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The coal handling equipment market in the mining industry size is forecast to increase by USD 1.21 billion, at a CAGR of 2.1% between 2023 and 2028. The coal handling equipment market in the mining industry is witnessing significant growth due to the increasing demand for coal from vital industries such as consumer products and industrialized products. The trend towards electrification of mining machines is also driving market growth, as it enhances efficiency and productivity. Additionally, the rise in renewable sources of energy is leading to the adoption of coal handling equipment that reduces emissions and improves sustainability. Surface mining operations, in particular, are benefiting from these trends, as they require efficient and reliable coal handling systems to meet the demands of consumers and industries. Overall, the market is expected to continue its growth trajectory in the coming years.
In the mining industry, coal is a vital resource for the production of consumer products and industrialized goods. The extraction of coal from mines involves various processes such as drilling, blasting, digging, and material handling. Surface mining and underground mining are the two primary methods used for coal extraction. Large mining machines like hydraulic excavators, electric rope shovels, and draglines are employed for digging and loading materials from the mining site. Mines are located in different states and geological formations, including sedimentary rocks like sandstones and mudstones, where coal seams are found. Coal mining is a complex process that includes coal mine development, mining tunneling, extraction, and material processing. Coal production includes various types of coal, such as lignite, thermal coal, and metallurgical coal, which cater to different markets. Coal handling equipment plays a crucial role in the coal mining process.
Further, machines like large trucks, hydraulic excavators, large dozers, motor graders, and wheel loaders are used for loading and transporting materials from the mining site to the processing site. Underground mining loaders are used for loading materials from the mine tunnels. Coal processing includes sorting, loading materials into waste areas or processing sites, and material processing to produce coal and coal by-products like coal sludge, fine coal, coal gangue (cg), fly ash (fa), coal mine drainage, acid drainage, toxic metals, and greenhouse gas emissions. The international coal market is a significant consumer of coal and its by-products. The geology of coal seams and the extraction process can impact the environmental impact of coal mining, including mine ventilation, coal transportation, waste management, and the potential for toxic metals and greenhouse gas emissions. The iron ore mining industry continues to innovate and improve coal handling equipment to minimize the environmental impact and increase efficiency.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The underground mining segment is estimated to witness significant growth during the forecast period. In the mining industry, coal handling equipment plays a crucial role in underground coal mining operations. Due to the depth of coal deposits in underground mines exceeding 300 feet below the earth's surface, the coal recovery rate per unit volume is significantly lower than surface mines. Underground mining poses high safety risks for mine workers, making mechanization and automation essential. Large mining trucks, hydraulic excavators, electric rope shovels, rotary drill rigs, rock drills, motor graders, large wheel loaders, and draglines are common coal handling equipment used in underground mining.
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The underground mining segment accounted for USD 3.87 billion in 2018 and showed a gradual increase during the forecast period. Among these, the adoption of electric coal handling equipment is expected to increase due to its environmental benefits. Electric equipment does not emit gases, reducing the need for complex ventilation systems, which are essential in underground coal mines to maintain a breathable atmosphere. The high level of mechanization and automation in underground coal mining operations necessitate the use of advanced coal handling equipment. Companies such as Caterpillar, Komatsu, and Joy Global are major suppliers of coal handling equipment in the mining industry. The market for coal handling equipment in underground mining is expected to grow due to the increasing demand for coal and the need for efficient and safe mining operations.
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APAC is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In the mining industry, coal handling equipment plays a crucial role in the extraction and transportation process. The Asia Pacific region, specifically countries like China, Australia, India, and Indonesia, dominate the coal handling equipment market due to their substantial coal production. Although China's adoption rate of mining equipment is not as extensive as Australia's, its vast coal output, which is nearly six times that of Australia, positions it as the leading market for coal handling equipment globally.
Further, the Chinese government aims to consolidate its coal mining sector, which is fragmented, to address overcapacity and inefficiency. Additionally, the rising labor costs in China are motivating coal miners to invest in more equipment to decrease labor expenses and enhance productivity and output. Large mining trucks, hydraulic excavators, large dozers, electric rope shovels, rotary drill rigs, rock drills, motor graders, large wheel loaders, and draglines are essential coal handling equipment used in underground mining operations. These machines streamline the mining process, ensuring efficient and cost-effective production.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for coal from end-user industries is notably driving market growth. Coal handling equipment plays a crucial role in the mining industry, facilitating the process of extracting and transporting coal to various consumer and industrial markets. Coal is a vital resource used extensively in power generation, steel, and cement industries, accounting for approximately 85% of global coal consumption. Around 40% of the world's electricity is generated using coal, with the power sector being the largest consumer. The steel and cement industries consume around 15% of the global coal output.
