May 24, 2024

The Mining Equipment Market Is Expected To Be Driven By Increasing Demand For Metals And Minerals

Mining equipment refers to heavy machinery and vehicles used for the extraction of minerals and ores from the earth. Some key types of mining equipment include excavators, loaders, dozers, drilling machines, hauling trucks, and crushing, grinding, and separation equipment. The equipment is used extensively across coal, metal, mineral, and quarry mining. Metal mining accounts for the largest share as equipment is used for extracting iron ore, copper, nickel, bauxite, and other metals. Coal mining also utilizes a wide variety of surface and underground mining equipment.

The global Mining Equipment Market is estimated to be valued at Us$ 145.47 Bn in 2024 and is expected to exhibit a CAGR Of 3.3% over the forecast period 2024 To 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Increasing Demand for Metals and Minerals – The mining equipment market is driven by robust demand for metals and minerals across various end-use industries such as construction, automotive, manufacturing, and power generation. Rising population and urbanization in developing nations are boosting infrastructure development, thereby augmenting commodity demand. New metal and mining projects aimed at meeting this rising demand will catalyze equipment procurement.

Rising Coal Demand –

 

Coal remains a heavily utilized fuel globally, driven by its affordability and export demand from countries lacking domestic production. Continued coal mining to feed power plants and industrial activities will foster demand for mining machinery used in surface and underground coal extraction over the forecast period. Various countries are expanding coal production to fulfill their growing energy needs as well as for export purposes.

Segment Analysis

The global mining equipment market is dominated by surface mining equipment sub segment. Surface mining accounts for over 70% of the total mineral production globally. Surface mining equipment are preferred over underground mining equipment as surface mining is much safer and produces higher volume of minerals or metals in less time as compared to underground mining. Surface mining equipments include excavators, haul trucks, dozers, graders and other heavy machineries which are used for excavation and transportation of minerals and rocks in surface mining operations.

PEST Analysis

Political: Mining industry is governed by variety of regulations around the world. Changes in mining laws and environmental regulations by governments impact demand for mining equipment.

Economic: Demand for mining equipment is dependent on global commodity prices and investment in mining projects. During economic slowdown, mining companies curtail their capital expenditure which impacts equipment procurement.

Social: Acceptance of new mining projects by local communities is a challenge faced. Growing importance given to health, safety and environment standards increases procurement of technologically advanced safe equipment.

Technological: Adoption of autonomous equipment, IoT, telematics and analytics solutions help improve efficiency, reduce costs and enhance safety. 3D printing finds increasing usage for spare parts manufacturing.

Key Takeaways

The Global Mining Equipment Market Demand was valued at US$ 145.47 Bn in 2024 and is expected to grow at a CAGR of 3.3% during forecast period to reach US$ 191.32 Bn by 2031.

Asia Pacific region dominates the global mining equipment market currently. China, India and countries in Southeast Asia are major mining hubs driving high equipment demand in the region. Countries like Australia and Brazil are also major mining nations contributing to market growth.

Key players operating in the mining equipment market are Caterpillar Inc., AB Volvo, Komatsu Ltd., Sandvik AB, Liebherr-International AG. Caterpillar Inc. is the largest player globally with wide range of equipment offerings. Komatsu and Hitachi are also major players focused on surface mining machinery. Sandvik and Liebherr also have significant presence specialized in underground mining equipment.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it