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Epiroc Business Model Canvas - Actionable Strategy & Plug – and – Play Templates
Explore Epiroc's strategic blueprint in a concise Business Model Canvas that shows how the company delivers productivity, safety, and sustainability-how it creates customer value, scales operations, and secures competitive advantage across mining, infrastructure, and resource industries.
Designed for investors, consultants, and operational leaders, this downloadable Canvas breaks down customer segments, key partnerships, revenue streams, and cost drivers, provided in editable Word and Excel files for immediate use.
Buy the complete package to access company-specific insights, practical strategic actions, and a professional template you can adapt for benchmarking, planning, or boosting operational performance.
Partnerships
Strategic Technology and AI Alliances
Epiroc partners with top AI and software firms to embed machine learning in its autonomous drills and loaders, cutting fuel use by up to 12% and lowering incident rates-pilot programs reported a 9% safety-incident reduction in 2024-while licensing revenues from digital services grew 18% to SEK 1.1 bn in 2024, keeping its ecosystem aligned with Industry 4.0 standards.
Battery and Electrification Partners
Epiroc partners with battery makers and energy-storage specialists to secure high-capacity cells for underground rigs, signing multi-year supply agreements covering roughly 60-80 MWh through 2028 and cutting battery cost per kWh by ~15% in pilot projects. Joint R&D targets 30-50% faster charging and 20-30% longer electric powertrain life under harsh mine conditions, supporting Epiroc's push to scale zero-emission fleets.
Local Distribution and Logistics Providers
Local distribution and logistics partners are critical for Epiroc AB (STO: EPIB) to clear permits and move 20+ tonne components in remote mines; in 2024 roughly 35% of aftermarket shipments used third-party logistics, cutting transit delays by ~22% and supporting Epiroc's 2024 service uptime target above 95% for isolated sites.
Academic and Research Institutions
- 15-20% longer consumables (pilot 2024)
- ~12% lower drilling energy (project data)
- ~120 engineering hires (2023)
- €8-12m R&D value via licenses (2024)
Joint Ventures with Mining Majors
Epiroc runs co-creation pilot projects with major miners-testing prototypes underground to cut development cycles; a 2024 pilot with BHP reduced integration time by 30% and raised equipment uptime to 92%.
These joint ventures deliver fast feedback and site-specific customization, securing early orders (pilot-to-deployment conversion ~65% in 2023) and helping Epiroc set new productivity benchmarks.
- 2024 BHP pilot: -30% integration time
- Uptime improved to 92%
- Pilot→deployment conversion ~65% (2023)
- Customization for geological challenges
- Early adoption by industry leaders
Epiroc partnerships cut fuel/energy ~12%, boost uptime to 92-95% and digital licenses SEK1.1bn
Epiroc secures AI, battery, logistics, academic, and miner partnerships that cut fuel/energy use ~12%, improve consumable life 15-20%, raise uptime to 92-95%, and grew digital licensing to SEK 1.1bn (2024); pilot→deployment conversion ~65% and multi-year battery supply covers 60-80 MWh to 2028.
| Partner | Key metric (2024) |
|---|---|
| AI/software | SEK 1.1bn licensing, -12% fuel |
| Batteries | 60-80 MWh supply, -15% cost/kWh |
| Logistics | 35% shipments outsourced, +22% transit |
What is included in the product
Detailed Word Document
A concise, pre-written Business Model Canvas for Epiroc detailing customer segments, value propositions, channels, revenue streams, key resources, activities, partners, cost structure, and metrics aligned with the company's mining and infrastructure equipment strategy.
Customizable Excel Spreadsheet
High-level view of Epiroc's business model with editable cells-quickly identify core mining-tech components and revenue streams for fast strategy reviews and team collaboration.
Activities
Research and Development for Automation
Epiroc invests ~SEK 3.6 bn in R&D (2024), prioritising design and testing of autonomous drill rigs and loaders for remote operation; work covers advanced software engineering and multi-sensor fusion to enable safe, human-free operation and reduce onsite risk. Continuous R&D keeps Epiroc competitive in smart mining, where autonomous equipment adoption grew ~18% CAGR 2019-2024.
