Global Conveyor Belt Market in Mining Industry Shows a Remarkable Curve, to Grow at a CAGR of 4.1% by 2031

Introduction

The mining industry relies on conveyor belts to transport minerals to processing facilities. Since conveyor belts increase productivity, safety, and efficiency, the industry is investing more in them. In June 2020, Coal India Ltd. intended to invest INR 157 billion in conveyor belts, replacing roads for coal transfer between mines and trains. In the initial phase, the infrastructure of 35 mines at six firm subsidiaries with a combined capacity of at least four million tonnes per annum (MTPA) will be upgraded. The total capacity of 406 MTPA required approximately Rs 12,300 crore in capital expenditures (Capex). Four subsidiaries would invest 3,400 crore rupees in fourteen Phase 2 projects with a total capacity of 100,5 MTPA. In the mining industry, drive technology considerably impacts conveyor performance and system availability. In this instance, three-phase asynchronous motors with gear units have proven to be a dependable, quick-to-install, and low-maintenance option. Siemens is a participant with years of experience in bulk material conveyor technology. Drive solutions for these applications offer high availability, tested technology, and low prices.

Market Dynamics

Rise in Infrastructure Development and Building Industry to Drive the Global Conveyor Belt Market in Mining Industry

The growing urbanization and industrialization gave rise to various growth prospects across industries, mining being one. Such rapid developments give rise to infrastructural development projects across nations. The continuing modernization of public infrastructure is likely to be a primary source of support for growth in infrastructural development activities across the nations. The road to 2030 involves several goals that encourage several national projects that improve the country's infrastructure, transport, buildings, and digital transportation, further creating growth prospects for various industries globally. 

In India, construction equipment forms around 7-8% of the gross domestic product (GDP) and employs around 30 million people. It also accounts for more than 60% of the total infrastructural investment. The Government of India de-licensed the material handling equipment industry and allowed 100% FDI under the direct route. Such initiatives are expected to boost the mining industry's demand, thereby creating significant space for the adoption of conveyor belts to achieve operational efficiency. Conveyor belt also reduces the time consumption in transporting a product from one region to another. Due to intense competition within the industry, the conveyor belt acts as a significant source to enhance productivity. Due to increased mining activities or infrastructural development, the conveyor belt market will likely witness significant demand from the mining sector in the coming years.

Many Advancements in Conveyor Designs Provide Opportunities for the Global Conveyor Belt Market in Mining Industry 

The market is expected to witness a few innovations in the future, such as smarter motors and controllers on conveyors of all types. As manufacturing companies can offer conveyors with a motor and controller built into a single module, control communications that work with specific factory communication systems can also be offered. Similarly, future conveyors with defined yet flexible purposes and compact footprints (for new industrial designs) can also be expected. Recently, there have been many advancements in conveyor designs, thereby allowing them to take up lesser space; these developments seem to continue. For example, Pheonix's Phoenocord St 10000 is an impressive conveyor belt. The advantages of such technologies will reduce the cost of additional drives, pulleys, and other auxiliary equipment, while extending the cover wear and, ultimately, the belt life and availability.

In the same way, ContiTech, a division of Continental Corporation, is integrating electronic components to generate solutions for the future. The company is also known for its expertise in developing materials for components made of natural rubber and plastics. Conveyor belts can be planned with smarter designs. For instance, Intralox's AIM belts and conveyor technology are explicitly designed to be used in food processing plants' primary packaging areas. AIM belts and conveyors allow for merging, switching, and single- and multi-zone sorting via a single conveyor.

Regional Insights 

By region, the global conveyor belt market in the mining industry is segmented into Europe, Asia-Pacific, North America, Latin America, and Middle East & Africa.

