Northbrook, IL -- (SBWIRE) -- 10/13/2020 -- The Mining Equipment Market is estimated to be USD 77.7 billion in 2018 and is projected to reach USD 112.3 billion by 2025, at a CAGR of 5.40%. Increase in demand for metals and minerals, upcoming emission regulations, increase in development of electric and autonomous mining are the major reasons for the market growth.

Mining truck segment is estimated to be the largest electric mining equipment market during the forecast period

The EVs offer a significant opportunity to the manufacturers in terms of payback times, design alterations, and cost benefits. The diesel-driven mining equipment are estimated to be in a range of 45–50% power output efficient, whereas more than 80% efficiency is being targeted in the EV segment. As the mining equipment industry is directly affected by the demand and pricing of the mining products, the margins with the operators are quite low. Hence, if the efficiency is being increased in sluggish as well as booming markets, it will foster the manufacturers' business. Mostly, the transactions are expected to be seen in the mining trucks and LHD (load/haul/dump) machines. Normet a technology company that is a pioneer in tunneling and underground mining equipment has launched a SmartDrive battery electric vehicle architecture at Munich in April 2019. SmartDrive has latest long-life industrial grade lithium-ion battery technology with fast charging capability and electric motors specifically designed for harsh environments. The company has made it available for all key machines of the mining and tunneling portfolio. As per experts, electrical mining equipment are estimated to have a major stake post 2030 accounting for more than 40% of the overall mining equipment market. Also, the electric mining equipment are expected to be used in the underground operations first.

Underground mining equipment category estimated to be the fastest growing mining equipment market

The demand for mining equipment is completely dependent on the mining operation and the upcoming emission norms. As the operators face major challenges in the underground mining activities due to high risk and location access, majority of the manufacturers are tapping this as an opportunity. There has been immense product development and R&D activities for underground mining by the manufacturers leading to which the electric and autonomous mining fleet are the upcoming inventions. The electric mining trucks are expected to have a significant stake in underground mining. Also, to reduce human errors and improve the safety standards in underground mining, the autonomous fleets are targeted in this particular segment. Thus, underground mining is estimated to withstand the fastest growth during the forecast period.

Increased mining activities and presence of key players would drive the Asia Oceania mining equipment market

The Asia Oceania region has witnessed growth in mining operations because of increasing demand for raw materials. Also, many international companies have increased their presence in this region. For instance, Vale, the world's largest iron ore mining company, has been increasing its presence in China. In India, 30 new coal mining sites have been identified by the Central Mine Planning and Design Institute (CMPDI). These sites are projected to add 100 million ton to India's coal output. The major industry players in Asia Oceania are Komatsu (Japan), Hitachi Construction Machinery (Japan), Luoyang Zhongtai (China), and BEML (India).

Key Market Players:

The mining equipment market is consolidated and dominated by a few global players. The key players in the market are Caterpillar (US), Komatsu (Japan), Volvo Construction Equipment (Sweden), Doosan Infracore (South Korea), and Sandvik (Sweden).

Key Questions addressed by the report

- Which equipment category is going to dominate in the future?
- How are the industry players addressing the challenge of maintaining a balance between performance and low-cost mining equipment?
- When is electric equipment going to get mass adoption in the market and with which mining equipment type?
- What could be the market size of autonomous mining equipment?
- What are the key strategies adopted by the players? Which new advancements are the game changers?

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