MILWAUKEE, Feb. 14, 2022 /PRNewswire/ -- The "Global Mining Equipment Market by Equipment Type (Underground Mining Equipment, Surface Mining Equipment, Mining Drills and Others), by Propulsion (Hybrid-Electric, Battery-Electric), by Power Source (Lithium-Ion Battery, Lead-Acid Battery and Others), by Application (Mineral Mining, Metal Mining and Coal Mining), by Solution (Products, Services) and by Regions - Forecast to 2030" report has been added to Tersus Strategy's offering.
The mining industry contributes 2 to 3 percent of global CO2 emissions and has a large role to play in emissions reduction. The industry is facing increasing pressure from regulators, investors, and customers to decarbonize operations. The sustainability of miners is increasingly a focus for the capital markets, with access to capital now more frequently dependent on sustainability. The cost of capital can be 20 to 25 percent higher for those miners with the lowest ESG scores. Simultaneously, customers are exerting increasing pressure.
Many of the largest miners in the world have been taking action by setting increasingly ambitious targets for their CO2 emissions. For example, since 2020, BHP and Vale have been targeting a 30 percent reduction in Scope 1 and 2 emissions by 2030; Rio Tinto is targeting 15 percent.
Electrification is one of the biggest technology shifts in mining, along with digitalization and automation. Improving economics and the benefits of license to operate are driving more companies to consider electrification, and some have already begun this journey. Most new mines are considering including battery based equipment in their mine plans.
Today 40 to 50 percent of CO2 emissions come from diesel used in mobile equipment. To go fully carbon neutral, a shift in drivetrains is required, with battery electric vehicles (BEVs) being the best possible long-term option.
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The mines' electrification is focused mainly on underground mining owing to the reduced exhaust emission and improved worker safety. The search for mineral resources is driving the mining companies to delve deeper to extract materials. The use of diesel equipment leads to an increased operational cost owing to a large amount of spending in exhaust ventilation infrastructure necessary to keep the working environment safe.
Mining trucks segment, by underground electric mining equipment market, is projected to be the largest market during the forecast period: The requirement of mining trucks is high as they are used to move dirt, minerals, metals, and coal. In underground mining, diesel equipment generates dangerous fumes that are harmful to operators. Hence, underground mining equipment electrification is likely to take place at a faster rate as compared to surface mining equipment.
Product segment is projected to be the largest market during the forecast period. The services segment is estimated to grow at the highest CAGR during the forecast: For OEMs, there is an opportunity to drive innovation in this new and promising field. Beyond equipment, new service-type opportunities could arise in areas such as battery-as-a-service solutions, peak-balancing services, and connected services around energy optimization
Based on region, North America is expected to account for the largest share of the electric mining equipment market by 2030
The North American market is expected to be the largest region in terms of market share during the forecast period, especially the US. The growth of the US market is driven primarily by the environmental protection measures, with the upcoming stringent emission norms for fuel economy in the country, and local companies are making efforts to manufacture electric and hybrid equipment for the domestic market.
Moreover, companies are developing advanced solid-state battery technology with the aim to minimize drawbacks of the conventional battery types in electric loaders and excavators are further expected to drive the growth for the electric mining equipment in the US.
