Underground Mining Market Trends
Growth Drivers
- Increasing Utilization of Electric Equipment Due to Environmental Concerns – Electrical equipment for underground mining is a relatively new invention. Fuel savings, increased efficiency, and increased production are the driving forces behind this innovation. In November 2022, Miller Technology launched a new, battery electric low-profile grader for underground mining, Miller’s E-Grader which was built by retrofitting a HBM-Novas 110-M low profile grader with Miller’s patented operated with Ionic drive system. Furthermore, in January 2020, the Caterpillar company and its dealer in South Africa, Barloworld, displayed electric-powered underground mining to carry out cost-efficient underground operations.
- Technological Advancements in Underground Mining –Several underground mining manufacturers are focusing on improving products' safety to help prevent and reduce health hazards and accidents from mining activities. Technological advancements in the latest mining equipment result in the advanced protection of workforces at mining locations. In February 2022, Orica developed rock-blasting robot for safer underground mining that significantly increases worker safety and improves efficiency. Moreover, in October 2020, Caterpillar announced a new partnership with South Dakota School of Mines & Technology to explore technologies such as advanced software used to manage construction and mining operations, autonomous robotic mining, and new equipment that increases efficiency and safety.
- Growing Need for Electricity- The power sector is primarily dependent on resources such as coal, and natural gas, for power generation which increases the need for mining and correspondingly increased the need for underground mining.
Challenges
- Environmental Damages of Underground Mining - Underground mining leads to the possibility of land subsidence and tunnel collapses since it involves large-scale movements of waste rock and vegetation. Besides, underground mining can release numerous types of toxic compounds into the air and water. Mining releases a greenhouse gas, coal mine methane which is 20 times more powerful than carbon dioxide. For instance, fossil fuel mining is estimated to be responsible for the emission of around 34 billion tons of carbon dioxide equivalent across the globe annually. The water contaminated in this manner can pollute the region surrounding the mine and beyond.
- High Maintenance Costs
- Restrictive Regulation by the Government
Underground Mining Market: Key Insights
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Programme), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
3.70% |
|
Base Year Market Size (2024) |
USD 25.46 billion |
|
Forecast Year Market Size (2037) |
USD 40.83 billion |
|
Regional Scope |
North America (U.S., and Canada) Asia Pacific (Japan, China, India, Indonesia, Malaysia, Australia, South Korea, Rest of Asia Pacific) Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Latin America (Mexico, Argentina, Brazil, Rest of Latin America) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa) |
