Smart Mining Market

Market Overview

The global smart mining market had a revenue share of USD 9,154 million in 2021, estimated to grow at a CAGR of 16.6% and reach USD 31,276 million by 2030 during the forecast period. 

The mining business has advanced substantially from the era of artificial mining, in which humans physically performed mining activities with rudimentary digging and drafting instruments, to the use of dynamite that comes to mind while considering mining nowadays. This is due partly to the progress of research, technological advances, and an increased understanding of the hazardous nature of newly excavated mining areas and ore chemical compositions. Smart mining is the extraction of minerals, resources, and metals using a variety of technological and strategic planning solutions. It includes IT planning and logistics, gas detection, extraction, and remote communication.

In addition, it provides numerous benefits, including better production efficiency, excellent worker protection, increased productivity, and reduced production risks and expenses. In recent years, smart mining has been adopted at an unprecedented rate due to rising environmental and pollution concerns. Furthermore, there is a growth in the deployment of smart mining due to increased awareness of the health risks posed by air and land pollution. The increasing adoption of modern technologies in mining automation, such as the internet of things (IoT), artificial intelligence, and machine learning, is predicted to reduce labor costs significantly, resulting in significant cost reductions and optimization.

IoT technologies provide an opportunity to monitor visibility, safety, and productivity in the complicated mining business. In addition to services, it connects personnel, machines, and goods. Mining companies have implemented sophisticated technologies at mine sites to monitor safety measures, ultimately increasing mining productivity. These reasons considerably fuel the growth of the global smart mining market.

Market Dynamics

Market Driving Factors

Improvements Towards Safety and Health of Mineworkers to Drive Market

Numerous health and safety risks are associated with mining, like ground fragility, UV exposure, chemical dangers, dust, and noise. As mines grow in size and depth, the risk of harm increases. These threats can result in severe fatalities, agonizing injuries, or occupational sickness if they are not effectively managed with the proper measures. Smart mining improves the health and safety of miners and operators. In mining, IoT and AI have led to a low fatality rate. Moreover, digital technology such as logistics software, remote-controlled equipment, and accurate GPS increases productivity.

In addition, leading suppliers have been concentrating on developing items that provide miners with safety. For example, in 2019, Jannatec Technologies of Canada announced the official introduction of ENSO SmartHelmet, a new smart mining headgear for mineworker safety. The helmet functions as a connected device hub for hard rock miners and permits collecting various user-specific data. Its numerous technologies include a 360° high visibility feature with an onboard programmable brim-mounted camera, LEDs, biosensors, proximity sensing, and RFID. As a result, it is projected that these solutions provided by market leaders will drive global smart mining market expansion.

Growing Advanced Technologies to Boost Market Progress

Internet access is required for smart mining, allowing mine operators and managers to monitor the condition of equipment and workforce. In the complicated mining business, IoT technologies provide chances to track visibility, safety, and productivity. In addition to services, it connects personnel, machines, and goods. Mining corporations have implemented modern digital technologies on mine sites to monitor safety controls, consequently reducing operating expenses. Therefore, the use of IoT solutions drives global smart mining market expansion.

It is projected that the increased penetration of modern technologies such as the internet of things, artificial intelligence, machine learning, and robotics in the sector will reduce labor costs significantly, resulting in significant cost optimization. In addition, cutting-edge data analytics are used to the raw data to generate visualizations, recommendations, and insights. The data is subsequently sent in real-time to mobile devices belonging to mine operators and personnel. In addition, businesses are implementing various techniques, including corporate expansions and collaborations, to follow mineworkers working underground

Market Restraining

Lack of Skilled and Qualified Labors and Mining Graduated to Hinder Market Growth

The use of advanced systems in the mining industry is increasing, which is anticipated to boost the demand for an experienced, trained, and certified workforce on mine sites. Additionally, highly qualified personnel are required to access and operate autonomous mining equipment. The absence of such workers, particularly in emerging nations such as India, Africa, and others, hinders the expansion of the smart mining business. Consequently, organizations such as GEOVIA, The British Standards Institution, edX Inc., and Maptek offer specialized training programs for enhancing software skills, scheduling, mine design, and data administration.

In addition, there is a lack of qualified people in the mining industry in several places. In November 2018, for instance, the European Trade Union Confederation raised worry over the scarcity of skilled personnel in the extraction business, which poses a challenge for Europe as the worldwide demand for raw materials increases. This lack of skilled European personnel raises concerns among mining industry representatives. Consequently, a lack of professional and qualified workforce and mining graduates is predicted to impede the smart mining market's expansion.

Key Market Opportunities

Initiatives Offered by Government and Mining Companies to Boost Market Opportunities

Several nations incentivize mining companies to switch to electric vehicles to reduce greenhouse gas emissions. An expansion in the development of autonomous vehicles contributes to increased sales in the heavy equipment sector. In nations like Canada and Australia, businesses are replacing diesel-powered mining drills, mining loaders, and utility vehicles with lithium-ion battery-powered devices. With this endeavor, they are attempting to reduce emissions and eliminate exhaust fumes that pollute underground air and endanger miners' health. Consequently, such government regulations and initiatives by the government and significant corporations are advantageous for the smart mining market.

