The underground mining equipment market is poised for steady growth, projected to exhibit a moderate CAGR of 2.3% over the forecast period. Despite the lower growth rate, the market is expected to achieve significant milestones in terms of revenue generation.
In 2023, the underground mining equipment market is forecasted to reach a revenue of USD 16.37 billion. As the mining industry evolves and technological advancements continue to drive innovation, the market is positioned for steady expansion.
By 2033, the underground mining equipment market is projected to surpass the USD 20.55 billion mark, reflecting sustained growth and increasing demand for advanced mining solutions. Factors such as rising global population, urbanization, and industrialization are expected to fuel the demand for minerals and metals, driving the adoption of underground mining equipment.
The report indicates that manufacturers are gradually introducing automatic underground mining equipment to keep up with contemporary trends in the continually changing mining industry, which is resulting in technical revolutions inspired by the environment. Strict emission regulations in the mining sector, like those governing controlled diesel emissions and worker safety, are also likely to encourage innovation, allowing the industry to respond more skillfully to the sector’s constant price pressure while also minimising the environmental effects of new-generation underground mining machinery.
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The global community has long been concerned about the effects of advanced mining techniques on various socioeconomic factors. Concerns about human safety and environmental impacts have arisen as a result of the majority of miners’ transition from surface or open pit mining to underground mining.
Mineworkers’ Staunch Inclination towards Hard Rock Mining Equipment
FMI’s study finds that every 7 out of 10 underground mining equipment sold in 2021 were designated to applications associated with hard rock mining platforms. Increasing demand for hard rock minerals, such as copper, gold, zinc, and lithium, in wide-ranging industries has given rise to hard rock mining activities in the mining industry. Leading players in the underground mining equipment landscape are focusing on catering to the thriving need for improved productivity in underground hard rock mines with the launch of next-generation mining equipment.
In addition, conventional hard rock mining techniques result in the release of toxic gases including carbon dioxide (CO2), and Sulphur dioxide (SO2) among others, which is triggering the adoption of electric equipment in hard rock mines. In addition, the study finds that coupling of underground mining equipment that can carry out multiple operations including parallel cutting, loading, and hauling operations are likely to witness high demand in the coming years.
Visibly Growing Preference for ‘Rental’ over New
In rough terrains such as the mining industry, constant wear and tear of mining equipment lead to high replacement rates, incurring significant depreciation costs to the end users. As large mining machinery, including underground mining equipment, come with a significantly high price tag, purchasing a new equipment creates the need for high capital investments.
A majority of miners are inclined towards purchasing used or refurbished equipment, even considering the option of renting rather than investing in new underground mining equipment. Since a majority of mining businesses are looking for reducing their initial investments, rental service providers are likely to gain traction among in the coming years.
FMI’s study finds that more than half the revenue share is accounted by rental service providers in the underground equipment market. Increasing end user preferences for rental equipment are fostering the progression of this trend in the market. A mounting number of rental service companies are offering refurbished mining equipment that are specifically tailored to suit the requirements of the underground mining sector.
The FMI report also finds that leading stakeholders and investors in the underground mining equipment landscape are zooming in their strategic focus on providing rental service packages to suit changing needs of their customers, regarding the inventory of equipment.
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Underground Mining Equipment Market by Category
Product Type:
- Mining Loaders
- Mining Trucks
- Mining Drills
- Mining Bolters
- Mining Shearer
- Continuous Miners
- Mining Excavators & Shovels
- Mining Scalers
Mining Technique:
- Soft Rock Mining
- Hard Rock Mining
End Users:
- Mining Operators
- Rental Service Provider
Region:
- North America
- Latin America
- Europe
- East Asia
- South Asia
- Oceania
- Middle East & Africa
