Mining Equipment Is Estimated To Witness High Growth Owing To Increasing Mining Activities
Mining Equipment Market
Mining equipment consists of machinery and tools that are used for the extraction of minerals and ores from the earth. Mining equipment includes excavators, loaders, drill machines, crushers, shovels, and bulldozers which are extensively used in coal mining, metal ore mining, mineral mining, and quarrying applications. Mining equipment plays a vital role in various mining processes such as drilling, crushing, conveying, and transportation to maximize efficiency with minimum costs.
The
global Mining Equipment Market is
estimated to be valued at Us$ 145.47 Bn
in 2024 and is expected to exhibit a CAGR
Of 3.3% over the forecast period 2024
To 2031, as highlighted in a new report published by Coherent Market
Insights.
Market Opportunity:
Increasing Mining Activities
The mining industry is expanding significantly owing to the rising demand for
metals and minerals across the globe. As per the World Bank, the mining
industry contributes around US$ 1.5 trillion to the global GDP annually.
Several countries are focusing on increasing mineral production to meet the
growing requirements of end-use industries such as manufacturing, automotive,
construction and others which will drive the demand for mining equipment over
the forecast period. Furthermore, modernization of existing mines and
development of new mines in emerging nations provide significant growth
opportunities for mining equipment manufacturers. The mining equipment
manufacturers can capitalize on these opportunities by developing
technologically advanced and cost-effective equipment to cater to the rising
demand from the mining industry.
Porter's Analysis
Threat of new entrants: The threat of new entrants is moderate as the mining
equipment industry requires high capital investments for manufacturing heavy
machinery. However, companies can provide contract manufacturing services with
low investments.
Bargaining power of buyers: The bargaining power of buyers is high due to the
presence of many equipment manufacturers globally. Buyers can negotiate on
price and demand better services and equipment customization.
Bargaining power of suppliers: The bargaining power of suppliers is moderate
since raw material suppliers have minimal differentiation and switching costs.
However, a few suppliers dominate for critical components.
Threat of new substitutes: The threat of substitutes is low as mining equipment
has no close substitute and mining remains an important industry.
Competitive rivalry: The competitive rivalry is high among key global players
differentiating based on product quality, technology, services and pricing.
SWOT Analysis
Strength: The mining equipment industry is capital intensive in nature, forcing
customers to rely on reputed manufacturers. Demand for minerals and metals
ensures consistent requirements for advanced machinery.
Weakness: Market cycles in end-user mining industries can impact demand. Economic
slowdowns may defer replacement and expansion plans of mining companies. High
R&D and manufacturing costs are barriers to entry.
Opportunity: Emerging technologies open up opportunities to enhance safety,
automation and productivity. Demand from developing markets in Asia Pacific and
Africa drives opportunities. Adopting sustainable practices also presents scope
for innovation.
Threats: Stringent emission and safety regulations increase compliance costs.
Reliance on global commodity prices exposes to volatility risks. Trade policies
and geopolitical changes pose threats.
Key Takeaways
The Global Mining Equipment Market Demand is
expected to witness high growth over the forecast period till 2031 supported by
rising demand for metals and minerals globally. The global mining equipment
market is estimated to be valued at US$ 145.47 Bn in 2024 and is expected to
exhibit a CAGR of 3.3% over the forecast period 2024 to 2031.
Key
regional markets include North America, Europe, Asia Pacific, Latin America,
and Middle East and Africa. The Asia Pacific region dominates the global mining
equipment market and is expected to grow at the fastest rate during the
forecast period. This can be attributed to the presence of major mineral
producers such as China, India, and Australia in the region. The region
witnesses significant investments in mining projects and rapid
industrialization which drives the demand for mining equipment in the region.
Key players:
Key
players operating in the mining equipment market are Caterpillar, Komatsu,
Sandvik, Hitachi Construction Machinery, Joy Global, Metso, Atlas Copco, ABB,
FLSmidth, and Outotec. Caterpillar is a leading player with strong product
portfolio and global presence. Komatsu, Sandvik and Hitachi are also major
equipment suppliers focused on various minerals.
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