Increasing Demand for Power to Drive Global Underground Mining Market to Valuation of US$ 25 Bn by 2027 - Transparency Market Research
- Underground mining value chain is being influenced by the innovations in the domain of drilling equipment. The companies in the market are focused on developing new rock drills for improved energy efficiency and durability
- The underground mining market is expected to witness a solid growth with technological advancements and increasing adoption across globe
ALBANY, New York, Feb. 20, 2020 /PRNewswire/ -- A recent research published by Transparency Market Research seeks to provide reader with detailed information about the factors that are responsible for the growth of underground mining market. The research report analyzes different dimensions of the underground mining market that are contributing towards its development. It also analyzes upcoming trends and possible challenges for the market over the course of the given assessment period.
According to the research report, the global underground mining market is expected to exhibit a sluggish growth rate of ~2% over the given projection period ranging from 2019 to 2027. The market was valued at US$21.5 bn in the year 2018. With the mentioned rate of growth, the market valuation is expected to rise up to ~US$25 bn by the fall of 2027.
The global underground mining market can be broadly segmented in terms of equipment, method, operator, and region.
In terms of equipment, the segment of drilling equipment accounted for a larger share in the global market in 2018.
Based on method, the segment of unsupported accounted for considerable market share in 2018. The room and pillar mining is a conventional method used for nearly horizontal or horizontal deposits. This technique has been improved over the years and is mainly used for non-coal as well as coal mining.
With respect to the operator segment, its sub-segment of contract mining is projected to remain dominant over the course of the given forecast period. Numerous contractual agreements are used in contract mining. These agreements can be broadly segmented into conventional contracts, strategic alliance contracts, and risk sharing contracts. These agreements depend upon the life of mine or the overall duration of the contract.
Explore a report with detailed research, incisive insights, and in-depth country levels estimations. Gain business intelligence on global Underground Mining Market by Equipment: Drilling Equipment, Loaders & Trucks, Ventilation Systems, Conveyor Systems, Rock Reinforcement Systems, and Others; Method: Supported [Cut-and-Fill Stoping, Stull Stoping, and Square Set Stoping], Unsupported [Room-and-Pillar, Shrinkage Stoping, and Sublevel Stoping], and Caving [Longwall Mining, Sublevel Caving, and Block Caving]; Operator: Contract Mining and Owner Mining, Forecast 2019 – 2027 at https://www.transparencymarketresearch.com/under-ground-mining.html
Global Underground Mining Market – Key Driving Factors
There are several micro as well as macroeconomic factors that are helping to drive the development of global underground mining market. Some of the key factors are mentioned below:
The domain of renewable energy is expanding at a considerable rate across the world. However, it is not able to cater to the increasing power requirement. This has led to a chasm between the power demands and its generation. Countries such Indonesia, China, and India are meeting these demands with the help of coal based generation. This is thus fueling the use of coal in different power generation applications.
As per the findings of the World Coal Association, around 38% of electricity generated across the globe in 2018, was through coal. This percentage has largely remained unchanged over the past two decades. Thus, increasing demand for power is projected to drive the growth of the global underground mining market. In 2017, the US coal production rose up to 273 million short tons with the help of underground mining. In 2016, the production was 252 million short tons.
Another important factor that is helping to drive the growth of the global underground mining market is increasing implementation of IoT in the market. It provides companies with numerous opportunities to improve their productivity. IoT helps in enabling data integration from a growing number of sources. This further helps in improving the accuracy of the underground mining operations.
Global Underground Mining Market – Key Restraining Factors
There are a few factors that will impede the growth of the global underground mining market and prevent it from reaching its complete potential.
One of the biggest restraining factors for the market growth has been the lack of skilled personnel on the job. Due to the advanced nature of these tools, it is important to have high technical skills and knowledge, and thus dearth of such skilled labor will hamper market growth.
There are other challenges such as safety concerns, increasing operational costs, and constant fluctuations in the prices of raw materials and commodities.
Global Underground Mining Market – Regional Outlook
Latin America currently dominates the global underground mining market. The mining sector in the region has been flourishing since past few years. The growth of the region is largely due to the growing number of investments for its exploration. In 2017, around 305 companies collectively invested US$2.38 bn for the exploration of Latin America. Thus, such developments are driving growth of the region.
The regional segment of Asia Pacific is expected to witness a robust growth in the coming years of the forecast period. This is due to growing demand for power from emerging economies and flourishing industrialization in the region.
Analyze Underground Mining market growth in 30+ countries including US, Canada, Germany, United Kingdom, France, Italy, Russia, Poland, Benelux, Nordic, China, Japan, India, and South Korea. Request a sample of the study.
Global Underground Mining Market – Key Market Players
Some of the key names in the global underground mining market are BHP, Rio Tinto, Glencore, Vale S.A., Alcoa Corporation, Coal India Ltd, Anglo American Plc., Barminco, CIMIC Group Limited, and OZ Minerals among others.
Global Underground Mining Market: Segmentation
Underground Mining Market by Equipment
Loaders & Trucks
Rock Reinforcement Systems
Others (Draglines, Shovels, Continuous Miners, and Shuttle Cars)
Underground Mining Market by Method
Square Set Stoping
Underground Mining Market by Operator
Underground Mining Market by Region
Russia & CIS
Rest of Europe
Rest of Asia Pacific
Rest of Latin America
Middle East & Africa
Democratic Republic of the Congo
Rest of Middle East & Africa
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