Mining Machinery Market Size, Share & Analysis

[359 Pages Report] The mining machinery market is projected to grow from USD 24.8 billion in 2023 to USD 32.8 billion by 2030 at a CAGR of 4.1%. The market is being propelled by a range of factors driving widespread adoption at the global level. The rise in the extraction of minerals, metals, and coal from mines is majorly contributing to the growth of the market. Autonomous mining trucks navigate predetermined paths precisely, reducing fuel consumption and human error while boosting safety and production volume. Electrification trends in the market in China, Japan, US and Europe are gaining traction with leading suppliers such as Komatsu, Caterpillar, Epiroc, and Sandvik.

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Market Dynamics

DRIVER: Increasing use of electric machinery in underground mining

The electrification of mining machinery remains a crucial driver of the mining machinery market, and the demand for electric equipment is increasing due to lower operating costs, improved safety, and reduced need for ventilation. This makes it a suitable choice for use in underground mining operations. Diesel engines produce a lot of heat, fumes, and noise, making working in these regions unbearable. In addition, by 2040, the International Council on Mining and Metals is looking forward to seeing surface mining equipment that does not emit greenhouse gases, driving the need for cleaner and safer machinery. Although this type requires a high initial capital investment cost, it takes less time to pay back than if one used diesel-driven machines, making it more economical. This allows manufacturers to leverage this shift by investing more in research and development (R&D) of batteries, charging infrastructure, and autonomous operations while partnering with miners who will provide a real-world testing environment for them. Such transitions are especially important in areas like the Asia Pacific region, the Americas, and Europe, where there is an escalating requirement for emission-free equipment driven by rising cooling costs and strict emission standards. Companies including Komatsu, Caterpillar, and Hitachi are involved in developing advanced versions of electric mining machinery, speeding up the electrification trend in the sector.

RESTRAINT: Export of used mining machinery to emerging economies

Due to the increased mining activities, there is a growing demand for mining equipment in all emerging economies. These emerging economies have budget constraints and look for cost-effective options due to limited capital for initial investment purposes. Countries such as South Africa, Argentina, and Peru, to name a few, generally opt for used mining machinery since they have a reliable life cycle if appropriately maintained. Used mining equipment offers a more affordable alternative to new machinery, especially for businesses with limited capital. When looking for a cheaper option for heavy machinery and other tools, used mining equipment is more budget-friendly than new equipment for those with restricted financial resources—as such, buying a second-hand device much quicker than its brand-new substitute is possible, which implies less idleness. One can get used drills, loaders, trucks, and processing plants from the market and sell them, as they still have quite some years remaining if taken care of well. Companies offer used mining equipment for all types of mining machinery. For instance, Machinery & Equipment Co., Inc. provides a platform to buy and sell used machinery. Also, Komatsu and CAT are some of the leading companies offering used equipment for their users. The export of used mining machinery to emerging economies creates a challenge for the new mining equipment market, as many businesses in these regions choose more affordable second-hand options, reducing the demand for new machinery.

OPPORTUNITY: Use of autonomous mining machinery

Various sectors have adopted autonomous vehicles, including mining, construction, and agriculture. Autonomous vehicle technologies leverage advanced AI capabilities, GPS systems, and sensor networks to reduce the manual labor users need. The oil, gas, and mining industries operate under harsh environments with very high or low temperatures, excessive pressure levels, poisonous gases, and unruly terrains that may endanger people working there. The use of autonomous machines (which do not require on-site human presence) in these danger zones helps combat such risks and ensure uninterrupted work, even in areas that are too dangerous for workers to exist. Thus, manufacturers are developing self-driving mining machinery that wirelessly transmits its condition status reports, executes commands from a distance, and jams radio frequencies from other instruments. For instance, Hitachi's construction machinery designs autonomous technologies to make mining safer, more efficient, and more productive for large-scale hydraulic excavators and dumpers. They have also developed remote-controlled systems and an Autonomous Haulage System (AHS), which can be installed on up to 100 truck systems. Other key players in this sector include Caterpillar Inc. (USA), Volvo Construction Equipment (Sweden), and Komatsu Ltd.(Japan), which manufacture automated mining trucks for several destinations across the globe. The availability of autonomous equipment in mining is an excellent opportunity to improve safety and economic efficiency and reduce operation costs while motivating innovations within the machinery sector.

CHALLENGE: Lack of standardization in mining machinery

The lack of standardization in mining machinery presents a significant challenge for manufacturers, particularly when meeting emissions standards across various regions. Since each region has its regulatory regime, like Stage V in Europe and Tier 4 final in the US, it complicates the machines' designs, manufacture, and approval. Manufacturers are, therefore, forced to produce different versions of the same machinery to adhere to these varying standards, increasing production costs and reducing their chances of benefiting from economies of scale. The absence of common technical standards complicates the international supply chain, making it hard for manufacturers to buy assorted components for specific markets. This makes it expensive for both maker and user alike, limiting the number of products available in the market while raising prices. Inconsistencies between regulations, especially in regions like the EU, where rules vary between member states, create delays in product launches and market entry. As a result, the ability of mining machines to be exported is significantly reduced, while cross-country usage is also limited.