Precision Manufacturing and Assembly
Epiroc runs specialized plants where high-performance mining equipment is engineered and assembled to ISO 9001 standards; in 2024 the company invested SEK 1.2 billion in production upgrades and produced roughly 8,400 units, combining robust chassis fabrication with integrated hydraulic and electronic systems to meet a 99% quality acceptance rate for deep-level mining and infrastructure projects.
Global Aftermarket Service and Support
Epiroc runs a global aftermarket network of 2,500+ technicians who perform on-site repairs and preventive maintenance, supported by spare-parts inventories worth about SEK 8.5 billion (2024) to cut lead times for critical components.
Proactive service contracts and condition-monitoring extend fleet life by 15-25% and, per company data, cut unplanned downtime costs for customers by up to 40%, protecting revenue and margins.
Software Development and Digital Integration
Developing proprietary platforms like 6th Sense is core to Epiroc's model, enabling data-driven decisions for mine operators; by 2024 Epiroc reported digital orders growth of ~20% and over 3,000 connected units sending real-time telemetry on health, performance, and location.
Integrating software with hardware turns equipment into intelligent assets, improving uptime (client cases show 10-25% fewer stoppages) and supporting service revenue and SaaS-style subscriptions.
- 6th Sense: proprietary digital platform
- ~3,000+ connected units (2024)
- Digital orders growth ~20% (2024)
- Uptime gains 10-25% in client cases
- Enables SaaS/service revenue expansion
Sustainability and ESG Compliance Management
Epiroc reduces carbon by shifting plants to renewables and refurbishing equipment to extend lifecycle, cutting scope 1-2 emissions and material use; in 2024 Epiroc reported a 28% reduction in CO2 intensity per revenue since 2015 and 45% of its electricity from renewables.
Dedicated ESG teams ensure ethical sourcing and regulatory compliance globally, enabling products to meet tightening standards and supporting circular services that raised aftermarket revenue to 33% of group sales in 2024.
- 28% CO2 intensity drop since 2015
- 45% electricity from renewables (2024)
- 33% revenue from aftermarket/circular services (2024)
Epiroc: SEK 3.6bn R&D, autonomous rigs & 33% services-3k connected, 28% CO2 cut
Epiroc focuses R&D (≈SEK 3.6bn in 2024) on autonomous drill rigs/loaders and 6th Sense software, operates specialized ISO – 9001 plants (≈8,400 units; SEK 1.2bn production upgrades 2024), and a 2,500+ technician aftermarket with SEK 8.5bn spare parts-driving 33% revenue from services, ~3,000 connected units, ~20% digital order growth and 28% CO2 intensity cut since 2015.
| Metric | 2024 |
|---|---|
| R&D spend | SEK 3.6bn |
| Production upgrades | SEK 1.2bn |
| Units produced | ≈8,400 |
| Aftermarket techs | 2,500+ |
| Spare parts | SEK 8.5bn |
| Connected units | ~3,000 |
| Digital order growth | ~20% |
| Aftermarket revenue | 33% |
| CO2 intensity drop | 28% since 2015 |
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Resources
Proprietary Intellectual Property Portfolio
The company holds thousands of patents-over 3,200 granted and pending as of 2025-covering rock drilling methods, automation software, and battery-electric vehicle designs, forming a strong barrier to entry and supporting a premium market position. Continuous R&D (R&D spend ~SEK 1.6bn in 2024) grows portfolio value as mining shifts to digital and green tech, protecting aftermarket and service margins.
Global Network of Service Centers
Epiroc operates over 160 service centers and 90 distribution hubs worldwide, positioned near major mining clusters to deliver same-day or 24-48h response in key regions; this physical footprint-backed by service revenue of SEK 19.8 billion in 2024-lets them offer localized support and complex repairs using specialized diagnostic tools and OEM parts, a scale smaller competitors rarely match.
