The global mining drilling service market size was valued at USD 2.41 billion in 2022. It is estimated to reach USD 4.14 billion by 2031, growing at a CAGR of 6.21% during the forecast period (2023–2031).
The phrase mining drilling services describes a line of work that involves drilling for several mining clients. Coal, metals like copper, nickel, zinc, and other metal minerals are among the many commodities available. Steps such as solid rock core extraction are included in mineral mining drilling services. The technical analysis can begin after a solid rock core has been extracted. Mining businesses typically outsource "non-core" services to other parties like BoartLongyear because of the low priority they place on them. The results of a technical study might be crucial to a mining company throughout a project. Services related to mining drilling are utilized throughout the entire mining process. Exploration, development and production, and finally, mine closure are the stages of mining operations.
The rising popularity of electric vehicles is driving the market demand for minerals used in battery production. The growth of the Indonesian market is fuelled by the electric vehicle trend, which is supported by its role as a key provider of battery minerals. In recent years, there has been a substantial uprise in the adoption of electric vehicles in developed regions like Europe and North America. There is an anticipation that the demand for electric vehicles will witness an upsurge in developing countries, which is expected to drive the demand for lithium-ion batteries. In addition, cobalt is a significant component in the production of electric vehicles. The increased demand for lithium-ion batteries is a significant growth driver for lithium and cobalt mining companies. The aforementioned factor is expected to boost the expansion of the drilling service sector.
Drilling is essential in mining for body characterization, surface and underground blast hole drilling, subterranean roof bolting and cabling, dewatering, and more. GPS, wireless connectivity, and smart sensors have become commonplace in drilling. Automated and battery-powered drill rigs are developing technologies. An automated drilling rig streamlines mining excavation operations. In addition, battery-operated drill rigs can quickly and precisely drill blast patterns. Battery-operated drill rigs have fewer exhaust pollutants, lower maintenance costs, and the possibility to function longer using chargers or exchangeable batteries. Drilling technology meets industry needs. Therefore, the growing use of cutting-edge technologies is expected to drive market development.
The impact of regulations and laws on the mining sector is noteworthy. Several factors are impeding the expansion of the market, including high taxes on projects and challenges in obtaining mining permits from government officials, leading to project delays. For instance, in 2017, Tanzania enacted stricter regulations for the mining industry, including a tax hike for mining projects. In addition, the mining industry has faced various regulations and restrictions as a result of the environmental harm caused by mining operations. Such factors are anticipated to impede the expansion of the drilling service sector.
According to SR market research, there is a projected increase in the demand for minerals due to the global trend toward achieving a low-carbon economy. Fossil fuels have contributed to improving living standards to a certain extent. However, the associated issue of greenhouse gas emissions has resulted in global warming. The automotive industry has taken measures to address global warming by prioritizing creating energy-efficient and low-emission transportation systems.
In addition, the mining sector is expected to benefit from the shift towards low-emission energy and transportation systems, which require more minerals than their fossil fuel-based counterparts. This transition to a low-carbon economy presents a promising opportunity for the mining industry. The mining sector is expected to reduce greenhouse gas emissions by incorporating renewable energy sources, propelling the market growth.
| Study Period | 2019-2031 | CAGR | 6.21% |
| Historical Period | 2019-2021 | Forecast Period | 2023-2031 |
| Base Year | 2022 | Base Year Market Size | USD 2.41 Billion |
| Forecast Year | 2031 | Forecast Year Market Size | USD 4.14 Billion |
| Largest Market | Asia-Pacific | Fastest Growing Market | North America |
Based on region, the global mining drilling service market has been segmented into Europe, North America, Asia-Pacific, and the rest of the world.
Asia-Pacific is the most significant global mining drilling service market shareholder and is expected to grow at a CAGR of 6.9% over the forecast period. The Asia-Pacific region has emerged as the dominant global drilling service market consumer. This can be attributed to several key developing economies, including China, India, Indonesia, Australia, and Japan. The region boasts significant metal and coal deposits on the surface and underground, producing the highest metal and coal mining activities. In addition, notable countries with substantial mining operations include China, Australia, Indonesia, and India. The majority of coal produced in the Asia-Pacific region is primarily used for electricity generation, with the iron and steel industry and other sectors following closely behind.
Additionally, the Asia-Pacific region has the highest mining drilling services adoption rate. This can be attributed to these regions' growth in mining and production activities. The Asia-Pacific metal and coal mining industry is primarily dominated by China, which holds the top position in terms of production, consumption, and reserves. The market exhibits potential for industry players to capitalize on the demand for top-notch machinery.
In North America, the U.S. mining industry extracts, beneficiates, and processes naturally occurring solid minerals from the earth. Minerals mined in the U.S. include coal, metal, mineral, quarry, and others. These metals and minerals are important for consumer electronics, transportation, power, construction, chemical industry, and other products. In addition, the U.S. is the major producer of coal, metal, mineral, and other mining materials in the North American region, followed by Canada and Mexico. An increase in energy demand in the region fuels the demand for coal mining and production, thereby driving the growth of the mining drilling services market during the forecast period.
The LAMEA market is examined in Latin America and the Middle East and Africa. The Middle East and Africa had the biggest share of the LAMEA mining drilling services market, followed by Latin America. Africa has more than 30% of the world's mineral reserves, which brings in a lot of mining capital. Latin America produces the most iron ore, copper, and gold. Coal mining and other underground mining activities drive the LAMEA mining drilling services industry. Due to its abundant metals and minerals, Africa is expected to see a rise in mining drilling services. Peru and Brazil's vast mineral reserves drive mining equipment demand. These aspects boost the mining drilling services industry.
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The market for mining drilling services is segmented by mining type
Based on mining type, the market is segmented into coal, metal, mineral, and quarry.
The coal segment dominates the global market and is estimated to exhibit a CAGR of 6.71% over the forecast period. Coal is a type of rock that is highly combustible and contains significant levels of carbon and hydrocarbons. The product can be categorized into four primary classifications: anthracite, bituminous, sub-bituminous, and lignite. Anthracite coal is a type that contains over 85% carbon and boasts the highest heating value among the main types of coal. Coal is widely recognized as a primary and significant source of electricity generation worldwide.
In addition to its application in electricity generation, the substance finds utility in diverse sectors, including steel manufacturing, construction, chemical and pharmaceutical production, transportation, and various other industries. The coal mining drilling services encompass multiple phases, such as exploration-stage drilling, development-stage drilling, production-stage drilling, and mine closure. The coal mining sector offers various drilling services, such as reverse circulation drilling, surface diamond drilling, and rotary air blast (RAB) drilling.
Metals have many uses, including in the electrical, construction, and automotive industries, and mineral mining is crucial to manufacturing. Trends toward a low-carbon economy are expected to boost mineral mining demand, driving the drilling services market upward over the projection period. The global rise in commodity demand is another factor propelling the development of the mining industry.
