If you do some digging online, you’ll easily learn that the global mining equipment market is expected to reach 36.2 billion dollars by the year 2025. When talking about 2023, the estimated value was 29 billion dollars, with a compound annual growth or CAGR for short of 4.5 percent.
But, there is an increased need and use of electrical equipment in underground drilling, mostly because there is a rise in the demand for metals, which is why you might be wondering – exactly how big is the mining equipment exchange? Well, simply said, quite big, and the article below will shed some light on the things you might want to know. So, let’s take a look:
COVID-19 Did Have an Impact on The Entire Exchange
Before we take a look at some other information that you should know, it’s worth mentioning that COVID-19 had and still has an impact on this market, like it influenced all other industries out there. Countries including Japan and China managed to get the outbreak under control, however, others like the USA and India are still implementing measures in order to stop or hinder the spread throughout their facilities.
This is why a lot of machinery manufacturers changed their policies in order to accommodate the regulations imposed by their local governments. Organizations such as Komatsu are planning on stopping the production process in some of their plants, while others have halted all of the processes until the pandemic passes or until a vaccine has been developed, which means that COVID-19 had a strong impact on this industry as well.
The Dynamics Are Vast
In order for you to understand how big the industry is, you must understand the drivers, restraints, opportunities, and challenges in the industry, which means that the market’s dynamics are vast. The most important things that you should know about it includes the following things:
1. The Driver is The Increase Application of Electrical Equipment in Extracting The Minerals
As you might know, the use of engines running on diesel generates pollution, noise, and heat, meaning that the working conditions aren’t as comfortable as they’re with some other options. However, the use and application of electrical equipment in mining guarantees that the working conditions are safer, but more importantly, it can guarantee that there are fewer fumes generated and that the costs of different processes are lower.
For example, electrical equipment produces less heat and noise, and it doesn’t pollute our air, which means that the operator can function in an environment that is safe, quiet, and they can also utilize cabins that were ergonomically-designed. This means that there are fewer harmful impacts on the operators’ health and the zero-emissions will cut ventilation costs and pollution – something that is quite important nowadays.
2. The Restraint is The Export of Second-Hand Equipment to Developing Nations
The utilizing of new machinery is mostly based on the investments made in the industry, which heavily relies on the global economic situation. Some developing nations such as Peru and South Africa choose to purchase used equipment since they often function properly if maintained. Hence, when it’s exported to such countries, it’s sold for a cheaper price. This is something that is expected to stop or hinder the sales of new equipment – that’ll certainly influence the overall exchange.
3. The Opportunity Lays in Telematics
The implementation of telematics has proven to be one of the best things that happened to the market. For example, IoT sensors provide sufficient information to the fleet managers, which guarantees that there is a decrease in downtime and it’ll also help with planning on maintenance or repair processes. After all, more and more industries are looking for optimization, especially since there is a rise in the demand for automation.
Additionally, gadgets such as drones have been utilized for surveillance and exploration of the mines, meaning that they could ensure that the mines are clear and deserted before blasts, they can track the fumes after the blasts, and generally speaking, they’ll improve the safety of the sites. A lot of experts in the industry believe that telematics solutions are the key to driving the overall exchange. If you want to build up on this visit https://fuchenglhd.com/
The Challenge is The Decline in Sales During COVID-19
We already mentioned some impacts of the global outbreak on the exchange, however, you should know that the full impacts are still unknown. There have been various drops in the prices, but in some situations, the prices remain unchanged. For instance, the demand for thermal coal has dropped, while the demand for iron and gold has risen. Like in other industries, the market growth has remained slow, mostly because of the regulations imposed by different governments.
After all, more and more companies need permission to operate in their mines, but more specifically, they need permission to operate in the mines with full labor. Currently, it is expected to recover entirely, however, it might need two or three years until it completely bounces back to its previous condition. And, since the drilling operations have been decreased all over the globe, the exchange has experienced a drop in sales.
The Mining Trucks Category Might Become The Biggest Exchange in The Future
The mining trucks category is expected to become one of the biggest markets in the entire industry. A wide range of experts believes that it’ll pass 10 billion dollars in value by the year 2025. Why is that? Well, the need for mining trucks is always high, mostly because they’re in charge of some of the most important operations such as moving debris, dirt, as well as transporting the extracted minerals, metals, ores, and coal.
So, according to some of the leading professionals in the industry, underground mining equipment electrification is more likely to happen when compared to some other machinery needed for the processes. Additionally, there are expectations that the need for other equipment such as excavators and bulldozers will also increase, which means that they could easily contribute to the overall growth of the entire market.
As you were able to learn, the entire mining equipment industry is vast. Although it’s currently experiencing a decrease in sales and demand, it’s expected that the market will reach 36.2 billion dollars by the year 2025, which means that it could easily become one of the biggest markets in the world.
So, now that you’re aware of how big this market is, as well as what drivers, restraints, opportunities, and challenges there are, you shouldn’t lose any more of your time. Instead, you might want to do some research on how the market is categorized by the application processes and operations.