GLOBAL TUNNEL BORING MACHINE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

The tunnel boring machine market size is expected to reach US$ 9,400 million by 2031 from US$ 6,705.8 million in 2024 at a CAGR of 4.9% during the forecast period. Tunnel Boring Machines (TBMs) are specialized underground tunnel-construction machines used to excavate tunnels with a circular cross-section through a variety of soil and rock strata. There are two main types of TBMs: shielded TBMs and open TBMs. Shielded TBMs, also called Earth Pressure Balance Machines (EPBMs), are equipped with a large steel shield at the front that supports the tunnel face during excavation. This allows them to bore through unstable ground without the ground collapsing behind them, making them suitable for urban tunneling projects. Open TBMs do not have a front shield and are used in harder soils and rocks where the ground is self-supporting.

TBMs allow for faster, safer, and more accurate underground tunnel construction compared to traditional drilling and blasting methods. They minimize surface disruption, limit dust and debris, and reduce the need for extensive tunnel lining installation. However, their high capital cost and specialized nature mean they are only economically viable for large projects. TBMs also generate large amounts of muck that must be removed from the tunneling face, requiring robust muck removal systems. Ground conditions can impact boring rates, and occasionally TBMs may get stuck if the soil becomes too unstable or problems occur. Proper ground investigation and control of water ingress are important for successful tunneling.

Tunnel Boring Machine Market Regional Insights:

• North America: Tunnel boring machine market in North America holds 10% in the market.
• Asia Pacific: Asia Pacific is poised to expand at the fastest CAGR at 15% during the forecast period, due to factors such as significant investments in the regional transportation infrastructure, including underground metro systems, high-speed rail networks, and extensive road tunnels.
• Europe: Europe hold the largest market revenue share in 2024 and that is 35%, aided by factors such as several cross-border infrastructure projects for improving connectivity between neighboring nations.

Figure 1. Global Tunnel Boring Machine Market Share (%), by Region, 2024

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Tunnel Boring Machine Market Analyst Viewpoint:

The tunnel boring machine market shows strong growth potential over the next decade. The rising construction of tunnels worldwide for transportation infrastructure as well as utility networks will drive demand. Asia Pacific region, led by China, will continue to dominate the market owing to extensive ongoing and planned high-speed rail and metro projects. Opportunities exist in developing regions as well to cater to growing urbanization and connectivity needs.

However, the high initial costs of tunnel boring machines may act as a restraint for some projects. Further, unpredictable ground conditions can increase project timelines and costs. Machine downtime due to repairs also impacts project economics. The development of smaller, modular, and multi-purpose machines can help address some of these challenges.

Adoption of technologies such as artificial intelligence, robotics, and remote monitoring offers opportunities to improve productivity and efficiency. Such innovations will support continued market expansion. Meanwhile, growing demand for customized, large-diameter machines indicates a shift towards more complex tunneling projects worldwide.

Overall, a strong infrastructure development outlook indicates a favorable time period for tunneling contractors and tunnel boring machine manufacturers. Both mature and emerging markets present opportunities. Focus on productivity, cost efficiency, and digitization will be key for market players to optimize long term growth prospects in this space.

Tunnel Boring Machine Market Drivers:

• Growing infrastructure development worldwide: The global infrastructure sector has been witnessing significant growth in the past few decades, driven by rapid urbanization and the growth of megacities around the world. There has been a rising demand for improved road connectivity, transportation networks, utility lines, and other basic infrastructure to support the growing population and modern amenities in urban centers. Many developing nations in Asia, Africa, and Latin America are investing heavily in building new transport links, water supply systems, sewage systems, power grids, and telecom networks to scale up infrastructure and foster economic development. At the same time, developed countries in Europe and North America also require constant infrastructure upgrades to expand network capacity, replace aging assets, and adapt to newer technologies. Mega infrastructure projects involving highway expansions, high-speed rail links, metro systems, and more are regularly undertaken. While open-cut construction methods have been commonly used in the past, tunnel boring has gained prominence for its advantages in overcoming geographic obstacles, minimizing surface disruption, and allowing the construction of longer routes in dense urban settings. Tunnel boring machines have become indispensable for many large-scale transportation and utility infrastructure undertakings worldwide. As infrastructure expenditure continues to grow steadily, driven by urbanization and development needs across both the developing and developed world, the demand for tunnel boring is also expected to rise at a healthy pace.
• Need for improved transportation connectivity: Rapid motorization and soaring vehicle numbers have outpaced the expansion of road networks in many urban centers around the globe. Congested highways and busy streets have become a common problem, worsening traffic jams and commute times. At the same time, constraints on land availability in built-up areas leave limited scope for widening existing roads or constructing new ones using open-cut methods. This has necessitated the need to boost road capacity through additional levels and layers of connectivity under cities. Tunneling provides an effective solution for improving transportation flows by adding new underground routes. Several cities have embarked on ambitious tunneling plans for road and metro extensions to ease traffic pressure and enhance intra-city mobility. Moreover, with growing international trade and passenger movement, there is a rising demand for high-capacity transportation links that can connect major economic hubs efficiently. Long-distance undersea and underground rail tunnels being built for high-speed networks are exemplary of this need. While presenting technical challenges, such mega connectivity projects bring vast economic and social benefits. They help establish crucial trade arteries and bolster international cooperation. As transportation infrastructure needs to support growing mobility requirements both within and between countries, tunnel construction is expected to stay critical for bridging distances, overcoming barriers, and augmenting connectivity levels across the globe.

Tunnel Boring Machine Market Opportunities:

• Growing demand in Asia Pacific region:  The Asia Pacific region represents a tremendous opportunity for growth in the tunnel boring machine market due to several favorable factors currently shaping infrastructure development needs and priorities across many countries in the region. Rapid urbanization and population growth are driving massive infrastructure expansion plans, which include significant investments in expanded transportation networks, renewable energy projects, and improved access to utilities like electricity, water, and telecommunications. Spending on transport and renewable energy projects composes a major share of approved plans. With tunnel lengths expected to multiply over the coming years, according to projections issued by various national infrastructure bodies, demand for tunnel boring machinery able to handle diverse ground conditions and effectively execute large projects is poised to surge significantly. Earlier operational constraints related to high costs or technology limitations are decreasing as well, opening the region to fuller utilization of advanced tunneling solutions. For instance, India's national infrastructure pipeline aims to invest over US$1.5 trillion between 2020 and 2023 to boost its core sectors, while similarly massive "Belt and Road Initiative" in China continues expanding connectivity across the entire region.
• Adoption of technologically advanced machines:  The Tunnel Boring Machine Market has huge potential for growth with the adoption of cutting-edge technologies that improve efficiency and productivity. Advanced automation, robotics, and digital technologies allow TBMs to excavate tunnels faster and with more precision than traditional human-operated machines. The construction industry is under increasing pressure to deliver mega-infrastructure projects faster to accommodate rising populations and tackle environmental challenges like congestion and pollution. Advanced TBMs that promised reduced project timelines through continuous tunneling would be highly sought after. Many nations are increasing investments in underground transit systems, water supply networks, and flood prevention tunnels to boost sustainability and liveability in their cities. For instance, autonomous TBMs using the latest in artificial intelligence, sensors, and machine learning can operate 24/7 without safety breaks and optimize operations in real-time based on soil conditions. According to recent research conducted by the International Tunneling and Underground Space Association, this results in considerable time savings of up to 30% on tunneling projects.

Tunnel Boring Machine Market Trends:

• Integration of Building Information Modeling (BIM) and Geographic Information Systems (GIS) systems in tunnel construction: BIM refers to a digital representation of physical and functional characteristics of a tunnel or infrastructure project, while GIS captures and analyzes spatial or geographic data regarding the terrain and geological conditions of the tunnel alignment. By integrating these two systems, tunnel designers can create a virtual 3D model of the proposed tunnel and the surrounding environment. This allows for advanced simulation and visualization of the tunnel boring process, reducing uncertainties and ensuring machine requirements are accurately defined. With realistic digital twins of the tunnel drive, machine manufacturers can optimize their designs to suit the geo-technical conditions and construction stages. The BIM-GIS integration is also helping contractors better plan the logistics and sequencing of tunnel drives. Key details regarding utility lines, underground structures, soil, and rock properties are incorporated into the digital model. This helps identify potential issues in advance and determine the most suitable tunnel boring machine for the job. These days, a lot of tunnel projects have complex ground conditions and diverse face scenarios that call for regular machine modifications. The immersive 3D environment facilitates collaborative visualization and coordination between various project stakeholders to resolve construction challenges. For instance, London Underground used integrated BIM-GIS modeling for their Nine Elms to Pimlico Line project, which involved the construction of a 1.2 km twin-bore tunnel loop.
• Growth in Public Private Partnerships (PPP) for tunnel projects: Growth in public private partnerships (PPPs) for tunnel projects is driving demand for more sophisticated tunnel boring machines (TBMs). Governments around the world are increasingly opting for PPP models to complete large, complex tunneling projects while controlling capital expenditures. This is benefiting TBM manufacturers immensely. Under PPP contracts, private partners are responsible for shouldering construction risks and financing projects. They require advanced TBMs that can accelerate boring rates and enhance safety. Modern TBMs with capabilities like remote monitoring, automated functions, and robotic components help complete projects faster while reducing the risks of time and cost overruns. For instance, India recently completed a US$3 billion PPP project to build road and rail tunnels using state-of-the-art TBMs that increased daily boring rates.

