Navigating Challenges in Heavy Mining Equipment Procurement Intelligence

The heavy mining equipment category is anticipated to grow at a CAGR of 3.5% from 2023 to 2030. The category accounts for around 50% to 60% of the overall mining equipment industry. The constantly expanding mining activities in the Asia Pacific region dominates the category. The region is benefiting from high demand for metals and minerals across a range of sectors globally. The mining industry, being one of the foundational sectors of the economy, supports the category growth. Power and cement industries helped the category to thrive due to the rapid expansion of infrastructure. Other major demand drivers are an increase in the rising need for mineral fertilizers to improve agricultural yield, road construction projects, and the use of technology and automation in road construction and mining.

Larger projects require complex, efficient machinery for better efficiency and safety, which is driving the category's expansion. The demand is increasing as a result of the government's significant investments in infrastructural improvements and mining industry reforms. For instance, in the first half of 2023, Chinese investments and fresh agreements in the mining and metals industry reached more than USD 10 billion, representing a 131% increase over the same time in 2022. India, another major country, amended the Mines and Minerals (Regulation and Development) Amendment Act with the goal of streamlining regulations to boost industry participation, freeing up 500 potential mining sites, and encouraging the use of cutting-edge technologies to improve sustainability.

The rise in the development of autonomous heavy mining vehicles is driving the need to organize numerous amounts of cables and wires within the vehicles. Each vehicle contains sensors, cameras, and other connectors. As a result, such wiring needs a heavy equipment cable harness that ensures that electronic circuits perform as designed. Moreover, advancements in technology have led to the development of automatic power crushers. These crushers include hydraulic clamping machinery and spring release system designs. Spring release systems, particularly in cone crushers, establish a protective barrier between the machinery and residual materials. Advancements in clamping technology now enable increased crush-down capacity, facilitating the smooth transition of medium-grade feed from the primary to the secondary crusher.

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Tools and equipment that are both technologically advanced and environmentally conscious are in higher demand as a result of rising pressure from sustainability goals. Prospects for industry participants to expand and become more efficient are being presented by the increasing adoption and implementation of artificial intelligence (AI) and machine learning (ML) in mining processes. In order to embrace sustainability, a number of developing nations are integrating hybrid technology into the production of mining equipment. In addition, to increase operational efficiency, the industry has also witnessed a large uptake of other technology clusters such as robotics & automation, smart sensors, and 3D printing. A contract for a fleet of zero-emission vehicles was signed between Nouveau Monde Graphite (NMG), a Canadian battery and auto manufacturer, and Caterpillar in April 2023. For NMG's Matawinie Mine, the latter would create an integrated solution that includes a fleet, infrastructure, and services with zero exhaust emissions. The partnership was anticipated to aid NMG's switch from conventional models to Cat machines with zero exhaust emissions.

The category is highly fragmented, given the ongoing growth of digitalization and automation, technology has become a key differentiator for the firms operating in this category. The primary players are concentrating on lowering the extraction and heavy equipment maintenance costs by using cost-reducing innovations. Other large-scale industries are acquiring new technologies embedded in the heavy machinery and equipment that they use regularly to increase efficiency and reduce costs in production, processing, and delivery. As mining operations expand globally, companies compete to establish a strong presence in various regions by tailoring their equipment to suit specific geographic and geological conditions. Some companies collaborate or form partnerships to combine expertise and resources, aiming to develop more comprehensive and advanced mining solutions.

When determining the category cost, there are a number of factors to take into consideration such as ownership costs, fixed expenses, machine costs, insurance, and taxes. Additional expenses that occasionally fall under the fixed category include the cost of a spare parts inventory, special tools required for operation or maintenance, and structures required to house the machine. Another expense is variable cost, which only appears while a machine is in use. Some of these are consumables, routine maintenance supplies (such as engine oil and filters), energy (such as fuel or electricity), and repair charges. An essential expense is the time value of maintenance and repairs. Maintenance costs of heavy mining machinery are significantly high. Most machines' total maintenance and repair expenses during their lifetimes are likely to be equal to 75% of the new machine's cost. For instance, heavy-duty hydraulic mining can price around anywhere between USD 950,000 - USD 1,650,000. Another important tool - a multipurpose dredger for sand pumping, prices for which, can range between USD 360,000 - 450,000.

Selecting the appropriate heavy mining machinery is necessary for significantly improving production quality, project efficiency, cost savings, profitability, and safety at any job site. When sourcing the category, it is important to seek for quality of the machinery, horsepower, weight handling capacity, the cost of the equipment, and the experience of the suppliers. Asia Pacific (APAC) is the region with the biggest revenue in the market for heavy construction and mining equipment due to the region's expanding population and the resulting need for considerable building expenditure. 

Heavy Mining Equipment Procurement Intelligence Report Scope

• Heavy Mining Equipment Category Growth Rate: CAGR 3.5% from 2023 to 2030

• Pricing growth Outlook:  4% - 5% (annual)

• Pricing Models: Spot pricing, Fixed pricing, Contract Pricing, Competition based pricing

• Supplier Selection Scope: Cost and pricing, Past engagements, Vendor evaluation, Supply chain and Logistics

• Supplier selection criteria: Service Support, Cost & Pricing, Project Efficiency, Transportation and Handling, Technical Specifications, Operational Capabilities, Regulatory Standards and Mandates, Innovations, and Others.

• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Browse through Grand View Research’s collection of procurement intelligence studies:

• Drilling Equipment & Consumables Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

• Industrial Motor Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Key companies profiled

• Epiroc, Boart Long year Ltd

• Caterpillar Inc

• China Coal Energy Group Co. Ltd

• Vipeak Mining Machinery Co. Ltd

• Guangdong Leimeng Intelligent Equipment Group Co. Ltd

• Henan Baichy Machinery Equipment Co. Ltd

• Komatsu Ltd

• Liebherr

• Metso Qutotec