At 2.0% CAGR, Middle East & Africa Mining Remanufacturing Components Market is Projected to be Worth US$ 376.23 Million by 2030, says Business Market Insights

According to Business Market Insights' research, the Middle East & Africa mining remanufacturing components market was valued at US$ 322.03 million in 2022 and is expected to reach US$ 376.23 million by 2030, recording a CAGR of 2.0% from 2022 to 2030. Reduced cost compared to new components and rising adoption of electric and autonomous vehicles in mining industry are among the critical factors attributed to drive the Middle East & Africa mining remanufacturing components market growth.

RIC defines remanufacturing as a comprehensive and rigorous industrial process that restores a previously sold, worn, or non-functional product or component to a "like-new" or "better-than-new" condition and ensures the highest performance level and quality. Remanufacturing a product uses much less energy than new manufacturing of the same component as it reduces or eliminates numerous energy-intensive processes in the new component manufacturing process. Remanufacturing uses fewer raw resources, consumes less energy, and generates less waste than new product development. The reductions in these areas are substantial, resulting in a product of comparable quality that costs less for both the remanufacturer and the end user. As per the head of Liebherr Mining Remanufacturing division, remanufactured components cost up to 60% less than new components, and most cost savings come from lower material and energy costs.

Mining is a capital-intensive industry. The costs involved with the development and construction of open-pit and underground mines are a major upfront layout of construction capital in mining. Other company-built infrastructure, such as roads, railways, bridges, power plants, and seaports, are frequently present to assist ore and concentrate extraction and shipping. Also, there is day to day expenses in the actual mining process. In all the phases mentioned above, equipment such as wheel dozers, wheel loaders, crawler dozers, and haul trucks play an important role and account for a notable share of the mining industry costs. These vehicles cost approximately 10-15% of the total mining operating expenditure. Continuous wear and tear of such equipment leads to the requirement for component replacement, which results in capital investment. Thus, many mining and equipment OEM companies have turned towards remanufacturing components to reduce overall mining operating costs. Caterpillar, one of the leading mining equipment manufacturers, claims that its remanufacturing and rebuilding program for wheel dozers reduces 40-70% costs compared to new manufacturing. Such remanufacturing programs carried out by other top remanufacturers such as Liebherr, Caterpillar, Komatsu, and Hitachi have benefitted the mining companies, ultimately driving the demand for remanufacturing of components in the mining industry.

On the contrary, quality issues and technological barriers hurdle the growth of Middle East & Africa mining remanufacturing components market.

Based on component, the Middle East & Africa mining remanufacturing components market is segmented into engine, axle, transmission, hydraulic cylinder, and others. The engine segment held 45.3% market share in 2022, amassing US$ 145.77 million. It is projected to garner US$ 171.46 million by 2030 to register 2.1% CAGR during 2022-2030.

In terms of equipment, the Middle East & Africa mining remanufacturing components market is segmented into excavator, wheel loader, wheel dozer, crawler dozer, haul truck, and others. The crawler dozers segment held 25.5% share of Middle East & Africa mining remanufacturing components market in 2022, amassing US$ 82.24 million. It is anticipated to garner US$ 95.60 million by 2030 to expand at 1.9% CAGR during 2022-2030.

By industry, the Middle East & Africa mining remanufacturing components market is divided into coal, metal, and others. The metal segment held 45.4% share of Middle East & Africa mining remanufacturing components market in 2022, amassing US$ 146.05 million. It is projected to garner US$ 176.37 million by 2030 to expand at 2.4% CAGR from 2022 to 2030.

Based on country, the Middle East & Africa mining remanufacturing components market is categorized into Saudi Arabia, the UAE, South Africa, and the Rest of Middle East & Africa. Our regional analysis states that the Rest of Middle East & Africa captured 31.4% share of Middle East & Africa mining remanufacturing components market in 2022. It was assessed at US$ 101.25 million in 2022 and is likely to hit US$ 108.35 million by 2030, registering a CAGR of 0.9% during 2022-2030.

Key players operating in the Middle East & Africa mining remanufacturing components market are Atlas Copco AB, J C Bamford Excavators Ltd, Caterpillar Inc, Epiroc AB, Swanson Industries Inc, Komatsu Ltd, Liebherr-International AG, AB Volvo, and Hitachi Construction Machinery Co Ltd, among others.

• In May 2023, Komatsu and Toyota are collaborating on a joint project to develop an Autonomous Light Vehicle (ALV) using Komatsu's Autonomous Haulage System (AHS). The aim is to enhance safety and productivity in mines by running autonomous haul trucks and automated ALVs.
  
  

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