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The global digital mining market was valued at $8.5 billion in 2018 and is anticipated to grow at a CAGR of 12.8% from 2019 to 2025. Internet of things (IoT) is one of the cutting-edge technologies that has effectively decreased the impact of mining activities on the environment and improved safety in mines. Automated vehicles and machines operated from remote locations has safeguarded the safety in deep underground mining.
Digital mining uses a 3D modelling technology which creates diagrams of underground areas for more effective exploration. Therefore, the application of digitization in the mining field is expected to fuel growth of the market in the upcoming years.
Driver: Awareness about the safety of mine workers to be the prime reason for growth of the market
The increase in the number of accidents in traditional drilling and growing injuries during the mining activities has resulted in an increased awareness regarding the need for safety measures of mine workers. For this reason, many mining teams have now adopted digital mining solutions which has turned out to be the prime reason boosting the growth of the market. Digital mining techniques use deep learning algorithms without the need for a scaling object. Furthermore, particle size analysis solution uses stereo imaging to offer continuous monitoring, thus reducing routine and manual efforts.
Opportunity: Growing adoption of digital mining technologies by several miners to propel the market
The U.S. is one of the top countries in the field of mining. Many U.S. based miners have begun automating their operations and processes to enhance productivity and increase their output. In 2018, Newmont Mining joined hands with Caterpillar to invent an innovative process and improve hard rock underground mining by improving productivity and increasing the use of loader in mining operations.
Digital technology plays an important role in the entire process of mining from exploration, mine development, mines, ore processing, logistics to sales and marketing channels. Although, sales and marketing channels have not been primary adopters of digital technology, there are some companies that are keen on implementing digitization in the later stages of the value chain. This can be helpful in balancing the supply and demand between mine operations and customers in end-use industries.
Growing applications of advanced digital technologies such as robotics, sensors, drones, and integration techniques are boosting the demand for automated solutions. For example, in 2017, Airobotics introduced an unmanned drone for obtaining valuable insights and gathering aerial data. This was deployed at Worsley Alumina operations of South32 mine in Australia. In the same year, South32 signed a three-year strategic partnership with GE for the digitization of its several processes and operations.
Segment Analysis
The global digital mining market is segmented based on technology, application, and region. By technology, the market is classified into automation and robotics, real time analytics, cyber security, and other technologies, which include AI, blockchain, and digital twin. Based on application, the market is divided into iron and ferro alloys, non-ferrous metals, and precious metals. Regionally, the market is evaluated across Europe, North America, Central & South America, Middle East & Africa, and Asia Pacific.
Automation and robotics segment expected to hold major share of market during the forecast period
Automation and robotics segment was observed to grab a major share of the market in 2018 and accounted for a revenue share of 43.3%. This is mainly because of the growing focus of market players on these technologies in digital mining. For example, Rio Tinto, one of the top companies in mining, introduced one of the largest robots to enhance the productivity and flexibility at its Pilbara operations in Australia in 2019. The project is valued at $1.37 billion and is projected to decrease the travel of 1.5 million kms per annum.
Growing need for data protection and prevention of companies from potential cyber threats is boosting the demand for cyber security in the field of digital mining. BHP, a leading mining firm in Australia, uses real-time analytics to resolve existing issues in its iron ore operations in Western Australia. This guarantees reliable operational flow from drill control to dispatch and logistics. Roy Hill is another mining company that uses digital boardroom methods for its remote operations center to offer real-time parameter data to the demand chain and supply chain teams.
The other technologies segment is expected to continue to be the second-fastest growing segment over the forecast period. This is attributed to the growing expenditure on these developing technologies and high adoption rate in end-use industries. For example, in 2019, First Ore Mining and ZYFRA signed a Memorandum of Understanding (MoU) to implement artificial intelligence at Pavlovskoe lead-zinc deposits in Russia.
The iron and ferro alloys segment was observed to grab a market share of over 35%% in 2018. The rising demand for steel and related alloys in transportation, construction, heavy machinery, and consumer durable industries is indirectly fueling the growth of the digital mining market.
Growing demand for non-ferrous metals such as copper, aluminum, and zinc has led to the digitalization of processes in order to support the growing demand for these metals. Lightweight materials such as aluminum are increasingly used in automobiles in order to improve fuel efficiency and curb pollution to reduce the environmental impact. Non-ferrous metals segment is projected to register the highest CAGR of 13.6% from 2019 to 2025.
Metal companies such as Barrick Gold Corporation; Newcrest Mining Limited; Newmont Mining Corporation; and Goldcorp Inc. are some early adopters of digital technologies in the market. For example, Goldcorp Inc. created a digital strategy to improve its mining processes using smart mines, autonomous fleet, advanced process control, and advanced analytics.
Asia Pacific is expected to dominate the market in the coming years
Asia Pacific seized the largest market share in 2018 and is anticipated to uphold its position during the estimated period. This is mainly due to the increase in mining output and penetration of automation and robotics in the digital mining sector in China and Australia. As per the data from World Mining Data, in 2018, China and Australia are among the four biggest mining countries worldwide with a share of over 24% and 7%, respectively.
On the other hand, Africa and Middle East is expected to expand at a CAGR of 13.6% during the estimated period. These regions are well-equipped with a wide range of resources of various metals and minerals. South Africa is a top nation in the region in which many companies use automated machines and software to improve their processes. In 2018, Rock Technology and Sandvik declared a strategic partnership to develop a fully automated underground mine in Mali.
Europe holds a significant position in the market due to the invention of advance technologies and research on emerging methods. At present, the European Union project in Sweden is working on a new generation of technologies with an aim to enhance sustainability and competence of digital mining activities at the X-mine project.
Top players in the market
Some of the key players in the digital mining market are Sandvik AB; SAP; Caterpillar; Siemens; IBM; ABB; Rockwell Automation, Inc.; Komatsu Mining Corp.; GE; and Hexagon AB.
Key Benefits for Stakeholders
Key Segments
By Technology
By Application
By Region
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