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Tunnel Boring Machine Market

ID: MRFR/AT/8740-CR
166 Pages
Swapnil Palwe
October 2020

Tunnel Boring Machine Market Research Report Information By Machine Type (Slurry TBM, Earth Pressure Balance Shield TBM, Shielded TBM, Multi-Mode TBM, Other Machines), By Geology Type (Soft Ground, Hard Rock Ground, Heterogeneous Ground, Variable Ground), By End Users (Road Transport, Railway Transport, Utilities, Metro and Transit, Mining, Oil, Gas and Others), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2035

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Tunnel Boring Machine Market Summary

As per MRFR analysis, the Tunnel Boring Machine Market Size was estimated at 7.08 USD Billion in 2024. The Tunnel Boring Machine industry is projected to grow from 7.399 USD Billion in 2025 to 11.49 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 4.5 during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Tunnel Boring Machine Market is poised for substantial growth driven by technological advancements and increasing infrastructure demands.

  • North America remains the largest market for tunnel boring machines, reflecting robust infrastructure development initiatives.
  • The Asia-Pacific region is emerging as the fastest-growing market, fueled by rapid urbanization and population growth.
  • Slurry TBMs dominate the market, while Earth Pressure Balance Shield TBMs are experiencing the fastest growth due to their efficiency in various ground conditions.
  • Key market drivers include significant infrastructure development initiatives and rising demand for renewable energy projects.

Market Size & Forecast

2024 Market Size 7.08 (USD Billion)
2035 Market Size 11.49 (USD Billion)
CAGR (2025 - 2035) 4.5%

Major Players

Herrenknecht AG (DE), Tunneling and Underground Space Technology (US), China Railway Construction Corporation (CN), Hitachi Zosen Corporation (JP), Kawasaki Heavy Industries (JP), Seli Overseas (IT), The Robbins Company (US), Mitsubishi Heavy Industries (JP), NFM Technologies (FR)

Tunnel Boring Machine Market Trends

The Tunnel Boring Machine Market is currently experiencing a dynamic evolution, driven by the increasing demand for efficient underground construction solutions. As urbanization accelerates globally, the need for infrastructure development, including transportation networks and utility tunnels, has surged. This trend appears to be fostering innovation in tunneling technologies, with manufacturers focusing on enhancing the performance and safety of their machines. Furthermore, the growing emphasis on sustainable construction practices is likely to influence the design and operation of tunnel boring machines, as stakeholders seek to minimize environmental impacts while maximizing productivity. In addition, the competitive landscape of the Tunnel Boring Machine Market is becoming increasingly complex. Companies are investing in research and development to create advanced machinery that can operate in diverse geological conditions. This focus on adaptability may lead to the emergence of specialized machines tailored for specific projects, thereby enhancing operational efficiency. Moreover, collaborations between manufacturers and construction firms are likely to become more prevalent, as these partnerships can facilitate knowledge sharing and technological advancements. Overall, the Tunnel Boring Machine Market is poised for substantial growth, driven by innovation, collaboration, and a commitment to sustainable practices.

Technological Advancements

The Tunnel Boring Machine Market is witnessing a surge in technological innovations aimed at improving efficiency and safety. Manufacturers are increasingly integrating automation and artificial intelligence into their machines, which may enhance operational precision and reduce human error. This trend suggests a shift towards smarter tunneling solutions that can adapt to varying geological conditions.

Sustainability Focus

There is a growing emphasis on sustainable practices within the Tunnel Boring Machine Market. Stakeholders are prioritizing eco-friendly designs and operations, which could lead to the development of machines that minimize energy consumption and reduce carbon footprints. This trend indicates a broader commitment to environmental stewardship in construction.

Collaborative Partnerships

The competitive landscape of the Tunnel Boring Machine Market is evolving, with an increase in collaborations between manufacturers and construction firms. These partnerships may facilitate the sharing of expertise and resources, potentially leading to the development of specialized machines tailored for specific projects. This trend highlights the importance of cooperation in driving innovation.

Tunnel Boring Machine Market Drivers

Urbanization and Population Growth

Urbanization and population growth are likely to be significant factors influencing the Tunnel Boring Machine Market. As more individuals migrate to urban areas, the demand for housing, transportation, and public services escalates. This trend necessitates the construction of extensive underground facilities, such as metro systems and utility tunnels, to accommodate the growing population. According to recent estimates, urban areas are expected to house nearly 68% of the world population by 2050, which could lead to an increased reliance on tunnel boring machines for efficient construction. The need for rapid and effective tunneling solutions to support urban infrastructure development may drive the market further, indicating a promising outlook for the Tunnel Boring Machine Market.

