The global mining equipment market size was valued at USD 144.37 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 12.7% from 2020 to 2027.Ongoing digital mine innovation is expected to transform the key aspects of mining over the next few years. Increased investment, along with government support for the digital mine innovation, is expected to trigger the demand for mining equipment over the forecast period. Improvements and innovations in extraction technologies and equipment have contributed to the betterment of ore grades, thus extending the life of older mines.
Technology is becoming a critical differentiating factor for manufacturers and mining companies as digitization and automation are continuously gaining momentum. Key players are focusing on reducing the cost of extraction and equipment maintenance. Moreover, the industry has witnessed a large scale adoption of different clusters of technologies, such as robotics & automation, smart sensors, and 3D printing, to enhance operational efficiency. For instance, in January 2019, ABB Ltd. launched the Ability Smart Sensor for assessing the condition of mounted bearings so as to prevent the downtime in mining during material handling.
Need to provide environment-friendly equipment in response to the demand for a sustainable future is on the rise. There is a continuous shift to renewable energy, which has increased the demand for a variety of minerals. This situation has enabled companies to strengthen their business to offer equipment, which are more productive and have a smaller environmental impact. For instance, the advanced control technologies in the Autonomous Haulage System (AHS) of Komatsu Ltd. reduces fuel consumption, along with tire wear and emissions.
The transition from underground to innovative and economical open pit mining is expected to propel the demand for mining equipment over the next few years. The mining industry requires a large amount of energy to extract and protect resources, including a variety of refining and concentration processes. Decrease in the average copper ore grade has led to an increase in energy consumption and total material production, thereby propelling the demand for high-performance equipment.
Development of high-performance equipment has made it possible to extract ores of declining grades without increasing the costs. This trend is increasingly perceptible in several steel manufacturing companies pursuing to enter the mineral exploration sector for securing their supplies of coking coal and iron ore at a rational cost.
Surface mining equipment held the largest share of the overall revenue in 2019 and is expected to maintain its lead over the forecast period. Increasing demand for coal, iron ore, chromium, and diamonds in emerging economies is expected to provide growth avenues for the surface mining equipment over the next few years. Growing adoption of this equipment has led to selective mining operations by exploring high-quality materials and creating embankments and stable surfaces.
Furthermore, increased demand for excavators in the construction and oil & gas industries is expected to significantly contribute to the growth of the surface mining equipment segment. This equipment has also witnessed increased demand due to the emergence of compact excavators. These excavators are a potential solution for carrying the excavating process in confines spaces. Companies are further upgrading excavators and electric shoves to meet the current metal exploration demand. For instance, in September 2019, Komatsu Ltd. introduced a hydraulic excavator, PC2000-11, which is equipped with a machine monitoring system, called KomVision. This is used to load the haul trucks and can be used for loading coal, stripping overburden, and loading shot rock.
Underground mining equipment significantly contributed to revenue growth in 2019. Need to maximize the efficiency of decline truck haulage and maintain its competitiveness with shaft haulage has led to increased demand for underground high-capacity trucks. Furthermore, miners are unable to find economically viable deposits for open-pit mining. This situation has given rise to the expansion of underground mining to extend the mine life, thereby driving the demand for underground mining equipment.
The metal mining application segment dominated the global mining equipment market in 2019 owing to an increase in hauling of metal deposits and high demand for precious metals. Factors such as favorable government regulations, growth of the mining-related end-use industries, and fluctuation in commodity prices are expected to significantly affect the demand for mining equipment in the metal mining applications. Iron and copper mines in South America and Australia are procuring additional equipment deliveries, which is expected to trigger the growth of this application segment. This procurement is a result of the improvement in the exploration of iron and copper.
The non-metal mining application segment witnessed substantial growth in 2019. Need for non-metal mining has observed an upsurge due to increased demand for the extraction of rocks, stones, sand, and similar materials for the construction of roads, buildings, monuments, and landscaping. Increasing number of investment schemes in this sector by various governments is also boosting the growth of the non-metal mining segment. For instance, in 2019, the Australian government raised new funding for its critical minerals and rare earth minerals sector. Extraction projects in the areas of defense and critical minerals will have access to dual funding through the Export Finance Australia (EFA) and Northern Australia Infrastructure Facility (NAIF).
Asia Pacific accounted for the largest market share in 2019 and is expected to maintain its lead over the forecast period. India, followed by Australia, accounted for a significant share of the overall revenue due to constant investments and increasing infrastructure projects. India offers a number of opportunities for the mining companies as there is significant scope for exploration of bauxite, iron ore, and coal. Furthermore, booming real estate sector in the country is expected to augment the demand for metal mining equipment, thereby contributing to regional growth.
Furthermore, continuous government support for the development of mining and exploration has generated ample opportunities for manufacturers to provide enhanced equipment. For instance, the Government of India has allowed 100% FDI in this sector for the exploration of metal and non-metal ores. Moreover, the Ministry of Steel aims to more than double the steel production capacity to 300 million tons by 2030-31. Such initiatives and support are expected to compel the mining equipment manufacturers to establish a base in the country, thereby amplifying the mining equipment industry growth over the next few years.
