Mining Automation Market Size, Share & Growth

Updated on : October 23, 2024

Mining Automation Market Size & Growth

[262 Pages Report] The global mining automation market size is expected to grow from USD 3.6 billion in 2024 to USD 5.1 billion by 2029, growing at a CAGR of 7.2% from 2024 to 2029. Significant potential opportunities are presented by the introduction of smart connected mines, which are being propelled by the digital transformation of the global mining industry. Benefits from mining automation include increased worker safety and improved uptime. For instance, mining supervisors can collect, monitor, and analyze large amounts of data from staff and equipment using remote operating systems and fleet management. This helps them make well-informed decisions. Consequently, this allows mining businesses to streamline their operations and cut expenses.

Mining Automation Market Size and Forecast to 2029

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Mining Automation Market Trends

DRIVERS: Rising demand for fleet management systems

The market for connected mining fleet management is experiencing growth driven by rising demand for resources and minerals due to population growth and industrialization. Mining operations are expanding to meet this demand, with connected fleet management solutions playing a crucial role. These solutions help mining firms reduce expenses, enhance planning and decision-making, and improve operational efficiency. The market's growth is further fueled by technologies such as the Internet of Things (IoT), automation, and machine learning, which enable real-time data collection and transmission. These advancements contribute to increased mining equipment performance, allowing for higher output with reduced resource consumption and improved safety. Overall, the mining fleet management system market is evolving to leverage the potential benefits of automation and machine learning in various operational aspects.

RESTRAINTS: Rise in the exhaustion of natural resources

The depletion of natural resources through mining poses considerable apprehension, giving rise to environmental degradation and the destruction of habitats. The release of carbon dioxide and other greenhouse gases is a consequence of mining activities, which results in the disruption of biomes and erosion. These processes contribute to enduring ecological harm, emphasizing the critical need for sustainable mining practices to mitigate environmental impact and preserve ecosystems. Further, the overexploitation of natural resources has resulted in the exaction of lower ore grades. Moreover, the decreasing volume of resources has raised serious concerns among mining companies.

OPPORTUNITIES: Rising adoption of digitalization in the global mining industry

In recent years, in order to increase productivity and safety in mining activities, the adoption of digitization can be seen growing. Through digitization, mining companies are focused on three key aspects. First, implementing digital technologies enables the use of autonomous vehicles and equipment, such as autonomous haul trucks and tunneling equipment, in the mining industry. In both surface and underground mines, using unmanned autonomous vehicles in remote operations reduces operator risk and allows for process optimization. Secondly, digitization in mines helps stimulate a digitally enabled workplace by integrating connected equipment with advanced tracking and monitoring solutions. This allows effective remote control of operations. Finally, digitization triggers the application of smart algorithms and AI to analyze the massive amount of data generated from connected equipment and deliver actionable insights to mine supervisors or operators to make informed decisions, thereby improving productivity and increasing equipment uptime.

CHALLENGES: Absence of skilled workforce to operate automated mining equipment

The mining automation industry faces a significant challenge due to the need for a more skilled workforce to operate automated mining equipment. The mining automation technology can improve productivity, safety, and efficiency. Still, it poses some challenges for the mining industry, such as requiring high initial investment and maintenance costs for the equipment and infrastructure, facing technical and operational risks, demanding new skills and competencies for the workforce, and impacting social and ethical aspects. Further, the increasing use of automation in the mining industry creates a skill gap in the present labor pool. Since automation is expected to replace the job of mine workers with automated equipment in the coming years, it also creates new job opportunities requiring a particular set of skills.

The Mining Automation Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers such as Caterpillar (US), Komatsu Ltd. (Japan), Sandvik AB (Sweden), Epiroc AB (Sweden) and Hitachi Construction Machinery Co., Ltd. (Japan). These companies have been operating in the market for several years and possess a diversified product portfolio and strong global sales and marketing networks. Along with the well-established companies, there are a large number of small and medium companies operating in this market, such as Autonomous Solutions, Inc. (US), MST (Australia), Symboticware Inc. (Canada), and Micromine (Australia), among others.

Mining Automation Market Share

Software segment is expected to grow with significant CAGR during the forecast period.

Mining firms face challenges due to several issues, including reduced tonnage per shift, growing inhospitality of mines, and rising operation expenses as mining operations become more complicated. Companies are using software solutions like workforce management and fleet management systems more frequently to address these problems and enable better decision-making based on real-time data tracking and analysis. The software segment market has been further divided into fleet management, workforce management, data management, air quality and temperature monitoring, remote operating and monitoring, proximity detection and collision avoidance, and other markets (payload monitoring and asset tracking).

Mining Automation Market Regional Analysis

The market in Asia Pacific is projected to hold the substantial market share from 2024 to 2029.

Mining Automation Market by Region

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The mining automation market share in Asia Pacific has been studied for Australia, China, India, and the Rest of Asia Pacific. Asia Pacific is host to vast natural resources that are dispersed among the countries that are part of it. According to estimations, Asia Pacific will surpass other regions as the world's most extensive mining automation technology and equipment market. The usage of automated mining equipment by significant exploration and mining corporations such as Rio Tinto (UK), FMG (Australia) Group, and BHP Billiton (Australia) is the cause of this development. Additionally, several mining corporations in Australia's Western area already utilize automated mining equipment at their mine sites. Further, mining corporations worldwide have made significant investments due to the growing digitization of mines and the globalization of economies.

Australia’s mineral resources have been essential in building and developing its economy. The Australian mining sector possesses significant geological information about the region, advanced exploration techniques, efficient mining and processing technologies, a skilled workforce, and low population density. Such critical factors have helped the Australian mining ecosystem to grow at a significant rate.

Top Mining Automation Companies - Key Market Players:

• Caterpillar (US),
• Komatsu Ltd. (Japan),
• Sandvik AB (Sweden),
• Epiroc AB (Sweden), and
• Hitachi Construction Machinery Co., Ltd. (Japan)  are among a few top players in the mining automation companies.

Mining Automation Market Report Scope :

Mining Automation Market Size Highlights

This research report categorizes the mining automation market size by offering,  Trends, technique, and workflow.

Recent Developments in Mining Automation Industry: 

• In November 2023, Sandvik has secured a substantial order for underground mining equipment from Jimond Mining Management Company (JMMC), a subsidiary of the Chinese mining services provider JCHX Mining Management Co., Ltd. The equipment is slated for use in the Kamoa-Kakula copper mine in the Democratic Republic of the Congo.
• In October 2023, Epiroc AB received a contract from one of the largest underground mining Australian contractors, Byrnecut. The contractor has placed an order for a fleet of Minetruck MT65 S haulers. These vehicles are designated for use at the Kathleen Valley mine in Western Australia.
• In May 2023, Caterpillar released a new dozer demonstrating enhanced fuel efficiency, heightened productivity, and increased uptime. With a stator clutch torque converter and load-sensing hydraulics, the updated design boasts up to a 6% improvement in efficiency compared to the previous versions.

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