Underground Mining Equipment Market Size was valued at USD 15.5 Billion in 2022. The Underground Mining Equipment industry is projected to grow from USD 16.8 Billion in 2023 to USD 32.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.50% during the forecast period (2023 - 2032). Increased demand for underground mining equipment, growing use of telematics in mining, and rising disposable income are the key market drivers enhancing the market growth.
       
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Market CAGR for underground mining equipment is driven by the rising demand for underground mining equipment due to the significant increase in the consumption of energy in the form of nuclear fuels and coal as a result of firm economic growth in both developed and developing regions, an increase in the middle-class population and rise in disposable income. The demand for several minerals, including iron, gold, copper, coal, lead, aluminum, silver, etc., has grown significantly.
Additionally, due to growing urbanization and industrialization, energy consumption in the form of nuclear fuels and coal has increased significantly, which also has a beneficial effect on the demand for underground mining equipment.
The underground mining equipment sector is also growing due to technological developments and improvements. The Internet of Things (IoT),  plasma technology, 3D imaging, automation, and others are some technologies revolutionizing the industry. These gadgets were created using high-temperature and high-pressure materials and technology. Telematics’ in the mining sector has altered the game's rules. Internet of Things (IoT) sensors provide feedback to fleet management, reducing downtime due to defects and assisting in scheduling maintenance work. Due to the intense competition in all industries, businesses continually seek ways to improve their operational procedures. Drones are used for mine monitoring and investigation.
Drones monitor post-blast smells, ensure clean areas before blasts, and increase site security.  BHP (Australia) has begun using drones to monitor its Australian mines. As a result, it is anticipated that demand for underground mining equipment will increase throughout the projection period due to the rising automation and teleoperation technologies. Thus, driving the Underground Mining Equipment market revenue.
The  Underground Mining Equipment market segmentation, based on the type of mining method, includes longwall extraction and room & pillar extraction. The longwall extraction segment dominated the market, accounting for the maximum market revenue due to its high output rate, low labor need, and improved safety. Longwall mining is a tried-and-true technique for deep underground coal mining.
Figure 1: Underground Mining Equipment Market, by Type of Mining Method, 2022 & 2032 (USD Billion)
        
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The  Underground Mining Equipment market segmentation, based on application, includes coal mining, metal mining, and mineral mining. The coal mining category generated the most income due to its rising demand for electricity generation. Coal mining application has expanded its purposes and adoption as the excavation of coal has grown.
Metal mining is anticipated to be the fastest-growing segment in the projected period due to rising resource exploration and strong demand for valuable metals such as gold, silver, iron, and copper. Mining for rare earth metals has recently become more popular due to constantly emerging technologies. A prominence on long-term value is advised for major metal mining operations, given the current high levels of investment in new technology. Hard minerals, typically those containing metals like ore containing gold, silver, copper, nickel, and zinc, are excavated usage mining equipment.
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Underground Mining Equipment market will dominate this market, owing to increased mining activity, rising use of cutting-edge mining equipment, and government initiatives. In addition, the switch from outdated, expensive underground mining to cutting-edge, cost-effective open-pit mining will boost market growth in this region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: UNDERGROUND MINING EQUIPMENT MARKET SHARE BY REGION 2022 (USD Billion)
        
