What is Mining Equipment and Machinery?
Mining equipment and machinery are utilized to extract geological materials such as copper, nickel, cobalt, gold, silver, lead, zinc, iron, diamond, and platinum, from the earth. These equipment and machines are used in the mining industry to perform digging, drilling, and loading activities. Other activities consist of friction, smelting, refining, and others. Mining equipment and machinery consist of mining drills & tools, earthmovers, crushing machinery & equipment, and feeding & transportation equipment. Mining equipment and machinery have become advanced with the aid of computerized remote-control equipment, high-tech operations, and complex machinery, which simplifies the extraction of metals and minerals from the ground process. Mining activity can vary depending on the type of metals and minerals to be extracted. Currently, two types of mining processes are extensively utilized, that is, surface mining and underground mining, with each mining process there are different mining equipment and machinery available.
Manufacturers of mining equipment and machinery offer better approaches and wide range of features in the equipment to boost production and amplify the performance of mining operations. Smart solutions offer features such as real-time control & monitoring, optimize production management, and improve the approach to decision making. Product development has pushed players to embed these advanced solutions into their products to amplify productivity and reliability in the processes of mineral extraction. For instance, Wipro Limited’s smart extraction technologies consists of advanced analytics, short interval monitoring, visibility of mobile assets, remote operation centers, automated job management, and a connectivity platform. Customers are able to enhance the return on investment (ROI) with the introduction of growing technologies in their mining equipment. These factors are expected to augment the market expansion.
Recent Trends in the Market
- Technology is becoming a vital differentiating factor for manufacturers and mining companies as digitization and automation are persistently becoming strong.
- Key players are aiming at cutting the cost of extraction and equipment maintenance.
- Moreover, the industry has observed a large scale adoption of different clusters of technologies, such as robotics & automation, smart sensors, and 3D printing, to improve operational efficiency. For instance, in January 2019, ABB Ltd. Rolled out the Ability Smart Sensor for assessing the condition of mounted bearings so as to avoid the downtime in mining during material handling.
- Requirement to offer environment-friendly equipment in response to the demand for a sustainable future is on the rise. There is a continuous shift to renewable energy, which has amplified the demand for a variety of minerals. This situation has allowed companies to improve their business to provide equipment, which are more productive and have a smaller environmental impact. For example, the advanced control technologies in the Autonomous Haulage System (AHS) of Komatsu Ltd. reduce fuel consumption, along with tire wear and emissions.
- The shift from underground to innovative and economical open pit mining is projected to augment the demand for mining equipment over the next few years. The mining industry needs a large amount of energy to extract and protect resources, consisting of a range of refining and concentration processes. Fall in the average copper ore grade has resulted in a rise in energy consumption and total material production, thereby augmenting the demand for high-performance equipment.
- Development of high-performance equipment has made it possible to extract ores of falling grades without increasing the costs. This trend is extensively perceptible in various steel manufacturing companies pursuing to enter the mineral exploration sector for securing their supplies of coking coal and iron ore at a convenient cost.
Scenario for Global Mining Equipment and Machinery Market
According to a detailed report published by Growth Market Reports (GMR), the global mining equipment and machinery market was valued at USD 95.0 Billion in 2019 and is projected to reach USD 140.3 Billion by 2027 expanding at a CAGR of 5.4% during the forecast period, 2020-2027.
The market is driven by factors such as growing consumption of natural resources, minerals such as copper, platinum, iron, gold, and silver are extensively used minerals in several applications. Moreover, gold and silver are precious metals utilized for manufacturing products such as jewelry, Olympics medals, and currency. Furthermore, cobalt, bauxite, lithium, zinc, and potash are utilized for several other applications. Rising consumption and utilization of these minerals is projected to drive the growth of market. Increasing demand for metals and commodities has resulted in rise of the need for mining activities. This, in turn, is expected to bolster the demand for mining equipment and machineries during the forecast period. However, implementation of strict government regulations and tariffs, fluctuating prices of raw materials, increasing demand for used equipment and local/unorganized players, and environmental and human rights concerns are estimated to restraint the market growth. Whereas, growing government initiatives for mining is anticipated to create lucrative opportunities in the market. Recent market trends consist of automation, digital mining, and utilization of IoT and AI for smart and effective operation management in the mining industry.
COVID-19 Impact on the Market
The coronavirus pandemic has led to havoc across the globe. It had pressurized the manufacturing industry to come at a halt. However, the market is slowly recovering. Manufacturers are including technologies to make the overall system less dependent on humans. Besides this, the industries are seeking for local players to meet their requirements.
The outlook of impact can be divided under the following possible scenarios:
- According to the optimistic scenario, the global mining equipment and machinery market is anticipated to remain under the massive impact of COVID-19 in the first quarter of 2020, and from the second quarter, the demand is expected to rise.
- Under the probabilistic scenario, the market is expected to remain under the strong influence of the crisis until the second quarter, and from the third quarter onwards, the situation will alleviate.
On the basis of products, the global mining equipment and machinery market is divided into crushing, pulverizing, and screening equipment, drills & breakers, mineral processing equipment, surface mining equipment, and underground mining equipment. The surface mining equipment segment is projected to account for a major share of the market, due to the high demand for these equipment and machinery, for the extraction of minerals such as non-metallic ore, metallic ore, and coal. Based on propulsion types, the market is segmented into diesel, gasoline, CNG/ LNG, and others. The diesel segment is estimated to hold higher market share, as it is extensively utilized in mining equipment and machinery due to its high density that makes diesel reliable propulsion for this equipment. In terms of applications, the market is segmented into coal, mineral, and metal. The metal segment held a major share of the market in 2019 due to the surging demand for precious metals such as diamond, silver, and gold and rising extraction of metal deposits.
In terms of regions the market has been fragmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific accounts for a major share of the market and is projected to retain its lead position during the forecast period. India, followed by Australia, accounted for a key share of the market, in terms of revenue due to relentless expenditure and rising infrastructure projects. The market in India provides a number of opportunities to market players, as there is substantial scope for exploring bauxite, iron ore, and coal. Moreover, the country’s booming real estate sector is anticipated to increase the demand for metal mining equipment and machinery, thus contributing to the regional growth in the market.
Competitive Landscape and Developments
Prominent players in the market include Caterpillar Inc., Komatsu Ltd., Hitachi, Ltd., AB Volvo, and Liebherr-International AG.
The prominent players in the market are utilizing strategies such as product launches, mergers & acquisitions, and contracts & collaborations. These strategies are expected to deliver effective goods and high-performance goods, supporting market laws, and better client satisfaction.
- For example, in April 2020, AB Volvo and Daimler Truck AG entered into a preliminary non-binding agreement for the establishment of a joint venture. The core aim is to develop, manufacture, and sell fuel cell systems for heavy-duty vehicle applications and other use cases.
- In June 2020, Caterpillar Inc. declared the acquisition of San Francisco-based robot and autonomy technology solutions company, Marble Robot, Inc. the company plans to leverage the high expertise of its latest team for offering scalable solutions that meet the evolving needs of constructions, quarry, industrials, and waste industries.