A new report has predicted that 5G in the mining industry will grow exponentially over the next six years.
The industry, which was valued at $2.15bn in 2023, is expected to reach a value of $12.75bn by 2029. Between 2023 and 2029, market size is forecasted to grow at a compound annual growth rate (CAGR) of 34.55%.
With increased demand for battery metals such as lithium, many companies are looking to 5G to streamline their operations.
Worldwide use of 5G in mining has been on the rise, with Cisco, Hitatchi Energy and Huawei being key players. Huawei recently announced a partnership with Debswana to launch the world’s first 5G-oriented smart diamond mine project in Botswana.
The biggest demand for this technology comes from the surface mining sector with a market value of $1.5bn in 2023. 5G technology can be used in all aspects of the surface mining process and is increasingly used for unmanned operations.
The Asia-Pacific region dominates the 5G in mining market, being valued at $860m in 2023. China and Indonesia have already seen significant implementation of 5G mining tech, while Australia and Thailand are currently in the test phase.
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Meanwhile, Europe is set for significant growth in the sector, with the market predicted to grow at a CAGR of 29.38%.
This prosperous outlook is linked closely to the rise in cloud-based technology in the mining industry. Mentions of the cloud increased by 15% in the mining industry in Q3 2022, and with reliable wireless communications being key to well-functioning cloud computing systems, it is unsurprising that the mining industry is turning to 5G technology to support this.
The growing application of AI in mining is also expected to contribute to the growth of 5G in the mining industry.