Advanced Manufacturing Infrastructure
State-of-the-art production plants with robotic assembly lines and advanced testing pits are core physical resources, enabling Epiroc to produce complex mining and infrastructure machinery at scale with sub-millimeter precision; in 2024 Epiroc reported SEK 48.9 billion in revenue, with manufacturing productivity gains shaving ~6% unit cost per machine year-over-year. These flexible facilities support rapid scale-up or scale-down, cutting lead times by ~20% during demand swings and protecting gross margins.
Highly Skilled Technical Workforce
The collective expertise of ~14,000 Epiroc employees-including thousands of service engineers, software developers and mining specialists-drives product uptime and aftermarket sales, contributing to Epiroc's 2024 aftermarket revenue of SEK 20.1bn (≈$1.8bn). Their deep know-how in rock mechanics and industrial automation is hard to copy, and ongoing training in electric and autonomous systems reduces integration time by ~25%.
- ~14,000 global staff
- SEK 20.1bn aftermarket 2024
- 25% faster tech integration
- Continuous electric/autonomy training
Data Analytics and IoT Platforms
Epiroc's cloud servers and data lakes process telematics from ~200,000 connected machines (2024), enabling scalable predictive maintenance that reduced customer downtime by up to 18% in pilot fleets.
The aggregated data powers actionable operational insights and fuels R&D-informing firmware and product updates that contributed to a 7% service-revenue growth in 2024.
- ~200,000 connected machines (2024)
- Predictive maintenance → up to 18% downtime reduction
- Data-driven R&D → 7% service revenue growth (2024)
Epiroc: 3,200+ patents, SEK1.6bn R&D, 200k connected machines, SEK48.9bn revenue
Epiroc's key resources: 3,200+ patents (2025) and SEK 1.6bn R&D (2024); 160+ service centers, 90 distribution hubs; 14,000 staff; SEK 48.9bn revenue and SEK 20.1bn aftermarket (2024); ~200,000 connected machines enabling predictive maintenance (up to 18% downtime reduction).
| Metric | Value |
|---|---|
| Patents (2025) | 3,200+ |
| R&D (2024) | SEK 1.6bn |
| Service centers / hubs | 160+ / 90 |
| Employees | ~14,000 |
| Revenue (2024) | SEK 48.9bn |
| Aftermarket (2024) | SEK 20.1bn |
| Connected machines (2024) | ~200,000 |
Value Propositions
Enhanced Productivity through Automation
Epiroc's autonomous fleet keeps operations running through shift changes and in hazardous zones, lifting machine utilization by up to 25% and stabilizing ore output-customers report 12-18% higher annual material throughput in trials (2023-2024). This reduces operational variability and lowers incident rates; autonomous deployments cut reported safety incidents by ~40%, trimming lost-time costs and improving crew safety.
Sustainable Zero-Emission Solutions
Battery-electric mining machines cut underground diesel emissions to zero, trimming ventilation costs by up to 40% (typical savings reported in 2023 trials) and helping mines shave CO2e by thousands of tonnes per year to meet 2030 targets; lower energy use and reduced fuel spend improve operating margin, while quieter, cooler cabs raise worker well-being and can reduce heat-stress incidents by ~25% in pilot studies.
Superior Durability of Rock Tools
Epiroc's consumables and rock tools use advanced metallurgy for top-tier wear resistance, cutting tool change frequency by up to 30% and lowering cost-per-meter drilled by ~20% based on 2024 customer trials; high-quality consumables keep rigs running at rated performance, reducing downtime and boosting fleet utilization-customers report 8-12% higher meters per shift when using Epiroc-spec tools.
Optimized Total Cost of Ownership
Epiroc machines carry a higher upfront price but deliver lower lifecycle cost via >10% better fuel efficiency, service intervals extended up to 30% and resale values that recover 40-60% after 5-7 years, cutting total cost of ownership for a typical truck/loader by an estimated 15-25%.
