According to a new report published by Allied Market Research, titled, “Mining Equipment Market by Type, Application, and Solution: Global Opportunity Analysis and Industry Forecast, 2021–2030,” The global mining equipment market size was $125.2 billion in 2020, and is expected to reach $182.1 billion by 2030, growing at a CAGR of 4.6% from 2021 to 2030. In 2020, Asia-Pacific dominated the global market, in terms of revenue, accounting for about 58.9% share of the global market, followed by North America.
Mining equipment is used to dig and move heavy and bulky loads in mining industries. These include drill rigs, crawlers, crushing & processing equipment, dumpers, excavators, finishing equipment, graders, mixers, trucks, trenchers, loaders, and dozers. These are majorly used in surface and underground mining operations. Moreover, these are also used for lifting and shifting operations in the construction sector.
The key factor that drives the mining equipment market growth includes rise in mining activities to meet the demand for metal and minerals. Moreover, as compared to other regions across the world, the economy of Europe has drastically declined over the past couple of years, which has affected the mining industry.
The surface mining equipment segment accounted for the highest share of about one third of global mining equipment in 2020, and is expected to grow at a CAGR of 4.5% during the forecast period. In terms of application, the metal mining sector is expected to contribute for the highest mining equipment market share in the coming years. Moreover, increase in emphasis on the mineral mining sector is expected to provide wide growth opportunities to small players in developing economies.
Asia-Pacific serves as the most productive region as compared to others with diverse industry verticals significantly investing in mining equipment. Moreover, various domestic players are investing in the mining sector, which is anticipated to boost demand for mining equipment such as crushers, trucks, loaders, diggers, and others to complete operations with reduced labor cost and high precision of work within optimized time. Furthermore, the surface mining equipment market is expected to experience rapid growth in emerging economies during the forecast period, owing to deployments in construction and mining industries.
In 2020, Asia-Pacific registered the highest rate in the mining equipment, and is expected to continue this trend during the forecast period, owing to expansion of coal and metal mining in the region. For instance, in April 2017, Atlas Copco invested $13.4 million for expansion of its factory in Hyderabad, India, doubling its capacity. The plant manufactures drilling consumables for surface mining applications.
The major players, such as AB Volvo, Caterpillar Inc., Deere & Company, Doosan Corporation, Epiroc AB, Hitachi, Ltd., Komatsu Ltd., Liebherr-International AG, Metso Corporation, and Sandvik AB, focused on developing new products to strengthen their presence in the market. Moreover, these companies expand their business by acquiring small businesses to sustain intense competition. For instance, Epiroc acquired Mining Products (Proprietary) Limited, a South African manufacturer of rock reinforcement products for underground mining. Through this acquisition, Epiroc expanded its presence in South Africa.
Several manufacturers in the global mining equipment industry stopped their business activities due to lockdown implemented in developed and developing countries, owing to ban on construction activities. This halt in production activities impacted the revenue of the mining equipment manufacturing companies. For instance, net sales of Sandvuk AB dropped by 5.2% from January 2020 to December 2020. In addition, lack of man power and raw materials affected the supply chain of the global market. However, the market is projected to cover from the 1st quarter of 2021, due to the reduced restrictions and reopening of the global mining equipment industry. Moreover, in 2021 with the availability of vaccine against COVID-19, the global mining equipment is expected to gradually witness growth.
Key Findings Of The Study
- The report provides an extensive analysis of the current and emerging global mining equipment market trends and dynamics.
- By type, underground mining equipment segment dominated the market, in terms of revenue in 2020.
- By application, the metal mining segment registered highest growth in the global market in 2020.
- By construction, the products segment is projected to register the highest growth rate in the coming years.
- The report provides an extensive analysis of the trends and emerging opportunities of the market.
- In depth, the global mining equipment market analysis is conducted by constructing estimations for the key segments between 2020 and 2030.