Based on a report by global market research and consulting service provider Global Market Insights (GMI), the surface mining equipment market is likely to be valued at $28.97-billion by 2022.

The company notes in a press release in April that the flourishing demand for metallic ore, as well as nonmetallic ore, is expected to drive industry growth over the forecast period. Proliferating mining activities, coupled with a rising need for technically sophisticated solutions from developing nations, are expected to fuel demand.

GMI indicates that technological developments facilitate the production of stable surfaces and embankments and enable selective mining for producing high-quality material. Features such as less damaging vibrations and low noise offered by surface mining equipment allow mining activities in residential areas. In addition, the surface mining equipment market helps decrease the cost involved in processing ore, owing to its ability to produce small grains.

Multiple functions performed by this equipment reduce the need to buy supplementary machinery for crushing purposes. The ability of these machines to dump material directly into dump trucks using a conveyor belt is likely to eliminate the need for excavators as well as wheel loaders.

Further, this equipment also helps reduce manpower needs, as these machines offer high accuracy while cutting stable, as well as, steep surfaces. It also enables efficient planning and coordination in conjunction with enhanced maintenance and operation throughout the process, says the report.

GMI indicates that limited economic depth and high visibility issues are expected to pose challenges for the surface mining equipment market. Ascending demand for coal, iron-ore and chromium, as well as diamonds, is expected to present potential opportunities for industry participants.

Key industry players capturing significant surface mining equipment market share include tools and equipment manufacturer Atlas Copco; Anglo-Australian multinational mining, metals and petroleum company BHP Billiton; construction and mining equipment manufacturer Caterpillar; and high-technology engineering group Sandvik.