The Underground Mining Equipment market was valued at USD 21,500 million and is expected to reach USD 31,850 million by 2027, growing at a CAGR of 7.0% during the forecast period (2021-2027).
Underground mining equipment refers to the equipment such as conveyor belts, loaders, trucks, etc to perform underground operations in excavating minerals, metals, etc. The significant factors responsible for the growth of the underground mining equipment market are the increasing demand of coal by the power sector and the growing demand of metals by the manufacturing sector. Underground mining equipment market is expected to witness significant growth, owing to the accelerated demand from developing economies such as India, Malaysia, Vietnam, Brazil and others. In order to excavate these minerals, metals and other natural resources, mining equipment is highly demanded in these regions. Thus, this is a significant factor in the growth of the underground mining equipment market. The manufacturers are introducing technological advancements such as GPS sensing, Internet of Things (IoT), 3D imagery in underground mining equipment. For instance, in 2020, Sandvik AB launched ‘Intelligent Automine system’, for unmanned truck transport, reducing equipment damage and focusing on higher efficiency in underground mining operations.
Stringent policies for restraining the use of coal are seen as one of the major setbacks in the growth of the mining sector and hence a setback for the growth of the underground mining equipment sector. For instance, a ban on illegal mining in the State of Goa in by the Supreme Court of India in February 2018. Second renewals of mining leases granted by the State of Goa that were issued were in violation of the applicable law and the Court directed that mining operations be resumed only after fresh mining leases and fresh environmental clearances were granted in accordance with the provisions of the Mines & Minerals (Development and Regulation) Act 1957. Another example is the Environment Protection and Biodiversity Conservation Act 1999, Australia where major coal seam gas companies in Queensland are required to undertake aquifer connectivity studies and monitor relevant aquifers ensuring no impacts are made on groundwater sources. Unavailability of laborers and the fluctuating raw material prices in the underground mining equipment market are seen as drawbacks. However, as per a report in the Metso:Outotec in 2019, it is mentioned that technology will soon overtake labor.
In recent times, Government policies are seen to support underground mining activities as well as maintaining sustainability. These are seen as opportunities in the underground mining equipment market. For instance, Mineral Laws (Amendment) Ordinance 2020, India, allows coal mining by any company present in sectors other than steel and power, and does away with the captive end-use criteria. This will create efficiency and reduce imports of coal and support the local coal market in India. In the United States, executive government orders support mining such as for critical minerals development or in the form of regulatory changes. This has said to aid the underground mining equipment industry. Key players investing in environmentally friendly technology for underground mining equipment is another opportunity seen in the underground mining equipment market. In a 2018 article published by Science Direct, China introduced latest equipment and technology for unmanned mining which includes a wireless communication system for down the hole drills.
The Global Underground Mining Equipment Market Segmentation:
Company Profiles and Competitive Intelligence
The key players operating in the Global Underground Mining Equipment Market are:
The unique insights provided by this report also includes the following:
Based on Equipment, conveyer systems registered a CAGR of 3.5% during the base year 2020
The underground mining industry heavily relies on conveyor belts to transport materials. Owing to its ability to make clean, safe and more productive the industry will witness an increase in investments towards conveyor belts'. For instance, in August 2019, Coal India announced an INR 100 billion investment in the conveyor belts sector to transport coal directly from mines economically without using trucks. Underground conveyor belts undergo extremely harsh environments such as high temperatures, heavy loads, etc. ABB, together with Tenova TAKRAF, built the world’s most powerful belt conveyor system for underground mining project in Chile in 2020.
Based on Application, the coal mining segment accounted for the largest market share of 48% during 2020 and is expected to account for the largest share during the forecast period.
On the basis of application, coal mining segment accounted for the largest market share of 48 % in 2020. There is a significant rise in demand for coal in power generation sector countries such as vietnam, the Philippines, and Malaysia. According to the department of Energy, Phillippines, there were 30 Coal Operating Contracts in the Development and Production phase, 50 Coal Operating Contracts in the Exploration phase and 85 small-scale coal mining operators as of 2016. The clean coal technology mitigates pollution and is seen as one of the factors to drive the market. The global demand for coal in power generation will drive the coal mining segment based on application in the underground mining equipment market.
Based on End-Users, the rental service providers segment is expected to hold the largest share during the forecast period.
Based on the end-user segment, the rental service providers segment will hold the largest share during the forecast period. Renting underground mining equipment is cost effective if rented rather than purchased. Renting underground mining equipment for temporary projects has proved to be an economic. Technology is changing and equipment too, is getting upgraded. Therefore, instead of investing in purchasing underground mining equipment, companies are finding it worthy to rent the latest equipment. With new technologies such as automation and autonomous equipment, the demand for rental service providers in the end user segment will drive the underground mining equipment market during the forecast period.
Based on regions, Asia Pacific is expected to Hold the Largest Share in the Underground Mining Equipment market during the forecast period.
Based on region, the Asia Pacific region, is expected to hold the largest share in the underground mining equipment market. Owing to the growth of construction and mining industries across India, China and other countries underground mining equipment are gaining maximum importance ascribed to the rise in demand for infrastructural development across countries such as, India, China, Malaysia and others. Moreover, factors including, heavy investments in constructional activities and increasing usage of coal for electricity generation are also fuelling the market growth. Moreover, these players are focusing on mergers and acquisitions to remain competitive in the global market. For instance, Vedanta Resources’ acquired Vedanta Ltd for USD 2 billion. The merger of Alacer Gold and SSR Mining in 2020 for USD 1.9 billion. Together, the company is set to produce over 750,000 gold-equivalent ounces per year, which will make them amongst the big leagues of global gold miners. Sandvik acquired Indian company Miranda Tools in 2019. This acquisition enhanced Sandvik's earnings per share. The Governments and archaeological departments in the region are introducing projects for mineral exploration. For example, the National Mineral Policy of India, 2019. In Australia, the total mineral exploration expenditure by the government was 2019 was USD 2350 million. Owing to the new thermal power projects and the rising demand for coal mining in China has increased considerably. This increase in demand for reserves and government initiatives will enhance the demand for underground mining equipment in the region.
The report also provides in-depth analysis of market dynamics such as drivers, restraints opportunities and challenges
Drivers
Restraints
Opportunities
Covid 19 Impact on the Underground Mining Equipment Market
The Covid 19 pandemic has created an impact on the underground mining industry. The lockdown and social distancing policies globally stopped all activities worldwide. Underground mining too halted owing to the absence of equipment operators. The global shut down, led to the closure of quarries worldwide and processing units stopped production due to the shutdown and lack of transportation processes. The underground mining equipment industry is facing the brunt of the pandemic. However, the underground mining equipment market has bounced back and the future of the market looks bright as the coal, metals and minerals industry has also boosted.
The report also provides an in-depth analysis of key market trends
| Sr. No. | Trends | Impact |
| 1 | Supportive Government policies on mining | Positive |
| 2 | Rise in thermal power and coal mining projects | Positive |
The report also provides in-depth analysis of recent News Developments and Investments
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