Global underground mining equipment is forecast to reach 30.41 billion by 2023, due to factors such as the rise in demand for coal, metal and minerals and population growth, according to Report Ocean.
This is buoyed by the growing improvement in living standards and disposable income which is increasing the demand within the underground mining equipment market.
According to Report Ocean, the increase in value of these mining equipment is differentiated in terms of type of mining method, application and geography.
Within the mining method category, long wall extraction segment dominates the global underground mining equipment market with 73.48 per cent of share in 2016, in terms of value. This is expected to show highest growth at a compound annual growth rate (CAGR) of 7.21 per cent during the forecast period.
By Application, coal mining accounted for market value of US$8.34 billion and is projected to grow at a CAGR of 6.30 per cent during the forecast period. For example, Indonesia has projected a 5.3 per cent year-on-year increase in coal demand to meet its domestic market alone in 2022 for power generation.
The growing mining activities in emerging countries and demand for coal for power generation have gained importance in underground mining equipment market. With such projected increases in Indonesia and elsewhere across the globe, this demonstrates coal mining could hit new record levels, than anticipated.
Regards underground mining by geography, Asia Pacific is projected to have the largest market share in global Underground Mining Equipment market with a CAGR of 7.43 per cent.
“This is because of the increase in mining activities in the emerging economies of China, India, and Indonesia,” said Report Ocean.
Underground mining is one of the processes used to access ores and valuable minerals in the grounds. The objective is to extract ore from underground, safely, while also producing little waste.
Therefore, the improving construction industry is expected to increase the demand for mining equipment. Manufacturers of underground mining equipment which are expected to meet new safety standards with high levels of efficiency, have given priority to technological advancement in underground mining equipment, said Report Ocean.
“With rapid urbanization and industrialization across the globe, increased demand for power generation has led to an increased demand for coal, which plays an important role in energy production.”
Report Ocean
Additionally, metal steels are used across industries, which include construction, transportation, manufacturing, and a variety of consumer products. Increased disposable income has boomed the market for manufactured consumer goods.
These factors together play a significant role in increasing mining activities for coal, metals and minerals. This has a positive impact on the equipment used in mining and has ultimately led to increased demand for the same.
As noted earlier, countries within Asia Pacific remain the major global producers of gold, diamonds, base metals, coal, tungsten, tin and also emerge as the highest consumer of such metals, coal and minerals. Especially, the Chinese, whose government is focusing on converting medium to large state-owned enterprises into corporate, so that these companies can become globally competitive.
The increase in underground mining equipment presents a positive outlook for some sectors such as the metals sector due to the ongoing energy transition and the increased demand for renewables.
However, for coal mining, which is considered the dirtiest of fossil fuels, the rise in equipment, indirectly indicates an increase in coal mining and the negative effect of global GHG emissions.
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