Additionally, the demand for coal is particularly high in developing countries in Southeast Asia and Africa, such as Indonesia, Bangladesh, Vietnam, South Africa, Nigeria, and Kenya, where coal is used to generate electricity to fuel economic growth and meet the rising energy demands of their populations. China, through its One Belt One Road initiative, is financing several coal-fired power plants in these regions, further increasing the demand for coal handling equipment. Thus, such factors are driving the growth of the market during the forecast period.
Electrification of mining equipment is the key trend in the market. In the mining industry, coal handling equipment plays a vital role in extracting and processing mined minerals for both consumer products and industrialized goods. Surface mining operations, in particular, rely heavily on machinery to move and process large quantities of coal. Traditional mining methods, which often involve diesel-powered equipment, necessitate extensive ventilation systems to remove emissions from underground mines for the safety and well-being of workers. However, the installation and operation of these ventilation systems entail substantial capital investments and ongoing costs, which escalate with the mine's depth.
In contrast, electric mining equipment does not emit exhaust gases, thereby reducing the need for elaborate underground ventilation systems. This shift towards electric mining equipment can significantly lower costs and improve operational efficiency for coal mine operators. Thus, such trends will shape the growth of the market during the forecast period.
The rise in renewable sources of energy is the major challenge that affects the growth of the market. The mining industry's reliance on coal handling equipment is facing a significant challenge as the global shift towards renewable energy sources gains momentum. With increasing concerns over climate change, environmental degradation, and health impacts, countries are prioritizing the use of renewable energy for both consumer products and industrialized applications. According to the International Energy Agency (IEA), renewable energy capacity is projected to increase by 50% by 2028, with solar photovoltaics (PVs) and wind energy leading the way.
Further, in 2023, a record-breaking 510 gigawatts (GW) of renewable capacity was added worldwide, with solar PV accounting for three-quarters of these additions. Major developments in renewable energy are expected in the European Union, China, and the US. This trend is likely to reduce the appeal of coal investments and impact the demand for coal handling equipment in the mining industry. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AB Volvo: The company offers coal handling equipment in the mining industry such as coal transport which is built for rough terrain to carry higher volume of coal.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The mining industry plays a pivotal role in supplying vital industries with the raw materials required for consumer products and industrialized goods. Coal, as a primary energy source, is extensively used in generating electricity and manufacturing steel, cement, and other essential commodities. Coal handling equipment is a crucial segment within the mining industry, facilitating the extraction, drilling, blasting, digging, material handling, sorting, and loading of coal. Mines, whether surface or underground, rely on an array of machines to efficiently and safely extract coal from the earth. Surface mining, which accounts for a significant portion of global coal production, utilizes large mining trucks, hydraulic excavators, large dozers, electric rope shovels, rotary drill rigs, rock drills, motor graders, and large wheel loaders.
Further, these machines are instrumental in digging, drilling, and loading coal into trucks for transportation to processing facilities. Underground mining, on the other hand, necessitates specialized equipment such as underground mining loaders, draglines, and wheel tractor scrapers. These machines are designed to navigate the confined spaces and complex geological conditions of underground mines, ensuring the efficient and safe removal of coal. The coal handling process begins with the extraction of raw coal from the mines. Once extracted, the coal undergoes several stages of processing, including drilling, blasting, and digging, to prepare it for transportation. Drilling and blasting are essential steps in breaking down the coal seam into manageable pieces. Hydraulic excavators, electric rope shovels, and draglines are commonly used for this purpose. Following the extraction, the coal is loaded onto large trucks or conveyor belts for transportation to the processing facilities. Material handling equipment, such as large wheel loaders and underground mining loaders, are employed to load the coal onto trucks or conveyor belts.
Additionally, the coal is then transported to the processing facilities, where it undergoes sorting and cleaning to remove impurities and prepare it for market. The waste area, a significant byproduct of the coal mining process, requires careful management to minimize environmental impact. Machines such as large dozers and motor graders are employed to maintain the waste area, ensuring the efficient and safe disposal of waste materials. In conclusion, coal handling equipment plays a vital role in the mining industry, enabling the efficient and safe extraction, processing, and transportation of coal. From surface mining equipment like large mining trucks and hydraulic excavators to underground mining equipment like draglines and underground mining loaders, these machines are essential in ensuring the continued supply of coal to vital industries and consumer products.
Market Scope |
|
Report Coverage |
Details |
Page number |
150 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.1% |
Market Growth 2024-2028 |
USD 1.21 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.1 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 39% |
Key countries |
US, China, Germany, France, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Volvo, Caterpillar Inc., CNH Industrial NV, Deere and Co., Elecon Engineering Co. Ltd., Epiroc AB, FEECO International Inc., General Kinematics Corp., Hitachi Construction Machinery Co. Ltd., Hyundai Motor Co., KBR Inc., Komatsu Ltd., Liebherr International AG, N.M. Heilig B.V., RPM Solutions, Rubble Master HMH GmbH, Sandvik AB, Sany Group, Terex Corp., and Xuzhou Construction Machinery Group Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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