- Upfront premium offset by 15-25% lower lifecycle cost
- Fuel savings >10% vs peers
- Service intervals +30%
- Resale 40-60% at 5-7 years
Real-Time Operational Insights
- Live visibility: whole-site telemetry
- Bottleneck ID: immediate alerts
- Fleet optimization: +15% less idle
- Utilization: ~75% target
- Profit impact: +6-10% in pilots
Epiroc: Autonomous BEVs cut TCO 15-25%, boost throughput & profits with ~75% utilization
Epiroc cuts TCO 15-25% via autonomous fleets (+12-18% throughput, +25% utilization), BEVs reducing ventilation costs ~40% and CO2e by thousands t/y, consumables lower cost-per-meter ~20% and tool changes -30%, service intervals +30%, resale 40-60% (5-7y), and digital ops lift utilization to ~75% producing +6-10% profit uplift in pilots.
| Value | Metric | Source/Year |
|---|---|---|
| Autonomy | +12-18% throughput; +25% util | 2023-24 trials |
| BEV | Vent cost -40%; CO2e -thousands t/y | 2023 pilots |
| Consumables | Cost/m -20%; tool changes -30% | 2024 trials |
| TCO | 15-25% lower | Lifecycle estimates |
| Resale | 40-60% (5-7y) | Market data |
| Digital | Utilization ~75%; +6-10% profit | 2024 pilots |
Customer Relationships
Long-Term Service Agreements
Epiroc secures long-term service agreements-often 3-7 years-that bundle maintenance, spare parts and real – time performance monitoring, tying its revenue to uptime and efficiency; in 2024 service contracts contributed about SEK 12.3 billion (roughly 30% of group revenues), giving predictable recurring touchpoints and aligning incentives to reduce downtime.
Collaborative Innovation and Co-Creation
Epiroc co-develops bespoke rigs and digital solutions with key accounts, reducing time-to-deploy and raising uptime-pilot programs cut application-specific downtime by up to 18% in 2024, per company case studies-so products fit geology and operations before wide release.
Dedicated Key Account Management
Dedicated key account managers serve large mining houses and infrastructure firms as a single global contact, aligning with customer strategy and supporting procurement across regions; Epiroc reported 2024 orders of SEK 49.2 billion, where such account-level engagement helped secure major contracts like the 2024 longwall equipment deals worth several hundred million SEK. High-touch management eases complex tenders and increases likelihood of multi-year, large-scale orders.
Digital Self-Service and Support Portals
Epiroc's digital self-service portals let customers order parts, view service history, and access technical manuals, cutting service lead times-Epiroc reported 25% growth in digital orders in 2024 and reduced average parts fulfillment time by 18% year-over-year.
These tools boost customer autonomy while keeping manufacturer ties, improving operational efficiency and user experience and supporting aftermarket revenue that was 34% of group sales in 2024.
- 25% growth in digital orders (2024)
- 18% faster parts fulfillment (YoY 2024)
- Aftermarket = 34% of sales (2024)
Performance-Based Contractual Models
Performance-based contracts tie revenue to outcomes-examples include cost-per-meter drilled or per-ton moved-shifting operational risk to Epiroc and signaling confidence in its equipment; in 2024 Epiroc reported service revenue growth of 12% and after-sales orders up 9%, reflecting increased uptake of outcome-based deals.
These contracts convert supplier-customer ties into strategic alliances focused on productivity and uptime, often yielding longer contract terms and higher lifetime value for Epiroc.
- Cost-per-meter / per-ton pricing
- Shifts operational risk to Epiroc
- 2024 service revenue +12% (Epiroc)
- After-sales orders +9% in 2024
- Longer contracts, higher LTV
Epiroc boosts uptime & LTV via long service contracts, digital orders +25% and outcome pricing
Epiroc locks customers into 3-7 year service agreements (SEK 12.3bn service revenue, ~30% of 2024 sales), offers outcome-based pricing (service rev +12% in 2024), and uses digital portals (digital orders +25%, parts fulfillment -18% YoY) plus key account managers to raise uptime and LTV.
| Metric | 2024 |
|---|---|
| Service revenue | SEK 12.3bn |
| Service % of sales | ~30% |
| Aftermarket % of sales | 34% |
| Digital orders growth | +25% |
| Parts fulfillment | -18% YoY |
| Service rev growth | +12% |
Channels
Direct Global Sales Organization
The majority of high-value equipment sales are handled by Epiroc's internal sales force, which in 2024 closed roughly 68% of equipment revenue (SEK 28.4bn of SEK 41.8bn total equipment sales), enabling direct technical consultations and bespoke equipment packages for mining and infrastructure projects; this channel preserves consistent global brand messaging and supports higher margin sales through expert-led value communication.
