Dump trucks, given their ability to transport large quantities of cargo, have positioned themselves as essential tools of trade in industrial sectors such as mining, construction, and waste collection and management. In fact, these trucks have become so synonymous with hauling massive loads in these industries that today they are often used as an informal unit of measurement around the world.
One of the major factors influencing the commercialization landscape of the dump truck industry is the introduction of new carbon emission standards for heavy-duty vehicles at a time when industries like waste management, recycling and mining are undergoing a major transformation.
A new report claims that the dump truck market size is expected to surpass $30 billion by the end of 2030.
Impact of Emission Standards Transformation on Dump Truck Market
According to the European Commission, heavy-duty vehicles, including dump trucks, are responsible for around a quarter of carbon emissions from road transport in the European Union and nearly around 6% of total EU emissions. EU. These emissions, according to Eurocities estimates, are expected to increase by another 9% between 2010 and 2030 due to an increase in freight activity on the European continent, hampering the EU’s ability to meet its commitments in the framework of the Paris agreement.
A recent study published on the International Council on Clean Transport observed that the European Commission needs to put some standards in place to achieve its climate change goals. These include raising standards for heavy-duty vehicles to a CO2 reduction rate of at least 60% by 2030, introducing a new target of at least 90% for 2035 and rolling out a phase-out date (no later than 2040) for new combustion. – motorized trucks.
Meanwhile, the EU has also unveiled Regulation (EU) 2019/1242 CO2 standards for truck manufacturers to limit their fleet average emissions in regulated vehicle groups to 15% by the end of 2025 and around 30% by 2030. Some of the main benefits of this regulation The offer includes reducing fuel consumption costs for transport operators and helping to maintain the technological leadership of EU suppliers and manufacturers . In fact, the regulation is supposed to support the reduction of around 54 million tonnes of carbon dioxide between 2020 and 2030.
The global dump truck market could witness substantial growth in the face of the aforementioned regulations. Part of the expected growth is expected to come from modifications to the exhaust system and engine of current dump trucks to make them capable enough to run on cleaner and toxic fuels while being more efficient.
Another factor that would contribute to the expansion of the dump truck market is the development of new prototype dump trucks. Recently, a mining and resources group Anglo America, in May 2022, made headlines for its launch of the world’s largest hydrogen electric mining vehicle prototype. Labeled nuGen, the dump truck integrates several fuel cells with a 1.2 MWh battery for an overall power of 2 megawatts and offering the capacity to transport a payload of 290 tonnes.
The company has collaborated with some of the most important companies such as Ballard, First Mode, Engie and NPROXX to present the new vehicle. The fuel cells alone are expected to produce a combined output of 800 kilowatts.
Influence of expanding waste management and recycling industry on dump truck market prospects
The world is focusing more on the looming challenge of waste management. Waste is choking water bodies globally and wreaking havoc on the biological balance of the planet. While single-use plastic has been banned in several parts of the world, collecting and recycling rubbish remains a struggle that requires considerable investment and resources to be tackled effectively.
According to UNEP statistics, the world currently produces around 400 million tonnes of plastic waste almost every year. If this continues, the global production of primary plastic could reach 1,100 million tons by the end of 2050. It is imperative to mention that of the 400 million tons of plastic waste generated, only around 10% is recycled. This inevitably creates a huge opportunity for the dump truck industry as governments and companies undertake efforts to collect plastic waste and establish a circular economy through efficient means of recycling.
The outbreak of the COVID-19 pandemic and the emergence of new variants have drastically increased the amount of medical waste, including PPE kits, used masks, etc. This has given impetus to the adoption of dump trucks across the globe, generating more opportunities for market players over the period 2022-2030.
Impact of Booming Mining Industry on Dump Trucks Market Share
Consider the following numbers:
- Each American, on average, uses about 3.4 tons of coal and about 40,000 pounds of newly mined material almost every year.
- Nearly 50% of all electricity in the United States is generated from uranium and coal
As mining becomes a highly vital industrial sector, the demand for dump trucks is expected to increase significantly as it is one of the most commonly used heavy earth moving equipment in mining exploration projects. Government investments in the mining sector are also expected to boost the outlook for the dump truck industry. For example, South Africa announced in May 2022 its intention to attract $900 million in annual investment in the exploration of its mineral wealth by improving resource mapping, removing bottlenecks throttling and diversifying its focus on precious metals. In addition, the country is making progress towards its 2025 target of devoting 5% of annual investment to exploration globally to get the stagnant mining industry back on track.
With robust public and private sector investment on the rise, the mining industry is likely to become a revenue hub for dump truck manufacturers. According to GMI projections, the dump truck market for mining applications is expected to register a CAGR of 6% through 2030.
New advancements in zero-emission dump trucks will open new avenues for the dump truck market in the years to come. For example, Cummins and Komatsu recently signed a memorandum of understanding to partner in the development of zero-emission transportation equipment. This partnership will initially focus on zero-emission energy technologies such as hydrogen fuel cell solutions for major mining haul truck functions.
The introduction of new carbon emission laws for heavy-duty vehicles in the European Union is expected to boost dump truck growth prospects through 2030. Notably, Europe accounted for 30% of the world’s share. dump truck industry in 2021 and could remain a vital investment avenue through 2022 and beyond.