Heavy Mining Equipments

Heavy Mining Equipments Global Market Outlook:

• The global HME market is expected to grow by 3–5 percent CAGR between 2022 and 2024, owing to the rise in mine production output, in light of global economic recovery and increase in capital expenditure by mining companies

HME Market Overview: Global

• The global HME market is expected to grow by 3–5 percent CAGR between 2022 and 2024, owing to the rise in mine production output, coupled with the increased demand for commodities. Regionally Asia-Pacific is the largest market and fastest growing market due to large number of mines in China, Australia, India and Indonesia and growing urbanization.

• Presumed global economic growth, expected increase in exploration activity in Brownfield operations/resumed operations, and mechanization of mines could further drive the demand for HME.

• Increasing focus of miners and OEM’s on sustainability, efficiency and productivity is a key driver for development of electric and autonomous equipments.The number of Autonomous haul trucks grew by around 39 percent globally between May-21 and May-22 crossing 1000 numbers.

Porter's Analysis on Heavy Mining Equipment

Buyer power is moderate as the market is consolidated with few major suppliers

Supplier Power

• HME components are sourced from multiple vendors and supplier power towards equipment industry is medium due to the fragmented nature of the supply.

• Key components, such as engines, are a consolidated market, while ground engagement tools and undercarriage markets have high degree of fragmentation.

Barriers to New Entrants

• High capital investment is required, hence new entrants find it difficult to enter the market.

• The HME market is highly consolidated with global suppliers like Caterpillar, Komatsu, Hitachi and Liebherr dominating the surface mining equipment market.

Intensity of Rivalry

• The rivalry among HME is high as it is a consolidated market with major suppliers dominating the global market

Threat of Substitutes

• HME cannot be replaced by other equipment due to the specific nature of operations, which demand usage of sophisticated equipment

• The sheer volume of material to be moved limits the ability of substitutes to be effective replacements for HME

Buyer Power

• While buyers (mining companies) have only a few major suppliers to choose from, any potential loss of customers could have a major impact on the suppliers' top line.

• The future of mining equipment lies in automation and technological developments centered around reducing man-power and improving productivity. Only a few suppliers have this advanced capability

Cost Drivers : Heavy Mining Equipments

• Some of the key raw material used to manufacture key components in Heavy mining equipment include steel for strength and durability,aluminium for light weight and corrosion resistance, copper wiring, etc.

• Rubber is used in OTR for wheeled equipments while fluids used include lubricants,anti freeze liquids, cooling liquids, power steering fluid, etc.

• The manufacturing of HME are characterized by long lead times and cross sourcing of components