Tunnel Boring Machine Market Size & Growth Report to 2030

The global tunnel boring machine market size was valued at around USD 7 billion in 2023 and projected to grow at a notable CAGR of around 5% during the forecast period from 2024 to 2030. The market is experiencing significant growth, driven by increasing investments in underground infrastructure projects such as metro systems, highways, and utility tunnels. Urbanization and population growth are key factors boosting demand for efficient tunneling technologies to support the development of modern transportation networks and utilities. Technological advancements in TBMs, such as automated operations and advanced rock-cutting systems, further enhance their adoption across various industries.

The market is segmented by machine type, geology, end-use, and geography. Machine types such as Slurry TBMs and Earth Pressure Balance TBMs dominate, catering to different geological conditions, including soft ground and hard rock. End-use applications are primarily driven by transportation and utilities sectors, with metro systems and sewerage pipelines being prominent. Asia-Pacific leads the market due to rapid infrastructure development in countries like China and India, followed by Europe and North America, which are focusing on upgrading aging infrastructure. Rising environmental concerns and the need for sustainable urban solutions will likely bolster the market’s growth trajectory.

Market Snapshot:

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Market Drivers

The global tunnel boring machine (TBM) market is driven by multiple factors, reflecting the increasing demand for underground infrastructure development. Key drivers include rapid urbanization and infrastructure expansion, especially in regions like Asia-Pacific. Governments are heavily investing in transportation networks such as metro systems, highways, and utility tunnels to address the growing challenges of congestion and sustainability in urban centers. This demand is further supported by advancements in TBM technology, which improve operational efficiency and safety. For example, in February 2024, the HS2 project in the UK deployed advanced TBMs like “Emily” to enhance railway construction efficiency between London and Birmingham. Similarly, the Grand Paris Express project in France is using cutting-edge TBMs to construct 200 kilometers of new metro lines, demonstrating the growing reliance on TBMs for large-scale urban infrastructure projects.

A critical factor in the market’s growth is the increased focus on sustainable construction. Cities are increasingly turning to tunneling as an environmentally friendly alternative to surface development, minimizing urban disruption and preserving above-ground ecosystems. Cost efficiency is another important driver, as TBMs provide a more streamlined and less labor-intensive solution compared to traditional excavation methods. Innovations such as the deployment of advanced slurry machines for Mumbai’s sewer disposal project highlight the industry’s ability to adapt to diverse geological conditions. Additionally, a recent milestone in the Bangkok Orange Line project involves the use of a hybrid TBM, designed to handle both soft and hard geological conditions seamlessly. These advancements underscore how the industry is evolving to meet the demands of modern infrastructure.

Market Trends

Adoption of Automation and AI: One of the most significant trends is the integration of automation and artificial intelligence (AI) into TBMs. These innovations are transforming traditional tunneling methods, providing enhanced operational efficiency. AI allows TBMs to monitor geological conditions in real-time, predict potential issues, and adapt to changes in the environment automatically. For instance, predictive maintenance systems can anticipate mechanical failures before they occur, reducing downtime and lowering operational costs​. Additionally, advanced automation allows for more precise tunneling, which is crucial for complex projects such as subway systems or undersea tunnels where accuracy is paramount. The use of automation not only improves productivity but also enhances the safety of tunneling operations by minimizing human error and exposure to hazardous conditions.

Sustainability in Design and Operation: Environmental sustainability has become an increasingly important consideration in the TBM market. There is a growing emphasis on designing TBMs that reduce environmental impact, both during the construction process and throughout the operational life of the machine. Many modern TBMs are equipped with systems to recycle excavated materials, significantly reducing waste and contributing to sustainability goals. Furthermore, there has been a notable shift towards electric and hybrid TBMs, which offer lower emissions compared to traditional diesel-powered machines​. These eco-friendly machines are in line with global regulations that promote greener technologies in construction. The energy efficiency of electric TBMs also contributes to cost savings, as they require less fuel and reduce the carbon footprint of tunneling projects.

Growth in Urban Infrastructure Projects: The need for advanced tunneling technology is being fueled by rapid urbanization, particularly in cities across Asia-Pacific and Europe. As urban populations grow, the demand for efficient and sustainable transportation systems, including metro lines and underground utilities, is increasing. TBMs are essential for constructing these underground infrastructures, especially in cities with limited above-ground space or complex geological conditions. For example, projects like the Grand Paris Express in France and various metro lines in China and India are utilizing TBMs to excavate tunnels for large-scale transportation networks​. The continued expansion of urban metro systems, sewage tunnels, and underground utilities is expected to keep driving demand for TBMs, as they provide a reliable and effective method for digging through dense urban environments without disturbing the surface area.

Market Opportunities

The global tunnel boring machine (TBM) market presents significant opportunities as urbanization accelerates globally, particularly in emerging economies. With many countries focusing on improving urban transit systems to address congestion and enhance connectivity, the demand for efficient tunneling solutions is on the rise. Large-scale infrastructure projects, such as metro systems, highway tunnels, and underground utility installations, provide a substantial market for TBM manufacturers. For instance, regions like Asia-Pacific and the Middle East are investing heavily in public transit projects, such as the metro expansion in Riyadh, Saudi Arabia, and extensive subway developments in China and India. These projects often require advanced TBM technologies capable of navigating diverse and challenging geological conditions, driving the market’s growth potential​.

