The Global Mining Equipment Market Anticipated to Generate a Revenue of $170,718.3 Million, Growing at a CAGR of 6.5% from 2021 to 2028 - Research DiveDownload Sample Reports Overview
The global mining equipment market is estimated to be valued at $170,718.3 million by 2028, surging from $102,471.4 million in 2020 at a noteworthy CAGR of 6.5%.
Impact Analysis of COVID-19 on the Mining Equipment Market
The COVID-19 pandemic has severely impacted the economy and created a negative impact on the growth of the mining equipment market. The decline in growth during the pandemic is owing to supply chain disruptions that have led to delay in the availability of raw materials in most industries. The complete lockdown imposed across various countries has led to import-export restrictions. Many mining projects were postponed and some of the projects were cancelled, resulting in loss of jobs for many workers. Also, many well-known companies are facing financial crisis due to drastic decline in demand for mining equipment as the sites were closed for unprecedented time period. In addition, the GDP of many countries is badly affected as government is unable to collect taxes from the companies due to closure of manufacturing and production units, directly impacting countries’ GDP and global economy. In addition, due to huge revenue losses companies are unable to pay their employees on time and many workers are being laid off which has negatively impacted the growth of mining equipment market during the pandemic.
Several government and company initiatives for mining equipment projects during the pandemic are estimated to provide support to the manufacturers. The company initiatives such as workplace sanitization, maintaining social distance, complying with World Health Organization (WHO) guidelines, wearing safety equipment during work, and ease of access to the medical facilities are providing support to the workers during the pandemic. Across many countries, multinational mining companies have agreed to pay salaries of their permanent staff. For instance, in Australia many mining companies are providing extended paid leave support to their employees and contractors who are in self-isolation or have health issues. In South Africa, the Anglo America Corporation, a well-known mining company is paying basic salaries of all its 45,000 employees. Also, this company is paying medical and pension funds of its employees during lockdown. Furthermore, the government of some countries such as Canada, South Africa, Australia, Peru, Philippines, Peru, Brazil have declared mining exploration, process, and supply of raw materials needed for mining as essential service. Such initiatives are anticipated to generate lucrative growth opportunities during the forecast period.
Global Mining Equipment Market Analysis
The enormous growth of the global mining equipment market is mainly attributed to increase in demand for mineral fertilizers. Mineral fertilizers are used to replenish the soil, and nutritional content of mineral fertilizers is high compared to organic fertilizers. The important components of mineral fertilizers namely phosphate and potassium are obtained via mining process. For instance, phosphate is obtained from insoluble calcium phosphate rocks. Also, potassium is obtained from old sea and lake beds from millions of years. The mineral fertilizers supplement the natural soil nutrient content, compensate for the nutrients lost by plant products, improves and maintains good soil conditions. Phosphate is majorly obtained from phosphate rocks which is majorly obtained via mining from U.S., Africa, China, and Middle East. The potash ores are present in countries such as Russia, Belarus, Israel, Jordan, Canada from where it is obtained via mining. All these factors are anticipated to create a positive impact on the mining equipment market growth in the upcoming years.
The major growth restraints in the mining equipment are the export of used mining equipment and machinery to underdeveloped or developing countries. As purchasing of new mining equipment’s is costly, most of the countries such as South Africa, Peru, Argentina purchases used mining equipment that come at a lower cost. This factor is anticipated to hamper the market growth during the forecast period.
The latest technological advancements in mining equipment such as use of artificial intelligence (AI) and automated drones in mining are estimated to generate huge growth opportunities in the global market. The use of AI, smart data and machine learning provides operational efficiency, improves the production workflow, and enhances the mine safety. The use of AI facilitates mining processing and exploration activities. For instance, companies can find minerals with the help of high-performance AI technology. Also, they can use autonomous vehicles and drillers during mining such as self-driving trucks that can easily navigate through the narrow tunnels. Even the drilling systems are now simplified having only single operator that can handle multiple drill rigs at once. In addition, the use of automated drones or unmanned aerial systems during mining offers safety and surveillance in hazardous areas, provides time-lapse photographs of mines, helps in asset management & site mapping, as well as it can measure stockpile inventory. All these innovations are anticipated to generate huge growth opportunities in the mining equipment market during the forecast period.
