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Table of Content (TOC)
Underground Mining Market size is poised to cross USD 34.97 billion by the end of 2033, growing at a CAGR of 3.62% during the forecast period, i.e., 2023 – 2033. In the year 2022, the industry size of underground mining was around USD 23.70 billion. The demand for underground mining is attributed to the growing requirement for various minerals such as iron, gold, copper, coal, lead, aluminum, silver, and so on has increased significantly as a result of stable economic development in both developed and developing areas.
Moreover, the rapid shift to renewables such as solar panels, electric vehicle batteries, and wind turbines is driving the demand for underground mining across the globe. This shift has intensified the mining procedure for some minerals like cobalt, lithium, and other rare earth elements.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
3.62% |
|
Base Year Market Size (2022) |
USD 23.70 Billion |
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Forecast Year Market Size (2033) |
USD 3.97 Billion |
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Regional Scope |
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The room & pillar extraction segment in the underground mining market is estimated to gain a significant revenue share over the projected time frame. By the end of 2033, the room and pillar extraction segment is anticipated to garner the largest revenue of USD 14.45 billion. The segment is further expected to grow at a CAGR of 3.84% during the forecast period. Room & pillar extraction is growing owing to the rising soft rock mineral extraction activities in Asian countries. Compared to other mining methods, room and pillar extraction mining is popular among miners as it allows them to extract deep deposit minerals with less removal of overburden (waste or spoil). In the upcoming years, rising demand for minerals in the agriculture sector will boost segment revenues. In May 2023, the US government announced USD 5 million to explore high-value trace critical mineral extraction from ocean macroalgae.
Application (Coal, Metal, Mineral)
Underground mining market from the metal segment is expected to garner a significant share of USD 20.34 billion in the upcoming years. Metal is the largest growing segment owing to rising construction activities. Growth is mainly due to various industries' growing demand for base metals such as zinc, copper, and silver. Hard rock mining methods are the popular methods miners use to extract metals from underground mines. South Deep gold mine in South Africa, Boddington gold mine in Australia, and Rampura Agucha Mine in India are few of the famous underground metal mines in the world. Increasing development in underground mining methods is projected to boost the market growth. According to the United States EPA, 87 metal mining facilities were there in the United States in 2021. Besides, U.S. metal mine production in 2020 was USD 27.7 billion which experienced an increase of 3% over 2019.
Our in-depth analysis of the global market includes the following segments:
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Mining |
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Application |
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Asia Pacific Market Forecast
The Asia Pacific underground mining market is projected to hold a significant market share and account for USD 17.24 billion by the end of 2033. Increasing mineral and coal demand, growing R&D in underground mining methods, and favorable government support for the underground mining industry are driving the demand and are actively boosting the Asia Pacific market. According to the India Brand Equity Foundation, the mineral’s demand was estimated to increase by 3% in 2023 due to expanded electrification and overall economic growth in India. The estimated number of mines in India was 1,425 in 2022 out of which reported non-metallic minerals at 720 and metallic minerals mines at 525.
North American Market Statistics
The growing demand for coal in the North America region is a significant factor propelling underground mining market expansion. Underground mining accounts for 35% of coal, 8% of metals, and 4% of minerals mined in the United States. The percentage of materials handling equipment operated by electricity is 20% for coal, 0% for metals, and 0.5% for industrial minerals. According to the U.S. Energy Information Administration, the U.S. coal production in 2022 experienced an increase of 2.9% over 2021, and an increase of 7.8% in 2021 over 2020.
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Author Credits: Richa Gupta, Harshita Srivastava
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