Over the past three years, the COVID-19 pandemic has propelled my country’s mining equipment market towards a mature, existing market. This year, with the impact of the pandemic temporarily subsiding, a recovery in the mining equipment market seems to be a consensus across the industry, with the growth scale of the mining equipment market attracting particular attention.
A research report released on February 1st shows that the global mining equipment market size was US$132.4 billion in 2021, and is projected to reach US$208.9 billion by 2030, with a compound annual growth rate (CAGR) of 5.72% during the forecast period. Increased demand for prototype solutions from many industrial sectors, including aerospace, automotive, healthcare, and military, is expected to drive the market.
However, the pandemic has had a significant negative impact on the mining industry.
Due to global lockdowns, industries have shut down, mining equipment production has halted, and its supply chain and distribution systems have faced even greater challenges. The ongoing lockdowns have not only hindered technological advancements in mining equipment but also market expansion. The pandemic has led to global unemployment, a financial crisis, and other problems, resulting in the loss of more wealth than ever before and a complete collapse of markets for expensive commodities such as gold, diamonds, silver, and other gemstones. Continued export restrictions on raw materials and frequent abandonment of mining projects have also negatively impacted the mining equipment market. However, analysts say that the continued application of this equipment is to meet growing demands from energy and electricity to infrastructure enhancements. Increased investment and government support for digital mine innovation are expected to drive demand for mining equipment during the forecast period. In terms of equipment type, underground mining equipment, mineral processing equipment, open-pit mining equipment, and other equipment constitute the global mining equipment market. In 2021, open-pit mining equipment accounted for approximately 37.8% of global market revenue, holding a dominant position. Demand from emerging countries for diamonds, coal, iron ore, and chromium is expected to open up new market opportunities for open-pit mining equipment throughout the forecast period. The increasing use of this machinery has enabled some mining companies to extract high-quality resources and construct embankments and solid ground. In terms of application areas, coal mining equipment led the mining equipment market in 2021 with a 36.5% revenue share. In the coal mining sector, the application of mining equipment is expected to grow significantly due to increased demand for power generation. Coal production, the use and application of coal mining equipment are also increasing, therefore the coal mining industry is expected to continue to dominate the market throughout the forecast period. Based on usage, the mining equipment market is segmented into metal mining, non-metal mining, and coal mining. The metal mining industry is projected to achieve a CAGR of 6.2% in the mining equipment market during the forecast period. Rising demand for precious metals, favorable government regulations, and increased transportation of metal resources are all contributing to the metal mining industry. However, non-metal mining equipment is expected to grow at the fastest rate in the coming years due to the demand for clearing rocks, stones, and sand.
In terms of equipment power type, electric machinery is expected to grow at a significant CAGR in the coming years. Today, manufacturers are focusing on producing environmentally friendly, reliable machinery or environmentally friendly mining equipment. Some developing countries are using hybrid technologies to produce mining equipment for sustainable development. The growing demand for sustainable and environmentally friendly mining products from highly developed countries is a factor driving the growth of the global mining industry.
Regionally, the Asia-Pacific region accounted for approximately 37.5% of the global market share in 2021. The use of electric machinery and the increasing shift to renewable energy are expected to drive market growth in developing countries such as India and China in the coming years. The depletion of surface mineral deposits in the region due to increasing global demand for these minerals is a major factor driving demand for mining equipment in the Asia-Pacific region.
As these minerals are depleted on the surface, deep mining operations in the region are expanding, increasing the demand for mining equipment. With the arrival of a stock-based era, the mining equipment market is bound to undergo a major reshuffle. Some companies will face the question of survival, while others will face the test of maintaining their dominance. In short, a new era has quietly begun, and the competition among giants has commenced.