Another significant opportunity lies in the development of green tunneling technologies. With increasing environmental regulations and a global push for sustainability, there is a growing demand for TBMs that reduce emissions, recycle excavated materials, and operate with higher energy efficiency. Additionally, the emergence of electric and hybrid TBMs offers manufacturers a chance to differentiate their offerings and capture market share. This trend is especially relevant in environmentally conscious regions such as Europe and North America, where green construction practices are prioritized. Furthermore, advancements in automation and AI create opportunities for offering premium, technology-driven TBMs that cater to large infrastructure projects, promising enhanced safety, operational efficiency, and reduced project timelines.

Market Restraints

The global tunnel boring machine (TBM) market faces several restraining factors that limit its growth. High upfront costs for purchasing and customizing TBMs, coupled with substantial maintenance expenses, create financial challenges, especially for smaller construction firms and projects in developing regions. Regulatory delays and funding shortages often disrupt large infrastructure projects, directly impacting the demand for TBMs. Complex and unpredictable geological conditions increase the risk of machine damage or operational delays, deterring investment in TBM technology. Additionally, the shortage of skilled operators and engineers to manage advanced TBMs further complicates adoption, particularly in regions with limited technical expertise​.

Market Insights

The global tunnel boring machine market is bifurcated into machine type, geology type, end-use, and geography. On the basis of machine type, the earth pressure balance (EPB) TBM segment is currently the dominant segment in the market, driven by its versatility and efficiency in a wide range of ground conditions. EPB TBMs are particularly favored for tunneling in soft, water-saturated, and cohesive soils such as clay, loam, and sand. Their ability to maintain earth pressure during excavation reduces the risk of tunnel collapse and surface settlement, making them ideal for urban areas where surface disruption needs to be minimized. The demand for EPB TBMs is particularly strong in metro projects and utility tunnels in densely populated regions where minimizing environmental impact is a priority​.

In addition to their application in urban environments, EPB TBMs are gaining popularity due to advancements in technology that improve their performance. These machines are now more adaptable to complex geological conditions, with features such as real-time monitoring systems that help optimize performance and mitigate risks. The growth in infrastructure development, especially in Asia-Pacific, Europe, and North America, where many underground transit systems are being expanded, continues to drive the demand for EPB TBMs. Their efficiency, safety features, and ability to handle various ground types make them a top choice for large-scale tunneling projects​.

The tunnel boring machine market research report presents the analysis of each segment from 2020 to 2030 considering 2023 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2024 to 2030.

Historical & Forecast Period

• 2020-22 – Historical Year
• 2023 – Base Year
• 2024-2030 – Forecast Period

Global Tunnel Boring Machine Market Segmentation:

By Machine Type:

• Slurry TBM
• Earth Pressure Balance TBM
• Shielded TBM
• Open TBM
• Others

By Geology Type:

• Soft Ground TBM
• Hard Rock TBM
• Heterogeneous Ground TBM

By End-Use:

• Transportation
• Utilities
• Mining

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

Geographically, the Asia-Pacific (APAC) region currently dominates the global tunnel boring machine (TBM) market, driven by rapid urbanization and extensive infrastructure development in countries such as China, India, Japan, and South Korea. APAC is witnessing significant investments in metro systems, high-speed rail, and underground utility projects, where TBMs are essential for efficient tunneling. China, in particular, is a major driver of demand, with several large-scale metro and subway projects underway in cities like Beijing, Shanghai, and Shenzhen. The region’s expansive infrastructure needs, coupled with government-driven urban development plans, ensure continued growth in TBM adoption. Furthermore, urbanization in India and Southeast Asia is creating new opportunities, as cities expand their transit and infrastructure networks​.

Additionally, the APAC region benefits from favorable government policies that support infrastructure expansion and urban transit systems, particularly in China and India. These governments are investing heavily in public transportation and utility projects to alleviate congestion and promote sustainable urban living. The increasing complexity of tunneling projects in this region, coupled with the need for advanced tunneling technologies like TBMs, continues to drive the market forward. As a result, Asia-Pacific’s dominance in the TBM market is expected to remain strong, with ongoing projects such as the Mumbai Metro and the Beijing Suburban Railway System fueling growth in the coming years.

Competitive Assessment

Some of the notable market players operating in the global tunnel boring machine market are Herrenknecht AG, The Robbins Company, Hitachi Zosen Sakai Works, Kawasaki Heavy Industries, and Mitsubishi Heavy Industries. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Recent Developments:

• In January 2024, Chennai Metro Rail Ltd. launched the Eagle tunnel boring machine from the Light House metro station, heading towards the Boat Club station. The Eagle is scheduled to complete its journey and reach the Boat Club station by October 2026.
• In April 2023, TERRATEC unveiled a reconditioned 6.61-meter diameter Earth Pressure Balance Tunnel Boring Machine (EPBM) for use in Phase I of the Surat Metro Rail Project in India. The machine is designed to tackle the unique geological conditions of the tunnel routes, which consist of sand, clay, gravel, and silt​.

Key Companies:

• Herrenknecht AG
• The Robbins Company
• Hitachi Zosen Sakai Works
• Kawasaki Heavy Industries
• Mitsubishi Heavy Industries
• Terratec Ltd.
• China Railway Tunnel Group (CRTG)
• Komatsu Ltd.
• Amberg Engineering
• Others

Key Questions Answered by Tunnel Boring Machine Market Report

• Global tunnel boring machine market forecasts from 2024-2030
• Regional market forecasts from 2024-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2024-2030 covering 15 major countries from the regions as mentioned above
• Tunnel boring machine submarket forecasts from 2024-2030 covering the market by machine type, geology type, end-use, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level tunnel boring machine markets from 2024-2030
• Competitive Landscape and market positioning of top 10 players operating in the market