What is the Reason for the Growth in the Demand for Mining Equipment?
The pandemic has immensely affected the mining activities all around the globe but will soon resume when the pandemic eases off eventually, since there is an extensive demand for natural resources in this rapidly evolving world. Mining equipment are exceedingly expensive and the process is perilous. The mining process requires absolute precision and should be done by a trained professional.
Mining is one of the foremost activities which favors heating and electricity generation in millions of homes around the world. Coal is widely used in the production of steel and to generate electricity using combustion. Coal is also used as an energy source in the cement industry. A great deal of metals and minerals are also extracted with proper mining activities in order to cater the increasing needs and demands of the people. Certain minerals extracted through mining are significantly valuable which further adds to the rising remand of the mining equipment. Therefore, the demand for mining equipment has witnessed a notable growth in the past few years. According to a report published by Research Dive, the global mining equipment market is estimated to generate a revenue of $170,718.3 million in 2021-2028 timeframe, growing at a CAGR of 6.5%.
Why is Mining Important?
Mining is carried out to extract a variety of earthly metals and minerals such as iron, cobalt, zinc, aluminum, diamond, uranium, silver, gold, copper, nickel, and so on, either from the earth’s surface or under the surface. These items extracted, notably has an immense demand in the market and is also used in a number of industries for making customized finished products like watches, jewelries, chandeliers, to name a few. This increases the demand for mining equipment. Different mining activities are performed using different mining equipment depending on the particular type of metal or mineral required to extract as some of them are indeed difficult and hence require specialized methods and tools. Some of the activities involved in mining are digging, drilling, milling, smelting, refining, and so on. And some of the mining equipment used for mining are mining drills, earth movers, crushing equipment, blasting tools, screening equipment, and so on.
Due to the ever-increasing population, there has been a consequent need and demand among the people for indigenous resources which are often obtained from mining of coal, iron, aluminum, and others. Thus, increase in consumption of resources led to increase in mining activities which further drives the demand for mining equipment. Farmers these days use mineral fertilizers in order to maximize and improve the overall quality of the crops. This additionally contributes to the growth of mining equipment market.
Impact of the COVID-19 on Mining Equipment
The pandemic has immensely affected the mining industry which led to a substantial decrease in the demand for mining equipment. Nation-wide lockdown led to the closure of the industries all around the globe which halted the production of mining equipment. This further disrupted its supply chain and distribution channel. Perpetuated lockdowns also stalled the technological innovations in the mining equipment which further resulted in the diminishing demand for mining equipment. The pandemic has led to the global financial crisis, unemployment and various other issues causing people to lose more money than ever before, and hence the demand for valuable materials like gold, silver, diamond, and so on came to a standstill. Moreover, repeated cancellation of mining projects and continuous travel restrictions imposed on the import-export of raw materials, further negatively impacted the demand for mining equipment.
Major Players in the Market
Some of the major player is the market are Caterpillar Inc., Deere & Company, Komatsu Ltd, Hitachi Ltd, Sandwik AB, Epiroc AB, Doosan Corporation, AB Volvo, Liebherr-International AG, Metso Corporation, and so on. In spite of the rigorous impact of COVID-19 on the mining equipment, the companies have enormously established their presence in the market with the help of their exemplary strategies on technological advancements, collaborations, and acquisitions. Significant advancements among the adoption of robotic machine lessens the human intervention and provides increased efficiency. Nowadays, companies have also started using three-dimensional modelling for depth perception of mining sites which further facilitates the entire mining process.
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