Mining Equipment Market - Global Industry Size, Share, Trends, Competition, Opportunity and Forecast, 2016-2026 Segmented By Category (Crushing, Pulverizing, Screening, Mineral Processing, Surface & Underground), By Application (Metal, Mineral, Coal, Others), By Propulsion (Diesel, CNG/LNG, Electric), By Power Output (<500HP, 500HP-2000HP, >2000HP), By Vehicle Type (Articulated Dump Trucks, Crawler Dozers, Crawler Excavators, Motor Graders, Rigid Dump Trucks, Drills, Electric Shovels, Hydraulic Excavators, Mining Dozers, Mining Trucks, Wheeled Loaders, Others), By Region

Global mining equipment market stood around USD2.87 billion in 2020 and is estimated to reach USD4.55 billion in 2026, advancing with a CAGR of 8.50% Rapidly increasing demand for mineral and other material mining is driving the growth of the global mining equipment market in the forecast years.

The various types of equipment used in the mining sector include hydraulic excavators, wheel loaders, backhoe loaders, bull dozers, dump trucks, tippers, graders, pavers, asphalt drum/wet mix plants, breakers, vibratory compactors, cranes, forklifts, dozers, off-highway dumpers, drills, scrapers, motor graders, rope shovels, etc. These equipment perform a variety of functions like preparation of ground, excavation, haulage of material, dumping/laying in specified manner, earth moving, material handling, etc. Among all the equipment employed in the mining sector, earth moving equipment are most widely used.

The surge of the COVID-19 pandemic led to global lockdown and momentary closure of manufacturing facilities and mining activities, by that negatively affecting the overall manufacturing and expansion of the mining equipment market. Supply chain got disrupted due to the pandemic and led to difficulties in the supply of equipment used for coal mining, metal mining, and mineral mining applications, etc.

Adoption of Electric and Hybrid Powertrains

The running and maintenance costs of electric and hybrid vehicles are low as compared to ICE vehicles. Furthermore, with raising concerns regarding environmental pollution caused by vehicle emission including mining equipment, the governments of many countries across the world have supported the adoption of electric vehicles in the mining industry through price incentives and supportive policy formulation. The mining industry has been witnessing a faster adoption of electric vehicles due to numerous stimuli like subsidies and tax redemptions on electric and hybrid vehicles and scrappage policies regularizing across the world. For instance, with design assistance from Williams Advanced Engineering, Anglo American mining company will build the world's largest hydrogen-powered mining truck. Moreover, Epiroc offers battery driven mining trucks across the US. In October 2020, Codelco launched an electric mining truck for sale across Chile. BEML Ltd. in September 2018 launched the 205T Electric Drive Rear Dump Truck. Such adoptions are leading to the growth of the mining equipment market across the globe.

Advancement in Technology- Using Telematics in Mining Industry

The competition in the global mining equipment market is enhancing. To remain competitive, the market players are entering into strategic partnerships, mergers or acquisitions with other manufacturers and technology providers. These partnerships will significantly encourage private sector investments in infrastructure growth and development. Additionally, it is boosting the individual country’s mining equipment market. For instance, in January 2020, the Portugal-based Nors, S.A announced a definitive agreement to acquire Strongbow Exploration Inc. Similarly, in July 2020, Bird Construction announced its acquisition of Stuart Olson for an amount of USD96.5 million. Furthermore, in July 2020, asphalt equipment manufacturer, Gencor Industries, acquired Volvo Construction Equipment’s North American Blaw-Knox paver business, along with its associated assets.

Proliferation of Electric Mining Equipment

Mining equipment manufacturers across the world are introducing electrically driven mining equipment in their product portfolio to ensure zero emissions. For instance, in July 2021, Komatsu Ltd. teamed up with Honda Motor Company to develop a micro electric excavator, the electric PC01. Similarly, in April 2021, Liebherr International AG launched two new electric excavators, the R 976-E electric crawler excavator and the R 980 SME-E excavator.  Furthermore, in April 2019, Volvo Construction Equipment AB launched its first electric zero-emission mining equipment, the ECR25 excavator and the L25 wheel loader. With this launch, the company intended to move forward to its goal of ‘Building Tomorrow’.

Increasing Price of Raw Materials

The prices of raw materials such as iron and steel are increasing due to the rise in import duty and shortage of raw materials across the world. The US-China trade war and increasing tariffs on exports of raw materials to Russia are forcing China and Russia to look for new markets for steel. To protect the domestic steel market, in 2019, European and Latin American countries increased the import duty on steel products from China from 7.5%-12.5% to 15%-18%, thereby increasing the procurement cost of these materials. Moreover, these are the major raw materials used to manufacture mining equipment; thus, the increasing cost of raw materials is expected to impact the global mining equipment market adversely.

Economic Slowdown

The global economy is facing an economic slowdown, which is significantly impacting the global mining industry. In the year 2019, the world’s major economic investments contracted out of the targeted investment of around trillions of dollars. The infrastructure segments majorly impacted by the economic recession include road infrastructure, port, and mining sectors. For instance, in 2019, the World Bank targeted the goal of doubling road infrastructure development but awarded only half of it. Thus, this trend is expected to pressurize construction and mining equipment manufacturers to cut-down their production capacity and operational activities due to a lack of funds and demand.

Click here to download the sample

Market Segmentation

The global mining equipment market is segmented by category (crushing, pulverizing, screening, mineral processing, surface & underground), by application (metal, mineral, coal, others), by propulsion (diesel, CNG/LNG, electric), by power output (<500hp, 500hp-2000hp, >2000hp), by vehicle type (articulated dump trucks, crawler dozers, crawler excavators, motor graders, rigid dump trucks, drills, electric shovels, hydraulic excavators, mining dozers, mining trucks, wheeled loaders, others), by region, by company (2020) .The market analysis also studies the regional segmentation to devise regional market segmentation, divided among Asia-Pacific region, North American region, European region, South American region, and Middle East & African region. In terms of country, the United States mining equipment market is forecast to grow at a faster rate and is expected to reach around USD0.63 billion in 2026 from USD0.39 billion in 2020 at a CAGR of 8.72%.

Company Profiles

Caterpillar Inc., Komatsu Ltd., Liebherr International AG, Hitachi Ltd., Deere & Company, Xuzhou Construction Machinery Group Co., Ltd. (XCMG), Doosan Heavy Industries & Construction Co., Ltd., SANY Group, Volvo Construction Equipment AB, JC Bamford Excavators Ltd. Key players are developing advanced technologies to stay competitive in the market and enhancing their product portfolio in the regions to increase their customer outreach.