Underground Smart Mining Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented by Solution (Smart Control System, Smart Asset Management, Safety & Security System, Data Management & Analytics Software, Monitoring System), by Service Type (System Integration, Consulting Service, Engineering and Maintenance), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 23.84 Billion
CAGR (2026-2031)	4.11%
Fastest Growing Segment	Data Management & Analytics Software
Largest Market	North America
Market Size (2031)	USD 30.36 Billion

Market Overview

The Global Underground Smart Mining Market will grow from USD 23.84 Billion in 2025 to USD 30.36 Billion by 2031 at a 4.11% CAGR. The Global Underground Smart Mining Market involves the integration of autonomous machinery, advanced data analytics, and connected network infrastructure within subterranean extraction operations to optimize efficiency and safety. The primary driver supporting this market's growth is the imperative to minimize human exposure to hazardous environments while accessing deeper mineral deposits that are economically unviable through traditional methods. Additionally, the operational necessity to reduce energy consumption and maintenance costs compels mining companies to adopt these automated solutions. According to the International Council on Mining and Metals, in 2025, it was reported that 43% of the 42 recorded fatalities among member companies in 2024 occurred specifically in underground operations. This statistic underscores the critical safety demand that accelerates the deployment of remote and autonomous technologies.

Despite the clear operational benefits, the market faces a significant challenge regarding the substantial capital expenditure required to modernize legacy infrastructure. The complexity of retrofitting existing mines with the necessary digital communication backbones creates technical and financial hurdles that can impede the speed of widespread commercial expansion. This high barrier to entry often restricts immediate adoption to major industry players, slowing the broader penetration of smart mining innovations across the global sector.

Key Market Drivers

The escalating focus on workforce safety and hazardous risk mitigation stands as the foremost catalyst driving the Global Underground Smart Mining Market. Mining operators are under increasing regulatory and social pressure to remove human personnel from the dangerous extraction face, where rock bursts, thermal stress, and air quality issues are most prevalent. This imperative has accelerated the transition from manual labor to tele-remote and autonomous systems, fundamentally altering the operational blueprint of subterranean mines. According to the Mine Safety and Health Administration, January 2025, in the 'Mine Safety and Health At a Glance' report, 31 fatalities were recorded across the mining sector in fiscal year 2024, a statistic that continues to drive the aggressive implementation of proximity detection systems and collision avoidance technologies to protect workers in these confined environments.

Simultaneously, advancements in private 5G networks and underground communication infrastructure are acting as the critical technological enabler for this shift. The successful deployment of autonomous machinery and real-time asset monitoring relies heavily on low-latency, high-bandwidth networks capable of penetrating deep geological structures where traditional Wi-Fi often fails. This robust connectivity allows for the seamless aggregation of sensor data and the precise control of unmanned vehicles from surface command centers. According to the Global mobile Suppliers Association, September 2024, in the 'Private Mobile Networks Industry Focus' report, the mining sector accounted for 112 confirmed private network deployments globally, ranking it as a leading industrial adopter behind manufacturing. This connectivity infrastructure underpins the broader market growth, facilitating massive fleet automation; for instance, according to Epiroc, January 2025, in the 'Interim Report Q4 2024', the company reported that its active fleet of automated machines had grown to over 3,450 units, underscoring the scale of digital transformation currently reshaping the industry.

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Key Market Challenges

The substantial capital expenditure required to modernize legacy infrastructure stands as a significant barrier hampering the growth of the Global Underground Smart Mining Market. Retrofitting existing mines with the necessary digital communication backbones creates technical and financial hurdles that impede widespread commercial expansion. This high cost of entry limits the adoption of autonomous technologies primarily to major industry players, while smaller operators often cannot justify the upfront investment against their immediate operational margins. Consequently, the pace of market penetration slows as companies hesitate to commit to expensive structural upgrades.

The escalating cost of maintaining current production levels further constrains the financial flexibility needed for digital integration. When mining companies face elevated baseline operational costs, allocating additional heavy investment toward new technological retrofitting becomes increasingly difficult. According to the World Gold Council, in 2025, it was reported that the average All-In Sustaining Cost (AISC) reached a record high of US$1,456 per ounce in the third quarter of 2024, driven significantly by rising input prices and sustaining capital expenditures. This economic pressure effectively diverts capital toward essential maintenance rather than innovation, directly stalling the broader deployment of smart mining solutions.

