Guidehouse Insights Estimates Global Revenues for Hydrogen-Powered Equipment in the Mining Sector Will Grow at a Compound Annual Growth Rate of 81% by 2033.
A new report from Guidehouse Insights assesses the market for hydrogen-powered equipment in the mining sector, globally.
Mining companies have an important role to play in the transition to non-fossil energy sources. While the industry provides the raw materials needed for the manufacture of clean energy technologies, it is also a significant source of CO2 emissions. A little under half of the emissions from mining operations come from diesel consumption in heavy duty mining vehicles and equipment. Haulage trucks are the largest fuel users, accounting for approximately 68 million tons of CO2 emissions per annum.
According to a new report from Guidehouse Insights, deliveries of hydrogen-powered mining equipment are expected to increase from an estimated four units sold in 2024 to 401 units sold by 2033, representing a compound annual growth rate (CAGR) of 66.9%. Revenues over the same period are expected to reach $1,448.0 million by 2033 at a CAGR of 80.7%, with more rapid growth in revenues driven by a shift from the retrofitting of existing haulage vehicles to the supply of dedicated hydrogen-powered equipment.
Most of the world’s major mining players have released climate strategies, typically covering operational emissions with climate neutrality goals set for the 2040s and 2050s. Working in tandem with mining equipment and powertrain suppliers, these companies are currently exploring a range of solutions to decarbonize haulage trucks, excavators, loaders, drilling rigs, and other onsite equipment.
Jacques Moss, senior research analyst with Guidehouse Insights, said:
Unlike most alternative pathways, hydrogen offers mining players the flexibility to produce fuel onsite or procure it from third-party suppliers.
“It also presents faster refueling times, increased power density and greater range potential than battery electric solutions.”
However, the low round trip efficiency of hydrogen technologies compared to fully electric pathways typically entails higher operational costs. With some notable exceptions, mining players are therefore taking a cautious approach to investing in hydrogen technologies, according to the report.
The report, Hydrogen-Powered Mining Equipment Market explores hydrogen-powered mining equipment sales and revenues from 2024-2033, segmented by global region, equipment type, and powertrain technology. It provides a detailed overview of mining players and equipment suppliers, discusses some of the tradeoffs between electrification and hydrogen-based decarbonization pathways, and offers recommendations to stakeholders across the hydrogen technology and mining value chains. An executive summary of the report is available for free download on the Guidehouse Insights website.
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Guidehouse Insights Estimates Global Revenues for Hydrogen-Powered Equipment in the Mining Sector Will Grow at a Compound Annual Growth Rate of 81% by 2033. source
