Automated Mining Equipment Market Size

Automated Mining Equipment Market Analysis

The Automated Mining Equipment Market market is expected to register a CAGR of 35.38% over the forecast period (2021 - 2026). The COVID-19 outbreak and lockdown restrictions across the globe have affected industrial activities across the world. Some of the effects of lockdown include supply chain disruptions, lack of availability of raw materials used in the manufacturing process, labor shortages, fluctuating prices that could cause the production of the final product to inflate and go beyond budget, shipping problems etc.

• Mining is a composite industry that extracts raw materials of different shapes, sizes, and chemical compositions from the earth's crust. Transforming it into a standardized and high-quality final product is challenging and has pushed the industry to opt for solutions that improve its efficiency and productivity. Typically mines are located in remote areas, and adopting automation helps in resource utilization better.
• Autonomous technologies bring certain benefits which cannot be overlooked. These impact the whole value chain of the mining industry and the industries depending upon mining for their raw material requirements. The companies that implement automation technologies are anticipated to quickly realize a significant increase in productivity and a decrease in expenditures with the correct implementation.
• Moreover, Mining companies worldwide are swiftly utilizing technological developments to better use their equipment and human resources to improve safety. For instance, in September 2020, Bis, a logistics company, and Israel Aerospace Industries (IAI) announced its collaboration for 'Auto-mate,' a new joint venture, to provide autonomous systems for mining operations. According to IAI, the JV is likely to give the mining industry players access to the benefits of automation in their operations, which improves safety and productivity.
• The industry is anticipated to benefit from a considerable increase in safety practices. Identifying processes and operating procedures helps address danger points and develop the SOP to mitigate those risks. Moreover, using automated equipment, which can be maneuvered into unsafe areas and challenging locations, the mining companies can send fewer miners underground while extracting a higher output, with lower risk to their employees. For example, after implementing autonomous technologies in several African mines, Randgold Resources reduced the quarter-on-quarter injury rate by 29%.
• Further, the demand for automation equipment in the industry is primarily driven by the rising need to enhance productivity and improve workers' safety. The outbreak of COVID-19 has caused the demand for automation and is expected to increase over the long run, primarily to cope with the shortage of labor and rising costs. Within the mining industry, the situation is likely to vary from commodity to commodity. The mining of commodities, such as gold, iron ore, and uranium, has remained buoyant. In contrast, thermal and metallurgical commodities have come under more pressure as the commodity is fully exposed to consumer demand.