Smart Mining Market Size, Share & Industry Analysis, By Type (Surface Mining, Underground Mining), By Component (Automated Equipment {Excavator, Load Haul Dump}, Hardware {Sensors, RFID Tags, Intelligent Systems}, Software {Logistics Software, Data and Operation Management Software, Connectivity Solutions, Analytics Solutions, Remote Management Solutions}, and Services {Support and Maintenance, System Integration and Implementation Services}, Regional Forecast, 2024-2032

The global smart mining market size was valued at USD 12.99 billion in 2023. The market is projected to grow from USD 14.28 billion in 2024 to USD 29.40 billion by 2032, exhibiting a CAGR of 9.45% during the forecast period.

The growing requirement for minerals & metals from numerous industries, such as automotive, construction, electronics, and others, is expected to sustain demand for the mining industry and its activities. With the application of smart mining solutions, mine enterprises can operate effectively and efficiently.

Smart mining is likely to assist mine operations in navigating and overcoming climate, social, and environmental issues. The mining industry is subject to a number of environmental restrictions and is also largely held responsible for climate change. Smart solutions could help businesses achieve their climate change commitments and adhere to and work within ecological norms prescribed by government agencies and authorities.

Global health emergencies such as the COVID-19 pandemic affected a number of markets including global smart mining market. The market observed decline primarily due to reduction in mining activities owing to restrictions and lockdowns posed by governments globally.

Smart Mining Market Trends

Technological Innovations to Augment Market Growth

Advancements in industrial automation solutions are anticipated to assist the global market’s growth during the forecast period. Wireless technology is highly regarded for maintaining connectivity in mines. For instance, in May 2024, Sigma Lithium, a global lithium producer, contracted Nokia to deploy a private wireless network at the Grota do Cirilo mining operation in Brazil. In another instance, in March 2023, Huawei and Botswana's Debswana Diamond Company (Pty) Ltd. collaborated to deploy 5G technology in Botswana's mines.

With the growing advent of software solutions, big data analytics is also becoming an essential component in smart mining. Continuous mine monitoring, as well as automated operations, produce enormous data; here, analytics solutions help businesses collect, maintain, analyze, and interpret the data to deliver useful insights that assist mine operators in making vital decisions to improve overall efficiency.

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Smart Mining Market Growth Factors

Surging Demand for Metals and Minerals from Various Industries to Fuel Market Growth

Since the past few years, demand for rare earth minerals and metals has been surging as industries and countries are focusing on cleaner energy sources. Critical minerals such as copper, lithium, nickel, cobalt, and rare earth elements are significant in this scenario. Technologies ranging from smartphones to electric vehicles, as well as equipment used in obtaining renewable energy sources, exert force on such minerals’ requirements.

Global construction and infrastructure development are also expected to support market growth. Public welfare projects, residential and commercial building construction, the building of ports, railways and roadways, and others, all such development works would keep growing. Metals and minerals providers are responsible for maintai1

ning sustainable practices that can be implemented efficiently using smart mining solutions.

With growing needs from various industries, mining activities across the regions are anticipated to grow. This aspect will aid in the demand for smart mining solutions such as automated equipment, software solutions, and services.

Associated Advantages of Technology Implementation to Support Market Growth

Market players have showcased the benefits of the implementation of smart mining solutions. One of the primary benefits associated with it is the reduction in operational costs. Technology can help select cost-effective methods of operating mine activities and monitor the needs of asset maintenance. Further, it also helps in enhancing the management of resources. With the help of data insights, mine operators can optimize resource use and thereby reduce operational costs.

With overall benefits in mind, market players such as General Electric, Siemens, ABB, and others offer a number of digital solutions to optimize mine operations. For instance, SIMINE by Siemens is a digitalization solution that offers autonomous material handling, smart mining, and Minerals Operations Management Solutions.

RESTRAINING FACTORS

Cost-Related Challenges to Limit Market Growth

Moving from a conventional mining approach to innovative methods requires substantial investment in advanced hardware and software solutions. In addition, significant training and development efforts are also needed to equip employees and workers with the necessary skills. Mine operators could face obstacles in the adoption of smart mining solutions if workers resist for fear of losing their jobs to automation.

Integration of new technology with existing systems could prove to be challenging owing to compatibility issues. Further, the availability of cheap labor could also affect the smart mining market growth in regions such as Asia Pacific. A lack of technological awareness could also hamper market growth.

Additionally, the mining industry faces challenges due to issues such as uncertainty, volatile commodity prices, and physical hazards, which could also demotivate them to invest in new technologies. Environmental impact, sustainable practices, and regulatory compliance exert additional pressure on the operations of mines. This further discourages businesses from making additional investments or adopting new technologies.

Smart Mining Market Segmentation Analysis

By Type Analysis

Surface Mining is Dominating Owing to its Huge Adoption in Mining Sector

Based on type, the market is divided into surface mining and underground mining.

Surface mining denotes obtaining minerals by removing the land surface. Primarily, surface mining is used to retrieve sand, gravel, stones, coal, iron, and other metals. Surface mining holds a dominant share of the market owing to its huge adoption in the mining sector. This type enables the retrieval of resources with maximum efficiency and relatively less effort. It is a low-dust, low-noise process that causes no damaging vibrations and thus, allows effective mining of useful minerals adjacent to residential areas or roads.

Underground mining observes gradual growth due to its complex nature. New features such as extensive water drainage and ventilation systems, as well as high-tech communication networks with computerized machines, and others, are utilized in underground mining to reduce human dependence and harm. Underground mining is expensive, which can hinder the adoption of smart mining solutions.

By Component Analysis

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Automated Equipment Holds Largest Share by Assisting in Improved Operational Efficiency

Based on the component, the market is segmented into automated equipment, hardware, software, and services.

