Tunnel Boring Machine Market

• Rising spending on roads and railway infrastructure by government and private company boost the market growth

The expansion of roadway and railroad infrastructure is anticipated to fuel the market for tunnel boring machines. Government funding for rail pipeline projects is also anticipated to support the expansion of the tunnel boring machine market. As an instance, the Italian government invested $33.79 billion in a railway infrastructure project in July 2019. The need for tunnel boring machines rises as a result of the application of these machines in projects such as pipelines for oil and gas, water, and hydropower.

It is anticipated that developing nations like China, India, and others will continue to experience rapid urbanization and industrialization, which will accelerate the expansion of the tunnel boring machine market.

Manufacturers of tunnel boring machines focus micro-tunneling operations. This is expected to increase demand for tunnel boring machines, that will propel the market for these machines to expand. In addition, it is anticipated that increased use of tunnel boring machines in the mining sector will support the expansion of the market for these machines.

However, it is projected that factors like high investment costs and a lack of flexibility will restrain the growth of the tunnel boring machine market. The expansion of the worldwide tunnel boring machine market is also anticipated to be hampered by price fluctuations in raw materials. 

For instance, the U.S. administration raised taxes on imports of variable steel and aluminium in February 2020. This range of increases includes a 10% increase in aluminium imports and a 25% increase in steel imports, which have had a severe impact on the manufacturing sector in the United States and, in turn, the country's entire economy. The development of the tunnel boring machine market is also anticipated to benefit greatly from technological developments in rock cutting and tunnel boring machines with automation.

The rapid pace of urbanization globally drives the demand for infrastructure development, particularly in densely populated areas. As cities expand, the need for efficient transportation systems, such as subways and tunnels, becomes paramount. The Global Tunnel Boring Machine Market Industry is poised to benefit from this trend, with an estimated market value of 7.08 USD Billion in 2024. Urban projects often require advanced tunneling solutions to minimize surface disruption and enhance safety, which further propels the adoption of tunnel boring machines. This urban growth is expected to sustain the market's expansion, as urban infrastructure projects are projected to increase significantly in the coming years.

The continuous evolution of technology in tunneling operations significantly enhances the efficiency and safety of tunnel boring machines. Innovations such as automation, real-time monitoring, and advanced materials contribute to improved performance and reduced operational costs. The Global Tunnel Boring Machine Market Industry is experiencing a shift towards more sophisticated machines that can operate in challenging geological conditions. These advancements not only increase the speed of construction but also minimize environmental impacts. As a result, the market is likely to attract more investments, further driving growth and expanding the range of applications for tunnel boring machines across various sectors.

The global shift towards renewable energy sources necessitates the construction of extensive underground infrastructure, such as tunnels for wind farms and geothermal energy systems. The Global Tunnel Boring Machine Market Industry is likely to benefit from this trend as more countries invest in renewable energy projects to meet climate goals. The demand for tunnel boring machines is expected to rise as these projects require specialized tunneling solutions to ensure efficient installation and maintenance. This growing focus on renewable energy infrastructure not only supports the market's growth but also aligns with global efforts to transition to cleaner energy sources.

There is a growing emphasis on sustainability within the construction and infrastructure sectors, leading to an increased demand for environmentally friendly tunneling solutions. The Global Tunnel Boring Machine Market Industry is adapting to this trend by developing machines that reduce emissions and energy consumption. Projects that prioritize sustainability are more likely to receive funding and support from governments and private investors. This shift towards sustainable practices not only aligns with global environmental goals but also enhances the public perception of infrastructure projects. As sustainability becomes a priority, the market for tunnel boring machines is expected to expand, reflecting the industry's commitment to responsible development.

Governments worldwide are increasingly investing in infrastructure projects to stimulate economic growth and improve public services. This trend is particularly evident in developing nations, where significant funding is allocated for transportation and utility projects. The Global Tunnel Boring Machine Market Industry stands to gain from these investments, as tunnel boring machines are essential for constructing subways, highways, and water management systems. With a projected market value of 11.5 USD Billion by 2035, the industry is likely to see a compound annual growth rate of 4.52% from 2025 to 2035. Such investments not only enhance infrastructure but also create jobs and improve overall quality of life.

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Asia Pacific Tunnel Boring Machine market accounted for USD 2.66 billion in 2021. This is attributed to the population growth, rapid urbanization, and robust economic expansion. These factors contributed to the market for tunnel boring machines expanding. In addition, it is projected that the need for tunnel boring machines would soon increase due to the large number of metro projects that are now under construction in India.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: TUNNEL BORING MACHINE MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe tunnel boring machine market accounts for the second-largest market share due to economic expansion and numerous investments in infrastructure projects in Europe, numerous prominent players in the area are providing tunnel-boring machines for effective and reliable operations. Further, the German tunnel boring machine market held the largest market share, and the UK tunnel boring machine market was the fastest-growing market in the European region

The North America Tunnel Boring Machine Market accounts for the third-largest market share due to increased tunnelling projects across the NA as a result of an increase in road development activities support the market for tunnel boring machines. Moreover, United States tunnel boring machine market held the largest market share and fastest-growing market in the North America region

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Tunnel Boring Machine (TBM) Market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the tunnel boring machine industry must offer cost-effective machines to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the tunnel boring machine industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, tunnel boring machine industry has provided machine with some of the most significant benefits. The tunnel boring machine market major player such as Kawasaki Heavy Industries Ltd, China Railway Group Limited (CRGL) and others are working to expand the market demand by investing in research and development activities.

In June 2022, Kawasaki Heavy Industries, Ltd. announced the shipment of the bulk carrier PHILHOKUSAI at the Dalian COSCO KHI Ship Engineering Co., Ltd. (DACKS), which is situated in Dalian City, China and is operated in collaboration with China COSCO Shipping Corporation Limited (China COSCO Shipping).

Also, in Spet.2022, China Railway Engineering Equipment Group and Sinohydro Bureau 14 jointly developed the "Hongyi," the largest diameter hard rock tunnel boring machine (TBM) in the world, and the second bid (Xianglushan Tunnel) of the Dali Section of the Central Yunnan Water Diversion Project formally decided to enter the TBM excavation stage.