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

Market barriers include efficiency concerns, high fuel costs, and thermal management challenges

BOULDER, Colo., April 4, 2024 /PRNewswire/ -- 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.

"Unlike most alternative pathways, hydrogen offers mining players the flexibility to produce fuel onsite or procure it from third-party suppliers," says Jacques Moss, senior research analyst with Guidehouse Insights. "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.  

About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today's rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.

About Guidehouse
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has more than 16,000 professionals in over 55 locations globally. Guidehouse is led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.

* The information contained in this press release concerning the report, Hydrogen-Powered Mining Equipment Market, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.

For more information, contact:

Cecile Fradkin for Guidehouse Insights
+1.646.941.9139
[email protected]

SOURCE Guidehouse Insights