New after-treatment systems required to meet strict emissions standards complicate matters and make machine production much more expensive. The costs of adhering to these regulations are challenging for smaller producers since their production capacity is rarely large enough to balance compliance costs. Overall, the lack of standardization in mining machinery hampers innovation, increases costs, and reduces market growth potential, making it difficult for manufacturers to operate efficiently across multiple regions.

Mining Machinery Market Ecosystem.

The major players in the mining machinery market have the latest technologies, diversified portfolios, and strong distribution networks globally. The major players in the market are Caterpillar Inc (US), Komatsu Ltd (Japan), Sandvik AB (Sweden), Epiroc AB (Sweden), and Liebherr (Switzerland).

Bill of Materials in Mining Machinery (%), 2021 vs. 2030

The BOM provides a structured breakdown of the equipment's composition, including quantities, specifications, and supplier information for each item. Depending on the type of mining machinery, the percentages in the bill of materials may change, but steel is typically used most frequently in mining machinery.

“Electric and Hybrid mining trucks are estimated to hold the largest market share.”

For several reasons, the market share of electric and hybrid mining trucks, like dumpers and tipper trucks, is bigger than that of electric and hybrid LHD dumpers. In surface and underground mining operations, these trucks move massive quantities of materials, which makes them very advantageous because of their diesel engine-electric battery combination. While diesel fuel is saved and emissions are reduced during use, it is helpful in underground areas where ventilation is very important. When required, they also deliver extra power, increasing performance and productivity; furthermore, they decrease noise levels, making it easier on long shifts for operators. Conversely, electric and hybrid LHD dumpers are more efficient and save costs, but they are intended for very specialized activities underground and have low ventilation costs. Therefore, the wider use and benefits of electric and hybrid mining trucks lead to their more significant underground mining equipment market share.

Major companies that offer electric dump trucks include Komatsu Ltd. (Japan), Caterpillar Inc. (US), Epiroc AB (Sweden), and Sandvik AB (Sweden). Other than this, in August 2022, Vale (Brazil), in partnership with XCMG Mining Machinery Co., Ltd., a subsidiary of Xuzhou Construction Machinery Group Co. Ltd. (XCMG), tested its 100% electric mining truck in the mines of Agua Limpa located within Minas Gerais and Sorowako found in Indonesia. Therefore, electric and hybrid mining trucks are gaining significance due to their broader applications, including fuel savings and reduced emissions, especially in surface and underground mining. Their flexibility and enhanced performance are key factors that make them better preferred over electric and hybrid LHD dumpers.

“Lithium iron phosphate battery chemistry type is estimated to lead the electric and hybrid mining machinery market.”

Lithium iron phosphate (LFP) batteries are estimated to lead the electric mining machinery market, according to battery chemistry, during the forecast period. Unlike nickel manganese cobalt (NMC) batteries, LFP batteries use phosphate as their cathode material, which offers high electrochemical stability, better temperature resistance, and lower charge flow resistance. Consequently, some positive outcomes are higher efficiency, greater safety, and longer cycles. One reason LFP batteries are cheaper than others is that they use readily available raw materials that are less costly to manufacture. This has attracted some big names in the industry, such as Caterpillar Inc., Sandvik AB, and Sany Group, who have started using LFP batteries in their mining trucks and loaders, further expanding their market share. Even though LFP batteries possess a lower energy density, meaning they will occupy more physical space to store the same amount of power, their longevity characteristics, fast charge times, and low servicing requirements explain why they are the most preferred choice by mining firms.

“Surface Mining is speculated to hold the largest share of the autonomous mining machinery market .”

By 2030, the surface mining segment is expected to dominate the market for autonomous mining machinery. One of the driving factors is that surface mining is much safer and friendlier and, therefore, more accessible to mine than underground. Compared to conventional machines, this equipment can perform much better, with improvements between 40% and 80%. For instance, Scania AB and Rio Tinto have joined forces to create autonomous haul trucks to improve efficiency and reduce emissions at their Channar site. Hexagon has partnered with Liebherr in a similar move towards mining automation. There are various reasons why this trend must continue; enhanced efficiency (faster operations), safety (no human intervention), and reduced operational risks (since they work round-the-clock) all form the fundamental basis of why these vehicles' tractions on these terrains should pick up. Surface mines will likely expand rapidly as more businesses come on board to use such technology.

“Asia Oceania is predicted to be the largest market for mining machinery.”

