Mining equipment market to reach $90 billion by 2027
The mining equipment market size is anticipated to record a valuation of $90 billion by 2027, according to the most recent study by Global Market Insights.
The rising demand for metals from manufacturing and construction industries is driving the market demand for several metals such as carbon steel, aluminum, stainless steel, copper, and iron.
The shifting trend toward automated machinery from manual processes to enhance the efficiency and productivity of mining operations will aid the demand for automated mining equipment over the forecast period.
COVID-19 led to an unprecedented downswing in all economic activities including mining operations, affecting the demand for mining equipment, and the sealing of international borders and restrictions on trade by several countries in Asia Pacific and Europe impacted the market demand mining equipment during the pandemic period.
However, the mining equipment industry witnessed growth from the second half of 2020 due to the government's stimulus for domestic infrastructure construction to support economic growth.
The crushing, pulverising & screening equipment segment in the mining equipment market is anticipated to witness a significant growth rate over the forecast period. It plays a vital role in hard rock crushing and their screening as per type in the mining areas. Additionally, the capacity of the equipment to reduce waste materials and solid raw materials into smaller sizes is creating ample amount of opportunities in the mining area.
In November, Metso Outotec Oyj expanded its crushing & screening equipment manufacturing facility in Alwar, India. The new factory is expected to start by early 2022 and has the ability to increase the total company's production value by 20% as compared to the current scenario.
The increase in the number of mining and construction projects in European countries is contributing to the remarkable usage of mining equipment. The government is taking several initiatives to strengthen the country's infrastructure as well as the construction sector.
For instance, in September, the UK government announced an investment of $866 billion for infrastructure development over the next ten years, boosting the demand for metal commodities, such as iron, steel, and aluminium, thereby driving the demand for mining equipment. Moreover, the rising requirement for metals, such as lithium, nickel, and cobalt, for the production of batteries and support electrification of vehicles will drive the demand for mining equipment in the region.
Large capital investments are required for mines to fully decarbonise, but certain measures, such as adopting renewables, electrification, and operational efficiency, are economical today for many mines, according to McKinsey.
"Another economically viable decarbonisation option is to electrify mining equipment, such as diesel trucks and gas-consuming appliances. Right now, only 0.5% of mining equipment is fully electric. However, in some cases, battery electric vehicles have a 20% lower total cost of ownership versus traditional internal combustion engine vehicles."
- Increasing demand for natural resources in several application sectors including automotive, manufacturing, and power generation is providing a positive outlook for the industry growth
- Increasing mining activities and growing demand for technically advanced mining solutions mainly in developing countries are estimated to fuel the industry growth over the forecast period
- The increasing need of hard rock crushers and their categorization is propelling the crushing, pulverising & screening equipment sale across the globe. Industry players are investing in R&D for new product innovations to attract potential business clients, supporting the mining equipment market growth.
- The integration of advanced technologies & features, such as digital control systems, telematics, and autonomous robotics, is creating a high demand for surface mining equipment. Market players' initiatives in developing efficient operator training systems and programs will further propel the segment growth.
- The proliferation of coal mining owing to increasing coal demand in the power sector and cement manufacturing companies is driving market growth for mining equipment. The integration of advanced technologies, such as telematics and autonomous operation, into coal mining drills will further propel the equipment sale.
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