Mining Equipment Rental: Chile Market Scenario, Trends, Opportunity, Growth and Forecast, 2020-2030

Market Definition

A powered or self-powered machine or vehicle used to collect metals or minerals from below the earth’s surface and then move them from the working locations to an on-site storage facility, processing plant, etc. is referred to as mining equipment. Sometimes, miners or mining corporations need equipment for a shorter timeframe or do not want to spend CAPEX on purchasing and maintaining it. Therefore, one of the most practical solutions is to rent or hire the equipment. Only for the equipment they utilise, mining corporations pay hourly or monthly fees. By doing this, the businesses lower the fixed and variable expenses of the equipment.

Market Insights

During the forecast period, 2023–2030, the Chile Mining Equipment Rental Market is projected to expand at a CAGR of about 5.3%. The rise in metal, mineral, and coal exports, as well as a rising desire from international mining corporations to explore Chile’s mines, have all contributed to the growth of the mining equipment rental market in Chile in recent years. Among other things, Chile has been a major producer of copper, lithium, iodine, rhenium, salt, and potassium nitrate. The US, China, Brazil, Argentina, South Korea, Japan, and many other nations are among the biggest consumers of Chilean mining products. Additionally, the country’s expanding mining exploration activities have raised demand for mining machinery including excavators, loaders, etc.

Because of this, local mining companies are more likely to cut their overall operating expenses by renting the equipment than by spending a significant quantity of money on brand-new equipment. Chile shipped copper ore worth USD18.4 billion worldwide in 2019, claims the Observatory of Economic Complexity (OEC). Furthermore, private businesses like Freeport McMoran Copper & Gold Inc., Albemarle Corporation, and firms from Canada, Australia, Europe, and Asia run the majority of Chile’s mines, bringing a steady stream of mining capital to the country.

Rising innovation & technological developments are promoting the mining sector’s expansion. The main innovations that have a favourable effect on the mining equipment business include automation, the Internet of Things (IoT), plasma technology, and 3D imaging. In order to improve mine operations, the mining sector uses telematics to collect and integrate data into a single view. Telematics also assists in monitoring fuel consumption, which lowers costs. Additionally, telematics-enabled equipment could monitor and measure operator behavior at the mining site, such as abrupt braking and speeding.

The Chilean market for the rental of mining equipment was significantly impacted by COVID-19. In 2020, China, North America, and Europe were Chile’s main sources of mining equipment imports. The delivery of orders to the mining equipment rental companies was delayed due to a slowdown in mining equipment manufacture. Furthermore, mining operations in Chile were suspended for a period of three to four months. As a result, mining equipment rental businesses saw their earnings decrease even further, and equipment rental rates per hour fell as well. However, the impact of COVID-19 on industrial earnings was negated by the restart of mining operations in late 2020 and the establishment of new mining sites in early 2021. 

Market Dynamics: Drivers

Rising Private Investments in the Mining Sector

One of the main factors contributing to the country’s mining sector’s quick growth is the surge in private mining investments. Additionally, a number of national and international mining firms have recently started to focus on Chile’s untapped mineral potential. As a result, mining equipment rental businesses now have a tonne of options to market their goods and services. With 72% of its mines held by private corporations and 28% by government companies, Chile’s copper mines are among the major contributors to the sector, according to the International Trade Administration. The COCHILCO 2019–2028 plan estimates that 72.5 billion USD will be invested in mining over the next ten years to increase the nation’s mining potential. This includes 8 government-run Codelco projects for $23.1 billion and 23 private large- and medium-sized copper mining projects, totaling USD28.3 billion. Another 13 projects totaling USD6.9 billion are related to various minerals like gold, silver, iron, lithium, and industrial minerals.

Because of this, private sector investment has increased over the years, broadening the market’s potential for mining equipment rentals in Chile. This trend is expected to continue throughout the years ahead, providing countless prospects for these businesses.

Market Segmentation

• Based on Equipment Type, the Chile Mining Equipment Rental market is segmented into
  • Earthmoving Equipment
    • Excavator
    • Bulldozer
    • Loaders
      • Backhoe Loader
      • Skid Steer Loaders
      • Wheel Loaders
      • Others (Dozers, Motor Graders, etc.)
    • Material Handling Equipment
      • Mobile Cranes
      • Tower Cranes
      • Low & Flat Bed Trailers
      • Light Cargo Trucks
      • Dump Trucks
      • Others (Tipper Trucks, etc.)
    • Surface Mining Equipment
      • Blast hole Drills
      • Hydraulic Mining Shovels and Excavators
      • Draglines
      • Others (Mining Crushers, etc.)
    • Underground Mining Equipment
      • Feeder Breakers
      • Crane lifts
      • Hydraulic Jumbo Drills
      • Drifters
      • Others (Bolting Systems, Haulage Systems, etc.)
    • Other Equipment
      • Fuel Trucks
      • Mineral Processing Machinery
      • Diesel Generators
      • Air Compressors
      • Lighting Towers
      • Others (Man lifts, Implements & Hammers, etc.)
• Based on Application, the Chile Mining Equipment Rental market is segmented into
  • Coal Mining
  • Metal Mining
  • Mineral Mining
• Based on Geography, the Chile Mining Equipment Rental market is segmented into
  • North
  • Central
  • South

• All market revenue has been given in US Dollar.

Historical Year: 2020-2021
Base Year: 2022
Estimated: 2023
Forecast- 2024-2030

Key Questions this Study will Answer

• What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Market Size-By Volume, Forecast Numbers, Market Segmentation, Market Shares) of Chile Mining Equipment Rental Market?
• What is the region wise industry size, growth drivers and challenges key market trends?
• What are the key innovations, opportunities, current and future trends and regulations in the Chile Mining Equipment Rental Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in Chile Mining Equipment Rental Market based on competitive benchmarking matrix?
• What are the key results derived from the market surveys conducted during Chile Mining Equipment Rental Market study?