Underground Mining Equipment Market Report Scope & Overview:

The Underground Mining Equipment Market size was valued at USD 28.96 billion in 2024 and is expected to reach USD 37.93 billion by 2032, growing at a CAGR of 3.43% over the forecast period of 2025-2032.

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The underground mining equipment market growth is driven by technological advancements, growing demand for minerals, and sustainability. With surface mining becoming unviable due to the dwindling resources and impact on the environment, the trend is turning to underground mining. Tunnel mining equipment and underground drilling equipment are essential to improve the safety, efficiency, and productivity of a range of these operations, allowing for the extraction of critical minerals, such as coal, metals, and rare earth elements from deeper layers of the earth.

The underground mining sector is advocating for innovation and sustainable solutions, such as electric bridge-powered equipment. This will not only contribute to lowering emissions and operational costs in achieving global environmental regulations, but also to the latest technology. Other innovations include the use of new materials to make equipment work harder, such as carbon–fiber reinforcement in mining trucks. Such innovations create opportunities, especially for the years to come in the fast-growing markets located in Asia-Pacific and Latin America, where rapid modernization combined with strict environmental legislation is making the demand for advanced mining equipment very high.

November 2024: India plans to triple its underground coal production by 2028 to meet rising energy demands. This initiative underscores the country's commitment to enhancing its underground mining capabilities.

Underground Mining Equipment Market Dynamics:

Drivers:

• Autonomous and electric tech boosts efficiency, safety, and sustainability in underground mining

With the rapid advancement of tunnel mining equipment and underground drilling, underground mining equipment is driving the macro-economic growth and trends in diverse industries. For autonomous vehicles, fuel cell electric-powered machinery, automated underground drill rigs, and trucks are revolutionizing the mining craft. Once the new machines are followed by deployment, the TBMs will balance themselves out autonomously, and the high-tech underground drilling layout, which is further anticipated to lead us to higher-class, safer, and more cost-effective digging.

These kinds of advances cut down the manual labor, thus reducing the costs and minimizing the risk of conventional mining that makes it all more effective. Also, electric and hybrid mining equipment is used to reduce emissions and energy consumption to meet eco-friendly targets. As automation and digitalisation are ever-evolving, the underground mining sector is signalling a transformation, which not only enhances productivity but ensures a wholesome safety for workers and the environment.

In 2024: Sandvik Mining and Rock Solutions are driving a major shift in underground drilling by launching intelligent drilling rigs such as the DD422iE, which are powered by battery-electric technology and equipped with Sandvik’s iSURE software.

• Rising Energy Demand is Driving Investments in Underground Mining Equipment to Boost Productivity and Meet Extraction Needs

Increasing energy resources needs, notably for coal and natural gas, are a key influence on mining developments. To satisfy the global growing requirement for energy, miners are growing their operations. As a result, the high demand drives high penetration of high-tech underground mining equipment that, in turn, enhances productivity, lowers operating costs, and increases safety during extraction. Technologies including automated drilling systems, electric mining machines, are gaining popularity to optimize energy to enhance the efficiency of mining operations. Moreover, the sustainable mining practices in the market are a factor that initiates innovation to promote cleaner technologies to reduce the environmental footprint.

Restraints:

• Ongoing Safety Risks in Underground Mining Pose a Major Challenge To Market Growth

Despite advances in safety technology, safety and risk remain one of the biggest challenges the underground mining sector faces. Underbelly operations are inborn perilous, with the dangers of cave-ins, gas spills, and equipment glitches always lurking around. While innovations, such as automatic drilling and real-time monitoring systems have made safety better, these risks continue to be a major challenge for mining firms. To solve these issues, safety protocols, better ventilation systems, and advanced machinery have been introduced to minimize these threats. Nevertheless, safety concerns are often a major cause of operational delays, higher costs and cumbersome compliance with regulations, which limit productivity. Consequently, there is pressure on the mining companies to present an intelligent and secure safety solution, evolving better measures against such concerns.

In September 2024, a methane gas explosion at the Tabas Parvadeh 5 coal mine in Iran killed at least 51 miners and injured 20 others. The explosion trapped 69 workers, and rescue efforts were delayed due to high methane concentrations. Despite safety measures, the incident highlights the ongoing risks of gas accumulation in underground mining, emphasizing the need for better safety protocols and emergency preparedness.

Underground Mining Equipment Market Segmentation Outook:

By Equipment Type

The loaders segment holds a dominant share of 32% in 2024 as they are crucial in loading the excavated material in underground mining operations, which further increases their popularity. Loaders are also used for transporting materials from underground mines up to the surface and also enable continuous and effective mining. From material diversity to productivity, the versatility of these machines is one of the reasons why they are one of the most important machines for all types of mining applications. Consequently, loaders continue to be one of the most critical equipment for underground mining, and this has helped them be in prominent positions in the market with continuous demand for effective and reliable solutions for material handling.

The trucks segment in the underground mining equipment market is experiencing rapid growth, due to growing demand for the transportation of mined materials efficiently in underground environments. Design enhancements with advancements in technology make trucks safer, operationally more efficient, and capable, making them ideal for modern mining. As the industry becomes more automated, trucks are more advanced, more fuel-efficient, and have higher payload capacities. This trend is likely to accelerate as mining operations blossom with trucks lined up for notable growth due to the technological advancements, combined with the demand for more streamlined transport solutions, gain traction.