Global Mining Equipment Market, Segmentation
The global mining equipment market is segmented based on mining type, end use, and region.
The mining type segment is further classified into surface, underground, and others. Among these, the surface sub-segment is anticipated to have a dominant market share and shall surpass $68,655.1 million by 2028, with an increase from $41,766.8 million in 2020. The surface mining technique offers several advantages and it is cheaper compared to the underground mining. The open pits obtained via surface mining can be brought into production quickly, they are safer, has low operating cost. In addition, once the surface mines are closed, they can be used as water storage areas, recreational facilities, creation of botanical gardens, shopping complexes, office parks, agriculture, and other activities which is anticipated to create a positive impact on the growth of surface sub-segment during the forecast period.
The end use sub-segment is further divided into metal, non-metal, and mineral. The metal sub-segment is estimated to register a revenue of $62,658.6 million during the forecast period. The metal mining can be classified into mining of industrial metals such as aluminum, palladium, steel, zinc, copper and mining of precious metals such as gold, platinum, silver. These precious metals are rare and have high economic value. The industrial metals are used across various industries such as construction, electronics, technology, manufacturing, and others.
The mining equipment market for the Asia-Pacific region is projected to witness rapid growth. This region generated a revenue of $33,590.1 million in 2020 and is projected to reach up to $58,607.6 million by 2028. The Asia-Pacific countries are actively involved in various mining activities and majority of bauxite, iron, nickel, copper, coal, silver, tin, and zinc are produced by Asia-Pacific countries. For instance, as stated on January 14, 2021, in NS Energy, the popular international magazine, Australia is one of the largest producers of Bauxite in the world and in 2019, the country produced 105 million metric tonnes of bauxite. China is the second largest bauxite producer in the world that has produced 68 million metric tonnes of bauxite in 2019. India has occupied 5th position and produced 26 million metric tonnes of bauxite in 2019. Furthermore, Asia-Pacific is one of the leading producers of coal in the world with China, Australia, and India being the largest coal producing countries. These factors are estimated to boost the growth of Asia-Pacific mining equipment market during the forecast period.
Key Players in the Global Mining Equipment Market
Some of the leading global mining equipment market players are –
- Caterpillar Inc.
- Komatsu Ltd.
- Volvo Group
- Terex Corporation
- Sandvik AB
- Deere & Company
- Hitachi, Ltd.
- Epiroc AB
- Doosan Corporation
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Mining Equipment Market
- Bargaining Power of Suppliers: The suppliers in mining equipment market have moderate bargaining power as these suppliers use their negotiating power to gain higher profit margin by selling different raw materials to the mining equipment manufacturers.
Thus, the bargaining power of the suppliers is moderate.
- Bargaining Power of Buyers: The buyers are attracted towards the use of technologically advanced mining equipment’s that can expedite the mining process and provide ease of operations. Such product advancements increase the cost of mining equipment.
Hence, the bargaining power of buyers is low.
- Threat of New Entrants: Startups entering this market requires high capital investment cost, labor cost, raw material cost, as well as they need to follow the government regulations and adhere to the exit barriers.
As a result, the threat of the new entrants is low.
- Threat of Substitutes: Some countries prefer purchasing used mining equipment’s as they have lower prices compared to the new equipment’s.
Therefore, the threat of substitutes is moderate.
- Competitive Rivalry in the Market: The ventures operating in the global mining equipment market are focusing on strategies such as partnership, advanced product development, and acquisition to stay ahead in the competition.
Therefore, competitive rivalry in the market is moderate.