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North America Mining Equipment Market - Growth, Trends, COVID-19 Impact, and Forecast (2021 - 2026)

·6-min read

The North America Mining Equipment Market was valued at USD 10. 35 billion in 2020 and is anticipated to reach USD 14. 89 billion by 2026, at a CAGR of 4. 58% during the forecast period. The outbreak of COVID-19 and the subsequent shutdowns have not affected the North America mining equipment market upto a great extent, as the day to day operations in mines were performed with less staff during the pandemic.

New York, July 02, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "North America Mining Equipment Market - Growth, Trends, COVID-19 Impact, and Forecast (2021 - 2026)" - https://www.reportlinker.com/p06101231/?utm_source=GNW
However in starting months sales of equipment decline but as the situations were brought under control sales returned to its normal level.

With the rise in consumption of base metals and precious metals in numerous applications, the mining activities of these metals have increased, especially in countries, such as Canada and Mexico.

The equipment effectiveness in underground mining is nearly 27.3% whereas it is nearly 40% for open pit mining. Over the last years, transition has been observed from less economical underground mining to the more economical open-pit mining, and this factor is expected to drive the demand for mining equipment during the forecast period.

Owing to the implementation of stringent emission norms and regulations, the mining equipment manufacturers are investing more in the development of fuel efficient, low emission and electrically powered equipment.

Furthermore, the development of high-performance equipment, with increased automation, has made extraction of ores without declining the grades comparatively cheaper, in turn, propelling the growth of the mining equipment market.

Key Market Trends
Increasing Demand for Surface Mining Equipment

In surface mining, the equipment deployed are drilling equipment, electric shovels, high wall miners, excavators, dumpers, motor graders, wheel dozers, and others.

Technological advancements and increasing demand for oil sands, coal, and gas are expected to drive demand for the surface mining equipment market. For instance,

- According to the Environmental Impact Assessment (EIA), in 2019, about 756 million short tons of coal were produced in the US. The surface mines accounted for 63% of total coal production and these also represent 63% of the total number of mines in the United States.

Significant improvements in equipment efficiency, investments in the sector by Original Equipment Manufacturers (OEMs), coupled with the need for sustainable products, are expected to positively augment market growth during the forecast period. For instance,

- In September 2020, the new Cat 963 crawler loader replaced the 963K loader. It is a versatile machine that can dig, load, carry, and fill. It provides up to 10% higher fuel efficiency, productivity, and cab and controllability enhancements.
- The 963 meets US EPA Tier 4 Final/EU Stage V emission standards. It has 202 HP (151 kW) power and an operating weight of 44,881 lbs. (20 358 kg).

Companies are further upgrading excavators and electric shoves to meet the current metal exploration demand. For instance,

- In September 2019, Komatsu Ltd introduced a hydraulic excavator, PC2000-11, equipped with a machine monitoring system, called KomVision. This is used to load the haul trucks and can be used for loading coal, stripping overburden, and loading shot rock.

In addition, the growing adoption of this equipment has led to selective mining operations by exploring high-quality materials and for creating embankments and stable surfaces likely to provide lucrative opportunities for manufacturers by developing their product portfolio. For instance,

- In January 2021, Caterpillar launched the next generation three new large excavators along with two ultra-high definition demolition (UHD) machines. These kind of development activities are expected to drive demand for the market.
- In June 2019, Komatsu acquired a mining workforce optimization company in order to improve the safety and productivity of mining customers. These kinds of acquisitions increase the market share of companies.

Therefore, all the abovementioned instances are anticipated to propel growth of the surface mining equipment segment during the forecast period.

Canada to Lead the Market During Forecast Period

The mining industry contributed CAD 34,173 million to the GDP of the Canadian economy, of which, CAD 19,829 million was only from the metal mining segment of the industry, in 2019.

The Canadian mining industry produced minerals worth of CAD 48.16 billion in 2019, making the mining industry an important contributor to the Canadian economy. Quebec reported the most production value in 2019, at CAD 10.77 billion worth of minerals, closely followed by Ontario at CAD 10.66 billion.

The high expenditure in mineral explorations i.e., CAD 1.7 billion in 2018, CAD 1.6 billion in 2019, and preliminary estimated spending of CAD 1.5 billion in 2020 indicate the industry’s commitment toward mineral production and the need for dependable and economic equipment for different mining companies.

Even with reduced foreign interest towards mining in Canada, compared to that of other North American countries, Nunavut region, in August 2019, observed huge investments of CAD 1.2 billion by Agnico Eagle, to open and operate the Meliadine mine and the Amaruq Whale Tail Project.

The country possesses an extensive network of 3,767 suppliers that cater to the different requirements of the mining industry. The supplier network is only third largest in the leading countries, with respect to mining, and second largest after the United States in the Americas. According to the Mining Supplier of British Columbia, the supply sector, which provides technical, financial, and other services for mining, generated CAD 2.9 billion worth of economic activity in 2018.

Mining companies, like Newmont, Teck Resources Limited, Cameo Corporation, PotashCorp, and Canadian Natural Resources Limited, are working with manufacturers, like Komatsu in British Columbia, Alberta, Manitoba, Newfoundland, and Labrador, among other states, and Liebherr Mining Equipment in Ontario, Quebec, Alberta, and other provinces, along with Belaz North America in Toronto, that offer mining equipment services in these regions.

Various technologies are implemented in the mining sites active across the country, for cost cutting and efficient mining. Meglab in June 2021, developed and installed a system in Borden Mine of Ontario that monitors the mine’s energy consumption during its operations and offers alternatives to the operators if the energy consumption is going beyond the limit.

The above-mentioned figures and statistics indicate the huge opportunity for the mining equipment market in Canada.

Competitive Landscape
The North American mining equipment market is characterized by the presence of numerous international and regional players, resulting in a competitive market environment. With the growing competition in the market, innovation becomes a critical factor for the players for standing out in the industry, as many countries are trying to decarbonize and reduce GHG emissions from the mining sector by motivate mining companies to switch to electric mining equipment.

Major players have increased their R&D expenditure exponentially in order to integrate innovation with excellence in performance. The demand for high performance, high efficiency, and safe handling equipment is expected to make the market more competitive over the forecast period.

Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Read the full report: https://www.reportlinker.com/p06101231/?utm_source=GNW

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