Boost in Thermal and Power Sector will boost the growth of the underground mining equipment market.
The Underground Mining Equipment market was valued at US$ 21,500 million and is expected to reach US$ 31,850 million by 2027, growing at a CAGR of 7.0% during the forecast period, (2021-2027).
Underground mining is a technique used to access metals and minerals by digging into the ground to extract them and underground mining equipment is used for the process of underground mining. The growing underground mining equipment share is accredited to the increasing demand of minerals and metals and coal by power sector, especially from emerging nations such as Brazil, and India. According to Statista, Brazil is home to the second largest iron reserve in the world and the mineral mining production in Brazil in 2019 estimated nearly US$ 40.5 billion. Due to rapid urbanization and industrialization these countries have shown positive growth rate in the mining industry and this is a major factor for driving the demand of the underground mining equipment market. Supportive government policies have also been a major factor in boosting the underground mining equipment market. For instance, the National Mineral Policy, 2019, in India, includes incentives to attract private investment creating opportunities for the private sector to take up exploration activities.
However, factors such as stringent regulations such as the Coal Mines Regulations of 2017, India on the use of coal are expected to slow the growth of the underground mining equipment market. Unavailability of skilled labor is expected to hamper the growth of the market. According to an article in The Conversation in 2012, skilled labor is an untapped source. Fluctuating prices of raw material will also pose a setback for the underground mining equipment market. Major key players are investing in new technology and are partnering with other companies to introduce new technology. For instance, Tibet Zijin Industrial acquired Tibet Julong Copper Industry for USD 550 million.
Global Underground Mining Equipment Market by Region Outlook (Revenue, USD Million, 2021-2027)
In terms of geography, Asia Pacific is the fastest growing region for underground mining equipment market. Countries like China, India, Australia, among others dominate the underground mining equipment sector in this region. According to a report in the US Global Investors Magazine, China produced nearly 400 tonnes of gold in 2020, leading among the top gold producers of the world. The countries are also major global producers of commodities such as gold, diamonds, base metals, coal, among others. Along with China, many other nations in this region are also major producers of gold and other metals, hence creating a vigorous demand for the underground mining equipment market. The Asia Pacific region along with being the major producer is also one of the leading consumers of the metal and minerals. China accounted for the largest market share of 70% in the Asia Pacific region in the underground mining equipment market in 2017. Majority of natural reserves of the world are in the Asia Pacific region and this will attribute to the growth of the underground mining equipment market.
Global Underground Mining Equipment Market by Equipment Outlook (Revenue, USD Million, 2021-2027)
Global Underground Mining Equipment Market by Application Outlook (Revenue, USD Million, 2021-2027)
Global Underground Mining Equipment Market by Mining Type Outlook (Revenue, USD Million, 2021-2027)
Global Underground Mining Equipment Market by End-Users Outlook (Revenue, USD Million, 2021-2027)
Key Findings:
Company Profiles and Competitive Intelligence
The key players operating in the Global Underground Mining Equipment Market are:
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