Mining equipment is evolving fast with new technology

India’s mining and construction equipment (MCE) industry is poised for significant growth, with localisation levels expected to increase to 70-80 per cent in the next 5-7 years, said ICRA in a report. It also noted that this shift could help the industry save nearly $3 billion in forex annually and boost India’s cost competitiveness, enhancing its export potential.

The MCE industry has already grown at a CAGR of 12% over the past decade (FY2015-FY2024), reaching 1.36 lakh unit sales in FY2024. The industry is set to become a $25 billion market by 2030, according to projections. A very recent report states that India’s MCE sector, currently valued at $16 billion, is projected to grow at a CAGR of 19% to reach $45 billion by 2030, according to a joint report released by the CII and Kearney.

Rapid Changes

The Indian mining sector is transforming rapidly, driven by the demand for critical minerals, greater digital adoption, and a focus on safety and sustainability. Mechanisation and the use of advanced equipment are increasing across the board. The future lies in automation, real-time monitoring, and predictive maintenance becoming standard across operations.

Chandrashekar V, MD & CEO, GMMCO, says: “GMMCO has been a key partner to India’s mining industry for over four decades. Through our partnership with Caterpillar, we offer robust mining equipment supported by end-to-end lifecycle solutions — from maintenance and rebuilds to digital tools like GMMCO Assist and fluid analysis via our SOS Labs. Our integrated support helps customers maximise performance and machine uptime. We support sustainability by promoting machine rebuilds over replacements. Our digital tools help monitor fuel efficiency and emissions, and we invest in training programs that encourage responsible equipment use.”

Considering that mining equipment forms one of the core pillars of India’s infrastructure sector, the government too is working in its favour. The Centre is working on a plan to incentivize local manufacturing of heavy equipment for mining.

Vikram Dev Dutt, secretary to the Union ministry of coal, says: “There is an element of import dependence, especially in the import of heavy equipment. Although there are segments and elements where we have fairly good indigenous manufacturing capability. We are actively working in close collaboration with Coal India to see how the indigenous manufacturing system for machinery could be incentivised.”

The impetus for local manufacturing of heavy mining equipment comes at a time when local production of coal has gained momentum, reaching a record 1 billion tonne output in 2024-25 to meet the rising power demand. Coal India imports high-capacity equipment, including electric rope shovels, hydraulic shovels, dumpers, crawler dozers, drills, motor graders, front-end loaders, and wheel dozers.

Corporate Moves

In response to the global trend toward decarbonisation, the mining industry is facing an urgent need to address machinery and equipment that emit large amounts of greenhouse gases. Efforts to electrify entire sites and advance energy management are accelerating to achieve both operational efficiency and sustainability.

The alliance between Sumitomo Corporation and ABB will enable the two companies to complement each other’s resources for decarbonisation and electrification of mining equipment, and to respond more flexibly and effectively to the decarbonisation initiatives promoted by mining companies. For the time being, the alliance will focus on the trolley assist system that supplies power to mining haul trucks from overhead wires, alongside efforts to decarbonize the existing fleet.