Mining machinery market analytics

By propulsion, diesel-driven mining machinery is projected to dominate the market share
A new report on the mining machinery market projects a growth from US$24.8bn in 2023 to US$32.8bn by 2030, with diesel power continuing to dominate

The report provides valuable insights for market leaders and newcomers by offering approximate revenue figures for both the overall mining machinery market and its sub-segments. Stakeholders can gain a better understanding of the competitive landscape, enabling them to devise effective go-to-market strategies. 

The report also furnishes stakeholders with a grasp of the market dynamics, including key drivers, challenges, opportunities, and constraints.

The demand for minerals and metals driven by infrastructure development in developing countries is a significant factor propelling the mining machinery market. As easily accessible mineral deposits become scarcer, mining companies are compelled to explore and extract minerals from more challenging and remote locations. 

The need for specialised equipment fuels the demand for advanced mining machinery

According to the report, the growth of advanced mining equipment on a global scale is also attributable to the increased demand for various metals and commodities across various applications, including automotive, aerospace, transportation, energy and renewables, electronics, and semiconductor manufacturing. The rising demand for iron, copper, coal, graphite, lithium, gold, and other resources is expected to further boost the mining machinery market.

Emission regulations play a pivotal role in shaping the mining machinery market. Growing environmental concerns and heightened awareness of the detrimental effects of vehicular emissions have driven engine manufacturers to develop engines that adhere to emission norms. These regulations are likely to spur demand for alternative fuel-based mining machinery, such as CNG/LNG or hybrid or battery electric machines.

North America stands out as a dominant market in the mining machinery industry, primarily due to the high demand for mining machines in the US and Canada, where numerous active mines operate. The US's protectionist policies, which have increased the demand for domestically sourced minerals, are expected to further drive demand for mining equipment in North America.

Other positive factors, such as low interest rates, are poised to boost spending in the mining sector. Additionally, Canada possesses vast reserves of metals and minerals, exporting 60 mineral commodities globally. The country is a significant global producer of copper, nickel, cobalt, and hosts advanced mineral projects for rare earth elements, lithium, and graphite.

Consequently, the growing demand for these rare minerals has led to increased extraction activities in Canadian mines, contributing to the growth of the mining machinery market. The presence of mining giants like Barrick Gold, Teck Resources., and Agnico Eagle. is expected to create fresh growth opportunities for the mining machinery market, the report says.

The report offers an in-depth assessment of market shares, growth strategies, and service offerings of leading players, including Caterpillar (US), Komatsu (Japan), Sandvik and Epiroc (Sweden), and Liebherr (Switzerland), among others, in the market.

Diesel segment predicted to continue leading the market

By propulsion, diesel-driven mining machinery is projected to dominate the market share with more than 95% across all considered regions. This is mainly due to the benefits offered by these engines.

Diesel produces more torque at a lower speed compared to other fuels for the same power rating and combusts at a slower rate, hence resulting in better fuel efficiency. As it is a well-proven technology, diesel-operated machines are suitable to perform heavy-duty operations under harsh and rough conditions for long working hours in mining fields.

Further, to cut the harmful gases to remain aligned with the stringent emission regulations, global OEMs are incorporating hybrid engines which mainly require an additional battery and motor to work in parallel with diesel fuel. This will help in enhanced performance with lower emissions, thereby resulting in overall operational advantages.

Though engines based on CNG/LNG/RNG are growing at a significant pace, however, owing to proven performance delivery, easy accessibility, and infrastructural challenges related to other alternative fuel & pure electric propulsion, the market of diesel-operated mining machinery will remain in the leading position under the review period.

Mineral mining segment estimated to be the largest and fastest-growing

Minerals mining is projected to remain dominant and likely to grow at a higher rate for the application segment. The growth of the segment is mainly due to increased demand for metallic and non-metallic minerals such as iron, bauxite, copper, aluminium, gold, clay, limestone, gypsum, and sand among others in recent years.

With the constant depletion of numerous global mineral reserves, mining operators need to find and extract minerals from increasingly challenging and remote locations. To meet this specific demand, the advanced and sophisticated mining machinery would become beneficial to unearth potential mineral deposits in these hard-to-reach terrains, leveraging cutting-edge exploration technologies, including remote sensing satellite imagery and geological modelling.

Asian countries like China, Australia, and India are major players in mineral extraction along with some African and South countries such as South Africa, Chile, and Peru. Further, growing demand for pollution-free mobility solutions and the use of renewable resources would prompt the higher demand for these minerals which subsequently boost the growth of mining machinery in the years to come.

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