Mining Drilling Services Market Size, Share & COVID-19 Impact Analysis, By Type (Surface Mining, Underground Mining), By Application (Metal, Coal, Minerals, Quarry), and Regional Forecast, 2022-2029

The global mining drilling services market size was valued at USD 2.72 billion in 2021. The market is projected to grow from USD 2.94 billion in 2022 to USD 4.67 billion by 2029, exhibiting a CAGR of 6.9% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with mining drilling services experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the market exhibited a slower growth of 2.5% in 2020 as compared to 2019.

Mining drilling services refer to the mining process for penetrating/extracting rocks, mines, and minerals from various depths beneath the surface. The services are generally carried out for blasting and rock removal work, clearance or underground the surface, drilling and boring of surface, overburden removal, other development and preparation services of mineral properties and site, and other similar excavating and earth-moving services. Mining drilling services are extremely important for determining the types and structures of the rocks underneath our feet, leading to their wide usage for mineral exploration along with site investigation for mine development, production, and mine closure.

COVID-19 IMPACT

Uninterrupted Mining Production & Exploration Amid COVID-19 Pandemic Drives Market Growth

Demand for mining drilling services mainly depends on mining activity. 2020 was a remarkable year for the mining industry due to the impact of the COVID-19 pandemic. Despite travel restrictions and nationwide lockdown, the mining industry was still functioning. Furthermore, during the operational shutdown, continuous research & development activities were underpinned, leading to the opportunity opened up by the global pandemic. The companies have observed sizable changes in their operations revenue and durations, which the organizations can use to develop breakthroughs to fortify their foothold. For context, in July 2020, IMDEX, a global mining-tech company, worked on its product development with an annual spending of USD 20 million on research & development as a key strategy that helps to deliver valuable upside in the long run. Additionally, a rapid increase in the iron steel demand in the post-COVID-19 era could propel the need for mining drilling services exponentially. For instance, in August 2021, the Government of India is working toward stepping up the production of steel to meet its growing demand moving forward.

LATEST TRENDS

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Continuous Launch of New Products for Sustainable Mining Process to Spur Market

Drilling services in the mining industry are referred to as drilling services to measure the depth of tracking aid accurately and precisely. Drilling services aid in improving the efficiency of mining operations and enhance the safety of the workforce. Various key players operating in the market are continuously venturing their product offerings in the mining industry by performing research & development activities to maximize the process output. One of the major factors on which the key players focus is to provide a sustainable solution in the mining industry.

In September 2021, Sandvik AB launched the new truck Sandvik TH550B. The truck is powered by battery technology. As a result, introducing this product could help mining operators improve process productivity, create a better work environment, and reduce service costs. The introduction of recent developments in the mining industry spurs market opportunities.

DRIVING FACTORS

Increasing Exploration of Metals & Minerals to Shape Market Dynamics

Drilling service at mining sites is majorly used for two main reasons, exploration, which focuses on gaining detailed information about the land formation below the ground surface; and production to facilitate the extraction of iron ore. Numerous investments to explore & produce more metals and minerals to satisfy the growing needs of metals are projected as one of the leading factors in propelling the growth of the market size.

Numerous government and private entities are strategically undertaking reserves to explore new assets and enhance their market reach. For instance, in February 2022, Lundin Mining Corporation discovered a new copper-gold mineralized system called Saúva at the Chapada mine in Brazil. As a part of Lundin’s ongoing exploration activity, the company initiated diamond drilling at Saúva by the end of 2021, intending to increase the mineral resource estimation at Chapada mines.

Subsequently, investments made by the government in mining exploration are set to favor the market growth. For instance, in April 2021, the U.S. invested USD 19.5 million in funding for the critical extraction of minerals with the growing demand for minerals within the manufacture of batteries, magnets, and other important components for Electric Vehicles (EV) and other clean energy technology.

Significant Growth in the Mining Industry to Drive Market Growth

The demand for drilling services plays a crucial role in the mining industry as it helps to determine the type of mineable mineral deposits that exist below the surface, assess whether it would be economical to mine, to assist in the management and evaluation of mine tailings or to determine the viability of reclamation of a former mine site. An increase in the demand for mining activities across various regions could positively impact the market during the forecast timeframe. India, China, Russia, and Australia, among others have reported an increase in mining activities due to the rise in the production of metals such as iron ore and copper. The trend could be steered by new expansions and projects, which are expected to propel the market for mining drilling services. For example, on March 12, 2021, China Nonferrous Mining Corp. made multiple investments with a deal value below USD 100 million in small projects such as Baluba and Muliashi North in Zambia. Moreover, this experience of China's non-ferrous in Africa also resulted in more investments by Chinese enterprises across the region.

RESTRAINING FACTORS

 Environmental Impact and Volatility in Metal Prices Hinder Market Growth

 The mining industry has major environmental impacts that occur through mining practices. Mining activity could severely pollute the air and potable water, harm wildlife and habitats, and permanently disfigure natural landscapes. Subsequently, modern mines and abandoned mines are responsible for significant environmental damage.

Furthermore, mining activities, such as underground mining, can lead to the disintegration of the tunnel and land sinking, which generally occur due to large-scale rock movement that could delay or cancel a mining project.

Another major factor restraining the mining drilling services market growth is the uncertainty in the global prices of metals & ores. The sudden dip in the international prices caused by various factors, such as supply/demand gaps, could easily make it unfeasible for companies to explore producing metal ores without incurring significant losses.

SEGMENTATION

By Type Analysis

Surface Mining Type Accounted for the Dominating Market Share in 2021 Due to its Wide Acceptance

In terms of type, the market is segmented into surface mining and underground mining.

Surface mining is the most common mining type, which includes removing the terrain surface to access minerals underneath and is primarily used to extract crushed stone, sand, rock, phosphates, aluminum, copper, and coal. Mining operators generally retrieve the type of mineral segment, such as sand, gravel, crushed stone, phosphates, coal, copper, iron, and aluminum, among others, through surface mining.

Furthermore, underground mining is another method/process across the mining industry that is generally used to extract mining ores and materials located deep beneath the surface. During the underground mining process, heavy underground machines are generally used to break up the rocks and throw them into a vat or tank below ground. Many industries, including gold panning, iron ore panning, limestone mining, slate mining, coal mining, petroleum exploration, and others opt for underground mining drilling services. Based on this factor, underground mining is likely to grow during the forecast timeframe.

By Application Analysis

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Metal Application Holds the Highest Share of Application Segment Owing to Growing Demand for Precious Metals

Based on application, the market is segmented into coal, metal, minerals, and quarry. Mining services are generally carried out to mine precious metals such as gold, platinum, and silver. With the increasing demand for these metals, drilling services for mining metals is likely to grow during the forecast period. Moreover, industrial-based metals, including copper, aluminum, steel, and zinc, generally used across multiple industry verticals, such as construction, manufacturing, and technology industries, also improved the outlook for the market.

Additionally, mining drilling services are generally used to extract diamond and precision gemstones. The significant use of drilling services in mining precision minerals, such as diamonds, popular and rare minerals for multiple industries, further increases the mining drilling services market share in the forecast period. Furthermore, drilling services in the mining industry to mine coal hold a substantial share due to significant coal mining globally, as coal is one of the leading sources of power generation, and is heavily relied upon for electricity production. For example, as per the IEA Coal Report, coal remains a major component of global fuel supplies, accounting for 27% of all energy used worldwide and making up 38% of electricity generation. Based on this factor, coal application is likely to grow during the forecast period.

Subsequently, in quarrying, mining drilling services are generally performed to remove rock, sand, gravel, or other minerals from the surface or ground to use them to produce raw materials for various end-uses such as construction and others. Generally, quarry services are carried out on the surface of the earth's crust, where minerals are extracted.

REGIONAL INSIGHTS

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Based on the regional analysis, the market covers North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

The mining industry in various countries in Asia Pacific contributes a significant share to the Asia Pacific countries’ GDP. For comparison, Australian mining accounts for around 75% of the country's exports and contributes significantly to Australia's workforce and thriving economy. In addition, the U.S. and Canada are witnessing a significant contribution of metal mine production to their economies, with gold, copper, iron ore, and zinc being the major contributors, significantly driving the growth of the market across the region.

In Europe, Russia, Poland, Sweden, and others are the leading countries in extracting industrial minerals, metals, and others, resulting in significant market prospects throughout the region.

In Latin America, Brazil hosts a great geological diversity of metallic and non-metallic minerals, which increased with recent technological breakthroughs, further contributing to the market growth across the region.

Mining activity in Chile has favorable conditions and several projects for metallic and non-metallic minerals, resulting in a favorable market outlook. In the Middle East & Africa, South Africa accounts for a significant portion of global metals production, boosting prospects for the market across the region.

KEY INDUSTRY PLAYERS

Key Players Concentrate on Enhancing their Product & Service Capabilities to Maintain Competitive Landscape

The market comprises various key players that offer multiple services for numerous applications and shape the competitive landscape. Major key players operating in the market are Boart Longyear, Byrnecut Group, Major Drilling, and Capital Drilling. These companies are focusing on improving product capability to maintain their drilling services brand. For instance, in April 2021, Major Drilling’s two new EF-75 drills were added at Hecla Mining's San Sebastian mine located in Durango, Mexico. The addition of a new fleet has acted as the major part of drilling's fleet upgrades and added innovative drill rod handling capabilities to the project.

LIST OF KEY COMPANIES PROFILED:

• Boart Longyear (U.S.)


• Perenti Group (Australia)


• Major Drilling (Canada)


• Byrnecut Group (Australia)


• PT United Tractors Tbk (Indonesia)


• Orbit Garant Drilling Inc. (Canada)


• Action Drill & Blast (Australia)


• Foraco (France)


• Ausdrill (Australia)


• Aban Offshore (India)


• Capital Drilling (Mauritius)


• Geodrill (Isle of Man)


• Gregg Drilling LLC (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2022 – Perenti's idoba grew capability with acquisitions of Orelogy and Atomorphis. The acquisition of these companies is aligned with Perenti's strategy of establishing digital, innovation, and technology services that improve sustainability and operational performance outcomes for the mining industry.


• March 2021 – Major Drilling surpassed its 2,000-meter drill record with the addition of another extreme deep hole of 2,021.3 meters PQ3 for Oyu Tolgoi. These are exceptionally deep holes for PQ and constitute the specialized drilling expertise of the Major Drilling Mongolia team. These records are commendable and rare among drill crews globally.

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The global mining drilling services market report presents a comprehensive industry assessment by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views to formulate the market research reports. Furthermore, the report covers a detailed analysis of key market trends and market segments, including application, type, and region, helping our readers get a comprehensive overview of the global industry.

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