Underground Mining Equipment Market Size - By Equipment Type (Excavator, Telehandler, Loader, Bolter, Drills, Others), By Technology (Conventional Equipment, Electric Equipment, Autonomous Equipment), By Application, By Distribution Channel & Forecast, 2024 – 2032

Underground Mining Equipment Market Size

Underground Mining Equipment Market was valued at USD 22 Billion in 2023 and is projected to grow at a CAGR of over 2.9% from 2024 to 2032, due to the rise in extraction of minerals, metals, and coal from mines.
 

Worldwide growth in human population leading to a rise in the consumption of various resources such as coal, gold, copper, and other minerals. This has resulted into a surge in underground mining activities to extract these resources.

One of the major challenges for underground mining equipment is the increasing shift towards renewable energy sources, such as solar and wind power, which is leading to a decline in demand for coal and other minerals that are typically mined underground. This shift is resulting in a decrease in investments in new underground mining projects. As a result, the demand for underground mining equipment could decline, posing a challenge to the underground mining equipment market.
 

Furthermore, the high cost of underground mining equipment is also a challenge for the market. The equipment used for underground mining is highly specialized and expensive, making it a significant investment for mining companies. In addition, the maintenance and operation costs of underground mining equipment are also high, adding to the financial burden for mining companies. This could lead to a decrease in demand for equipment and hinder the growth of the market.
 

Underground Mining Equipment Market Trends

One of the most significant trends in underground mining equipment technology is the integration of automation and remote operation systems. These advancements not only improve worker safety but also enhance productivity and efficiency. For instance, Sandvik’s Auto Mine system enables the autonomous operation of underground loaders and trucks, reducing the risk of accidents and allowing for continuous operations even in hazardous environments. This system effectively reduces downtime caused by gas delays and the need for frequent trips to the working face. Additionally, it eliminates the necessity for extra ventilation by enabling operators to monitor production from the surface within a control room.
 

Additionally, the shift towards sustainable mining practices has led to the adoption of battery electric vehicles (BEVs) in underground mining. battery electric vehicles offer numerous advantages over traditional diesel-powered vehicles, including lower emissions and therefore ventilation costs, reduced noise levels, and improved energy efficiency. With advancements in battery technology, battery electric vehicles can now operate for longer durations, making them viable alternatives for underground transportation.
 

Underground Mining Equipment Market Analysis

Based on type, the excavator segment accounted for revenue of around USD 8 billion in 2023 and expected to reach USD 10 billion by 2032. Excavators are widely used in mining operations for various tasks, including moving bulk material, loading dump trucks and lorries as well as breaking material into smaller more manageable sizes. The bucket-wheel type excavators are used in open-pit mining. These mining tools continuously dig, transport, and load materials, excavating up to 240,000 cubic tons of minerals per day. As a result, without excavators, the process of extracting valuable minerals from underground deposits would be much more difficult and dangerous. These machines play a vital role in the success of underground mining operations and continue to evolve and improve to meet the growing demands of the industry.
 

The underground mining equipment market from the coal mining segment crossed USD 9 billion in 2023 and projected to surpass USD 11 billion by 2032. With the use of advanced technology and equipment, coal mining operations can be carried out in a more sustainable manner. As per the U.S. Energy Information Administration, U.S. coal production increased 2.9% year over year to 594.2 million short tons (MMst) for the year 2022. About 27% of the coal produced in the United States came from the Appalachian coal region. Underground mines supplied 80% of the coal produced in the Appalachian region while 68% for the Interior coal region. Underground mines in the Appalachian region accounted for 58% of U.S. total underground coal mine production.
 

In China, nearly 90% of the total coal production is from underground mining. China has more than 3200 underground coal mines with a total output of 3063 Mt/a, and an average production capacity of 0.93 -Mt/a, according to the Southern African Institute of Mining and Metallurgy. There are around 1100 mines with a production capacity of less than 0.3 Mt/a, accounting for 36% of the total number of underground mines, and the output contribution is only 4.5%. Additionally, India produced 34.85 mt of coal from underground mines, which accounted for 3.9 per cent of the pan India production of 893.19 mt in the financial year 2023.
 

Asia Pacific dominated the underground mining equipment market with revenue of around USD 9 billion in the year 2023 and likely to cross USD 12 billion by 2032. This growth can be attributed to the expanding mining activities in countries like China, India, Indonesia, and Australia being the top producers of coal, gold, and other minerals. As the demand for these resources increases, the need for advanced underground equipment also rises to improve productivity and safety in mines. Moreover, with the growing focus on sustainable mining practices, there is a growing demand for technologically advanced equipment that can reduce environmental impact and improve efficiency.
 