Regional Analysis

The regional segments of the global smart mining market include North America, Asia-Pacific, Europe, and LAMEA.

Why is Asia-pacific and North America Projected to be the Most Lucrative Market During the Assessment Period?

Asia-Pacific is most likely to command the regional market with a CAGR of 17.1% during the forecast period. Due to their extensive mining operations, China and Australia hold the most significant proportion of the smart mining market in the Asia-Pacific region. In addition, according to a report published in January 2020 by The Asia Miner magazine, India and other Asian nations were anticipated to fuel the expansion of the global copper mining industry throughout the forecast period. The majority of copper used in the production of electronic components is sourced from China. Thus, the increase in mining operations in the Asia-Pacific area drives the demand for smart mining infrastructure.

North America will hold the second-largest share of USD 9,094 million with a CAGR of 15.9% by 2030. There is a surge in the growth of the smart mining market in North America due to mining corporations' substantial investments in technological advances for mining operations. The availability of trained workers in industrialized nations such as the United States and Canada facilitates the introduction of intelligent automation technology. Canada is regarded as a leading developed mining nation in the modern context. Using intelligent mining technology, the leading mining corporations have a substantial presence in Canada, facilitating the country's mining needs.

LAMEA is expected to grow at the highest CAGR of 17.8% during the forecast period. The abundance of natural resources in Africa entices numerous mining corporations to deploy automation technology in this region. Africa and Latin America are rich in mineral resources that are extracted on a massive basis. Large-scale mining activities entice mining companies to implement new technology for mineral extraction at reduced initial investment costs. Even though the Middle East region is still in its infancy regarding automation, its robust economic culture presents future growth potential. These variables generate substantial potential prospects for the global market in the LAMEA region.

Segmental Analysis

The global smart mining market is classified based on type, category, and region.

On the Basis of Type

The market has been segmented based on type into underground and surface mining (open-cast or open-pit mining).

Surface mining is estimated to hold the largest share in the market in terms of revenue, with the highest CAGR of 16.8% during the forecast period. Surface mining is the most commonly used technique for extracting stones, sand, coal, metal ores, and other commodities. In addition, it encompasses a variety of processes, including open-pit mining, strip mining, mountaintop removal, high-wall mining, and dredging.

Transporting materials is the most expensive aspect of surface mining. It is projected that haulage costs contribute 40% to 50% of the operational expenses of a surface mine. Material transport automation systems, like autonomous haulage system (AHS) trucks, provide remote control of driving, speed assessment, loading, and equipment tracking, among other functions. According to Mining Technology magazine, Rio Tinto Australia's Pilbara iron ore mine successfully adopted the automated hauling system (AHS) in 2018. Thus, adopting automated systems like AHS in open-pit mines is intended to provide mining operations with cost-saving benefits. This is projected to stimulate the expansion of the smart mining market in the surface mining sector.

Underground mining includes mining minerals, metals, coal, and other elements from beneath the earth's surface. Coal mines' depth may reach up to 6,500 feet or 2 kilometers. Such deeper depths require specific automation systems to offer enough ventilation, water drainage, material handling, and other facilities. Underground mine automation facilities often comprise underground mobile fleet management, production face analytics, automated scheduling, execution management, and mine ventilation control, among others.

On the Basis of Category

Based on the category, the global market has been segmented into automated equipment and component. 

Automated equipment is expected to hold the largest market share while growing at a CAGR of 16.1% during the forecast period. The deployment of automated equipment has increased the efficiency of mining operations and decreased operational expenses. Even though automated equipment necessitates expert staff, good operation decreases the likelihood of mishaps. Additionally, it reduces the need for a substantial percentage of manual laborers, decreasing labor expenses.

The automated equipment is subdivided into excavators, load haul dumps, robotic trucks, driller & breakers, and additional automated equipment. Excavators are expected to have the largest share among the other automated equipment. Due to the necessity of excavating earth, excavators are an integral component of numerous mining projects. The automated excavators or robotic excavators integrate vehicle automation technology like remote controlling, teleoperations, and artificial intelligence control software to direct and administer the numerous excavators' operations. Automating excavators allows for maximum productivity, ensures the safety of the operators, and contributes to the equipment's ideal performance.

The components of the smart mining market are hardware, software, and services. Integrating such components makes mining operations smooth and efficient, with worker safety a top priority. Hardware components are expected to have the largest market share, with Intelligent system hardware components contributing mainly to the share. Incorporating the Internet of Things (IoT), artificial intelligence, gamification, virtual reality (VR), and other tools into mining processes constitutes intelligent systems.

Recent Developments

• In 2022, ABB Ltd. was selected to lead the consortium providing shore-to-ship power connections for ferries and cruise ships in the Port of Toulon.
• In 2022, ABB Ltd. and Shell announced the launch of the first nationwide network of Terra 360s, the world's fastest all-in-one electric car charger.
• In 2022, Komatsu Ltd. and its subsidiary Komatsu Chile SA announced the plans for Komatsu FrontRunner, an autonomous haulage system (AHS), to be deployed on a total of 62 930 E ultra-class haul trucks by 2024 at Los Bronces.