Underground Mining Vehicle Market Expected to Reach $53.7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Underground Mining Vehicle Market," The underground mining vehicle market size was valued at $33 billion in 2022, and is estimated to reach $53.7 billion by 2032, growing at a CAGR of 4.9% from 2023 to 2032.

The underground mining vehicle is specially designed machinery to transport rock material safely, and efficiently in extreme conditions and their usage is in the mining operations. These equipment are used for different functions such as drilling, hauling, tunneling, compacting, and excavation of materials below the surface of the earth. It has various applications in construction, mining, and others.

The rise in demand for the construction of infrastructure such as subways, tunnels is expected to boost the growth of the market. In addition, increasing applications in construction activities of underground roadways, railways, and mining are driving the demand for underground mining vehicles. For instance, in May 2021, the Hudson tunnel Project is a part of the Gateway Program, developed to overhaul the aging New York City regional rail infrastructure. The Gateway program, which costs $1.8 billion to upgrade the existing North River Tunnel and $9.8 billion to build a new tunnel, increased in costs 2.4% over the past year due to delays, according to the Gateway non-profit. This factor is expected to boost the underground mining vehicle market. For different types of construction activities, there are different kinds of underground mining vehicles such as tunneling equipment, excavators, dozers, load and haul equipment, underground utility vehicles, and others. Among these hydraulic excavators accounted for the highest market share, which is used in the construction of tunnels, mining, and others. By propulsion type, the market is bifurcated into ICE and Electric. Out of these, the ICE segment accounted for the largest market share in 2022, and the electric segment is expected to grow with a significant CAGR during the forecast period.

By application, the market is categorized into metal mining, mineral mining and coal mining.  The metal mining segment accounted for the highest market share and the mineral mining segment is anticipated to grow at a significant CAGR.

In 2022, Asia-Pacific accounted for the highest share in the underground mining vehicle market share, in terms of revenue. Moreover, the market in LAMEA is anticipated to grow at the highest CAGR during the forecast period.

The market is mainly driven by the rise in investments in the infrastructure and expansion of mining activities is expected to boost the growth of the market. However, high investment costs impact the growth of the market. On the other hand, technological advancements in underground mining vehicle are expected to provide growth opportunities in the market.

Major players are adopting various strategies such as product launch and acquisition to sustain the intense competition and improve the product portfolio. For instance, in December 2022, Komatsu Ltd. acquired GHH Group GmbH, which is a leading manufacturer of underground mining, tunneling and special civil engineering equipment with its headquarter in Gelsenkirchen, Germany.

 The underground mining vehicle market has witnessed significant growth over the past decade, owing to rise in investment in various end-user industries such as underground mining and others. A number of players are expanding their business globally, owing to increased customer base, enhanced effective operations, developed product portfolios, and expanded geographical reach. This is anticipated to fuel the global underground mining vehicle market growth.

Key Findings Of The Study

• The report provides an extensive analysis of the current and emerging global underground mining vehicle market trends and dynamics.
• By type, the hydraulic excavators segment has dominated the underground mining vehicle market, in terms of revenue in 2022 and underground haulers are projected to grow at a significant CAGR during the forecast period.
• By application, the metal mining segment has registered the highest revenue in 2022 and the mineral mining segment is anticipated to grow at a significant CAGR during the forecast period.
• By region, Asia-Pacific is projected to register the highest growth rate in the coming years.
• The key players within the global underground mining vehicle market are profiled in this report, and their strategies are analyzed thoroughly, which helps understand the competitive outlook of the underground mining vehicle industry.
• The underground mining vehicle market forecast analysis from 2022 to 2032 is included in the report.
• In-depth global underground mining vehicle market analysis is conducted by constructing estimations for the key segments between 2022 and 2032.