Tunneling Equipment Market is set to grow at substantial CAGR from 2024 to 2032, owing to the expanding application in constructing roadways, railways, and mines. The growing construction sector and the rise in mining is driving government investments in infrastructure projects. Additionally, the strong demand for clean water is pushing the adoption of water treatment systems, further augmenting machine utilization. The increasing micro-tunneling activities in urban areas for telecommunication pipelining will also benefit the industry growth.
The demand for tunneling equipment is further expected to increase to create minimal soil disturbance and enhance worker safety. However, deployment costs, expensive components, and transportation challenges may hinder the market growth. Expensive parts like conveyor belts, control rooms, slurry pipelines, ventilation systems, and electrical systems along with the lack of flexibility and compatibility issues leading to increased installation complexity will also pose challenges for the industry expansion. On the contrary, the rising requirements for energy, minerals, and metals propelled by the surge in coal mining activities will fuel the product demand.
The growing adoption of earth pressure balance (EPB) technology, specifically designed for soft soil conditions will push the industry growth. The global increase in road and railway infrastructure construction is increasing the appeal of tunneling equipment. The growing number of infrastructure projects worldwide, led by the surging transportation needs will boost innovations in the industry.
Based on product type, the slurry tunnel boring machine (TBM) segment is poised to witness significant CAGR through 2032, led by the rise in the number of tunnel construction activities. Major industry players are introducing innovations in slurry TBMs to cater to the road construction and railway pipeline projects. The increasing count of traffic and utility projects across the globe will further expand the segment growth.
The road transport end-use segment is estimated to accumulate sizeable revenue share by 2032, due to the increasing infrastructure developments worldwide. The rapid expansion of road networks is driving the rising demand for road tunnels in urban areas, fueling the product demand in road transport. Additionally, the influx of government investments and the growing need for efficient transportation systems will proliferate the usage of tunneling equipment in road transport applications.
Regionally, the Asia Pacific tunneling equipment industry size is projected to expand at rapid pace between 2024 and 2032. Countries like China and India are actively promoting extensive tunneling projects for railways and highways due to population growth, rapid rate of urbanization, and robust economic development. The rising government initiatives and funding for large-scale infrastructure projects will also shape the regional industry growth.
Major players operating in the tunneling equipment industry are focusing on various strategies, such as mergers, acquisitions and partnerships to gain high profits. For instance, Atlas Copco’s Mining and Rock Excavation Technique division, Underground Rock Excavation develops, manufactures, and markets a diverse range of tunneling and mining equipment for underground applications. Atlas Copco is also laying strong focus on innovative product designs as well as service support systems to offer added customer value.
Some of the prominent tunneling equipment companies include: