The increased focus on developing infrastructure fuels the demand for mineral resources. With coal projected to drive the energy requirements even in the future, opportunities are immense for India’s mining equipment sector…
India is the world’s second-largest producer of coal, second largest producer and consumer of steel and third largest producer of zinc and iron ore. In addition the country is plush with its natural mineral deposits. Owing to which the mining and mining equipment industry enjoys a laudable status quo. The mining industry is considered as one among the prominent contributors towards the nation’s economy and is looked upon as an attractive investment opportunity by both the national and foreign investors. Market experts uniformly highlight the increasing demand for metal and mineral commodities owing to large-scale infrastructure projects and rapid urbanization as the key growth drivers for the mining and mining equipment industry in India. Within the infrastructure segment, the power and cement industries in particular, has been opening up new opportunities for the growth of mining sector and ultimately boosting the demand for mining equipment industry.
According to a latest report by the Polaris Market Research, the market size for global mining equipment is projected to increase at a CAGR of 5.2 per cent, scaling up to US$ 223.68 billion by 2032. The Asia Pacific region in particular is expected to dominate the market, wherein the growth is anticipated to be driven by the rising use of renewable energy sources and the adoption of electric vehicles in the emerging nations like China and India. Increasing demand for metallic mineral products and widespread use of coal, diamonds and uranium is further escalating the growth prospects. The need for mineral supplements for the agricultural industry is also one among the demand pullers. The shooting demand for technologically advanced equipment, increased use of coal for power generation and renovations and constant project allotments in rail and road infrastructure are the growth potential market drivers.
A study by Fortune Business Insights suggests that the growing use of this equipment is to cater to the increasing demand from energy and power to infrastructure development. For Instance, an increase in the use of these equipment’s in the construction of railway tracks and roads is fueling the demand for infrastructure development activities. Furthermore, the rise in coal for heating & electricity generation is catering energy & power demands.Besides, it is being observed that the mining companies are focusing more on machinery and equipment, as these are more efficient and help increase productivity. Furthermore, increased adoption of technology and automation has led to the industry growth.
During the period 2030-31, crude steel demand/production forecasted to reach 255 MT. Per capita finished steel consumption also expected to rise to 158 kg by 2030-31 (from 74.1 kg in 2018). A recent study by Technavio research indicates, the expansion of manufacturing activities and distribution facilities is a key factor driving market growth. The vendors are largely focusing on increasing their production capacities to meet the increasing demand for construction and mining equipment. Digitization is another key factor being highlighted as the growth driver. Robotics, drones and telematics in particular are the key drivers. The usage has in particular resulted in using telematics and real-time monitoring of equipment performance, fuel consumption and maintenance.
The study further states, the loaders segment will account for a major share of the market's growth during the forecast period. This is because of their effectiveness, adaptability, and safety attributes. For material handling, loading, and transportation needs on construction and mining sites, loaders are heavy machinery. They are vehicles that can operate in a variety of environments, including sand, gravel, rock, and ores, and are able to move a wide range of materials. Hence, these benefits are expected to drive segment growth during the forecast period.
APAC is estimated to contribute 49 per cent to the growth of the global market during the forecast period. The market for construction and mining equipment in the region is growing because of rising building activity in emerging nations like China and India. In addition, there is a growing need for additional commercial and residential construction to accommodate the urban population growth. On the other hand, it is expected that both commercial and residential development will rise significantly in emerging economies. Hence, the above-mentioned factors are expected to drive market growth in the region during the forecast period. The truck-mounted aerial work platform (AWP) market is estimated to grow at a CAGR of 6.3% between 2022 and 2027 and the size of the market is forecast to increase by USD 1,623.11 million.
The latest report by Credence Research projects India’s underground mining equipment market to witness substantial growth, wherein the value is expected to scale up to US$ 1666.24 million by 2032, projecting a CAGR of 4.3 per cent. Rapid urbanization and industrialization in India is highlighted as the prime factors fuelling the demand for minerals fostering the market for underground mining equipment.
Government initiatives promoting modernized mining infrastructure and increased focus to meet sustainable mining practices stimulates the adoption of eco-friendly equipment and solutions. The increased exploration in untapped regions further expands the business scope of mining equipment.
Urbanization has evolved as one of the crucial and most effective growth puller for developing nations like India. The increased need for mineral substances and elements in strengthening the infrastructure, along with the increased allotment and execution of big-ticket face-changing infrastructure projects in roads, railways and urban infrastructure has particularly scaled up the demand for advanced mining machineries. The need for timely excavation of mineral resources and reduced downtime of machineries urges the demand for high performing fuel efficient equipment – thereby broadening the demand for technically superior and advanced equipment.
Increasing demand for coal, iron ore, chromium, and diamonds in emerging economies is expected to provide growth avenues for the surface mining equipment over the next few years. Growing adoption of this equipment has led to selective mining operations by exploring high-quality materials and creating embankments and stable surfaces. Furthermore, increased demand for excavators in the construction and oil & gas industries is expected to significantly contribute to the growth of the surface mining equipment segment. This equipment has also witnessed increased demand due to the emergence of compact excavators. These excavators are a potential solution for carrying the excavating process in confines spaces. Companies are further upgrading excavators and electric shoves to meet the current metal exploration demand.
The study also points out a continuous shift to renewable energy, which has increased the demand for a variety of minerals. This situation has enabled companies to strengthen their business to offer equipment, which are more productive and have a smaller environmental impact. For instance, the advanced control technologies in the Autonomous Haulage System of Komatsureduces fuel consumption, along with tire wear and emissions. The transition from underground to innovative and economical open pit mining is expected to propel the demand for mining equipment over the next few years.
To further scale up the opportunities for the mining equipment industry, The government is likely to come up with a Production Linked Incentive (PLI) scheme for underground mining equipment and heavy earth-moving machinery by 2025-26. The scheme shall be implemented over a period of five years, and would be designed to bolster the largely unexplored under-ground coal mining in the country. The government has projected coal to be the predominant source of energy even beyond 2030 as the demand for power increases and thus expects a huge requirement of equipment for both opencast and underground mines in the next 10 years.
Coal India has already initiated to procure high capacity and technically rich heavy earth moving machineries equipped with real-time technologies to ensure increased efficiency and safety to meet the government regulations.
The Government also promotes and believes that fostering partnerships and collaborative ventures with globally recognized equipment manufacturers is its top priority. The focus now more concentrated towards widespread use of domestically manufactured equipment in coal production, transportation, and monitoring, without compromising productivity.