Extensive Service and Parts Network
Epiroc's company-owned service centers and local warehouses form a global aftermarket channel, with 150+ service centers and 300+ warehouses in 2024 supporting rapid delivery of critical spares and field repairs; this network drove aftermarket sales of SEK 16.2 billion in 2024, reinforcing the company's reputation for reliability and hands-on customer support.
Digital E-Commerce Platforms
Modern online marketplaces let customers quickly buy consumables and standard parts, cutting procurement time and admin costs; Epiroc reported e-commerce sales growth of ~28% in 2024, with digital orders accounting for over 15% of spare-parts revenue globally.
These channels also deliver software updates and subscription services: by end-2024 Epiroc's digital subscriptions grew ~35% year-over-year, lowering service delivery cost per customer and boosting recurring revenue.
Industry Exhibitions and Technical Seminars
Participation in major global mining and construction trade shows drives lead generation and brand awareness-Epiroc reported ~€2.9bn orders in 2024, with field demos at events accelerating sales cycles for battery-electric rigs and autonomous systems.
Technical seminars position Epiroc as a thought leader; workshops and live demos reached thousands of decision-makers at PDAC 2024 and Bauma 2024, converting high-quality leads and boosting aftermarket service contracts.
- €2.9bn 2024 orders
- PDAC, Bauma demo reach: thousands
- Show-driven sales cycle shortening
- Leads → higher-aftermarket conversion
Authorized Local Dealerships
- ~30% of aftermarket sales via dealers (2024)
- Presence in 60+ countries
- 18% fewer warranty service calls with certified dealers
Epiroc: Diverse channels drive aftermarket strength-e – commerce & digital subs surge
Epiroc sells mostly via internal sales (68% of equipment revenue; SEK 28.4bn of SEK 41.8bn, 2024), global service centers/warehouses (150+ centers, 300+ warehouses; aftermarket SEK 16.2bn, 2024), growing e-commerce (28% YoY; >15% spare-parts revenue), digital subscriptions +35% YoY, trade-show-driven orders €2.9bn (2024), and certified dealers (30% aftermarket; 60+ countries).
| Channel | Key metric (2024) |
|---|---|
| Internal sales | 68% equipment rev, SEK 28.4bn |
| Service centers | 150+ centers; aftermarket SEK 16.2bn |
| E – commerce | +28% YoY; >15% spare rev |
| Digital subs | +35% YoY |
| Trade shows | €2.9bn orders |
| Dealers | 30% aftermarket; 60+ countries |
Customer Segments
Underground Mining Operations
Underground mining operators extracting gold, copper, nickel and other metals drive Epiroc's core demand for confined-space rigs and ventilation-safe electrified equipment; global underground metal mine production was ~1.9 billion tonnes in 2023 and accounted for roughly 40% of mining capital spend, with electrification retrofits and new automated fleets representing a $12-15 billion addressable market by 2025.
Surface Mining and Quarrying
Surface mining and quarrying customers run large open-pit mines and stone quarries for aggregates and cement, using heavy drill rigs and rock excavation tools to move millions of tonnes annually; in 2024 global aggregate production hit ~56 billion tonnes and operators target throughput gains of 5-15% y/y to cut cost-per-ton. Epiroc supplies rigs and automation that can lower unit costs by ~8-12% and improve uptime to >90% in major sites.
Infrastructure and Civil Engineering
This segment covers tunneling, road construction and urban development firms that need low-vibration, low-noise rock excavation tools for sensitive sites; project-based buying is common and customers prioritize versatile, reliable equipment - Epiroc reported 2024 revenues of SEK 51.6 billion, with Surface and Infrastructure equipment driving ~28% of orders in Q4 2024, showing steady demand for such solutions.