Government Regulations and Standards

Government regulations and standards play a crucial role in shaping the Tunnel Boring Machine Market. Stricter safety and environmental regulations are compelling construction companies to adopt advanced tunneling technologies that comply with these requirements. This regulatory landscape encourages the use of tunnel boring machines that not only meet safety standards but also reduce carbon emissions and environmental disruption. As governments worldwide implement more stringent guidelines, the demand for compliant tunneling solutions is likely to increase. This trend suggests that the Tunnel Boring Machine Market may experience growth as companies invest in machines that adhere to evolving regulations, ensuring safer and more sustainable tunneling practices.

Infrastructure Development Initiatives

The ongoing emphasis on infrastructure development initiatives appears to be a primary driver for the Tunnel Boring Machine Market. Governments and private entities are increasingly investing in transportation networks, including subways, highways, and tunnels, to enhance connectivity and reduce congestion. For instance, the investment in urban transit systems is projected to reach substantial figures, potentially exceeding billions in the coming years. This surge in infrastructure projects necessitates the use of advanced tunneling technologies, thereby propelling the demand for tunnel boring machines. As urbanization continues to rise, the need for efficient underground construction solutions becomes more pronounced, suggesting a robust growth trajectory for the Tunnel Boring Machine Market.

Technological Innovations in Tunneling

Technological innovations in tunneling are transforming the Tunnel Boring Machine Market. The introduction of advanced machinery, such as Earth Pressure Balance (EPB) and Slurry Shield TBMs, enhances efficiency and safety in tunneling operations. These innovations not only reduce construction time but also minimize environmental impact, aligning with the growing focus on sustainable practices. The market for tunnel boring machines is projected to witness a compound annual growth rate (CAGR) of approximately 5.2% over the next few years, driven by these technological advancements. As companies seek to optimize their tunneling processes, the demand for state-of-the-art tunnel boring machines is expected to rise, further solidifying the market's growth potential.

Rising Demand for Renewable Energy Projects

The rising demand for renewable energy projects is emerging as a pivotal driver for the Tunnel Boring Machine Market. As nations strive to transition towards sustainable energy sources, the construction of underground facilities for wind farms, geothermal plants, and hydroelectric projects is becoming increasingly prevalent. These projects often require extensive tunneling work, which necessitates the use of specialized tunnel boring machines. The global shift towards renewable energy is projected to result in significant investments in infrastructure, potentially amounting to trillions of dollars over the next decade. This trend indicates a growing opportunity for the Tunnel Boring Machine Market, as companies seek efficient solutions to support the development of renewable energy infrastructure.

Market Segment Insights

Tunnel Boring Machine Market Machine Type Insights

The tunnel boring machine market segmentation, based on fusion Machine Type, includes Slurry TBM, Earth Pressure Balance Shield TBM, Shielded TBM, Multi-Mode TBM, Other Machines. The Slurry TBM segment held the majority share in tunnel boring machine market revenue. This is primarily owing to a growth in utility and transportation projects around the world, the market for slurry TBM machines is anticipated to expand during the forecast period. The market is expected to develop as a result of all of these factors.

Sept. 2021: The first of the nine TBMs in Phase 2 of the Metro project in Bangalore, India to make a breakthrough was the hard rock/slurry TBM Urja (DZ670) developed by China Railway Construction Heavy Industry Cooperation Limited (CRCHI).

Figure 2: Tunnel Boring Machine Market, by Machine Type, 2021 & 2030 (USD Billion)

Tunnel Boring Machine Market Geology Type Insights

The tunnel boring machine market segmentation, based on Geology Type, includes Soft Ground, Hard Rock Ground, Heterogeneous Ground, Variable Ground. The Heterogeneous Ground segment dominated the market in 2021. The heterogeneous ground surfaces are developed in areas with an increase in glaciation, that reshapes the terrain. These tunnels, which combine rock sections with uneven lost ground, are increasingly common in the tunnel regions of Switzerland. Additionally, it is projected that an increase in tunneling project development will generate attractive opportunities for market expansion.

Tunnel Boring Machine Market End Users Insights

The tunnel boring machine market data has been bifurcated by End Users into Road Transport, Railway Transport, Utilities, Metro and Transit, Mining, Oil, Gas and Others. The Metro and Transit segment dominated the market in 2021. The market demand for tunnel boring machines is fueled by an increase in metro transportation projects. Additionally, large metro pipeline companies' investments in infrastructure projects are anticipated to fuel market expansion. As more metropolitan areas need metro services, metro tunnelling projects are now controlled using SAAS services to speed project completion.

Future deployment of a high-speed underground public transportation system using automated pods and hyperloops is planned. This is anticipated to fuel the market for tunnel boring machines.

Sept. 2019: Terratec Ltd. has entered into a contract with Maharashtra Metro Rail Corporation Ltd. to deliver four tunnel boring machines to India for Pune metro project.