Asia Oceania leads the global mining machinery market, with China, Australia, India, and Japan driving demand. In 2023, China and Australia accounted for >60% of the region's market share. This dominance is due to the high number of active mines and the increased exportation of unused mines. The area is seeing a growing need for metals and minerals, driven by industrial and infrastructure development. India, for instance, has abundant mineral reserves of bauxite, iron, chromite, and more, with the mineral processing equipment market driven by government regulations and domestic demand. The government owns about 70% of mining companies in India. As surface deposits are exhausted, the demand for underground mining equipment increases. Some major global players such as BEML, Caterpillar, and Hitachi have installed their manufacturing units and entered Joint Ventures with local counterparts in India.

With considerable lithium resources in batteries for electric vehicles (EVs), mine workings in China have raised expectations about the need for sophisticated machines. Also, there is a rising demand for minerals such as coal, copper, and gold, but a few pressurizes mining firms to modernize their extraction processes to boost efficiency. Many top mining equipment manufacturers are based in Asia Pacific, supporting the production of innovative machinery. Strict emission standards in China, India, and Japan encourage a shift toward electric equipment, offering zero-emission alternatives. The region's growth is also supported by economic factors such as decreasing battery costs and long-term savings from electric operations.

Some of the major players are Caterpillar Inc (US), Komatsu Ltd (Japan), Sandvik AB (Sweden), Epiroc AB (Sweden), and Liebherr (Switzerland)

Key Market Players

The mining machinery market needs to be more cohesive. Caterpillar Inc. (US), Komatsu Ltd. (Japan), Sandvik AB (Sweden), Epiroc AB (Sweden), and Liebherr (Switzerland) are the key companies operating in it. These companies adopted new product launches, partnerships, and joint ventures to gain traction in the market.

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Scope of the Report

With the given market data, MarketsandMarkets offers customizations per the company’s specific needs.

The study segments the mining machinery market:

By Machinery Category

• Crushing, Pulverizing, Screening Machinery
• Mineral Processing Machinery
• Surface Mining Machinery
• Underground Mining Machinery

By Application

• Metal
• Mineral
• Coal

By Power Output

• < 500 HP
• 500 – 2,000 HP
• > 2,000 HP

By Propulsion

• Diesel
• CNG/LNG/RNG

By Electric & Hybrid Mining Machining Market, By Type

• Electric & Hybrid Mining Trucks
• Electric & Hybrid Load Haul Dump Loaders (LHD)

By Electric & Hybrid Mining Machining Market, By Battery Chemistry

• Lithium Iron Phosphate Battery (LFP)
• Nickel Manganese Cobalt Battery (NMC)
• Others

By Autonomous Mining Machining Market, By Mining Category

• Surface Mining
• Underground Mining

By Region

• Asia Oceania
• North America
• South America
• Europe
• Middle East & Africa

Recent Developments

• In June 2023, Caterpillar Inc. announced the launch of the new Cat 995 Wheel Loader, which increased up to 19% productivity from the previous model and a 6% increase in hydraulic force with equal hydraulic cycle time. Also, it delivers up to 13% lower hourly fuel consumption and offers an additional 8% efficiency gain.
• In May 2023, Epiroc AB launched a new flagship radio remote drill rig named SmartROC T25 R. This compact drill rig is designed for construction and quarrying and has several valuable features and technologies.
• In May 2023, Sandvik AB (Sweden) expanded its battery center of excellence in Camarillo, California, to strengthen its position as underground mining's leading battery-electric innovator. This phased expansion benefited the company by increasing battery production and testing space and adding more R&D to improve its battery and charger technology development. It also added warehouse and office space and increased the site's training and touring capabilities for customers.
• In April 2023, Epiroc AB acquired a South African mining equipment manufacturer. AARD designs and manufactures a wide range of mining equipment, specializing in low-profile underground machines for mines with low mining heights. It also provides services and support to its customers.
• In May 2022, Caterpillar Inc (US) acquired Tangent Energy Solutions (US), an energy-as-a-service (EaaS) company. Tangent Energy Solutions offers customers complete turnkey solutions for lowering energy expenses, raising energy effectiveness, reducing emissions, monetizing assistance for the electric grid, and ensuring operational resilience. With Tangent Energy, the acquisition was made to create new revenue streams. Caterpillar's extensive lineup of electric power supplies is complemented by Solution's EaaS services, providing. Caterpillar Inc. can better serve its customers with dependable, effective, sustainable, and connected power solutions that support business operations.
• In January 2022, Hitachi Construction Machinery Co., Ltd. announced the launch of ConSite Mine to the global market. It is a service solution that provides machine analytics to help resolve issues at mining sites. It uses IoT to monitor mining machinery remotely 24 hours a day and AI to analyze its operational condition

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