As per the Canada’s Trade Commissioner Service, China has over 1,500 major mining operations within approximately 75% of all major Chinese mining operations are underground. China's mining industry produces over USD 400 billion/year additionally China spends approximately USD 200 billion/year on mine supply and services. India is currently the second-biggest producer of coal in the world after China. As per the India’s Ministry of Coal, India is planning to expand production from its underground coal mining industry to 100 million tons by 2028 as the country strives to meet growing power demand.
 

The mining industry in Australia is a large-scale operation across the entire continent that produces plenty of materials for export. With over 350 mining operations around the country to meet growing demand, from Queensland to New South Wales, Australia's mines contribute large quantities of iron ore and coal for domestic consumption. According to the Australian Bureau of Statistics, mining contributed a record $455 billion in export revenue for Australia in the 2022-23 financial year, meeting the increasing demand for resources worldwide.
 

As a result, the Asia Pacific underground equipment market is poised for significant growth and is anticipated to grow over the forecast timeframe, driven by various factors such as expanding mining activities and technological advancements.
 

Underground Mining Equipment Market Share

Key players involve in the underground mining equipment industry are Caterpillar, Normet, Epiroc B-H d.o.o., Komatsu Mining Corp and Hitachi Construction Machinery accounting market share of 25-30% in 2023. These manufacturers are constantly investing in research and development to come up with advance technologies that can improve the efficiency and safety of underground mining operations. Additionally, manufacturers are also collaborating with mining companies to understand their specific needs and develop customized solutions accordingly. This approach not only helps in building long-term partnerships but also ensures that the equipment meets the demands of the industry.
 

Underground Mining Equipment Market Companies

Major companies operating in the underground mining equipment industry include:

• ABB
• Boart Longyear
• Caterpillar
• DMC
• Epiroc B-H d.o.o
• Hitachi Construction Machinery
• J C Bamford Excavators Ltd.
• J.H. Fletcher & Co.
• Jacon Equipment
• Komatsu Mining Corp
• Liebherr
• MacLean Engineering & Marketing Co. Limited
• Normet
• Sandvik AB
• SMT Scharf GmbH
   

Underground Mining Equipment Industry News

• In January 2024, Caterpillar introduce its first battery-electric prototype underground mining truck to expand the company’s battery electric and semi-autonomous technology offering for underground mining applications. The new electric underground mining truck R1700 XE battery electric loader, helping to create a complete fully electric underground load and haul solution for customers.
   
• In November 2023, Liebherr expands its tunnel excavator range with the new R 930 Tunnel crawler excavator. The R 930 Tunnel has been designed to meet as fully as possible the demands of underground construction sites, which often present tight spaces with difficult access. The R 930 Tunnel’s attachment, available in two lengths, features a bearing that can swivel to 2 x 45° angles allowing the excavation.
   
• In November 2023, Sandvik Mining and Rock Solutions introduced Auto Mine for Underground Drills, an advanced tele-remote solution that enables operators to control and supervise multiple automated Sandvik underground drills, increasing efficiency, safety and overall productivity in mining operations remotely and simultaneously.
   
• In June 2023, Normet introduce the latest broad concrete spraying equipment offering, the completely new battery electric Spraymec MF 050 VC SD, specifically tailored for the needs of underground mining. Combining the proven Normet SmartDrive battery-electric architecture with advance spraying technology, the MF 050 VC SD offers unrivalled concrete spraying results, superior operator ergonomics and excellent serviceability with zero local emissions.
   
• In April 2023, MacLean released the new Multi Lift ML5 which provides underground mines with safe, versatile platform for mine services installation and repair. The ML5’s safety and versatility dividends are embedded in the unit’s OEM design from the ground up. The slew boom range of motion delivers best-in-class coverage, along with in-basket operator controls and remote drive.
   
• In December 2022, Komatsu has entered into an agreement to acquire Gelsenkirchen, Germany-based GHH Group GmbH (GHH). By adding GHH’s factories and rebuild facilities in key markets in Europe, South Africa, India and Chile, Komatsu aim to strengthen production and service capabilities for customers.
   

This underground mining equipment market research report includes in-depth coverage of the industry, with estimates & forecasts in terms of revenue (USD Billion) and volume (Thousand Units) from 2018 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Equipment Type

• Excavator
• Telehandler
• Loader
• Bolter
• Drills
• Others (Scaler, Roof Supporter etc.)

Market, By Technology

• Conventional Equipment
• Electric Equipment
• Autonomous Equipment

Market, By Application

• Coal Mining
• Metal Mining
• Mineral Mining
• Others (Salt Mining etc.)

Market, By Distribution Channel

• Direct Sales
• Indirect Sales

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada 
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
• Rest of Asia Pacific 
  • Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA