Tunnel Boring Machine Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The world market for tunnel-boring machines is set to grow steadily. It is expected to reach $ 7 billion in 2024 and $ 10 billion by 2032. The CAGR for this period is 4.5%. A major driving force behind this growth is the increasing demand for efficient underground construction solutions, resulting from urbanization and the development of the transport network. The construction of metro tunnels, road tunnels, and utility tunnels, which require high precision and little surface disruption, are particularly dependent on tunnel-boring machines. The market is also benefiting from advances in the design and operation of tunnel-boring machines. The growing automation of the control system, enhanced safety features, and increased energy efficiency are making these machines more attractive to contractors and project managers. The leading companies, such as Herrenknecht AG, Caterpillar, and Robbins, are investing heavily in research and development to keep their products at the forefront of technology. Strategic alliances with construction companies and joint ventures are also driving the uptake of tunnel-boring machines in different markets. These alliances are enabling the industry to compete more effectively and to respond to the growing need for a modern underground network.

Regional Market Size

Regional Deep Dive

The market for tunnel boring machines is growing strongly in many countries, driven by the need for more efficient underground construction solutions. North America, Europe, Asia-Pacific, Middle East and Africa (MEA) and Latin America are all important markets for tunnel boring machines. These markets are influenced by the local economy, government investment in infrastructure and developments in tunneling technology. Each region has its own challenges and opportunities, with different degrees of government support and technological development.

Europe

• Europe is at the forefront of TBM innovation, with projects like the Crossrail in London and the Grand Paris Express in France showcasing the integration of cutting-edge technology and sustainable practices in tunneling operations.
• The European Union's Green Deal is influencing the TBM market by promoting investments in infrastructure that prioritize sustainability, leading to increased demand for TBMs that meet stringent environmental standards.

Asia Pacific

• The Asia-Pacific region is growing rapidly, especially in China and India, where there is a great need for tunnel boring machines for the metro and railway projects. The China Railway Construction Corp. (CRCC) is the main supplier of these machines.
• Government initiatives, such as Japan's 'Society 5.0' and India's Smart Cities Mission, are fostering investments in advanced tunneling technologies, resulting in a competitive landscape that encourages innovation and efficiency in TBM operations.

Latin America

• Latin America is gradually adopting TBM technology, with significant projects such as the Line 7 of the São Paulo Metro in Brazil highlighting the region's commitment to modernizing its urban transport infrastructure.
• Among the factors that will affect government spending on building projects are the fluctuations in the prices of raw materials, but the National Plan for the Construction of Infrastructure in Mexico is expected to promote the growth of the TBM market by prioritizing major tunneling projects.

North America

• North America is booming with demand for tunnel boring machines, thanks to the huge projects of the California High Speed Railway and East Side Access in New York City, which use the most advanced TBM technology to increase the efficiency of the construction.
• The regulations, imposed by the public authorities, were in favour of the reduction of the pollution of the atmosphere and the reduction of the consumption of energy.

Middle East And Africa

• The MEA region is seeing a rise in TBM usage due to large-scale infrastructure projects like the Doha Metro in Qatar and the Riyadh Metro in Saudi Arabia, which are crucial for urban development and connectivity.
• Regulatory frameworks in the region are evolving, with governments focusing on public-private partnerships to fund infrastructure projects, thereby increasing the involvement of international TBM manufacturers and technology providers.

Did You Know?

“Did you know that the world's largest tunnel boring machine, named 'Big Bertha,' was used in Seattle, USA, and measures 57.5 feet in diameter? It was designed to excavate a tunnel for a new underground highway.” — Washington State Department of Transportation

Segmental Market Size

The market for tunnel boring machines (TBMs) is a crucial one for the construction and development of underground works, especially in urban areas where underground space is limited. This market is currently growing, driven by the need for more efficient means of transport. Among the main reasons for this growth are the increasing need for sustainable solutions in the field of public works, and the investment of governments in subways and high-speed rail. TBMs are currently in a mature phase of development, with many projects under way, for example, the Crossrail project in London, which is using Herrenknecht TBMs, and the expansion of the subway in cities such as New York and Bombay. Subways, water tunnels and utility tunnels, which are essential for modern city planning, are the main uses of tunnel boring machines. Meanwhile, the drive towards more sustainable solutions and the reduction of CO2 emissions are also driving the market forward. Developments in automation and digital technology, such as real-time monitoring systems, are also influencing the market.

Future Outlook

During the period 2024 to 2032, the Tunnel Boring Machine (TBM) market is expected to grow at a compound annual growth rate (CAGR) of 4.5%. This growth is mainly due to the growing demand for the construction of new or improved underground structures, especially in urban areas, where space constraints are becoming increasingly tight. The growing need for an efficient transport network in metropolitan areas is expected to lead to the use of TBMs growing from an estimated 15% penetration in 2024 to a potential penetration of 25% in 2032. The development of more efficient and environmentally friendly TBMs will also be an important driver of market growth. Automation and real-time monitoring systems will enhance the operational efficiency and safety of TBMs, thus making them more attractive to contractors and project owners. Further growth drivers include government policies aimed at improving the efficiency of the transport network and reducing the carbon footprint. TBMs will become more and more important as a tool for constructing underground structures, as the integration of digital technology and sustainable tunnelling practices will have a growing influence on the market.