Underground mining machinery market: Introduction
- Expansion of underground mining activities to extend the mine life is driving the market for underground mining equipment. Underground mining is the process of extraction of minerals and ores that are buried deep inside the earth’s crust. Major types of underground mining techniques that are used include hard and soft mining. Excavation of hard minerals such as lead, copper, nickel, iron, gold and silver is carried using the hard underground mining process. However, minerals such as potash, coal, oil shale, and other minerals are extracted with the help of soft underground mining techniques.
- Various types of mining equipment are available in the market based on the type of mineral that needs to be extracted. Equipment used for underground mining include overhead loaders, draglines, shovels, haul trucks, front end loaders, gathering-arm loaders, and conveyors.
Key Drivers of underground mining machinery market
- Increased demand for extraction of rocks, stones, sand, and similar materials for the construction of roads, buildings, monuments, and landscaping is expected to increase trend toward underground mining. Rise in number of investment schemes in non-metal mining by governments is anticipated to propel the non-metal mining segment of the underground mining; consequently driving the global underground mining machinery market. For instance, in Australia, the mineral extraction projects catering to the demand from defense and critical minerals are supported by both Export Finance Australia (EFA) and Northern Australia Infrastructure Facility (NAIF) funding.
- Major OEMs are entering in joint ventures and engaging in R&D programs for components and purchased-finished materials with certain competitors, aiming to reduce manufacturing costs and provide competitive differentiation. Increased product offerings by developing the right differentiated product is a key strategy followed by market leaders to ensure long-term customer loyalty. For instance, Caterpillar, Inc.’s next-generation 20-ton size class excavators have helped customers reduce fuel consumption and maintenance costs, along with increasing operating efficiency to achieve cost and productivity targets. Such strategic activities by OEMs are expected to drive the global underground mining machinery market.
Underground Mining Machinery Market: Opportunity
- Latin America witnessed an increase in mining activities. This, in turn, has generated significant investment opportunities for the mining sector in the region. Countries in Latin America, such as Chile and Peru, have numerous gold and copper mines, which increases their dependency over mining machineries to extract minerals. Moreover, favorable mining policies for investors in Chile, Peru, and Colombia are helping significant opportunity for underground mining machinery players to invest in Latin America.
Underground Mining Machinery Market: COVID 19 Impact
- The COVID-19 pandemic had impacted the global supply chains massively in 2020. Underground mining industries largely depend over supply chain of machines and machinery components suppliers along with raw material procurements to end-use industries across the world.
- Disruption in supply chain and reduced demand for raw materials owing to suspension of production facilities worldwide in 2020 due to forced lockdown have hampered the mining industries in 2020
- However, from Q4 of 2020, mining and other industries resumed their activities to increase raw material extraction and transportation to cater to the demand from production industries
Asia Pacific to account for prominent share of global underground mining machinery market
- In terms of region, the global underground mining machinery market can be segmented into North America, Europe, Latin America, Asia Pacific, and Middle East & Africa
- Asia Pacific holds a significant share of the global underground mining machinery market in 2020. It is expected to dominate the market during the forecast period. Abundant availability of raw material and cost-effective product pricing have boosted the mining business in Asia Pacific as compared to that in other geographies.
- According to World Coal Association, India, China, Australia, and Indonesia are prominent coal producers in the world, which significantly portrays consumption potential for mining machinery. India offers several opportunities for 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 fueling the market in the region.
- Furthermore, continuous government support for the development of mining and exploration in countries in Asia Pacific has generated considerable opportunities for manufacturers to provide enhanced mining equipment. For instance, the Government of India has allowed 100% FDI in the mining sector for the exploration of metal and non-metal ores. Additionally, the Ministry of Steel in India has announced to achieve steel production capacity of 300 million tons, which is more than double the current steel production capacity by 2030-31. Such initiatives and support are expected to prompt mining equipment manufacturers to establish a base in the country, thereby amplifying the underground mining equipment industry growth over the forecast period.
- Most of manufactures are showing interest in establishing more machinery manufacturing industries in these regions, which in turn is estimated to propel the market. Moreover, the region offers low labor cost, land, and low production expenses and further helps in driving business globally.
- All the factors mentioned above have enabled Asia Pacific region to hold a major share of the global underground mining market
Key Players Operating in Underground mining machinery market
The global underground mining machinery market is concentrated owing to the presence of top manufacturers. A few key players operating in the global underground mining machinery market are:
- Atlas Copco AB
- Caterpillar Inc.
- Epiroc AB
- Hitachi Construction Machinery Co., Ltd.
- Komatsu Ltd.
- Sandvik AB
- Sany Group Co. Ltd.
- XCMG Group
Global Underground Mining Machinery Market: Research Scope
Global Underground Mining Machinery Market, by Equipment Type
- Low Profile Dump Trucks (LPDT)
- Load Haul and Dump (LHD) Loaders
Global Underground Mining Machinery Market, by Application
- Coal Mining
- Metal Mining
- Mineral Mining
Global Underground Mining Machinery Market, by Mining Type
- Room and Pillars
Global Underground Mining Machinery Market, by Region
- North America
- Nordic Countries
- Russia & CIS
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.