Home > Industrial Machinery > Industrial Equipment > Tools > Underground Mining Equipment Market
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.