The global market for mining drilling services will be worth over US$4.41 billion by 2030, according to a new report from New York’s Zion Market Research.
The research firm released details from its new market report on Wednesday and anticipates that the value of the mining drilling services market will ascend at a compound annual growth rate (CAGR) of 6.7 per cent between now and the end of the decade.
The market is comprised of several drilling services including production, geotechnical, exploratory, directional and environmental drilling. The report covers applications such as minerals, quarry, coal and metal along with underground and surface mining.
The report also analyzes factors propelling the market, restraints and challenges and the impact they have on demand for mining drilling services during the forecast period between 2023-2030. Additionally, the report explores new potential opportunities in the market.
North America was the leading revenue generator for the market last year and surface mining was the number one type of service in 2022. The United States Geological Survey says that 26 per cent of mining operations worldwide are underground while the majority of 74 per cent are surface-based.
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Copper and iron demand drive the market forward
The global market for mining drilling services is expected to be primarily fueled by the significant demand for minerals extracted from the Earth’s crust. Minerals such as copper and iron play a vital role in various sectors, including residential and commercial industries. With rapid industrialization, the mining sector is witnessing a surge in demand, therefore increasing the requirement for associated services.
This heightened demand is a result of widespread industrialization and increased end-user needs, leading to a substantial boost in the mining sector and revenue derived from its various services.
In 2022, the minerals sector of the industry witnessed the most significant growth and it is expected to continue its dominant position, followed by the metal and coal sectors.
Environmental concerns can hinder market growth
Irresponsible mining practices and profit-driven firms that value short-term gains over environmental concerns pose a significant long-term threat to our planet. Such practices can lead to permanent damage to the ecosystem, particularly through mining drilling operations, which cause soil erosion, water pollution and air pollution.
As a result, the mining drilling services industry faces strict global regulations and world leaders are taking measures to minimize the negative consequences of mining on the environment, thereby slowing the market’s growth.
Australia is a major market player
In February this year, Australia’s mining and construction contractor NRW Holdings (ASX: NWH) acquired a AUD$300 million contract for drilling and blast services.
In March, two of the company’s subsidiaries also obtained a AUD$30 million contract from Western Australia’s DIAB Engineering.
Over the next three years, the allocated funds will be utilized to maintain the crushing and supporting infrastructure of the newly established Iron Bridge magnetite mine in Western Australia’s Pilbara Region.
Australia is a major player in the market and mining exports from the country currently account for 75 per cent of the global market share.
Key players in the market include NRW, Helmerich & Payne (NYSE: HP), Boodee Drilling, Boart Longyear (ASX: BLY), Dando Drilling International, Schlumberger Limited (NYSE: SLB), JS Redpath Corporation, Epiroc (STO: EPI-A), Orbit Garant Drilling, Inc. (TSX: OGD), Caterpillar Inc (NYSE: CAT), DDH1 Drilling, Ausdrill (ASX: PRN), Layne Christensen Company, Sandvik (STO: SAND), Major Drilling Group International, HMR Drilling Services, Orica Mining Services (ASX: ORI), FORACO International S.A. (TSX: FAR) and Atlas Copco (STO: ATCO-A).