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The mining automation market size is estimated to grow by USD 1.61 billion at a CAGR of 7.4% between 2022 and 2027. The market's growth hinges on the mining sector's expansion, advancements in automated mining tools, and the rising adoption of AI, ML, and deep learning. These factors are driving the demand for innovative solutions that boost productivity and safety. These companies are increasingly turning to automation to improve efficiency and reduce costs. This shift towards automation is reshaping how mining operations are conducted, leading to increased efficiency and reduced environmental impact. Additionally, the integration of AI and machine learning enables predictive maintenance and enhances decision-making processes. These advancements are revolutionizing the mining industry, making it more competitive and sustainable.
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This market report extensively covers market segmentation by component (equipment, software, and communication system), type (underground mining automation and surface mining automation), and geography (APAC, North America, Europe, South America, and the Middle East and Africa) It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth by the equipment segment will be significant during the forecast period. The equipment segment of the market mainly includes different types of automated mining equipment, such as automated mining excavators, load haul dumps, and drillers and breakers. Different kinds of equipment are used to mine and extract natural resources, such as metals, coal, and minerals, including iron ore, titanium, bauxite, copper, gravel, sand, platinum, gold, salt, and other non-metallic products.
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The equipment segment was the largest and was valued at USD 1.19 billion in 2017. The integration of production intelligence platforms in mining equipment provides a complete view of plant conditions as well as the operational data needed to monitor mining equipment, raw materials, and people. Fully automated equipment can detect and rectify any operational problems. Various companies, such as Rockwell Automation and Cisco, are developing connected services to monitor these sites remotely using automated tracking equipment from a centralized control room. Various other types of automated mining equipment and systems include automated rail management, robotic trucks, tracking systems, smart communication, and automated transport and dispatch systems. The presence of stringent regulations and the need for safe and employee-friendly operations are likely to fuel the growth of the equipment segment of the market over the forecast period.
Underground mining is a type of mining that comprises closed-pit mining techniques and is predominantly used to excavate minerals such as coal, lead ores, copper ores, zinc ores, nickel ores, and precious metal ores. Globally, coal is mostly extracted through underground mining, owing to which the segment accounts for a prominent share of the market in focus. Connectivity is one of the key concerns in underground mining operations, and hence, this type of mining requires efficient and advanced wired and wireless communication devices to provide a consistent and strong connectivity network for communication. Therefore, the growing demand for advanced underground mining solutions and underground mining practices is likely to drive the adoption of the automation in the underground segment of the market during the forecast period.
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APAC is estimated to contribute 41% 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. The market in APAC witnessed a steady growth momentum in 2022. Countries in APAC possess huge resources of coal, copper, diamond, gold, iron ore, lead, uranium, graphite, magnesium, tin, and nickel. In China, India, Australia, and Indonesia, the industry contributes a major share of the GDP. Countries in APAC have a high mineral potential, coupled with cheap labor advantages. Most countries have the advantage of supportive government regulations.
In recent years, the regional market has gained traction due to an increase in the adoption of automated equipment by the industry in countries such as Australia, China, and Japan. As per Australia's Bureau of Statistics, the country's industry spends around USD 4 billion per year on research and development. An increase in mining activities and the rising demand for advanced mining solutions are driving the demand for automated mining services and solutions in APAC, thereby boosting the growth of the regional market during the forecast period.
The market is rapidly evolving, driven by the need for efficiency, productivity, and safety in mining operations. Process automation and software automation are transforming the industry, reducing operating costs and enhancing mine site safety. Robotic technology is increasingly used in mining vehicles to improve productivity and reduce the reliance on human labor, thus enhancing miner safety. Automation software, like Sandvik's mining automation and teleoperation systems, offers machine monitoring and fleet overview, leading to improved productivity and reduced total ownership costs. General Motors (GM)'s hydrogen fuel cell power module is also gaining attention, offering a cleaner alternative to traditional diesel engines, aligning with the focus on sustainability and reduced environmental impact.
