Mining equipment market expected to reach $135 billion by 2025Mining and construction equipment
Worldwide sales are expected to grow approximately 5% annually until 2026, according to a study by Mordor Intelligence
In 2020, the mining equipment market was valued at US$98 billion, and is expected to reach US$135 billion by 2025, registering an annual growth rate of about 5% equivalent to the period from 2021 to 2026. The data is contained in the Mining Equipment Market survey – Growth, Trends, Codiv-19 Impact and Forecasts (2023-2028) carried out by Mordor Intelligence.
According to the research, COVID-19 pandemic has also affected the mining sector, but the market is expected to witness significant growth until 2028, since the increasing use of electric machines in underground mining and the growing demand for metals and commodities have an important market.
The increasing use of mineral fertilizers to improve agricultural yields and the increased construction of roads and railways in mountainous areas are expected to fuel demand for mining activities, particularly in countries such as India and China.
In addition, continuous digital mine innovation is expected to transform key aspects of mining for years to come. Increased investment and government support for digital mine innovation is expected to drive demand for mining equipment during the forecast period. Improvements and innovations in extraction technologies and equipment have contributed to improve ore grades, thus extending the useful life of older mines.
The report follows some segmentation criteria to forecast equipment demand, such as type, application, power train and geography of use. By type, the market is segmented into surface, underground and mineral processing mining machines. By application, the segmentation is on account of metal, mineral coal mining. Regarding power train, the divisions are for vehicles with IC motors and electric vehicles. By geography, the market is segmented into North America, Europe, Asia Pacific, and Rest of World regions. For each segment, market sizing and forecasting were done on a value basis ($ billion).
The prospect is that technological advances and innovations will drive the mining machinery industry growth. Several technologies that are revolutionizing the industry include automation, Internet of Things (IoT), 3D Image and plasma technology. These machines are developed with materials and technologies that can withstand high temperatures and pressures, as they are always exposed to high radiation and chemical substances that can directly affect the operation of parts. In this sense, market players are focused on these challenges, developing equipment that can be used to extract specific minerals or metals.
According to the study, Asia-Pacific should lead the demand for mining equipment until 2028. Many developing countries in the region have sizable coal producing areas and significant coal and metal mining industries that need a substantial level of capital investment. The growing demand for machines with lower emissions, low cost and high energy efficiency is being witnessed in the region.
With abundant deposits, the region offers a series of opportunities for mining companies, with significant scope to exploit bauxite, iron ore and coal. On the other side, North America will witness its growth rate due to the advancement of automotive technology, housing large deposits of copper, gold, and iron, which offer opportunities for exploration.
Research points to a growing availability of a lease-based model, which will encourage end users to employ advanced machinery. A rapid increase in construction activity and manufacturing production in China, along with government efforts to boost mine mechanization, have led to the rapid growth of the mining machinery market in the country. In addition, the Indian market is expected to witness steady growth due to increased mining production and a significant need for mine mechanization.
By: Santelmo Camilo