North America has dominated the market and is anticipated to exhibit a CAGR of 3.1% during the forecast period. The mining sector relies extensively on conveyor belts to transfer raw materials to processing facilities. As a result, the industry is investing more in conveyor belts since they make operations cleaner, safer, and more productive. Coal India Ltd planned to invest INR 157 billion in conveyor belts, replacing road transportation between mines and trains in June 2020. In the first phase, infrastructure will be upgraded at 35 mines, each having a capacity of four million tonnes per annum (MTPA) or more at six of the company's subsidiaries. This required around Rs 12,300 crore in capital expenditures (Capex) and a total capacity of 406 MTPA. Four subsidiaries will spend Rs 3,400 crore on fourteen Phase-2 projects for a combined capacity of 100,5 MTPA. Due to its continued use in the mining industry, North America is a significant market for conveyor belts. The expansion of the conveyor belt market is contingent on the country's inherent demand for mining. According to the United States Geological Survey, the anticipated value of non-fuel minerals produced in US mines in 2019 was $86.3 billion. Coal mining accounted for 24% of US mining operations' production value and 26% of mining employment. Executive orders have aided the mining industry in the United States, such as those for developing critical minerals and regulatory changes. Permitting remains an obstacle to developing mining projects in the United States. Canada has one of the world's most active mining industries. According to the Mining Association of Canada, Canada is among the top five producers of thirteen significant minerals and metals, including uranium, nickel, potash, cobalt, aluminum, diamonds, titanium, and gold. Due to the reliance of the United States on Canada for the vast majority of imported commodities, it is anticipated that the Canadian mining industry will expand faster. Strong demand for base and precious metals has consequently prompted exploration and expansion, driving the expansion of the Canadian mining industry.

Asia-Pacific is the second largest region. It is estimated to reach an expected value of USD 700 million by 2031, registering a CAGR of 5.6% during the forecast period. Owing to its unique geographical conditions, the Asia-Pacific region has traditionally been rich in mineral resources, such as petroleum, coal, manganese, iron, tungsten, tin, copper, antimony, lead, zinc, gold, aluminum, silver, mica, and precious stones, among others. Mining is an essential industry in the region, with China, India, and Australia being some of the prominent nations where this activity is vital to their economic position. With the development of this industry, to meet the increasing demand from the other end-user industrial sectors that rely on it for raw materials, the demand for conveyor belts is expected to increase over the upcoming period.

Europe is the third largest region. Europe has been a prominent player in the market with vendors such as Glencore, BHP, Rio Tinto, ContiTech AG (Continental Corporation), Tenova SpA, Phoenix Conveyor Belt Systems GmbH, and GKD Gebr. Kufferath AG is headquartered in the region. Although the mining industry in the region accounts for a small GDP share, it has been a part of a large and significant share of worldwide production. Although the mining industry faces declining profit margins, several countries in the region have been investing in lignite mineral mining to address low-carbon energy production. According to Eurostat, the hard coal consumption of the EU in 2019 reached 176 million metric tons. In line with the dynamic demand from the mining industry, vendors are following various strategies, such as new collaborations and new product development, to address the rising competition in the market. For instance, in September 2020, Tenova SpA and Microsoft strengthened their partnership for Industry 4.0 by leveraging Microsoft's platform Azure and the innovative solutions of Tenova for the steel industry. The companies aim to lead the digital transformation of the sector employing more than 6 million people worldwide.

Key Highlights

• The global conveyor belt market in the mining industry was valued at USD 1,832 million in 2022. It is anticipated to reach an expected value of USD 2630 million by 2031, registering a CAGR of 4.1% during the forecast period (2022-2031).
• By type, the global conveyor belt market in the mining industry is segmented into steel cord, textile reinforced, and other types. The steel cord segment occupied the largest market share and is estimated to exhibit a CAGR of 3.4% during the forecast period. 

Competitive Players

Competitive Landscape

The major global conveyor belt market companies are Zhejiang Sanwei Rubber Item Co. Ltd and Oriental Rubber Industries Pvt. Ltd, Fenner Dunlop Australia Pty Ltd (Michelin Group), Tenova SpA, ContiTech AG, Phoenix Conveyor Belt Systems GmbH, Bridgestone Group, Bando Chemical Industries Ltd, Zhejiang Double Arrow Rubber Co. Ltd, GKD Gebr. Kufferath AG 

Recent Developments

Market News

• October 2022 - Sinova Global, the North American silicon metal manufacturer with processes in Canada and the United States, awarded Tenova a contract to supply the Basic Engineering of a new silicon metal plant in Tiptonville, Lake County (TN), US. Tenova is a leading developer and provider of sustainable solutions for the green transition of the metals industry.
• September 2022 - Latrobe Magnesium Limited (LMG), an Australian firm, has granted Tenova a contract. Tenova is a leading creator and provider of sustainable solutions for the green transition of the metals industry. The task entails the engineering, delivering, and managing of the Magnesium Oxide (MgO) production plant in Latrobe Valley, Victoria, Australia, a demonstration plant employing a world-first combination hydromet/thermal reduction process.

Segmentation

Global Conveyor Belt Market in Mining Industry: Segmentation

By Type

• Steel Cord
• Textile Reinforced
• Other Types

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa