Mining Equipment Market Predictions Exhibit Massive Growth by 2025
The Mining Equipment Market is projected to
grow at a CAGR of 5.40 % from 2018 to 2025. From a market size of USD 77.7 billion
in 2018, it is projected to reach USD 112.3 billion by 2025. With the increase in urban
population, there is a rising demand for commodities, especially in developing
regions. The recent increase in commodity prices has made mining profitable,
which is driving the market for mining equipment. The stringent emission
regulations to be implemented in North America, Europe, and Asia Oceania are
expected to increase the sales of new mining equipment. All these factors
together are projected to drive the demand for mining equipment in the coming
years.
Emission regulations to increase the
demand for new mining equipment
The
stringent emission regulations for off-Highway engines in Europe, North
America, and Asia Oceania are expected to
increase the demand for new mining equipment during the forecast period. The emission norms in North America and Europe are
more stringent compared to Asia Oceania. Mining equipment manufacturers
can utilize their experience in developed regions to provide regulation
compliant equipment in Asia Oceania.
Electric mining equipment: a game
changer for underground mining
In underground mining equipment, the fumes
generated by diesel engines are harmful to
the operators. Electric equipment offers
a cleaner environment for the operators as well as reduce the requirement of
expensive ventilations with filters. Electric mining equipment offers up to 80% efficiency compared to 40% of
diesel mining equipment. As the mining industry is significantly affected by
the margins, the use of electrical equipment is beneficial for miners.
Moreover, the maintenance cost of electrical mining equipment is lower.
Therefore, the operating costs associated with mining equipment are reduced
further. In a sluggish market, equipment manufacturers that offer more
efficient equipment will have increased
demand. With reducing battery costs, more underground equipment is expected to be electrified. Electric mining
equipment is the fastest growing segment
of mining equipment. Thus, electrical mining equipment offers a great opportunity for underground equipment manufacturers.
Autonomous mining equipment to grow
at a quick pace.
The autonomous mining equipment has been tested since 2008 by players such as
Komatsu and Caterpillar in sites such as Gabriela Mistral, Rio Tinto, and
Solomon. Mine operators are facing a problem of reaching an optimum balance
between the output received, cost incurred, and profit margins by adhering to
the government regulations/norms. As the mining equipment industry is directly
affected by the demand and pricing of the mining products, the margins with the
operators are quite low. Autonomous mining equipment solves these problems as they can work 24 hours, 7 days a week,
reduce human errors, and do not require humans to be present at dangerous
locations. This increases the productivity of miners and improves the safety of their human resources. According to
Caterpillar, large fleet of the 227-tonne-capacity (250-ton) trucks have
achieved a 20% productivity advantage over standard trucks working in an
Australian iron ore mine. As autonomous mining equipment offers many advantages of normal mining equipment,
they are projected to grow at a brisk rate. Major manufacturers can utilize
this opportunity to test and deploy more autonomous equipment and increase
their market share.
The key market
players are Caterpillar (US), Komatsu (Japan), and Sandvik (Sweden). These
players can use their expertise in manufacturing electrical mining equipment to
provide a wide portfolio of electrical mining equipment for developing
countries such as India and China. This
also provides them with a great opportunity to increase their revenue and gain
market share by way of expanding further into these countries or through joint
ventures and acquisitions of local companies.
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Detail Insight @ https://www.marketsandmarkets.com/Market-Reports/mining-equipment-market-99264577.html
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