Tunneling Machinery Market Size, Share, Growth and Industry analysis, By Type (TBMs, Mobile Equipment), By Application (Railway and Highway, Municipal Engineering, City Rail System, Others) and Regional Forecast to 2034

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TUNNELING MACHINERY MARKET OVERVIEW

The global tunneling machinery market size was valued at USD 6.22 billion in 2025 and is expected to reach USD 9.51 billion by 2034, growing at a compound annual growth rate (CAGR) of about 4.83% from 2025 to 2034.

The United States Tunneling Machinery Market size is projected at USD 1.88 Billion in 2025, the Europe Tunneling Machinery Market size is projected at USD 1.98 Billion in 2025, and the China Tunneling Machinery Market size is projected at USD 1.45 Billion in 2025.

A tunnel boring machines are machines which is used to excavate tunnels. The machines are used for micro tunneling. They are usually excavating tunnels with a circular cross section through a several of rock strata and soil.

High demand for underground construction and rise in demand for rock mining sector is predicted to expand market progress. Huge need for micro-tunneling for water management system in urban areas is predicted to fuel market growth. Further, rise in spending on railways and road infrastructure and growing urbanization is anticipated to drive market growth. Several advantages offer by the machine such as lower cost, improved safety, better efficiency, and others. Growing adoption of the equipment in the coal sector is estimated to flourish market growth. Rapid technology advancement and increased investment by market players is predicted to surge market growth in the upcoming years. On the contrary, high installment costs and lack of flexibility is estimated to limit market growth. Also, presence of alternative tunneling methods and fluctuation of raw material prices are predicted to restrain market progress in the upcoming years.

KEY FINDINGS

COVID-19 IMPACT

Shutting of End-User Sector and Continues Fluctuation of Raw Material Prices to Halt Market Progress

Rapid spread of COVID-19 pandemic across the globe impacted several countries economic growth. Closure of boring machines manufacturer and lower demand for the machines to reduce market growth. Shutting of end-user sector and continues fluctuation of raw material prices is estimated to halt market progress. Supply and chain disruptions and lower requirement for infrastructural development. These factors are responsible to harm market growth during the pandemic period.

LATEST TRENDS

High Adoption of the Machine in Mining Industry to Improve Market Growth

The growing demand for the product in mining sector. The machines which is used to excavate tunnels. The machines are used for micro tunneling. They are usually excavating tunnels with a circular cross section through a several of rock strata and soil. High need for mining activities for industrial purpose is anticipated to propel tunneling machinery market growth in the upcoming years. rise in demand for rock mining sector is predicted to expand market progress. Increased industrialization and rise in disposable income is predicted to expand market progress.

• According to U.S. Bureau of Labor Statistics, employment in the construction industry is projected to grow by 7% from 2020 to 2030, a key trend supporting demand for tunneling machinery.

• According to U.S. federal infrastructure planning data, over $100 billion was allocated under the 2021 Infrastructure Investment and Jobs Act for infrastructure improvements, directly bolstering tunnel-related equipment needs.

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TUNNELING MACHINERY MARKET SEGMENTATION

By Type

Based on type, the market is divided into TBMs, Mobile Equipment

By Application

Based on the application, the market is divided into Railway and Highway, Municipal Engineering, City Rail System, Others

Coal mine and rock is expected to be the top part of application segmentation.

DRIVING FACTORS

Growing Demand from Railway and Road Sectors to Boost Tunneling Machinery Adoption

The rise in spending on railways and road infrastructure and growing urbanization is anticipated to drive market growth. Several advantages offer by the machine such as lower cost, improved safety, better efficiency, and others. Growing adoption of the equipment in the coal sector is estimated to flourish market growth. Rapid technology advancement and increased investment by market players is predicted to surge market growth in the upcoming years. The machines are used for excavation of tunnels and coal mines. Huge investment for railway projects and adoption of modern technology. In addition, growing number of railways projects are estimated to fuel market growth in the forthcoming years.

• The volume of micro‑tunneling projects for urban water management has surged, with hundreds of municipal systems adopting micro‑tunneling techniques to minimize surface disruption.

• In Asia Pacific, approximately 35% of global tunneling projects originate, driven by rapid metro and highway investments requiring TBMs and related machinery.

Huge Need for Micro-Tunneling for Water Management System to Push Market Growth

Huge need for micro-tunneling for water management system in urban areas is predicted to fuel market growth. High need for improve water-management systems and rapid urbanization is predicted to push market growth. High scale tunnel projects and high innovation in equipment’s are forecast to fuel market growth in the upcoming years.

RESTRAINING FACTORS

High Installment Costs and Lack of Flexibility to Restrict Market Progress

The high installment costs and lack of flexibility is estimated to limit market growth. Also, presence of alternative tunneling methods and fluctuation of raw material prices are predicted to restrain market progress in the upcoming years.  

• High initial installation costs, including logistics and assembly, pose barriers: roadheader and TBM deployments often require machinery exceeding 100 m in length and diameters over 15 m, increasing transport complexity.

• Environmental and geological risks—such as unstable soil and strict compliance regulations—have delayed tunneling projects, requiring specialized equipment and expert clearance in dozens of countries.

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TUNNELING MACHINERY MARKET REGIONAL INSIGHTS

Major Manufacturer in The Asia Pacific to Drive Market Share

Asia Pacific is anticipated to hold significant tunneling machinery market share owing to major manufacturer in the region. Leading revenue-generating and low cost machines availability is expected to boost market growth. Huge need for micro-tunneling for water management system in urban areas is predicted to fuel market growth. Further, rise in spending on railways and road infrastructure and growing urbanization is anticipated to drive market growth. Several advantages offer by the machine such as lower cost, improved safety, better efficiency, and others. Growing adoption of the equipment in the coal sector is estimated to flourish market growth. Rapid technology advancement and increased investment by market players is predicted to surge market growth in the upcoming years.

KEY INDUSTRY PLAYERS

Leading Players Adopt New Strategies to Stay Competitive

The report covers information about the list of market players and their latest development in the industry. The information includes mergers, partnerships, acquisitions, technological developments, and production lines. Other aspects examined for this market include complete research on companies producing and introducing the latest products, regions they conduct their operations in, automation, technology adoption, generating the most revenue, and making a difference with their products.

• Herrenknecht AG – According to government‐backed infrastructure contracts (e.g. South Australia’s Torrens‑Darlington project), Herrenknecht delivered three TBMs ~100 m long and 15 m in diameter, ordered at a cost of roughly $180 million.

• Komatsu – Listed among leading global TBM manufacturers active in more than 20 countries, especially in hard rock excavation projects.

List of Top Tunneling Machinery Companies

•  NFM Technologies
• Tianhe
• NHI
• SANY GROUP
• Antraquip
• Robbins
• BBM Group
• CSSC
• CRCHI
• Sunward
• STEC
• Komatsu
• CREG
• Mitsubishi
• XCMG
• Mitsui Miike Machinery
• LXCE
• MSB Schmittwerke
• Deilmann-Haniel Mining Systems (DHMS)
• Famur
• Herrenknecht
• LNSS
• CREC
• Sandvik

REPORT COVERAGE

This research profiles a report with general studies that explain the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by examining the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, and others. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.