Credible Market Trends Amplifying the Growth of the Global Underground Mining Equipment Market
The underground mining equipment manufacturers are working to develop advanced, automated and environment friendly underground mining equipment. The investments in R&D by manufacturers have diversified the product portfolio of the companies. Enhanced products with advanced features such as integrated IoT platform, and automation is likely to impel the demand for underground mining equipment market during the forecast period. Further, the increasing demand for coal from the energy sector and metals from the manufacturing sector along with growing real estate sector is expected to propel the market growth of underground mining equipment. Factors such as these combined with rapid urbanization and industrialization are going to expand the underground mining equipment market with CAGR of 6.5% over the period 2017-2024 and is projected to reach USD 30, 308.2 Million by the end of 2024 from USD 18,700.0 Million in terms of value in 2016.
Growth Highlights based upon Regional Platform during 2016-2024
The global underground mining equipment market is segmented by regions into North America, Latin America, Europe, Asia-Pacific and Middle East and Africa. The Asia Pacific underground mining equipment market held the dominant share of 41.5% of the overall market and is believed to cross 45% by 2024. The growth in the region is anticipated to be fostered by the increasing demand and consumption of underground mining equipment by China and Australia. Besides, high consumption of metal and minerals owing to the rapid urbanization in the region is also expected to impel the growth of the underground mining equipment market in the Asia Pacific. China, Australia and India are the prominent countries in the region.
Further, North America underground mining equipment market is expected to witness significant growth with second largest market share by registering a CAGR of 5.2% over the forecast period. In addition to that, the market is expected to cross USD 6,900 Million by 2024, where U.S. contributes the largest market size in the region. After North America, Europe held the third largest market share of 16.1% in 2016 where the presence of major players is expected to bolster the growth of the underground mining equipment market in the region by the end of 2024. Furthermore, the presence of huge metal ores is expected to fuel the demand for underground mining equipment in the Latin America region.
Market Segmentation Synopsis
The global underground mining equipment market has been segmented by application into coal, metal and mineral. Coal underground mining equipment segment held 38.5% share in 2016 and occupied the largest market of underground mining equipment across the globe. Further, the coal segment is believed to dominate the market of underground mining equipment owing to the increasing demand for electricity in various nations over the forecast period.
The global underground mining equipment market is divided by mining into longwall extraction, room and pillar extraction and others, out of which, the longwall extraction segment held the largest market share of 61.6% during 2016 and is anticipated to continue its dominance throughout the forecast period. Additionally, longwall extraction underground mining equipment segment is projected to achieve Y-o-Y growth rate of 9.3% in 2024 as compared to previous year. This can be attributed to the high productivity along with continuous enhancement and development of advanced longwall extraction equipment. Further, others underground mining segment is anticipated to achieve absolute $ opportunity of USD 843.0 Million between 2017 and 2024.
The study further analysis the Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX (Belgium, Netherlands, Luxembourg), NORDIC (Norway, Denmark, Sweden, Finland), Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa).
Market Drivers & Challenges
Global underground mining equipment market is expected to grow at a remarkable pace in future. The demand for coal and minerals is getting stronger all across the globe owing to the mining activities that are increasing in various countries. Further, the rise in population in urban cities is driving the growth of real estate sector, which is further boosting the demand for metals and energy. The rising demand for energy in economies such as India, China, and others is creating great demand for underground mining equipment in coal mines. These factors are opening new opportunities for the industry players so as to meet the rising demand for underground mining equipment.
Besides, increasing number of infrastructure projects and government initiatives and support across the globe is expected to impact the growth of the underground mining equipment market. In addition to that, automation plays an important role in underground mines. Adoption of remote and tele-remote control technologies, sophisticated machine guidance, fit-for-purpose, reliable one & two-way underground communication, state-of-the-art vehicle collision avoidance and detection systems are the major foundation technologies that are believed to aid the underground mining equipment market to grow in near future.
The stringent government regulations to curb the environment pollution are anticipated to negatively impact the growth of market over the forecast period. Apart from this, poor supporting infrastructure and land acquisition issues in developing nations are some of the restraining factors behind the growth of the global underground mining equipment market.
Some of the affluent industry leaders in the global underground mining equipment market are Komatsu Ltd., Hitachi Construction Machinery Co. Ltd., Boart Longyear, thyssenkrupp AG, J.H. Fletcher & Co. Inc., Sandvik AB, Caterpillar Inc., Atlas Copco AB, SANY GROUP and Normet Group.
The industry players such as Caterpillar, Boart Longyear and others are continuously focusing towards the advancement and diversification of their products. Manufacturers are increasingly offering underground mining equipment with better features such as increased efficiency, integrated advanced technologies and more. The expansion of product portfolio will further help the companies to maintain their growth along with gaining competitive edge in the global underground mining equipment market.
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