The growth of the mining industry is notably driving the market growth. The mining industry is one of the key sectors of the global economy. It plays a crucial role in overseeing the supply of various commodity products, including metals and minerals, essential for various industries. The global mining sector is rebounding from one of its most challenging periods in decades, marked by market volatility and steep declines in commodity prices. This recovery is driving a renewed focus on resources, efficiency, productivity, and safety in mining operations. Companies are working to improve the productivity of mining activity while enhancing miner safety and reducing operating costs at mine sites. However, the industry is now experiencing significant growth due to the recovery in commodity prices and cost-saving measures adopted by the companies. The emergence of numerous infrastructure projects in Asia has positioned the region as a dominant force in the sector. Moreover, the increasing demand for metals and minerals is expected to drive up mining activities. The substantial industrialization and urbanization in countries like China and India have heightened the need for power and energy production, further boosting the industry's expansion in the forecast period.
Increasing adoption of mobile-based technologies is an emerging trend shaping the market growth. Enterprises have been using mobile technologies to manage their systems in the domestic and international markets. The mobility trend in mining systems is witnessing innovations in terms of wireless connectivity, advancements in machine-to-machine communication systems, application development, and platform integration. Electronic mobility solutions offer convenience and ease of access to mining-related data. Mobile-based geographic information systems support offline functions, which enable operators to monitor their operations. Rugged mobile devices are widely used in guiding workers from a remote monitoring center.
However, these are extremely useful in offering hazard-related reporting. Mobile devices can be used to send and receive crucial real-time data and analysis of operations. Therefore, the growing use of mobile devices and applications in the industry is likely to support the growth of the market over the forecast period.
Risks associated with cybersecurity are a significant challenge hindering market growth. Cybersecurity is one of the major challenges in the market. These systems use IT solutions that are exposed to online security threats. Information security in mining automation systems is one of the major challenges for the market in focus. The continuous upgrading of IT systems can increase the costs incurred by companies. Moreover, complexities in the cybersecurity framework increase if IT systems are deployed on outdated IT security infrastructure or guidelines. Therefore, companies in the market should provide mining automation services based on the latest cybersecurity solutions and guidelines.
Further, cybersecurity is not limited to intellectual and data theft alone but can also affect mining automation-connected equipment that controls pumps, motors, valves, and programmable logic controllers. Hence, these equipment must have additional firewalls and malware protection systems, which could increase the expenditure for companies. Such factors may create a challenge for the growth of the market during the forecast period.
The market 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 growth strategies.
Global Market 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 mining automation equipment such as fully autonomous and electric transport trucks.
ABB Ltd. - The company offers mining automation equipment such as ABB Ability system 800xA and ABB Ability technology platform software.
Antaira Technologies LLC - The company offers mining automation equipment such as trucks, dozers, loaders, haulers, and excavators.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market 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 market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is experiencing significant growth driven by factors such as the need for worker safety and the optimization of operational efficiencies. The use of advanced mining equipment and robotic automation technology is reducing the reliance on unskilled laborers and enhancing worker safety in underground mines. Intelligent management systems and real-time data analytics enable cost savings and improve operational efficiencies. Additionally, automation contributes to carbon emissions reduction and waste management, aligning with decarbonization efforts and responsible technology adoption. The market is witnessing a shift towards green technology adoption, including hydrogen fuel cells and zero-emissions solutions, further driving its growth.
Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.4% |
Market growth 2023-2027 |
USD 1.61 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.24 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 41% |
Key countries |
US, China, Australia, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Volvo, ABB Ltd., Antaira Technologies LLC, Atlas Copco AB, Autonomous Solutions Inc., Caterpillar Inc., CiGen, Hexagon AB, Hitachi Construction Machinery Co. Ltd., Komatsu Ltd., Metso Outotec Corp., Mitsubishi Electric Corp., Rio Tinto Ltd., Rockwell Automation Inc., Roxia Oy, RPMGlobal Holdings Ltd., Sandvik AB, SANY Group, Sarla Advantech Pvt. Ltd., and Siemens AG |
Market dynamics |
Parent market analysis, Market Forecasting, 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 forecast period. |
Customization purview |
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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 Component
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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