Tunnel Boring Machine Market Restraints:

High initial investment cost: The high initial investment cost required for tunnel boring machines is a major restraint for the growth of this market. Tunnel boring machines involve significant capital expenditure as they are extremely large, complex, and customized pieces of heavy construction equipment. These machines can cost anywhere between US$10 and $100 million depending on the size, geology, depth, and diameter of the tunnel being excavated. The high initial investment limits the number of players who can afford to purchase these machines. Only large, well-established construction contractors and engineering companies are capable of absorbing the high capital expenditure. Small and medium construction firms find it difficult to enter this market segment due to prohibitive equipment prices. This oligopolistic structure of the tunnel boring machine market poses barrier for new entrants. The high entry investment requirements discourage price competition and innovations, which are essential for long-term growth of the industry.  For instance, the construction cost of the California High-Speed Rail tunnel boring machine was estimated to be around US$58 million according to the California High Speed Rail Authority progress report from 2022.

Counterbalance- The high cost of customization for TBMs tailored to specific geological conditions can be prohibitive for some projects, potentially reducing market demand.

Risk of tunnel collapse during construction: The risk of tunnel collapse during construction poses significant challenges for the growth of the tunnel boring machine market. When tunnels are bored deep underground, there is always a risk of soil cave-ins occurring, which can lead to fatal tunnel collapses. Tunnel collapses not only result in the loss of lives and injuries but also cause substantial delays and cost overruns in tunneling projects. This undermines confidence in the tunneling method and deters government agencies from approving new tunneling projects. The risk of collapse also dissuades private construction players from participating in tenders involving tunnel boring. With the inherent risks of ground failures, contractors price their bids conservatively with high contingency margins, which raises project costs. Higher insurance premiums have to be paid to mitigate risks, which further bloat expenses. For example, as per data by the Swiss Re Institute, insurance rates for tunneling projects typically range from 2-4% of total project costs compared to 0.5-1% for other linear infrastructure works.

Recent Developments:

In April 2022, the expansion of the Macau Light Transit (LRT) system towards Hengqin progressed into the tunneling phase. This development, as confirmed by officials in Zhuhai, is expected to continue for an additional three years. A monumental tunnel-boring machine utilizing Earth pressure balance technology has been crafted in Changsha, Hunan, specifically for this venture. This machine is noteworthy for its size, being the largest of its kind to be employed in the Special Administrative Region, with a diameter of 7.98 meters and a length of 87 meters.

In October 2022, the ambitious HS2 project witnessed the deployment of six tunnel boring machines (TBMs) to carve out over 26 miles of tunnels beneath London. Marking a significant step in the project, the fourth out of ten planned TBMs has been initiated. This particular machine is set to navigate a five-mile stretch from the Victoria Road site in West London to Greenpark Way in Greenford. Post-completion, it will be disassembled and removed from the ground. Additionally, another TBM is slated for launch from the same site later in the year, with the objective of constructing a twin-bore tunnel towards the city center as part of the HS2's expansive network.

Figure 2. Global Tunnel Boring Machine Market Share (%), by End-use, 2024

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Key companies:

• Komatsu Ltd.,
• SN Mercantile India Pvt. Ltd.,
• High Speed Two Ltd.,
• Amberg Engineering,
• Mammoet,
• Hitachi Zosen Sakai Works,
• China Railway Tunnel Group,
• Sika AG,
• Liaoning Censcience End-Use Co. Ltd.,
• Kawasaki Heavy Industries, Ltd.,
• Herrenknecht AG,
• The Robbins Company,
• TERRATEC Ltd.,
• Japan Tunnel Systems Corp.,
• Mitsubishi Heavy Industries, Ltd.

*Definition: A tunnel boring machine (TBM) is a piece of equipment designed to excavate tunnels in a single mechanical operation. It can bore circular tunnels through various terrains, including dense, hard rock, relatively soft sand, and soil. TBMs have a rotating head with cutting parts and can be used to excavate tunnels with a circular cross-section. They are an alternative to traditional drilling and blasting methods, limiting disturbance to the surrounding ground and producing a smooth tunnel wall. TBMs can vary in size, with diameters ranging from a meter to almost 16 meters. They are used for various tunneling projects and offer advantages such as reduced tunnel lining costs and suitability for use in urban areas.