The mining equipment market is expected to grow to $90 billion by 2027, according to the most recent study by Global Market Insights.
The growth is propelled by two factors. Demand for metals such as steel, aluminum, stainless steel, copper and iron is on the rise from both the manufacturing and construction industries. The shift to automated mining equipment will continue to grow during this period.
Despite the covid-19 pandemic, the mining equipment industry began growing in the second half of 2020. The growth was made possible in part by government stimulus for infrastructure construction that supports economic recovery.
The crushing and screening equipment sector will probably expand at the fastest rate. Such equipment is vital not only to the mining industry but also the construction industry.
There is an increase in mining and construction projects in Europe that also contributes to the strength of the mining equipment sector. Large infrastructure project fuel the growing demand for iron, steel and aluminum. The rising need for lithium, nickel, copper, and cobalt is driven by the production of electric vehicles for the consumer market.
Mining operations are facing huge capital expenditures if they are to reach their decarbonization goals. They must adopt the use of renewable power, electrify their fleets, and find operational efficiencies. Using electric equipment can come at a 20% lower cost of ownership than diesel-powered vehicles.
And finally, the increasing demand for coal used in the power sector is increasing the number of mines in that sector, and coal miners need even more equipment to meet demand.
(This article first appeared in the Canadian Mining Journal)