Major Shift in the Mining Equipment Market as Companies Move Towards Electrification, says Market.us
The future of mining will be transformed by digital mine innovation. During the forecast period, mining equipment demand will be triggered by increased investment and government support.
According to Market.us, “The Mining Equipment Market is projected to reach a valuation of USD 393.14 Billion by 2032 at a CAGR of 10.3%, from USD 147.5 Billion in 2021.”
Asia Pacific dominated the market, accounting for 34.7% of global revenue in 2021. The shift will drive market growth to cleaner energy resources and the adoption of electric cars in developing countries like India and China.
Anurag Sharma, a senior research analyst at Market.us, said, “Underground mining machinery electrification will be more common than surface mining machinery. Other underground mining machines like mining dozers or hydraulic excavators will also be more likely to become electrified in the forecast period.”
The COVID-19 crisis, which has swept the globe, had serious economic consequences for many industries, including the mining industry. The pandemic caused by the restrictions on economic activity had a significant impact on the demand for coal. The mining industry will become a climate-smart sector in the next few years. The mining companies now prefer electrification to traditional fuels such as diesel.
The United States is home to many commodities, including crushed rock, cement, gold, and iron ore. This industry is expected to grow due to rising demand for oil sands, coal, and gas as well as technological advancements. Caterpillar Inc. and Metso Qutotec are some of the major U.S. manufacturers.
Mining requires significant energy to extract and preserve resources. This includes various refining, concentration, and other processes. A decrease in copper ore grades has resulted in an increase in energy use and total material production. This has fueled the demand for high-performance mining equipment.
The incorporation of artificial intelligence (AI) into mining equipment can improve their efficiency, as well as increase productivity and safety. Globally, smart data and machine learning are being adopted in the mining industry. The technological advances are expected to boost the market demand over the forecast period.
For firms to stay competitive, the integration of automated technology into mining operations is expected to increase the demand for innovative mining equipment. These automated solutions and equipment are expected to be more in demand in developed markets, as advanced technology requires skilled labor and strong connectivity.
Increasing Demand For Metals and Minerals:
Through 2021, the global market for metals & minerals will grow at 6.7% per year. This corresponds to a market value of $1 trillion. The increasing demand for electronics and cars is the main reason behind the Mining Equipment Market’s growth. Companies will develop new mining technologies to meet the increased demand. This will result in an increase in the Mining Equipment Market.
Increasing Number of Mines:
Increasing gold prices and increased investment in mineral exploration projects are driving unprecedented growth in mining operations. The number of active mines will increase by more than 10% by 2021. This will lead to a need for a new Mining Equipment Market. In turn, this will stimulate growth in the entire industry.
Growing Efficiency in Mining Machines:
There has been a noticeable shift in recent years from manual labor-based mines to more automatic ones using heavy machinery from the Mining Equipment Market. This has resulted in greater efficiency in extracting materials, which has allowed miners to extract higher grades.
Telematics has been a game-changer in the mining industry. The fleet manager receives feedback from the IoT sensors, which helps to reduce downtime and plan maintenance activities. Companies are always looking to improve their processes in an ever-competitive environment. This has led to increased demand for automation in the mining sector. Drones can be used to monitor and explore mines. Drones can be used to clear areas before blasts and track post-blast fumes. They also improve safety at sites. BHP (Australia), has used drones in its Australian mines to monitor. The mining industry has seen a significant increase in productivity and safety thanks to teleoperation and automation. The mining machinery market will be driven by sales of new machinery, which can be synchronized with telematics.
Investments in the mining industry are the basis for the purchase of new machinery. This, in turn, depends on the economic situation worldwide. Because of their reliability and long life spans, countries like South Africa, Argentina, Peru, and others, are choosing to use used mining machinery. These machineries are exported to South America, South East Asia, the Middle East & Africa, as well as countries in South East Asia from developed North American and European economies. They have a lower cost than new mining machinery. This will likely hinder sales of new mining equipment.
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