Mining Support Equipment

Global Market Outlook on Mining Support Equipment

• The global mining support equipment market is expected to value $49.51 billion in 2023 (E), and it is expected to grow at a CAGR of 5.5–6 percent between 2022 and 2027, primarily driven by rapid industrialization and significant growth in the infrastructural activities undertaken by the public institutions in emerging markets

• Mature markets Europe and North America collectively account to more than 40% of market share since pre-covid and still forecasted to grow at a CAGR of 5-6.5% by 2026. The market is been dominated by Asia-Pacific, which alone occupies 40-50% of market share

Mining Support Equipment Market Overview –Global

• The global SE market is expected to grow by 5.5-6% percent CAGR between 2022 and 2027, owing to the expected rise in mineral production output along with infrastructure developmental projects by both developing and developed economies, coupled with the increased demand for commodities.

• Adoption of technological advancements in key features of critical mining support equipment are observed in India, China and Australia.

Market Overview : Supply Landscape (Jackhammer)

• Europe is the major market for jackhammer equipment, followed by North America, Asia-Pacific and LAMEA region.

• In Europe, the top players include Germany, UK, France, Spain and Italy.

• The jackhammer market is estimated to value at approx. $0.44 billion in 2022, and it is expected to grow at a CAGR of 5.50-6 percent during the next 4-5 years. So, it remains as the largest market for the support equipment, due to the presence of emerging economies, such as India, China, and Japan.

• The three types of jackhammer include pneumatic, hydraulic and electric jackhammers. Pneumatic jackhammers hold a market share of 45-50 percent which is approx. estimated to value at $0.22 billion in 2022. Electric and Hydraulic jackhammers hold a market share of 25-30 percent and 15-20 percent respectively and are estimated to value at $0.13 billion and $0.09 billion accordingly.

Industry Drivers and Constraints : Mining Support Equipment

Drivers

Increase in Mining Activity

• The long-term demand for Mining Equipment is anticipated to be supported by a gradual expansion in mining activity in the key markets, including India, Indonesia, China, and Australia, by 2026.

Declining Ore Grade in Open Cast Mines

• Mining companies are utilizing UG mineral extraction as a result of declining ore grades in surface mines. This results in an increase in underground mining operations, which raises the need for support equipment in certain applications.

Increase in Commodity Price

• Higher profit margins from metal/commodity pricing will encourage the development of new mines and the expansion of existing ones, like greenfield or brownfield expansion, which will support the need for equipment.

Adoption of new technologies/ growth in electronics industry

• With companies focusing on shift from diesel engines and remote working may drive up the demand for electrical and automated equipment especially in developed economies.

Constraints

Government Regulations on Mining

• Regulations on environmental and safety hazards in underground mining are in place by governments in both developed and developing nations, this would remain a market restraint for support equipment.

Resource Nationalism

• Resource nationalism poses the biggest 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 SE suppliers.

Lower Spending in Developing countries

• Developing countries mostly prefer used mining machinery since they have a reliable life cycle if maintained properly and lower cost which is an hindrance to new sales.

Cost Drivers : Mining Support Equipment

• Raw material constitutes 50-60 % of the cost structure of the Mining Support Equipment categories namely Jack Hammer, Pumps, and Ventilation fans

• The prices of carbon steel, copper, stainless steel, tungsten and natural rubber are expected to increase during Q1 2023, owing to increase in restocking activities.

• Energy prices are expected to increase 4-6% owing to the increase in industrial power demand in the US and EU whereas in China energy prices are expected to relax due to reduced consumption by the mills as a result of lockdown activities

• Industry players recorded higher sales in Q1 2022 and anticipate that there will be uptrend after Q3 2022. The market outlook remains uncertain as prices are likely to be greatly impacted by global geopolitical, macroeconomic, and supply chain issues associated with the COVID-19 shutdown, particularly in China