New York, Dec. 15, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Dump Trucks and Mining Trucks Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06373308/?utm_source=GNW
The demand for mining trucks is expected to rise on the backdrop of increased mining activity due to continuous demand for minerals and ores, which are a necessity for the development of various industries and infrastructural projects. The global mining industry is facing a shortage of skilled manpower. Moreover, in the wake of the COVID-19 outbreak and industries shut down, the situation is expected to drive the mining companies to improve their production efficiency which in turn is expected to drive the demand for more mining trucks. Moreover, 2021 was marked as the year of transition where the mining activities again took their recovery phase exhibiting immense growth potential.
The mining industry is now witnessing stringent emission rules and import-export regulations by the government. To increase the profit margins productivity must be improved. This is causing companies to automate and electrify mining trucks by installing sensors and analysing data generated by them. OEM is offering electric power trains amid rising electrification globally. In addition, technological aspects including telematics have also elevated the demand positively.
The Asia-pacific region is expected to hold the highest potential for the growth of mining equipment including material handling equipment like Dump and mining trucks. The region offers immense potential in term of mining output and mineral mines which are elevating the demand for the adoption of dump trucks and mining trucks. With the increased production in surface mining and the predictable nature of equipment maintenance and replacement cycle in surface mining, the region has observed an increase in the production of mining equipment.
Key Market Trends
Electric Trucks are Projected to Witness a High Growth Rate
There has been an increasing demand for less emission dump trucks and mining trucks. An electric mining truck experiences fewer power losses than a diesel engine at high altitude and is quite easier to start in a cold climate. In context to zero carbon emission technologies, alternative fuel vehicles (AFV) offer significant energy sustainable transportation and came up as a potential innovation to address the issue. Hybrid electric vehicle (HEV), plug-in electric vehicle (PHEV), and battery electric vehicle (BEV) are the most common type of alternative fuel vehicles which either uses less or no fossil fuel.
Many industry participants are launching their electric versions of mining trucks. For instance, Anglo American, ENGIE, and Williams Advanced Engineering are working together to develop the world’s largest electric vehicle which will be a hydrogen-powered mining truck. The lithium-ion battery will replace the diesel engine and the FCEV mining truck will be capable of running on both hydrogen and battery. OEMs in the market is equally contributing in upbring advancement in the electric truck landscape to boost the demand. For instance:
In September 2022, Australia-based Newcrest Mining announced that is has slowly inclined its way towards electrifying its entire fleet of diesel trucks to battery-electric at its Brucejack gold-silver mine in British Columbia. This transition will provide company vision to move towards green fuel alternative in its mining operations.
In August 2022, Mining group BHP and equipment manufacturer Caterpillar signed a strategic agreement to electrify complete truck fleet at Escondida copper mine in Chile. In addition, the first Caterpillar 798 electric dump trucks is expected to be delivered during the second half of 2023.
In August 2022, Vale which is one of the largest mining company announced that it has become first major company to trial test 100% electric 72 ton trucks manufactured by XCMG Mining Machinery Co. Ltd at its Brazil and Indonesia mining operations. The trial portrays significant step in company’s electrification vision to become net zero carbon emissions mining company by 2050.
Considering these factors and development, demand for electric mining and dump trucks are expected to witness high growth rate during the forecast period.
Asia Pacific is Expected to grow at the fastest rate in the Market
One of the key factors of the growth of the Asia-Pacific dump trucks and mining trucks market is due to the increase in mining activities in countries such as China, India, Japan, Australia, etc.In eastern China, the government has fitted gas pipelines in households but failed to supply gas regularly. This has led to increased consumption of coal by people for heating purposes. China’s largest coal-producing province, Shanxi has provided relaxation on stringent government policies and plans to add nearly 11 million tons of coke producing capacities to meet growing demand.
China is aiming to minimize their coal import dependency, The NDRC (National Development and Reform Commission), formerly State Planning Commission and State Development Planning Commission, has stated that the country has produced more than 4 billion tons coal in 2021 and further they are striving to increase their coal output by 300 million tons which is equal to total China annual import. This is expected to dramatically cut the reliance on coal imports. A rise in capacity would reduce the country’s dependence on overseas imports after record-high world prices were hit in the wake of Russia’s invasion of Ukraine. In addition, the China is the largest producer of steel and about half of the world’s steel is produced in the country. China also produces around 90% of the world’s rare earth metals.
Moreover, India has also equally constricbuted to elevate the mining output i the Asia-Pacific region. Country offers one of the fastest-growing mining equipment markets is witnessing a huge increase in the mining industry. Further, India is the largest coal producer followed by China, the regional government in India is leaned towards the liberalization and allows license for 42 coal mines with a combined capacity of 82 million tons annually. Further emphasizing on private companies in the country like Adani Enterprises and Vedanta Limited to produce 350-400 million tons coal annually. This increased production will lower the coal import dependency from countris like South Africa, Indonesia and Australia which as of now accounts 90% of coal imports from India. The coal output is likely to increase by around 130-135 million tons annually by mid 2023.
Regional players are getting new contracts from the construction and mining companies. All the aforementioned developments are expected to help the market growth over the forecast period.
Competitive Landscape
The global dump trucks and mining trucks market is moderately consolidated, having a limited number of active local as well as global players. Some of the major players in the market are, Caterpillar, Inc., Doosan Infracore, and Hitachi Construction Machinery Co., Ltd., Liebherr Group amongst others. The companies are developing and adding new technologies into their existing models, launching new models, and tapping in new and unexplored markets.
Mining companies are investing to set up their operation which might act as an opportunity pocket for several mining equipment manufacturers. For instance, in March 2021, Rio Tinto Company announced that it will start production of Tellurium in Kennecott mine, United States. The company announced an investment of USD 2.9 million for the recovery process of the metal and will have a production capacity of 20 tons per year. This metal is used in the production of photovoltaic cells.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06373308/?utm_source=GNW
About Reportlinker
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.
__________________________