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Underground Mining Equipment market accounts for the second-largest market share due to the manufacturer's increasing emphasis on underground mining activities, raising worker safety, and reducing carbon emissions. Further, the German Underground Mining Equipment market held the largest market share, and the UK Underground Mining Equipment market was the fastest-growing market in the European region.
The Asia-Pacific Underground Mining Equipment Market is expected to grow at the fastest CAGR from 2023 to 2032 due to the adoption of electric vehicles and the rising shift toward clean energy resources. Moreover, China’s Underground Mining Equipment market held the largest mining equipment share, and the Indian Underground Mining Equipment market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Underground Mining Equipment market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Underground Mining Equipment industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Underground Mining Equipment industry to benefit clients and increase the market sector. In recent years, the Underground Mining Equipment industry has offered some of the most significant advantages to mining. Major players in the Underground Mining Equipment market, including Komatsu Ltd., Caterpillar Inc., Sandvik AB, Volvo AB, Thyssenkrupp AG, Liehherr-International Deutschland GmbH, Hitachi Construction Machinery Co. Ltd., Metso Corporation, FLSmidth Group, Kennametal Inc., Boart Longyear Ltd., and others, are attempting to increase market demand by investing in research and development operations.
Epiroc is an important part of a substantial society. It serves as a  productivity partner for infrastructure and mining customers. Epiroc creates and supplies cutting-edge, secure equipment like drill rigs, rock excavation tools, and construction equipment and supplies for both above and below-ground uses. In addition, Epiroc provides top-notch aftermarket support, automation, digitization, and electrification solutions. With a headquarters in Stockholm, Sweden, and 50 billion ESK revenue in 2022, Epiroc employs about 17,000 dedicated people who support and work with clients in about 150 countries. For Instance: In September 2022, Epiroc launched Boomer E10 and E20 drill rigs. The drill rigs have automated technologies that increase operator productivity and safety and an optional battery-electric driveline for superior environmental performance.
Sandvik AB is a Swedish international engineering firm specializing in goods and services for mining, rock excavation, drilling, and processing of rocks, as well as metal cutting and machining. In 1862, the business was established in the Swedish county of Gävleborg. Sandvik are forward-thinking individuals passionate about consistently developing smarter solutions and enabling changes. To benefit its customers, employees, and communities while also advancing society and the environment, Sandvik works to maximize shareholder value. To unleash significant value, enhance operations, foster safer working environments, and do more with fewer resources, the company drives innovation and digitization. In a world that needs to change, Sandvik improves productivity, efficiency, and sustainability through its diverse teams, solid culture, and cutting-edge talents. The company’s role is to change the world via engineering with every move they make daily. The company’s tales demonstrate how technology, ideas, and people interact by providing ground-breaking solutions and cutting-edge innovation. For instance: In December 2022, Sandvik Mining and rock solutions released a highly compact, automated, twin-boom drill for underground development and small tunneling. The new DD322i is a multipurpose drill used in mining or tunneling. And it has a new carrier and design and can tram in tight corners, small headings, and intersections because of its compact size. Additionally, the lower costs of compact equipment increase their adoption in end-user industries.
Komatsu Ltd.
December 2022: Komatsu announced that it had acquired the German company Gelsenkirchen GGH Group to grow its underground mining equipment division. Due to this acquisition, the company’s existence in the mining industries of India, Europe, and South Africa will grow.
August 2022: AARD Mining Equipment, a South African mining equipment manufacturer, and Epiroc, the top efficiency and sustainability partner for infrastructure and mining development, announced establishing a strategic partnership.
August 2021: Mining Company Champion Iron has joined with US-based Caterpillar (CAT) for AI-Powered drilling technologies on Cat equipment at its Bloom Lake Mine in Canada.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 15.5 Billion |
| Market Size 2023 | USD 16.8 Billion |
| Market Size 2032 | USD 32.2 Billion |
| Compound Annual Growth Rate (CAGR) | 8.50% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type of Mining Method, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Â Komatsu Ltd., Caterpillar Inc., Sandvik AB, Volvo AB, Thyssenkrupp AG, Liebherr International Deutschland GmbH, Hitachi Construction Machinery Co. Ltd., Metso Corportaion, FLSmidth Group, Kennametal Inc., Boart Longyear Ltd. |
| Key Market Opportunities | Growing urbanization and industrialization |
| Key Market Dynamics | Increase demand for underground mining Rising use of telematics in mining |
Underground Mining Equipment Market Highlights:
Frequently Asked Questions (FAQ) :
The Underground Mining Equipment market size was valued at USD 15.5 Billion in 2022.
The market is projected to grow at a CAGR of 8.50% during the forecast period, 2023-2032.
North America had the largest share of the Underground Mining Equipment Market
The key players in the market are Komatsu Ltd., Caterpillar Inc., Sandvik AB, Volvo AB, Thyssenkrupp AG, Liebherr International Deutschland GmbH, Hitachi Construction Machinery Co. Ltd., Metso Corporation, FLSmidth Group, Kennametal Inc., Boart Longyear Ltd., and others.
The longwall extraction category dominated the Underground Mining Equipment Market in 2022.
Coal mining had the largest share of the Underground Mining Equipment Market
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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