Automated equipment consists of an excavator, load haul dump, robotic truck, drillers and breakers, and others. This segment held the largest market share in 2023 and is anticipated to maintain a significant share over the forecast period, as this equipment could help achieve operational efficiency and enhance working safety. It also helps transform conventional mining methods into smart and efficient operations. Additional benefits include improved accuracy, reduced operational costs, enhanced safety for workers, and increased productivity.

The software segment is expected to grow fastest in the smart mining market by component. Software can assist in enhancing data analysis, improved decision-making, and overall management, and hence, its importance is likely to grow. Rio Tinto offers RTVis™, a software that combines geology, geotechnical, drill, and blast, production and planning, and visualizes surface and sub-surface features. Software consists of logistics software, data and operations management software, connectivity solutions, analytics solutions, remote management solutions, asset management solutions, and others.

REGIONAL INSIGHTS

The global smart mining market is divided into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

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Asia Pacific dominates the global smart mining market driven by growing economies, while China, India, and Japan are some of the major and influential countries determining the direction of the market. Increasing technological advancements, along with the region’s growing adaptability of new and innovative solutions, are expected to drive the smart mining market. Some of the largest mining companies globally come from China, which altogether boasts its importance in the mining sector. China’s government also pursues the mining sector for the deployment of smart mining solutions, and thus, it is anticipated to drive market growth. The demand for a variety of minerals from the region’s vast automotive, construction, energy, and power industries, and many others will necessitate the need for more and more mining activities. Smart mining solutions are likely to play a significant role in achieving operational efficiency in the region.

North America is recognized for its ability to adopt advanced technologies in a variety of sectors, including mining, owing to government support and active participation from market players in research & development of technologies. Caterpillar Inc. is one of the major U.S.-based business players in the smart mining market. The company’s mining equipment offerings are focused on helping clients deploy automated mining solutions.

To tackle and reduce the dependence on other countries, the European Union developed the Critical Raw Materials Act. This act aims to develop sustainable and secure supply of raw materials in Europe, creating an opportunity for mining companies and mining technology companies to explore and operate. Government initiatives and efforts by market players are essential for the development and growth of the market. The region is home to players such as ABB, SAP, Siemens, and many others who offer industry-specific solutions to improve the market.

In the Latin America, mining equipment and specialty mining services providers, equipment maintenance providers, mining technology providers, and others, have good prospects. Argentina and Chile are other important countries considering their capability to supply lithium, which is the most vital component in battery manufacturing. According to the International Energy Agency, Latin America supplies 35% of the global lithium requirement. With the region’s growing stand in the mining industry, smart mining solutions are likely to assist the development of the market.

In the Middle East & Africa, GCC countries are shifting their focus to develop the mining industry in the region. For example, Saudi Arabia has accelerated its investment in the mining sector. The sector is going through significant transformation owing to efforts outlined in the country’s Vision 2030 program. This is expected to support exploration and development efforts in the country.

KEY INDUSTRY PLAYERS

Leading Players are Introducing Advanced Technologies to Improve Mine Hoist Performance and Reliability

To strengthen the market position, leading players such as ABB introduced ABB Ability™ Smart Hoisting to improve mine hoist performance and reliability. The solution assists in improving the uptime, readiness, and yield of their equipment with actionable insights on key performance indicators. The automated gathering, overview, and evaluation of data will allow mining enterprises to increase production operations, detect prospective functional safety hazards, and optimize maintenance schedules. The market is focused on investments and a strong product portfolio by key players in the market, such as ABB, Caterpillar, Hitachi Construction Machinery, and others.

In August 2023, ABB Ltd. collaborated with Norge Mining for FEED (Front-End Engineering and Design) to study future Norwegian upstream mine production that can potentially supply minerals required in EVs, solar panels, and fertilizer demand for at least 50 years.  ABB will help focus on electrification, automation, and digitalization to achieve sustainability, cost-efficiency, and productivity.

List of Top Smart Mining Companies:

• ABB (Switzerland)


• Atlas Copco (Sweden)


• Bosch Global (Germany)


• Caterpillar Inc. (U.S.)


• Cisco Systems Inc. (U.S.)


• Codelco (Chile)


• Deloitte Intelligent Mining (U.K.)


• Hexagon AB (Sweden)


• Hitachi Construction Machinery (Japan)


• Komatsu Mining (Japan)


• Rio Tinto (U.K.)


• Rockwell Automation (U.S.)


• SAP (Germany)


• Siemens (Germany)


• Wenco International Mining Systems Ltd (Canada)

KEY INDUSTRY DEVELOPMENTS:

• April 2024: Innomotics, a Siemens Business, partnered with Anglo-American to develop a digital mining solution for the Quellaveco copper mine in Peru. Innomotics has provided a suite of Siemens technologies to assist Anglo-American engineers in monitoring, managing, and running the mining operations from the earliest stages of design through commissioning and into production.


• March 2024: Caterpillar Inc. and Simformotion LLC extended their collaboration to deliver heavy equipment training simulators globally. This technology assists in heavy equipment training, increases safety, and reduces machine wear and tear.


• July 2023: Hexagon acquired Hard-Line, a mine automation company based in Canada. The latter provides automation and remote-control technologies for the mining sector. Its technologies help to enhance mine safety and operations.


• October 2022: Rio Tinto collaborated with Scania to develop autonomous haulage solutions. Scania’s autonomous mining solution is first deployed at Rio Tinto's Channar mine.


• February 2022: Hitachi Construction Machinery Americas established a new regional headquarters in Georgia, U.S. This is expected to help the company establish a business network for customers in North, Central, and South America.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/application types, and leading applications. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

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Report Scope & Segmentation