Growth by 2033, Says FMI Report

Automated and electric equipment, and hard rock minerals drive the demand for underground mining equipment, says FMI report.

by Motoni Olodun

The global underground mining equipment market is expected to reach US$ 20.55 billion by 2033, growing at a compound annual growth rate (CAGR) of 2.3% from 2023 to 2033, according to a new report by Future Market Insights (FMI). The report, titled “Underground Mining Equipment Market: Global Industry Analysis 2013-2022 and Opportunity Assessment 2023-2033”, provides an in-depth analysis of the market drivers, trends, opportunities, and challenges that are shaping the underground mining equipment landscape.

Underground mining equipment refers to the machinery and tools that are used to extract minerals and ores from beneath the earth’s surface. These equipment include mining loaders, mining trucks, mining drills, mining bolters, mining shearer, continuous miners, mining excavators and shovels, mining scalers, and others. Underground mining equipment is mainly used for soft rock mining and hard rock mining applications, depending on the type and hardness of the rock being mined.

The report highlights some of the key factors that are fuelling the demand for underground mining equipment across the world. These include:

  • The rising adoption of automated and electric underground mining equipment by manufacturers enhances productivity, safety, and environmental performance. Automated equipment can perform multiple tasks such as cutting, loading, and hauling simultaneously, while electric equipment can reduce diesel emissions and noise pollution.
  • The increasing demand for hard rock minerals such as copper, gold, zinc, and lithium, which are essential for various industries such as electronics, renewable energy, and electric vehicles. Hard rock mining requires more advanced and robust underground mining equipment than soft rock mining, which involves extracting coal and other sedimentary rocks.
  • The stringent emission regulations and personnel safety standards imposed by governments and regulatory bodies on the mining industry. These regulations compel mining operators to adopt cleaner and safer underground mining equipment that can minimize the environmental and social impacts of mining activities.

The report also identifies some of the challenges that are hampering the growth of the underground mining equipment market. These include:

  • The high initial and maintenance costs of underground mining equipment, deter many mining operators from investing in new equipment. Instead, they prefer to rent, lease, or buy used or refurbished equipment that can lower their capital expenditures and operational costs.
  • The lack of skilled and trained workers who can operate and maintain underground mining equipment, especially in developing and emerging markets. This creates a gap between the supply and demand of underground mining equipment, as well as increases the risk of accidents and breakdowns.
  • The uncertainty and volatility of the mining industry, which is influenced by various factors such as commodity prices, demand and supply dynamics, geopolitical tensions, and environmental regulations. These factors can affect the profitability and sustainability of mining operations, and thus the demand for underground mining equipment.

The report segments the underground mining equipment market by product type, mining technique, end user, and region. By product type, the market is dominated by mining loaders, which accounted for more than 40% of the market share in 2022, followed by mining trucks, mining drills, and mining bolters. By mining technique, the market is led by hard rock mining, which accounted for more than 70% of the market share in 2022, followed by soft rock mining. By end user, the market is split between mining operators and rental service providers, with the latter accounting for more than 50% of the market share in 2022. By region, the market is divided into North America, Latin America, Europe, Asia Pacific excluding Japan (APEJ), Japan, and Middle East and Africa (MEA). APEJ is the largest and fastest-growing region in the market, owing to the presence of large mineral reserves and mining activities in countries such as China, India, Australia, and Indonesia.

Some of the leading players in the underground mining equipment market are Caterpillar Inc., Sandvik AB, Epiroc AB, Komatsu Ltd, Boart Longyear Ltd, Hitachi Construction Machinery, Liebherr Group, Sany Heavy Industry Co., Ltd., Xuzhou Construction Machinery Group Co. Ltd, Volvo Construction Equipment, Schmidt, Kranz & Co. Gmbh, J.C. Bamford Excavators Limited, CMM – Cocental SAS, Yantai Jiaxiang Mining Machinery Co., Ltd., and Resemin, SA. These players are focusing on developing innovative and customized underground mining equipment that can meet the diverse and evolving needs of their customers. They are also expanding their presence and partnerships in various regions and markets to gain a competitive edge in the market.

The underground mining equipment market is poised for remarkable growth in the coming years, as the mining industry undergoes a digital and green transformation. The adoption of advanced technologies such as automation, electrification, and artificial intelligence will enable mining operators to optimize their operations, reduce their costs, and improve their environmental and social performance. The demand for underground mining equipment will also be driven by the growing consumption of hard rock minerals, especially in emerging markets such as APEJ, where the demand for metals and minerals is surging due to rapid industrialization and urbanization.

However, the market will also face some challenges such as high capital and operational costs, lack of skilled workers, and market uncertainty, which will require the players to adopt effective strategies to overcome them. The underground mining equipment market will offer lucrative opportunities for the players who can leverage their expertise, innovation, and partnerships to cater to the changing needs and preferences of their customers.

Source: Future Market Insights

You may also like

Leave a Comment

The African Miner is the vanguard of the mining industry, delivering world-class insight and news.

Latest Stories

© 2024 The African Miner. All Rights Reserved.