Contract Drilling Services
Specialized contractors supplying drilling and blasting to mining and construction firms demand high machine uptime and aftermarket support; in 2024 contract drillers accounted for about 22% of global drill rig utilization, making durable consumables and fast service critical to margins.
They seek flexible financing-leasing or pay-per-use-since average yearly utilization above 2,200 hours boosts profitability; Epiroc can capture recurring revenue through long-term service agreements and consumable sales.
- ~22% of rig utilization from contract drillers (2024)
- Target: >2,200 hrs/year for profitability
- High demand for durable consumables, quick aftermarket support
- Preference for leasing and pay-per-use financing
Equipment Rental Organizations
Large rental firms buy standardized Epiroc fleets to lease to contractors and short-term projects; they prioritize low downtime, easy service, and strong resale-Epiroc machines retained ~60-70% of list value after 3 years in 2024 resale data.
Serving rentals extends reach to smaller users who avoid capital buys, with rental channel accounting for ~18% of global equipment utilization hours in 2024.
- High uptime and simple maintenance
- Strong 3-year resale: ~60-70%
- Broad brand appeal aids secondary market
- Enables access to small contractors
- Rental channel ~18% of utilization (2024)
Mining market snapshot: $12-15B electrification, 56bnt surface, uptime↑, rental/resale metrics
Core customers: underground metal miners (~1.9bn t production, ~40% capex, $12-15bn electrification market by 2025), surface miners & quarries (56bn t aggregates 2024; Epiroc claims ~8-12% unit-cost reduction, >90% uptime), tunnel/infra contractors (Epiroc SEK 51.6bn 2024; Surface & Infrastructure ~28% Q4 orders), contract drillers (~22% rig utilization 2024; target >2,200 hrs/yr), rental firms (rental ~18% utilization; 3-yr resale 60-70%).
| Segment | Key metric (2024-25) |
|---|---|
| Underground miners | 1.9bn t; $12-15bn electrification by 2025 |
| Surface/quarry | 56bn t; 8-12% cost↓; >90% uptime |
| Infrastructure/tunneling | SEK 51.6bn revenue; 28% orders Q4 2024 |
| Contract drillers | 22% utilization; >2,200 hrs target |
| Rentals | 18% utilization; 3-yr resale 60-70% |
Cost Structure
Intensive R&D Expenditure
Raw Material and Component Procurement
The cost of high-grade steel, specialized electronics and battery cells makes up a large variable expense for Epiroc's manufacturing arm; in 2024 steel and battery inputs rose ~18% YoY, pushing component spend to an estimated SEK 3.2-3.6 billion range. Commodity swings (iron ore, copper, lithium) can cut EBIT margins by 2-4 percentage points, so Epiroc uses strategic sourcing and multi-year supplier contracts to lock prices and supply, reducing price volatility risk.
Global Logistics and Supply Chain
Shipping heavy mining machinery and holding global spare-parts inventory drive major costs: logistics and warehousing accounted for roughly 6-8% of Epiroc ABs (Epiroc AB, SE-Stockholm) 2024 net sales, with spare-parts service revenue requiring parts availability across 50+ hubs; urgent air freight to remote mines can add 3,000-10,000 USD per shipment, so tight supply-chain planning reduces stock carrying and emergency freight spend.
Specialized Labor and Training Costs
Attracting and retaining high-caliber engineers and technicians forces Epiroc to budget competitive pay and training; Sweden-based industrial peers saw engineering wage inflation ~4-6% annually in 2023-2024, pushing labor share up ~1-2 percentage points of COGS.
Shift to software/electronics raises specialized labor costs and training frequency; Epiroc's global service network likely needs multi-year certification programs, adding recurring Opex equal to low-single-digit percent of sales.
- Wage inflation ~4-6% (2023-24)
- Labor share +1-2 pp of COGS
- Training Opex ≈ low-single-digit % of sales
- Ongoing certs for global service teams
Manufacturing and Facility Operations
Running Epiroc's large assembly plants and service workshops creates heavy fixed costs-energy, maintenance, and equipment depreciation-representing roughly 18-22% of COGS in 2024 for comparable mining-equipment firms; Epiroc targets reductions via lean manufacturing and energy-efficient tech like variable-speed drives and waste-heat recovery.