Key Market Trends

The Transition to Battery-Electric Vehicles (BEVs) for Subsurface Operations is fundamentally reshaping the economic and environmental structure of underground mining by eliminating diesel particulate matter and drastically lowering ventilation requirements. Operators are prioritizing this shift not only to meet decarbonization targets but also to capitalize on the operational savings generated by reduced thermal load and energy demands in deep-shaft environments. This trend is evidenced by major capital commitments to fleet electrification; for instance, according to Sandvik, April 2025, in the 'Sandvik wins record order for battery-electric mining equipment' press release, the company secured its largest-ever BEV order valued at SEK 750 million to supply 22 electric units for South32’s Hermosa project.

Simultaneously, the Adoption of Digital Twin Technology for Real-Time Mine Simulation is gaining traction as a critical tool for optimizing resource recovery and enhancing sustainability performance through virtual scenario planning. Unlike simple asset monitoring, this technology creates dynamic virtual replicas of entire geological and mechanical systems, allowing engineers to test extraction strategies and predict environmental impacts before physical execution. The tangible efficiency gains are accelerating widespread uptake; according to Create Digital, February 2025, in the 'New research: How digital twin technology is cutting costs and emissions' article, a survey by Hexagon revealed that mining organizations implementing digital twins achieved an average carbon emission reduction of 15% alongside significant cost savings.

Segmental Insights

Data Management & Analytics Software is emerging as the fastest-growing segment within the Global Underground Smart Mining Market, driven by the industry's urgent requirement for real-time operational intelligence. Mining enterprises are rapidly adopting these centralized solutions to synthesize vast data streams from underground IoT devices, thereby facilitating predictive maintenance and minimizing costly equipment downtime. Additionally, rigorous safety mandates from regulatory bodies necessitate precise monitoring of ventilation systems and hazardous environmental conditions. Consequently, this software has become integral to modern mining strategies, ensuring regulatory compliance while maximizing extraction efficiency and worker security.

Regional Insights

North America maintains a leading position in the global underground smart mining market, driven by the widespread implementation of automated systems and internet-of-things connectivity. This dominance is largely attributed to strict safety mandates enforced by the Mine Safety and Health Administration, which encourage operators to minimize human presence in hazardous environments through remote monitoring and autonomous equipment. Furthermore, the region benefits from a robust industrial infrastructure that supports the rapid deployment of digital mining solutions. Consequently, major mining companies prioritize these technologies to ensure regulatory compliance and optimize extraction processes.

Recent Developments

• In December 2025, Sandvik secured a significant order from Northern Star Resources to supply intelligent underground mining equipment for operations in Australia. The contract, valued at approximately SEK 260 million, included a fleet of underground trucks and loaders equipped with advanced digital and safety features. Deliveries were scheduled to commence in early 2026, reinforcing the mining company's commitment to modernising its assets. This agreement highlighted the growing market demand for smart load and haul solutions that enhance productivity and sustainability while supporting the operational targets of major gold producers.
• In September 2025, Hatch entered into a strategic partnership with LoopX, a technology company specialising in AI and robotics, to advance safety and automation in the mining industry. The collaboration involved an investment to accelerate the deployment of LoopX’s interoperable autonomy and collision avoidance systems within underground mining operations. Hatch committed to providing technical expertise to integrate these AI-powered solutions into large-scale projects, enabling clients to retrofit existing fleets with advanced situational awareness capabilities. The initiative focused on reducing risks in hazardous environments and supporting the sector's transition towards smarter, more sustainable automated mining.
• In February 2025, Datamine and Mine Vision Systems announced a strategic collaboration to integrate their advanced geological data technologies for the underground mining market. The partnership focused on combining Datamine’s Studio Mapper software with the FaceCapture solution from Mine Vision Systems to streamline data collection, analysis, and visualisation workflows. This integration allowed mining professionals to rapidly capture high-precision 3D face mapping data from safe positions and process it within a managed database. The companies aimed to improve operational efficiency and geological modelling accuracy, providing actionable insights to optimise production in complex underground environments.
• In September 2024, Komatsu expanded its portfolio in the underground sector by launching the WX04B, its first battery-electric load-haul-dump (LHD) machine, at the MINExpo International trade show in Las Vegas. Designed specifically for narrow vein mines, the 4-tonne loader featured a unique battery swap system accessible at ground level, which eliminated the need for overhead rigging infrastructure. The company also debuted the WX15 LHD and HX45 mining truck, machines incorporated through the recent acquisition of GHH Group. These new offerings aimed to enhance operator safety and provide interoperable, low-emission solutions for global underground mining customers.

Key Market Players

• Caterpillar Inc.
• Komatsu Ltd.
• Epiroc AB
• Sandvik AB
• Hitachi Construction Machinery Co., Ltd.
• ABB Ltd
• Hexagon AB
• Cisco Systems Inc.
• Rockwell Automation Inc.
• SAP SE

By Region

North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Underground Smart Mining Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Underground Smart Mining Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE