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Internet of Things (IoT) in Mining – Thematic Research

The market for IoT in mining was valued at US$1.4 billion in 2020 and is expected to grow at CAGR of more than 6% over the forecast period 2021-2025. Revenues from IoT software in the mining sector will grow faster than other segments over the forecast period. IoT hardware revenues will grow at a CAGR of more than 7%, whereas revenues from IoT services will grow the slowest at a CAGR of more than 3%.

Improved data collection and analysis via sensors and the internet is enabling mining companies to operate mines more safely, improve productivity, and reduce costs. Examples include autonomous drilling, driverless haul trucks, drones for surveying and safety, wearable technologies, and predictive maintenance. The Industrial Internet integrates and links big data, analytical tools, and wireless networks with physical and industrial equipment, or otherwise applying meta-level networking functions, to distributed systems. By adding internet connectivity and sensors to vehicles, machinery, and people, mining companies can increase efficiency, improve productivity, safety, and reduce costs on the mine site. Advances in efficiency and productivity in turn help reduce carbon emissions.

Overview of Internet of things in mining market

Overview of Internet of things in mining market

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What are the market dynamics of the Internet of things in mining market?

Health and safety:

The mining industry is incredibly dangerous, even in the modern world. The mining depths required for mineral or precious metal exploration come with various risks for miners, from poisonous gases and heat to geological instabilities leading to cave-ins. Miners are prone to health issues and accidents while working in industrial settings involving remote locations, deep mines, extreme temperatures, pressure variations, and the presence of heavy equipment in these surroundings. Mining firms must take responsibility for ensuring that workers are properly protected on-site by taking active steps to avoid accidents and actively monitoring safety.

Productivity:

Miners must ensure that they are increasing productivity by adopting the latest technology. Mechanization and monitoring support improvements in productivity and lower cost per unit output. There are opportunities for IoT to be implemented and improve operations across the whole mining value chain, from prospecting through to reclamation. Devices such as drones, wearables, proximity detection sensors on moving machinery and vehicles, and scanners to identify different ore grades and feed this information through the mining value chain can all yield small but cumulative gains in productivity. The falling price of sensors and improved computing power is helping miners to implement IoT across the whole value chain. Using data from machines to improve productivity and efficiency can, in turn, help reduce emissions, improving ESG credentials. One of GlobalData’s 12 ESG pillars, health and safety can also be augmented by IoT devices such as wearable technology and proximity detectors. In addition, companies are increasingly integrating AI with IoT to deliver predictive maintenance.

What is the value chain analysis of Internet of things in mining market?

The value chain for IoT is split into five layers: devices, connectivity, data, apps, and services. While these layers are logically discrete, large-scale IoT solutions will see a considerable degree of blurring of these logical boundaries. For example, while there will continue to be a clearly identifiable data layer towards the top of the stack, a growing proportion of the data processing will take place within and at the edge of the network.

From the point of view of IoT adopters, it is also crucial to note that value is only realized by IoT adopters in the application layer. All the data that an IoT network collects is ultimately worthless until action is taken because of it, whether that is in the form of an instruction to an irrigation unit, or an alarm sent to a maintenance engineer, or an emergency call made to a doctor. In the device layer, we find the makers of connected things, including sensors, embedded chips, and their components. Connected things can include connected cars, smart thermostats, fitness bands, smart light bulbs, or a parcel in a delivery truck.

In the connectivity layer, providers of network connections are the key players, including major telecom operators and networking equipment vendors. We also find in this category makers of edge devices (e.g., routers and gateways), which provide entry into the communications network. Cisco, Huawei, and Ericsson are the leaders here. Cloud and edge computing service providers such as Amazon, Microsoft, and Google also play an important role. IoT is likely to change the way they make money: today, most users of connected devices are humans; tomorrow, most users will be machines. So, the future of many operators in an IoT world may well depend on the business model they adopt to monetize M2M traffic.

In the data layer, the information collected from connected things is stored, cleansed, integrated with other systems, and analyzed. Much of the analytics, security, and management is provided by companies offering infrastructure as a service (IaaS). Leaders in this space include Amazon, Microsoft, Google, and IBM. Various big data service providers such as SAP, Oracle, and Salesforce are also leaders in this segment. In the app layer, we find the smart hubs that control and monitor connected things. This is where the long-term value resides. Apple and Google are leaders in consumer IoT, while GE, Honeywell, PTC, and Bosch are leaders in the Industrial Internet. This layer is also where start-ups are most active.

In the services layer, we find the technology service providers who provide system integration, consulting, and other data services related to the development and maintenance of IoT ecosystems. IoT services have become a necessary addition to the IoT value chain over the last decade because many IoT adopters lack the design, technical, integration, or data analysis skills to be able to deliver a successful IoT implementation. Accenture, Deloitte, Cognizant, and IBM are some of the players in the IoT services market.

Internet of things in mining market, by value chain

Internet of things in mining market, by value chain

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Which are the leading companies mentioned in the report?

The key companies in the mining IoT are Anglo American, AngloGold Ashanti, Barrick Gold, BHP, Freeport McMoRan, Fortescue Metals, Newmont, Teck Resources, Vale and the Specialist vendor are ABB, Caterpillar, Emesent, Epiroc, Fatigue Science, Guardhat, Hexagon, Komatsu, Sandvik, SymboticWare, and Trimble.

The leading IoT adopter in the mining industry are Anglo American, Barrick Gold, BHP, Fortescue Metals, Freeport McMoRan, Newmont, Rio Tinto, Vale and leading IoT vendors are Alphabet, Amazon, Apple, Broadcom, Cisco, Ericsson, IBM, Infineon, Intel, Microchip, Microsoft, NXP, Qualcomm, Salesforce, Samsung Electronics, SAP, Software AG, and Splunk.

Internet of things in mining market, by key players

Internet of things in mining market, by key players

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Market report scope

Value chain overview Devices, connectivity, data, apps, and services
Key players Anglo American, AngloGold Ashanti, Barrick Gold, BHP, Freeport McMoRan, Fortescue Metals, Newmont, Teck Resources, Vale and the Specialist vendor are ABB, Caterpillar, Emesent, Epiroc, Fatigue Science, Guardhat, Hexagon, Komatsu, Sandvik, SymboticWare, and Trimble.

 

This report provides an overview of the Internet of Things value chain, case studies of IoT deployments in mining, market size and growth forecasts, specialist IoT vendors for mining companies, and analysis of the mining companies leading in IoT adoption.

  • The key challenges that mining companies face are covered.
  • Their investment opportunities, for mining companies, specialist IoT vendors, and institutional investors, across the whole IoT and mining value chains are covered.
  • Those working in prospecting, exploration and resource evaluation, feasibility studies, mining planning and development, mining and extraction, processing, marketing, and reclamation can implement technologies and services from across the entire Internet of things (IoT) value chain for gains: devices, connectivity, data, apps, and services are available.

Reasons to Buy

  • Understanding how to implement IoT for productivity gains, cost efficiency, and remissions reductions across the mining value chain.
  • Gain an understanding of the market challenges and opportunities surrounding the IoT theme in mining.
  • Determine potential investment companies based on trend analysis and market projections.

Key Players

Anglo American

Barrick Gold

BHP

Fortescue Metals

Freeport McMoRan

Newmont

Rio Tinto

Vale

Alphabet (parent company of Google)

Amazon

Apple

Broadcom

Cisco

Ericsson

General Electric (GE)

IBM

Infineon

Intel

Microchip

Microsoft

NXP

Qualcomm

Salesforce

Samsung Electronics

SAP

Software AG

Splunk

ABB

Caterpillar

Fatigue Science

Guardhat

Hexagon

Newtrax (Sandvik)

Rockwell Automation

Sandvik

SymboticWare

Trimble

Table of Contents

| Contents

Executive summary

IoT value chain

Mining challenges

The impact of IoT on mining

Case studies

Market size and growth forecasts

Mergers and acquisitions

IoT timeline

Companies

Sector scorecard

Glossary

Further reading

| Our thematic research methodology

| About GlobalData

| Contact Us

Frequently Asked Questions

The value chain for IoT is split into five layers: devices, connectivity, data, apps, and services. While these layers are logically discrete, large-scale IoT solutions will see a considerable degree of blurring of these logical boundaries

The key companies in the mining IoT are Anglo American, AngloGold Ashanti, Barrick Gold, BHP, Freeport McMoRan, Fortescue Metals, Newmont, Teck Resources, Vale and the Specialist vendor are ABB, Caterpillar, Emesent, Epiroc, Fatigue Science, Guardhat, Hexagon, Komatsu, Sandvik, SymboticWare, and Trimble.

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