Mining Shovel Market

Mining Shovel Market Overview

The global mining shovel market is estimated to create an absolute dollar opportunity of over US$ 10 Bn by the end of 2032. The sales of mining shovels are expected to reach around US$ 7.8 Bn by 2022, exhibiting growth at 2% to 3% CAGR during the forecast period 2022-2032. Increasing emphasis on the development and introduction of advanced mining shovels with innovative technologies such as telematics is anticipated to facilitate the growth in the market.

Mining shovels, also called front shovels or power shovels, are bucket-equipped electrically powered machines, commonly used for digging, loading, and extraction of earth minerals. They are used to excavate large quantities of rock and soil in strip or surface mining operations. These machines are available in a wide range of payload capacities and a complete rig can weigh up to 10,000 tons.

Characterized by their huge size, mining shovels primarily exceed 200 feet in length and can have buckets with volumes of up to 180 cubic yards. These machines are increasingly gaining popularity across the mining industry, owing to their ability to dig and excavate huge quantities of earth minerals and work in harsh & difficult mining conditions.

As these shovels assist mining sites in moving the soil and rock at faster rates and at a lower cost per ton, they are increasingly being adopted for surface mining applications for extracting minerals and metals such as iron ore, coal, copper, bauxite, and gold among others. This is projected to bolster the demand for mining shovels in the market.

Which are Some Prominent Drivers Spearheading Mining Shovel Market Growth?

As the trend of urbanization and industrialization continues to create deeper inroads across the world, a swift rise in building and construction activities is being witnessed, especially across developing economies such as China, India, Australia, Brazil, and others.

Citing these trends, governments in numerous countries are increasingly aiming at urbanizing their rural areas and investing in upgrading the infrastructure of respective nations. For instance, the Indian government has announced allocating US$ 868 Mn under its Smart City Mission for constructing over 100 smart cities across India.

Such increasing infrastructure development and construction activities are creating strong demand for iron, steel, and other metals. Thus, leading mining industry players are emphasizing on expanding their mining capacity to capitalize on the surging iron & steel demand.

For instance, in 2021, JSW Steel, an Indian multinational conglomerate announced acquiring 4 iron ore mines in Odisha, India to ramp up its iron & steel production and supply 51% of its overall requirement. As mining shovels are extensively used across the iron ore & crude steel mines for digging and extraction applications, such rise in mining activities is estimated to spur the sales in the global market.

What are the Challenges Faced by the Mining Shovel Market?

Although there are several advantages associated with mining shovels, extravagant initial cost, difficulty in operation due to their mechanical complexity, and high cost of maintenance due to working in harsh mining conditions are hampering the growth in the market.

Increasing shift of end user preference towards using excavators for mining application, owing to this low initiation cost and multifunction capability is hindering the demand for mining shovels. In addition to this, rising availability of mining equipment such as mining shovels on a rental basis is hindering the sales of new mining shovels in the market.

Why is Asia Pacific Excluding Japan Emerging as an Opportunistic Mining Shovel Market?

Future Market Insights states that Asia Pacific excluding Japan is forecast to continue dominating the global mining shovel market between 2022 and 2032.

Demand for coal is rapidly increasing across the power generation sector, thanks to the introduction of advanced clean coal technologies. Hence, with surging power demand across Asia Pacific, governments in countries across the region are immensely focusing on increasing their production of coal for power generation activities.

For instance, in 2021, the Indian Government has announced approving the investment of US$ 6.47 Bn for constructing 8 new coal mining projects and expanding 24 existing coal mines for increasing the production of coal in the country. As mining shovels are used in mining activities, such initiatives for constructing new mines are estimated to augment the demand in the market.

Nikhil Kaitwade

Principal Consultant

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How is North America Contributing to the Growth of the Mining Shovel Market?

As per FMI, North America is anticipated to account for a significant share in the global mining shovel market over the forecast period 2022-2032.

Increasing demand for minerals and metals such as iron ore, copper, gold, steel, and others has resulted in accelerating mining activities across the countries such as the U.S. and Canada, creating sales opportunities for mining equipments.

Hence, leading manufacturers in the market are aiming at launching novel products to capitalize on such opportunities. For instance, in 2020, Caterpillar Inc., a U.S.-based construction machinery and equipment company announced its new hydraulic mining shovel, 6015B. The shovel is equipped with a single Cat C27 ACERT engine and a 100-ton shovel, providing faster-digging cycles and greater digging power. A multiplicity of such new product launches are estimated to fuel the demand for mining shovels in the North America market.

Market Competition

Some of the leading players in the mining shovel market are JCB Ltd., Volvo Construction Equipment, Caterpillar Inc., Sandvik AB, Hitachi Construction Machinery Co. Ltd., Metso Corporation, Komatsu Limited, Boart Longyear Ltd., and China National Coal Mining Equipment Co. Ltd.

The global mining shovel market is highly competitive, due to large number of participants and increasing adoption product launch and capacity expansion strategies to strengthen the market share.

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Scope Of Report

Key Segments Profiled in the Mining Shovel Market Survey

By Payload Capacity:

• 20-30 Metric Tons
• 30-40 Metric Tons
• 40-50 Metric Tons
• More than 50 Metric Tons

By Mineral Type:

• Coal
• Iron Ore
• Non-ferrous Metals
• Industrial Minerals
• Precious Metals
• Others

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• APEJ
• Japan
• Middle East and Africa