By Mining Method

The longwall mining segment leads the market with a 42% share in 2024, driven by its efficiency in extracting large volumes of coal or minerals from deep underground. It uses large machines to slice and extract huge panels of coal, which is perfect for large mining operations. The system's continuous operation and very low downtime, and a high degree of mechanization, guarantee safety and performance in difficult underground conditions. Longwall mining represents an objectively preferable method given its many advantages and is therefore preferred by mines with significant, high-grade ore deposits, allowing longwall mining to maintain the lion’s share of the market.

Room and pillar mining is the fastest-growing segment in the underground mining equipment market due to its cost-effectiveness and versatility, particularly for smaller to medium-sized deposits. Room and pillar differ from longwall mining in that it is more fit for the irregularity of ore bodies and for mines where the full extraction is not required and which impacts the ability of mines to be so large in their trenching. The operational cost-effectiveness and flexibility of this method appeal to many different types of mining companies. Blast mining and sublevel caving largely find their use-cases, but Room and pillar mining has emerged suited for wider adoption grounds.

By Application

Coal mining continues to dominate the underground mining equipment market accounting for a significant share due to its long-established global demand. In 2024, it represented 48% of the market due to the continuous demand of coal for power generation, industrial purposes, and steel production. Coal is an essential energy source in various locations, even with the increasing emphasis on renewable energy. They will continue to dominate the demand for high-tech underground mining equipment, such as continuous miners, shuttle cars, and longwall mining systems, bolstered by improvements in safety, productivity, and efficiency in coal extraction.

The metal mining segment is the fastest-growing application in the underground mining equipment market, primarily driven by the high demand for essential metals, such as copper, gold, and lithium, which are widely used in the electronics, renewable energy, and automotive industries. The transition to EVs and decarbonisation more generally has boosted demand for metals, especially lithium and cobalt. Since the extraction of these metals is mostly done via underground mining, there is a growing demand for advanced mining equipment that is customized for metal extraction.

Underground Mining Equipment Market Regional Analysis:

The Asia Pacific region dominated the underground mining equipment market share of 38% in 2023, due to the significant presence of major mining countries, such as China, India, Australia, and Indonesia. As one of the biggest producers of coal and other minerals, China is one of the key countries determining the fate of underground mining equipment with higher technological content. Heavy demand for metals and minerals from developing economies and massive mining projects also helps solidify the places in the region. Moreover, the rise in infrastructure development, urbanization, and industrialization in the Asia Pacific countries has raised the requirement for mining operations, which, in turn, increases the demand for underground mining equipment that operates efficiently and safely.

China leads the underground mining equipment market in the Asia Pacific region due to its large mineral reserves and extensive mining operations. Major market growth is spurred by the country’s large need for coal and other minerals. As a result, China has become the dominant player in the underground mining space.

North America is experiencing rapid growth in the underground mining equipment market due to several factors, including increasing investments in mining infrastructure, technological advancements, and a rising demand for minerals. This growth is accelerated with the contribution from the well-established mining industry, such as that owned by the U.S. and Canada. The second key factor that is boosting the demand for advanced mining equipment is the focus on automation and the incorporation of technologies such as autonomous mining equipment and data-driven solutions that promote efficiency and safety.

The U.S. underground mining equipment market size is projected to grow from USD 5.14 billion in 2024 to USD 6.93 billion in 2032, at a CAGR of 3.80%. It signifies the growing need for more sophisticated mining technologies and a movement toward greater safety and efficiency in mining operations. A similar steady growth in the U.S. market results from the country continually investing in mining infrastructure and discovering new minerals.

Canada's underground mining equipment market is expected to grow from USD 0.97 billion in 2024 to USD 1.42 billion in 2032, with a CAGR of 4.85%. This increase can be attributed to the availability of minerals in Canada and a focus on sustainable and innovative mining practices. Based on the trend in Canada, the mining industry is constantly evolving as well with investments in automation and safety technologies for increasing mining operational efficiencies.

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Underground Mining Equipment Market Key players are:

The underground mining equipment companies are Boart Longyear, Komatsu, XCMG Group, J.H. Fletcher & Co., Schmidt Kranz & Co. GmbH, Sandvik AB, Sany Group, Epiroc AB, Getman Corporation, and Zibo God Rock Mining Machinery Co., Ltd.

Recent Developments:

Underground Mining Equipment Market Trends are:

• In September 2024: Komatsu presented an expanded underground mining equipment range at MINExpo 2024 in Las Vegas, featuring the WX15 Load-Haul-Dump (LHD) machine and HX45 mining truck, a move following their acquisition of GHH Group GmbH.

• In May 2024, Sandvik secured a significant underground mining equipment order from Hindustan Zinc Limited, worth around USD 35.83 million, to enhance their fleet with additional drills, trucks, and loaders.

• In March 2025, Sandvik secured a substantial underground mining equipment order from Compañia de Minas Buenaventura in Peru, valued at about USD 33.24 million, with deliveries set to start in the third quarter of 2025.