According to a new report published by Allied Market Research, titled, “Mining equipment Market by Type, Application, and Region: Opportunity Analysis and Industry Forecast, 2020–2027,” the mining equipment market size was $121.7 billion in 2019, and is expected to reach $165.8 billion by 2027, growing at a CAGR of 5.7% from 2020 to 2027. In 2019, Asia-Pacific dominated the global market, in terms of revenue, accounting for about three-fifths of the global mining equipment market share, followed by North America.
Mining equipment is used to dig and move heavy and bulky loads in mining industries. They include drill rigs, crawlers, crushing & processing equipment, dumpers, excavators, finishing equipment, graders, mixers, trucks, trenchers, loaders, and dozers. They are majorly used in surface and underground mining operations. Moreover, they are also used for lifting and shifting operations in the construction sector.
The key factor that drives the mining equipment market 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 shrunk over the past couple of years, which has affected the mining industry.
The surface mining equipment segment accounted for the highest share of about 30.5% in the mining equipment market in 2019, and is expected to grow at a CAGR of 4.8% during the forecast period. In terms of application, the metal mining sector is expected to contribute for the highest 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.
COVID-19 is swiftly spreading across various countries and regions, initiating huge impact on lives of people and overall community. Beginning as a disaster to human health, it now poses substantial threats to the global trade, economy, and finance. Additionally, this pandemic has shut-down making of several types of mining equipment, due to continued lockdown in foremost countries which includes the U.S., China, India, Australia, Africa, and Latin America. This has hindered development of the global mining equipment market significantly from the past few months, which is expected to last during 2020 and half of 2021. Further, this epidemic has already negatively influenced sales of mining equipment in the first quarter of 2020, and is expected to create an adverse impact on development of the mining equipment market all over the year.
In 2019, Asia-Pacific registered the highest rate in the mining equipment market, 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.
The global mining equipment market is segmented on the basis of equipment type, application, and region. By type, it is categorized into mineral processing equipment (portable and stationary), surface mining equipment (articulated dump truck, crawler dozer, crawler excavator, and others), underground mining equipment (hydraulic excavators, mining dozers, underground haulers, and others), mining drills & breakers, crushing, pulverizing, & screening equipment (stationary, portable), and others. By application, it is segmented into metal mining, mineral mining, and coal mining. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key Findings Of The Study
- By application, the metal mining segment dominated the global mining equipment market in 2019.
- On the basis of type, the surface mining equipment segment is expected to generate high revenue throughout the study period.
- Region wise, Asia-Pacific dominated the market in 2019, and is expected to continue this trend throughout the forecast period.
- LAMEA is expected to witness a high growth rate during the forecast period.
The key market players profiled in the report include AB Volvo, Caterpillar Inc., Deere & Company, Doosan Corporation, Epiroc AB, Hitachi, Ltd., Komatsu Ltd., Liebherr-International AG, Metso Corporation, and Sandvik AB.