Get more detailed insights about Tunnel Boring Machine Market

Regional Insights

North America : Innovation and Infrastructure Growth

North America is witnessing significant growth in the Tunnel Boring Machine Market (TBM) market, driven by increasing infrastructure projects and urbanization. The region holds approximately 35% of the global market share, making it the largest market for TBMs. Regulatory support for infrastructure development and investments in transportation networks are key growth drivers. The demand for advanced tunneling solutions is also rising due to the need for efficient urban transit systems. The United States and Canada are the leading countries in this region, with major players like Herrenknecht AG and The Robbins Company actively participating in various projects. The competitive landscape is characterized by technological advancements and collaborations among key players. The focus on sustainable tunneling practices is also shaping the market dynamics, ensuring that TBMs meet environmental standards and efficiency requirements.

Europe : Regulatory Support and Innovation

Europe is emerging as a significant player in the Tunnel Boring Machine Market, holding around 30% of the global share, making it the second-largest market. The region benefits from stringent regulations promoting sustainable construction practices and significant investments in transportation infrastructure. Countries like Germany and France are leading the charge, with a focus on enhancing urban transit systems and expanding rail networks, which are crucial for TBM demand. Germany, with companies like Herrenknecht AG and NFM Technologies, is at the forefront of TBM innovation. The competitive landscape is marked by a mix of established players and new entrants focusing on advanced tunneling technologies. The European market is also characterized by collaborations between public and private sectors to drive infrastructure projects, ensuring a steady demand for TBMs in the coming years.

Asia-Pacific : Rapid Urbanization and Growth

The Asia-Pacific region is experiencing rapid growth in the Tunnel Boring Machine Market, driven by urbanization and infrastructure development. This region holds approximately 25% of the global market share, with countries like China and Japan leading the demand. Government initiatives to enhance transportation networks and urban infrastructure are significant growth catalysts, alongside increasing investments in smart city projects that require advanced tunneling solutions. China is the largest market in this region, with major players like China Railway Construction Corporation and Hitachi Zosen Corporation dominating the landscape. The competitive environment is characterized by aggressive pricing strategies and technological advancements. The presence of numerous local manufacturers also contributes to a dynamic market, ensuring a variety of TBM options for various tunneling projects.

Middle East and Africa : Emerging Markets and Investments

The Middle East and Africa region is witnessing a burgeoning Tunnel Boring Machine Market, driven by increasing investments in infrastructure and urban development. This region holds about 10% of the global market share, with countries like the UAE and South Africa leading the way. The demand for TBMs is fueled by large-scale projects such as metro systems and road tunnels, supported by government initiatives aimed at enhancing connectivity and urbanization. The competitive landscape in this region is evolving, with both international and local players vying for market share. Key players like Seli Overseas and Mitsubishi Heavy Industries are actively involved in various projects, contributing to the growth of the TBM market. The focus on sustainable construction practices is also gaining traction, ensuring that TBMs meet the region's environmental standards and project requirements.

Tunnel Boring Machine Market Regional Image

Key Players and Competitive Insights

The Tunnel Boring Machine (TBM) market is currently characterized by a dynamic competitive landscape, driven by increasing urbanization, infrastructure development, and the need for efficient tunneling solutions. Key players such as Herrenknecht AG (Germany), China Railway Construction Corporation (China), and The Robbins Company (United States) are at the forefront, each adopting distinct strategies to enhance their market positioning. Herrenknecht AG (Germany) focuses on innovation, particularly in developing eco-friendly TBMs, while China Railway Construction Corporation (China) emphasizes regional expansion, leveraging its extensive domestic market and international projects. The Robbins Company (United States) is enhancing its operational focus on digital transformation, integrating advanced technologies into its TBM designs, which collectively shapes a competitive environment that prioritizes technological advancement and sustainability.

In terms of business tactics, companies are increasingly localizing manufacturing to reduce costs and optimize supply chains. The TBM market appears moderately fragmented, with several key players exerting influence over various regional markets. This fragmentation allows for a diverse range of products and services, fostering competition that drives innovation and efficiency across the sector.

In August 2025, Herrenknecht AG (Germany) announced the launch of a new line of eco-friendly TBMs designed to minimize environmental impact during construction. This strategic move not only aligns with global sustainability trends but also positions the company as a leader in environmentally conscious tunneling solutions, potentially attracting clients who prioritize green technologies.

In September 2025, China Railway Construction Corporation (China) secured a major contract for a high-speed rail project in Southeast Asia, showcasing its commitment to regional expansion. This contract is significant as it reinforces the company's dominance in the Asian market and highlights its ability to execute large-scale projects efficiently, which may enhance its competitive edge against other global players.

In July 2025, The Robbins Company (United States) unveiled a new digital monitoring system for its TBMs, aimed at improving operational efficiency and safety. This innovation reflects a broader trend towards digitalization in the construction industry, suggesting that companies that invest in technology will likely gain a competitive advantage by optimizing performance and reducing downtime.