Latin America has gained popularity owing to a boost in mineral exploration activities, which is attributed to significant investments in this sector. Chile and Peru are home to a large number of copper and gold mines, which contribute significantly to the global exploration of metals. Moreover, favorable mining regulations for overseas investors, particularly in Peru, Chile, and Colombia, are aiding regional growth. Moreover, the region is home to large deposits of copper, gold, and iron, which provides exploration opportunities, thereby increasing the demand for surface mining equipment.
Companies are stressing on enhancing their service and after-service strategies to provide value-added offerings to clients. For instance, Caterpillar, Inc. strategizes to deliver a superior customer experience, which focuses on value-added offerings to transform traditional product support. Such a strategy has increased the sales of products, which will further strengthen the companys presence in the aftermarket.
Major OEMs have been carrying out joint ventures and development programs for components and purchased-finished materials with certain competitors, aiming to reduce manufacturing costs and provide competitive differentiation. Expansion of offerings by developing the right differentiated product is one of the key strategies adopted by companies to ensure long-term customer loyalty. For instance, Caterpillar, Inc.s next-generation 20-ton size class excavators have helped customers in reducing fuel consumption and maintenance costs, along with increasing operating efficiency to achieve cost and productivity targets. Some of the prominent players in themining equipment market include:
U.S.; Canada; Germany; U.K.; Spain; France; Finland; Sweden; Poland; Russia; China; India; Japan; Australia; Indonesia; South Korea; Philippines; New Zealand; Chile; Peru; Saudi Arabia; South Africa; Iran; Egypt; Ghana
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global mining equipment market report on the basis of equipment, application, and region:
b. Surface mining equipment dominated the global mining equipment market with a share of 41.86% in 2019. This is attributable to increasing demand for coal, iron ore, chromium, and diamonds in emerging economies.
The ongoing pandemic has led to a decline in exploration activities in the oil & gas sector. A number of EPC projects have also witnessed an indefinite pause that has transpired into a slump in the requirement for drilling and excavation services. Economic repercussions of the trend are expected to be highly evident in the Middle East. The report will account for Covid19 as a key market contributor.
Dublin, May 28, 2020 (GLOBE NEWSWIRE) -- The "Renting of Construction Equipment With or Without Operator in South Africa 2020" report has been added to ResearchAndMarkets.com's offering. The rental of construction equipment, also known as the plant hire industry, includes a handful of relatively large plant hire companies, and many more small players. Plant hire, like the wider equipment sector, is under increasing pressure due to economic headwinds and the ongoing decline in the construction sector. While equipment rental has proven more resilient than direct sales, and is enjoying relatively stable demand from mining contractors, plant hire companies are waiting on an economic recovery and an improvement in state and private sector infrastructure spending. The fragile situation has been exacerbated by the coronavirus pandemic and consequent economic lockdown, which represent a potentially significant longer-term threat to companies, employment, and activity in the construction sector.The plant hire industry is facing mounting pressure due to South Africa's economic recession and the ongoing weakness in the construction sector which has caused construction and mining companies to change their machinery purchasing and replacement policies. The decline in sales of new equipment has resulted in a shift towards rental and aftermarket service activity. Players do not expect an improvement in market conditions in the short-term and are looking to streamline their operations, cut costs, and leverage the increased demand for aftermarket and equipment rental services. Players are looking at geographic, client and product expansion. This report focuses on the rental of construction equipment, with or without operator, in South Africa, including comprehensive information on the state and size of the sector and the performance and corporate actions of the sector's notable players. There are profiles of 29 companies including major players such as Barloworld and Raubex. There are profiles of franchise companies such as Talisman, which has launched franchises in Builders stores, and companies such as enX group, whose rental trucking fleet and logistics business was bought in a R3.1bn deal. Key Topics Covered: 1. INTRODUCTION 2. DESCRIPTION OF THE INDUSTRY 2.1. Industry Value Chain 2.2. Geographic Position 3. SIZE OF THE INDUSTRY 4. STATE OF THE INDUSTRY 4.1. Local 4.1.1. Coronavirus 4.1.2. Corporate Actions 4.1.3. Regulations 4.1.4. Enterprise Development and Socio-Economic Development 4.2. Continental 4.3. International 5. INFLUENCING FACTORS 5.1. Economic Environment 5.2. Infrastructure Spending 5.3. Input Costs 5.4. Technology, Research and Development (R&D) and Innovation 5.5. Labour 5.6. Environmental Concerns 6. COMPETITION 6.1. Barriers to Entry 7. SWOT ANALYSIS 8. OUTLOOK 9. INDUSTRY ASSOCIATIONS 10. REFERENCES 10.1. Publications 10.2. Websites Companies Mentioned
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