Mining is the extraction of valuable minerals from the earth, usually an ore body or reef, lode, or placer deposit. Smart mining is a novel concept, which includes advanced technologies to increase the productivity and safety of mining activities. It involves Integrated Communication Technology (ICT) solution for all levels such as mining operations and supply chain management. Moreover, the cost-cutting strategy has provided a competitive edge and encouraged organizations to adopt new technologies, which ensure improved operations and output, both in quantity and quality. The global smart mining market is segmented into automated equipment and component.
The global smart mining market is expected to surpass US$ 43,511.2 Mn in terms of value by the end of 2028.
Global Smart Mining Market: Driver
Enhanced operational efficiency offered by smart mining is expected to boost the global smart mining market growth over the forecast period. Technological advancements in automation have led to lucrative opportunities for mining companies to attain higher performance. Installation of automated equipment has enabled companies to improve productivity and increase efficiency, and also to operate in hazardous environments, which is not possible using traditional mining methods and techniques or human workforce.
Rising supply chain integration in the mining industry can present significant opportunities. Mining companies are laying emphasis on transforming the conventional supply chain management into an integrated supply chain network, in order to obtain real-time control and visibility of logistics proceedings and also to minimize commodity loss by improving commodity management. Furthermore, supply chain solutions are being increasingly deployed by mining companies to ensure better coordination across all nodes of the supply chain thereby helping mining companies respond to supplier, customer, and market in real-time.
Global Smart Mining Market: Recent Developments
Global Smart Mining Market: Restraint
High capital investment and training costs are expected to hinder the global smart mining market growth over the forecast period. Capital costs associated with the deployment of automated mining devices and technologies in the mining industry are significantly high. Moreover, skilled personnel is required to monitor automated mining equipment. Thus, these factors are expected to hinder the global smart mining market growth in the near future.
Global Smart Mining Market - Impact of Coronavirus (Covid-19) Pandemic
The COVID-19 pandemic has impacted the global smart mining market similar to other industries and markets. Since the outbreak of pandemic, many countries have decided to opt for nationwide lockdowns with temporary halt on international travel. This has disrupted major economic activities, resulting in major decline in the global smart mining market. Besides, there are strict regulations on physical distancing, which has temporarily suspended mining activities in different parts of the world. However, with rollout of vaccines and declining spread of the virus, the market players are optimistic about the potential growth of the market. Moreover, many countries have started relaxing regulations on international travel, which can aid in growth of the market.
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According to Coherent Market Insights’ analysis, service sub-segment is expected to account for service sub-segment, in terms of value, outperforming the solution sub-segment. According to the same source, the engineering and maintenance service segment is expected to register the fastest CAGR of 19.8% as compared to other services and maintain its dominance during the forecast period. However, due to the expected increase in demand for deployment and integration of various intelligent systems and connectivity platforms, demand for implementation and integration service is likely to increase in the near future.
Automated excavator machines have witnessed a massive demand in the recent past since these units function without an operator. As a result of this, productivity has improved as compared to conventional mining excavators. According to Coherent Market Insights’ analysis, automated mining excavators were valued at US$ 1,238.8 Mn in 2014 and is expected to account for US$ 1,397.3 Mn by the end of 2015.
Key players operating in the global smart mining market are ABB Ltd., Komatsu Ltd., Sandvik Mining and Construction, Atlas Copco, Alcatel-Lucent, Caterpillar Inc., Cisco Systems Inc., Hitachi Construction Machinery Co. Ltd., Outotec Oyj, and Joy Global Inc.