Contract Mining Services Market: Emerging Opportunities & Future Outlook, 2019-2027


  • Rep Id : XPLREP3945
  • Published On : July, 2019
  • No. of Pages : 120
  • Category : Industrial Automation
  • Publisher : XploreMR

The history of mining is rich and complicated, and the practice has led to a sweeping range of advancements for society. However, the dangers of mining, coupled with several other factors, has eventually led to a significant slowdown in the market growth. As technology continues to advance, mining techniques have reached the highest levels of accuracy and efficiency, with revolutionary technologies completely waving off the need for hands-on involvement from miners.

This continuous uncertainty hovering over the contract mining services market makes it imperative to find out the opportunistic potential of this market over the course of coming years. 

Contract Mining Services

Beginning from Deep Down Inside 

The mining industry tracks back to 41000 BCE, to a mine in Swaziland. The Ancient Egyptians came up with quarry mining nearly 4,000 years ago to find rock, gold, and other ores. The Romans and Greek leveraged similar techniques as the Egyptians in later times. In the 19th century, mining became quite prevalent in the Western Hemisphere, with technology having played a vital role in the industry. This marked the advent of contract mining services specifically for underground mining, with contractors performing specialist jobs, such as drift and shaft work, fault driveages, excavations and specialized strata control.

However, soon after, contract mining services market witnessed a significant low due to recent global economic slowdown and consequent slump of commodity prices that affected miners, and thereby, pulled overall demand for contract mining services. 

This upside-down journey is even documented by XploreMR, which estimated that the value of contract mining services market reached ~US$ 12 Bn in 2018. XploreMR opines that contract mining services market is heading towards a notable slowdown, and is envisaged to witness ~1.2X decline between 2019 and 2027. 

Factors Shaping the Contract Mining Services Market 

The Market Is Seemingly Contracting Under the Growing Degree of Mechanization 

Mines are generally characterized by low mechanization levels and thus, continue to witness challenges in line with the significant labor spend of approximately 35-40% of the overall mining expenses. Growing automation infiltration in the mining industry is however impacting the industry differently since the recent past, which is impeding the growth prospects of the contract mining services.

However, for the fact that the narrow mine shafts remain unbeneficial when subject to automation, demand for manual labor continues to sustain, thereby, creating lucrative opportunities for the contract mining services market. 

Depleting Ore Grades in Mines Still Continue to Sustain Gains 

Depleting ore grades in surface mines are increasingly propelling miners to conduct deeper mineral extraction, which in turn is creating an increased traction for contract mining services. In view of the continued scarcity of ore grades, a wide range of mining firms are outsourcing their mineral extraction needs to contract mining services’ providers, thereby, sustaining the gains in the market. 

Stakeholders’ Conviction Continues to be Upheld by the Continued Traction for ‘Equipment Flexibility’ 

In light of the dire need of employing the best human resources and equipment to perform mining operations, increasing number of iron ore, coal, and gold mining firms are focusing on outsourcing their requirements. Firms are leveraging the expertise and large pool of machinery of contract mining services’ providers and firms to push their pace of finding and extracting minerals. 

Burgeoning Investments in Mining Projects May Revive Market   

Growing R&D focus and spending on new areas of exploration will continue to remain the key attributes that are fueling the growth of the contract mining services market. Furthermore, rapid urbanization, coupled with rising mining investments is highly likely to create potential lucrative avenues for partakers in the contract mining services market. Several governments are also making considerable investments in the mining landscape, thereby creating potential opportunities for contractors. For an instance, in 2017, the Argentinian government has entered into an agreement with the country’s provinces to boost the mining projects across Argentina. 

Analyst’s View Point 

The market for contract mining services is likely to slow down in the forthcoming years, and will register -3% CAGR through 2019-2027. Decline in commodity prices has impacted the demand substantially, which is further deterring mining investments, and is paving way for mine expansion stoppages. Though this would impact the demand for contractors in the mining market, Xplore MR points to a potential resurrection of the contract mining services market, however, at a slow pace.

A recent study published by XploreMR evaluates the historical and current scenario of ‘Global Contract Mining Services’ to accurately evaluate the futuristic development of the industry. It covers comprehensive information about the drivers, restraints, and key trends that are shaping the growth of the contract mining services to identify the lucrative business potential for partakers. The report also sheds light on the detailed information regarding how the contract mining services will pick pace during the foreseeable period, 2019-2027.

The report offers actionable insights regarding the various aspects and nuances of the contract mining services to aid the market enthusiasts take winning decisions. XploreMR’s report offers information about the key trends that are highly likely to influence the growth potential of the contract mining services during the study period. The report covers a key indicator assessment to highlight the different growth prospects of the contract mining services and forecast statistics pertaining to the progress of the market in the terms of value (US$ Mn).

The report presents a clear segmentation of the contract mining services market and incisive insights on competitive landscape. The report carries the company profiles of the companies that are active in the contract mining services, wherein, various development and exclusive strategies that have been formulated and leveraged by the market players have been mentioned in detail.

Contract Mining Services - Segmentation

XploreMR’s study assesses the contract mining services market on the basis of product, end user and region. The report turns on the spotlight on the market dynamics and rapidly changing trends related to the segments, and how they are impacting the growth of the contract mining services.

Product

End User

Region

Surface Contract Mining Services

Iron Ore Mining Firms

North America

Underground Mining Services

Coal Mining Firms

Latin America

 

Oil and Gas Extraction

Europe

 

Gold Mining Firms

Japan

 

Other Mining Firms

APEJ

 

 

MEA

What are the Key Questions Answered in XploreMR’s Report on Contract Mining Services?

The report presents unique information about the contract mining services on the basis of in-depth research pertaining to the macro and microeconomic factors that are playing a key role in shaping the growth of the contract mining services market. The information mentioned in the report answers to the salient questions for the existing market players and the companies that are seeking penetration into the contract mining services market, to assist them design wining strategies and make business-driving moves.

  • What are the winning strategies of big shots in the contract mining services market?
  • Which product type of the contract mining services will account for highest market revenues in 2020?
  • How market goliaths are successfully turning the undercurrents in their favor to achieve gains in the contract mining market.
  • What will be the Y-o-Y growth of contract mining services market in 2020 over 2019?
  • Which end user of the contract mining services witnessed highest traction in 2018?
  • What rate of ROI can contract mining services’ providers expect from its applications in iron ore mining firms in the next 5 years?

Research Methodology – Contract Mining Services

The research methodology employed by the XploreMR analysts for making contract mining services report includes detailed research on the basis of primary and secondary resources. By delving in the market-validated details collected and certified by pertinent resources, analysts have presented actionable insights and authentic forecast of the contract mining services market.

During the primary research phase, XploreMR analysts interviewed C-level executives, sales and marketing managers, regional managers, vice presidents, raw material suppliers, brand manager, and industry players as well as investors. Based on the information collected through the interviews of pertinent resources, analysts have underlined the development perspective of the contract mining services market.

For secondary research, analysts performed a comprehensive analysis of multiple annual report publications, industry association publications, case studies, white papers, research publications, and company website to gain necessary understanding of the contract mining services market.

Contract Mining Services Market