Global Mining Market Trends and Forecasts

The use of technology in industrial mining has been developing and conveyor belts made it easier to load and haul materials.

Digitization is providing the latest significant technological advancement for the mining sector. The deployment of advanced data analytics and artificial intelligence (AI), the use of 3D modeling techniques, wearables, drones and automated equipment, and increased connectivity through the Internet of Things (IoT) are key drivers of this digital revolution. Continued scrutiny of safety, regulatory compliance and environmental concerns has meant an increasing drive to optimize equipment and systems and to be proactive, not reactive, to mitigate operational and legal risks. There is also a huge focus on driving operational efficiencies and competitiveness through the effective deployment of technology.

The Mining Equipment market was valued at around USD 98 billion in 2020 and is expected to reach USD 135 billion by 2025 registering a CAGR of about 5% during the forecast period (2021 – 2026).

The COVID-19 pandemic had an immediate impact on the global economy and that impact goes across all industries, including mining. Significant price drops were observed across major commodities, while in some cases, prices remain passive. For example, demand for metallurgical coal and thermal coal has decreased, while demand for gold and iron ore has increased.

However, the market is expected to witness significant growth during the forecast period as the Increasing use of electric machinery in underground mining and increasing demand for metals and commodities occupy a major share in the market. The increasing need for mineral fertilizers to improve agricultural yield, rise in construction of roads & railway tracks through hilly areas are expected to fuel the demand for mining activities in emerging countries such as India and China.

Ongoing digital mine innovation is expected to transform the key aspects of mining over the next few years. Increased investment, along with government support for the digital mine innovation, is expected to trigger the demand for mining equipment over 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.

Asia-Pacific is anticipated to be the largest market for mining equipment during the forecast period.

Rise In Use of Telematics In Mining Industry

Technological advancements and innovations are expected to drive the mining machinery industry growth. Several technologies that are revolutionizing the industry include automation, Internet of Things (IoT), 3D imaging, and plasma technology. These machines are developed using materials and technologies that can withstand high temperature and pressure. The machines are exposed to high radiation and chemical substances that can directly affect the functioning of the parts. The players in the market are focusing on such challenges and are developing machines that can be used for the extraction of specific minerals or metals.

The use of telematics in the mining industry has proven to be a game changer. Internet of things (IoT) sensors provide feedback to the fleet manager, which ensures lower downtime due to malfunctions and helps plan maintenance activities. With an increasingly competitive environment across all industries, companies are constantly looking for process optimization, which, in turn, has increased the demand for automation in the mining industry. Drones are being used for exploration and surveillance of mines.

Drones ensure that areas are clear before blasts, track post-blast fumes, and improve the overall safety of sites. BHP (Australia) has been using drones at its Australian mines for surveillance. Automation and teleoperation systems in the mining industry significantly improve productivity and safety. Thus, sales of new mining machinery synced with telematics solutions are expected to drive the mining machinery market.

Competitive Landscape

The Mining Equipment Market is characterized by the presence of numerous international and regional players, resulting in a highly competitive market environment. Major players in the mining industry are now providing on-site solutions like components and equipment repair and services that include part support and even data analytics support. Many competitors in the mining equipment market adopted acquisition and business expansion as their key developmental strategies to develop their geographical foothold and promote their product technologies.