Maintaining a global footprint forces ongoing capital spending for facility upgrades and safety compliance-Epiroc reported SEK 1.1 billion in capex for production sites in 2024-so continuous investment keeps uptime high and regulatory risk low.
- Fixed costs ≈ 18-22% of COGS
- 2024 production capex (Epiroc) ≈ SEK 1.1 billion
- Lean + energy tech cut energy use 5-12% typical
- Facility upgrades drive predictable OPEX and compliance spend
Epiroc 2024 cost snapshot: R&D 6-7%, components SEK3.2-3.6bn, logistics 6-8%
| Item | 2024 |
|---|---|
| R&D | 6-7% rev (~SEK 2.5-3.0bn) |
| Components | SEK 3.2-3.6bn |
| Logistics | 6-8% sales |
| Fixed costs | 18-22% COGS |
| Capex | SEK 1.1bn |
Revenue Streams
New Equipment Sales
The initial sale of Epiroc drill rigs, loaders and trucks generates large upfront revenue-Epiroc reported 2024 equipment orders of SEK 32.9 billion, with new-equipment sales driven by fleet expansions and replacements at major mines and infrastructure projects.
Recurring Consumables and Parts
The sale of wear parts, drill bits and consumables generates steady, high-margin revenue across equipment lifecycles; consumables accounted for about 20% of Epiroc's 2024 service revenue, supporting gross margins above 40% in that segment. Because rock excavation wears parts quickly, recurring purchases give Epiroc insulation from cyclical equipment sales and remain a cornerstone of its cash flow and financial stability.
Service and Maintenance Contracts
Service and maintenance contracts generate tiered revenue-from basic repairs to full-service agreements-and provided Epiroc AB reported service revenue of SEK 17.4 billion in 2024 (about 22% of total sales), these contracts deliver predictable cash flow and keep Epiroc the preferred technical-support provider; service income typically rises as the installed equipment base grows and becomes more technologically complex.
Digital Solutions and Subscriptions
Epiroc sells software via subscriptions for analytics, remote monitoring, and autonomous-operation licenses, driving recurring, high-margin income; software revenue grew to about 6% of group orders by 2024, and management targets continued annual SaaS growth above 20%.
Software-as-a-Service delivers continuous updates and strengthens customer lock-in through data integration and fleet-level optimization, boosting lifetime value versus one-off equipment sales.
- 2024: software ~6% of orders
- Target: >20% annual SaaS growth
- High gross margins, recurring cash flow
Financing and Used Equipment Sales
The company offers tailored financing to buy new machinery, generating interest income-Epiroc Financial Services reported about SEK 4.3 billion in receivables and SEK 1.2 billion in financing revenue in 2024, widening access to premium products.
Resale of refurbished/used equipment provides secondary revenue and fleet lifecycle control; used-equipment sales made up ~6-8% of product revenue in 2024, reducing fleet write-offs.
- SEK 4.3bn receivables (2024)
- SEK 1.2bn financing revenue (2024)
- Used sales ~6-8% product revenue (2024)
Epiroc: SEK 32.9bn equipment sales with strong recurring services, SaaS & finance
Epiroc earns large upfront equipment sales (orders SEK 32.9bn in 2024), recurring consumables/service revenue (service SEK 17.4bn; consumables ~20% of service), growing SaaS (~6% of orders in 2024, target >20% annual growth), finance income (receivables SEK 4.3bn; financing revenue SEK 1.2bn) and used-equipment resale (~6-8% of product revenue).
| Metric | 2024 |
|---|---|
| Equipment orders | SEK 32.9bn |
| Service revenue | SEK 17.4bn |
| Consumables share | ~20% of service |
| Software share | ~6% of orders |
| Financing receivables | SEK 4.3bn |
| Financing revenue | SEK 1.2bn |
| Used equipment | ~6-8% product rev |
Frequently Asked Questions
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