How is the Mining Equipment Market Expected to Flourish even after the Pandemic Hit?

Mining equipment consist of different types of machines and accessories depending upon the different types of activities. Machines used in surface mining is different from the equipment used for underground mining activities. Mining drills, blasting tools, crushing equipment, screening equipment, earth movers, feeding, and analysis are some of the primary equipment used in mining process.

Factors Enhancing the Market Growth

Efficient mining equipment helps in removing soil or surface material seamlessly and in a cost-effective way. It also helps in reducing pollution and improves air quality underground. Rising construction works and urbanization are other factors rising the demand of mining equipment. Apart from this, the demand of gold, diamond, and precious metals by the end-users has enhanced the growth of the market during the forecast period.

Recent Trends of the Market

According to a report published by Research Dive, the topmost players of the global mining equipment market include Sandvik AB, Komatsu Ltd., Terex Corporation, Volvo Group, Deere & Company, Doosan Corporation, Liebherr, Hitachi, Ltd., Caterpillar Inc., and Epiroc AB.  

These industry players are investing a lot of efforts on the research and development of smart and unique strategies to sustain the growth of the market. These strategies include product launches, mergers and acquisitions, collaborations, partnerships, and refurbishing of existing technology.

Some of the recent developments of the market are as follows:

• As per a press release, in June 2020, Caterpillar Inc., a global leader in manufacturing of construction and mining equipment, acquired select assets and employed a few people from Marble Robot, Inc., an autonomy and robot technology solutions company headquartered in California. Being a part of the automation and autonomy strategy of the company, the acquisition showcases its dedication to the next generation of jobsite solutions.
   
• In September 2020, as per a press release, Deere & Company, a US-based machinery and equipment manufacturing company, has announced about the completion of its procurement of Unimil, a leading Brazilian company. This acquisition has helped Deere and Company to expand its portfolio and offer cost-effective solutions to the customers.
   
• In March 2021, Hitachi, Ltd., a Japanese multinational conglomerate company, announced about its strategy of acquiring GlobalLogic Inc., a leading digital engineering services company, based out of US. Hitachi looks forward to the addition of advanced digital engineering capabilities of GlobalLogic and its solid client base including major technology companies. It is expected to toughen the digital portfolio of “Lumada.”*1 Hitachi Vantara LLC, a U.S.-based subordinate of Hitachi.

Covid-19 Impact Analysis

The coronavirus pandemic affected the global mining equipment market in a negative way. The reason behind this downfall is the cancellation of mining projects and decline in the demand of mining equipment.

Lockdowns were imposed across the world in order to prevent the communal transmission of the coronavirus. The workers of the mining sites were restricted to continue their operation according to the government regulations. Safety of all the workers became the first priority among the employers and the government. Moreover, supply chain is disrupted due to the travel restrictions, both domestic and international. Many mining companies went bankrupt during the lockdown period because of heavy loss and pandemic crisis on the global economy.

In spite of such catastrophe, many corporates has shown their solidarity with the frontline workers by helping them any way possible. For instance, BHP, an Australia-based mining company has introduced $50 million (AUD) Vital Resources Fund to support the local, regional health workers, and other community services during the pandemic.

Although the economy has wrecked and markets are crushed, the top players of the market are working diligently on research and strategy development to recover the market from the negative impact of the pandemic.