Heavy Mining Equipment Market Intelligence


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Subscription Benefits:

  • PRO access to New Beroe LiVE*
  • Unlimited updates on the Report*
  • Supplier Watchlist for 3 suppliers*
  • Supplier Shortlisting Tool*

With this purchase you will be subscribed for a 12-month PRO membership to the upcoming all new Beroe LiVE (launching in Q3, 2020)


*These features will be unlocked on the new Beroe LiVE when it launches (Q3, 2020)

COVID 19 impact on Heavy Mining Equipment market

  • The outbreak of Coronavirus has forced the U.S.-based suppliers to industrial giants such as Caterpillar Inc, Deere & Co and Komatsu Ltd to grapple with a surge in costs to avoid production disruptions
  • Komatsu reports a nearly 30% decline in use of its construction equipment in China last month, another sign that Chinese industry is slow to recover from the novel Coronavirus outbreak

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Report Coverage

  • Regional Market Snapshot-North America, Asia, Australia, South America

  • Cost Driver Analysis

  • Key Global Supplier Profiles

  • Sourcing Channels: Surface Mining Equipment

Table of contents

  1. Heavy Mining Equipment Executive Summary
  2. Market Overview
  3. Regional Overview
  4. Key Suppliers
  1. Heavy Mining Equipment Market Analysis
  2. Market Maturity
  3. Global Market Overview
  4. Global Demand by Application
  1. Heavy Mining Equipment Regional Market Analysis
  2. North America
  3. Asia
  4. Australia
  5. South America
  6. Africa
  1. Heavy Mining Equipment Industry Analysis
  2. Porter’s Five Forces Analysis - HME
  3. Industry Drivers and Constraints
  4. Market Driver - Commodity Prices
  1. Heavy Mining Equipment Cost and Price Analysis
  2. Cost Structure Analysis
  3. Cost Driver Analysis
  4. Price Trends
  5. HME-Total Cost of Ownership
  1. Heavy Mining Equipment Supply Analysis
  2. Market Share
  3. Supplier Profiles
  1. Heavy Mining Equipment Industry Practices
  2. Sourcing Channels
  3. Industry Practices
  4. Contract Structure by Suppliers

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Global Market Outlook on Heavy Mining Equipment

  • The APAC region will continue to dominate the HME market, in terms of size and growth prospects until 2021
  • The global HME is expected to grow by 3–3.5 percent CAGR by 2021, owing to the rise in mineral production output, improving economic scenario in China, and increase in commodity prices.



  • Demand for new technologies such as automation, autonomous equipment is expected to drive the demand over the long term at a global level especially in developed nations
  • Due to a fall in ore grades at the surface level, mining companies are exploring opportunities to implement UG mining methods. Thus, growth of UG mining equipment is expected to surpass surface mining equipment's market growth
  • Global economic growth, expected increase in exploration activity in brownfield operations and mechanization of mines could further drive the demand for HME

Global Demand by Application

  • Demand growth is expected to come from metals such as copper, nickel, zinc, and iron ore. Metal output is expected to increase by 3-3.5 percent CAGR between 2017 and 2019
  • Demand is also expected to come from regions, such as India, China and Africa. Iron ore output in India is expected to increase by 7.1 percent. This trend is expected to continue in the upcoming years

Downstream Demand Outlook

  • Demand for HME is expected to improve due to the increase in metal production, construction activities, and upsurge in new mines
  • In the UG mining equipment category, coal accounted for about 40 percent of the revenue share in 2018
  • Coal mining is one of the significant end-use industries in the surface mining equipment category
  • Asia is going to be the fastest growing regional market for HME during 2018-2020
  • Demand from key developing countries such as India, China and Indonesia could increase the size of the market

Industry Drivers and Constraints


Increase in Mining Activity:

  • A gradual increase in mining activities in the key global markets such as India, Indonesia and China will drive up the demand for HME
  • Due to depleting ore grades in surface mines, mining companies are adopting UG mineral extraction methods. This leads to an increase in underground mining activities, and thus increase in demand for underground mining equipment

Rise in Commodity Demand

  • A gradual rise in key mining commodities demand, triggers the mining companies to increase the production level which will drive up the demand for HME

Commodity Prices

Higher commodity prices result in high profit margins for mining companies, which triggers greenfield and brownfield mine project expansions and thus, demand for HME


Slow Down in Chinese Economy

  • Slowdown in the Chinese economy has adversely affected the global mining market, thereby deteriorating the demand for HME

Resource Nationalism

  • Resource nationalism poses the threat to mining companies and OEM manufacturers alike. Resource nationalism is a potential risk in various regions, including Canada, and is a constraint against capital investment adversely impacting HME suppliers

Cost Structure Analysis: Global

  • Steel is a primary raw material in both surface and UG mining equipment
  • Labor is another major cost constituent as it involves specialized skills in manufacturing HME

Surface Mining Equipment

  • Apart from raw material, labor is one of the key cost drivers in manufacturing surface mining equipment. This is mainly due to the high technical and specialized skills in manufacturing surface mining equipment
  • Apart from capital cost, operating cost is another major cost driver in the total cost of owning a HME. On average, annual HME operating cost is 16 percent of the capital cost

Underground Mining Equipment

  • Raw materials such as steel, chromium, nickel and rubber are major cost constituents in manufacturing UG mining equipment
  • Other cost components consist of inflation and currency exchange rate

HME: Total Cost of Ownership

  • In mining operations, evaluating the total cost of ownership or life-cycle cost of drilling equipment is of paramount importance to the profitability of the operation. Life-cycle management is a key focus for many mining companies and OEM manufacturers
  • The cost to maintain, repair and rebuild the drilling equipment over its life is 2-3 times the initial purchase price or capital cost of the equipment. Moreover, the loss of revenue due to downtime is very high and cannot be quantified and thus proper maintenance and service is key to life cycle management of drilling equipment. In the mining industry, the key performance metric is operational cost per ton and effective life-cycle management is key to minimizing cost per ton.

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