As of October 2025, the TBM market is witnessing trends such as digitalization, sustainability, and the integration of artificial intelligence into operations. Strategic alliances among key players are increasingly shaping the competitive landscape, fostering collaboration that enhances technological capabilities. Looking ahead, competitive differentiation is expected to evolve, with a shift from price-based competition to a focus on innovation, advanced technology, and supply chain reliability, indicating a transformative phase for the industry.

Key Companies in the Tunnel Boring Machine Market market include

Industry Developments

April 2022: The Macau Light Transit (LRT) extension to Hengqin has entered the tunnel construction stage and is anticipated to take three more years, according to Zhuhai city authorities. A tunnel-boring Earth pressure balanced shield machine was developed in Changsha, Hunan for this project. It will be the largest instrument of its sort to be used in the SAR, measuring 7.98 meters in diameter and 87 meters in length.

March 2019: The 23-mile mineral transportation tunnel being built by Sirius Minerals will have a first-ever 1,800-tonne tunnel boring machine that was formally unveiled in Europe.

Oct 2022: Six tunnel boring machines (TBMs) owned by HS2 have started building more than 26 miles of tunnel under London. The fourth of ten HS2 tunnel boring machines to be launched, it will travel five miles from the Victoria Road site in west London to Greenpark Way in Greenford before being dismantled and lifted from the earth. Another TBM will also be launched from the same location later this year to construct the second twin-bore tunnel for HS2 that will lead towards the city centre.

Future Outlook

Tunnel Boring Machine Market Future Outlook

The Tunnel Boring Machine Market is projected to grow at a 4.5% CAGR from 2024 to 2035, driven by urbanization, infrastructure investments, and technological advancements.

New opportunities lie in:

  • Development of autonomous tunneling systems for enhanced efficiency.
  • Integration of AI for predictive maintenance and operational optimization.
  • Expansion into emerging markets with tailored financing solutions.

By 2035, the market is expected to solidify its position as a critical component of global infrastructure development.

Market Segmentation

Tunnel Boring Machine Market End Users Outlook

  • Road Transport
  • Railway Transport
  • Utilities
  • Metro and Transit
  • Mining
  • Oil
  • Gas
  • Others

Tunnel Boring Machine Market Geology Type Outlook

  • Soft Ground
  • Hard Rock Ground
  • Heterogeneous Ground
  • Variable Ground

Tunnel Boring Machine Market Machine Type Outlook

  • Slurry TBM
  • Earth Pressure Balance Shield TBM
  • Shielded TBM
  • Multi-Mode TBM
  • Other Machines

Report Scope

MARKET SIZE 2024 7.08(USD Billion)
MARKET SIZE 2025 7.399(USD Billion)
MARKET SIZE 2035 11.49(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR) 4.5% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Billion
Key Companies Profiled Market analysis in progress
Segments Covered Market segmentation analysis in progress
Key Market Opportunities Integration of advanced automation technologies enhances efficiency in the Tunnel Boring Machine Market.
Key Market Dynamics Technological advancements and regulatory changes drive innovation and competition in the Tunnel Boring Machine market.
Countries Covered North America, Europe, APAC, South America, MEA

Market Highlights

Author
Swapnil Palwe
Team Lead - Research

With a technical background as Bachelor's in Mechanical Engineering, with MBA in Operations Management , Swapnil has 6+ years of experience in market research, consulting and analytics with the tasks of data mining, analysis, and project execution. He is the POC for our clients, for their consulting projects running under the Automotive/A&D domain. Swapnil has worked on major projects in verticals such as Aerospace & Defense, Automotive and many other domain projects. He has worked on projects for fortune 500 companies' syndicate and consulting projects along with several government projects.

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FAQs

What is the projected market valuation of the Tunnel Boring Machine Market by 2035?

The Tunnel Boring Machine Market is projected to reach a valuation of 11.49 USD Billion by 2035.

What was the market valuation of the Tunnel Boring Machine Market in 2024?

In 2024, the Tunnel Boring Machine Market was valued at 7.08 USD Billion.

What is the expected CAGR for the Tunnel Boring Machine Market during the forecast period 2025 - 2035?

The expected CAGR for the Tunnel Boring Machine Market during the forecast period 2025 - 2035 is 4.5%.

Which machine type segment is projected to have the highest valuation by 2035?

The Earth Pressure Balance Shield TBM segment is projected to reach a valuation of 2.85 USD Billion by 2035.

How does the valuation of the Soft Ground geology type segment change from 2024 to 2035?

The Soft Ground geology type segment is expected to increase from 2.12 USD Billion in 2024 to 3.45 USD Billion by 2035.

Which key player is recognized as a leader in the Tunnel Boring Machine Market?

Herrenknecht AG is recognized as a leading player in the Tunnel Boring Machine Market.

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