Tunnel Construction Market

This study intends to analyse diverse aspects of the global tunnel construction market. The insights offered in this report are expected to aid in market growth examination over the forecast timeline.

Report Summary

• Ongoing global infrastructure projects to augment market growth
• High costs, and lack of skilled labour may hamper market growth potential
• COVID-19 has negatively impacted short- to mid-term market strategies of vendors in the tunnel construction market
• Asia Pacific’s tunnel construction industry to demonstrate remarkable growth in near future

Robust Development of Railway Tunnels, and Roads Creates Opportunities

Owing to robust urbanization and industrialization, as well as the increasing use of tunneling machines to develop roads and railway tunnels, is a major factor that is expected to increase demand from the global tunnel construction market. There has been a steady increase in funding by various governments, particularly in emerging economies, to boost their respective country’s infrastructure. Moreover, these developments not only aid and enhance the connectivity of the working-class, but also further contribute to that country’s travel and tourism sector in the process. Additionally, the need to effectively cater to the transportation needs of the growing masses in these countries is another major factor that is expected to boost the growth trajectory of the global tunnel construction market in the years to come. A clear example of greater investments being made toward tunnel construction projects that border on new impossible yet innovative, Elon Musk’s Boring Company aims to construct an underground tunnel infrastructure beneath Los Angeles to address urban congestion concerns such as traffic jams, etc. Initiatives such as this are expected to have a profound influence on the further expansion of the global tunnel construction market.   

Market Benefits from Advances in Boring Technology, and Growing Use of Digital Tools

Over the years, there have been many innovations in tunnel boring machine (TBM) technology, allowing for faster, more advanced, and efficient tunnel construction. These new machines come equipped with monitoring systems and sensors that help engineers manage a project more effectively and to avoid operational roadblocks. On the other hand, the increasing use of digital tools such as building information modelling (BIM), allows project engineers to create a digital model of the tunnels which can then be used to identify potential problems and to manage the overall construction process more effectively. This will accelerate the expansion of tunnel construction market.

High Capital Costs, and Regulatory Hurdles Hinder Market Progression

Tunnel construction has always been a capital-intensive industry, and these high capital costs act like a two-edged sword, making it difficult for new players to enter this market and existing players to further expand their operations. Given the nature of this industry’s operations, it is governed by stringent regulations which can increase costs, and restrained by environmental concerns, both of which can adversely affect growth prospects for the global tunnel construction market. Additionally, a lack of a highly skilled workforce including surveyors, engineers, geologists, and construction workers, is another major factor that is slated to hinder growth potential for players engaged in the global tunnel construction market.

COVID-19 Impact

The onset of the COVID-19 pandemic resulted in the imposing of restrictions by respective governments on the movement of people and goods, as well as the hampered supply of necessary raw materials, among other operational hurdles. This led to a significant decline in generated revenues for many industries and this was no different for the global tunnel construction market. However, as restrictions were gradually relaxed, post the 3^rd and 4^th waves, the global tunnel construction market regressed to a path similar to its pre-COVID-19 state of projected operations.

Asia Pacific Remains the Largest Revenue Contributor

While North America is expected to account for a significant number of revenue shares, Asia Pacific’s tunnel construction market is slated to index a substantial CAGR over the forecast period. This can be attributed to increasing investments by both governmental and private entities, a growing demand for better infrastructure, better connectivity, and a need to reduce surface congestion due to sheer population sizes.

Tunnel Construction Market: Competitive Landscape

Major players in the Tunnel Construction Market include Bouygues Construction, Vinci Construction Grands Projets, Strabag SE, Salini Impregilo, China Railway Construction Corporation, Porr AG, Ferrovial, Skanska AB, Herrenknecht AG, and Bechtel Corporation, to name a few. To gain a competitive edge, various established industry players are now more focused on new product launches, partnerships, collaborations, acquisitions, and alliances.

Recent Notable Developments:

• On January 18, 2023, Diggy Scardust commenced a tunneling journey on Scarborough’s 7.8-km subway extension. This much-needed extension will accommodate over 105,000 daily boardings and extend subway service farther north
  
  
• In January 2023, Normet agreed to acquire Rambooms Oy, a manufacturer and supplier of rock breaker boom systems, and Marakon Oy, a supplier of hydraulic hammers and excavator attachments for the construction and mining industries
  
  
• On January 31, 2023, the State of California awarded US$375 million to the Santa Clara Valley Transportation Authority (VTA) for its BART extension into Downtown San Jose and Santa Clara. This new award brings the state’s total commitment through the Transit and Intercity Rail Capital Program (TIRCP) to US$1.125 Bn
  
  
• In December 2022, TERRATEC celebrated the assembly of the 3^rd of 5 ordered 6.61m diameter Earth Pressure Balance Tunnel Boring Machines (EPBMs) for the Chennai Metro Rail project in India. Tata Projects Ltd., the contractor, will use these machines for its underground works contracts on Chennai Metro Rail Phase-II Corridors, India

Regional Classification of Global Tunnel Construction Market is Listed Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

 Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East and Africa

*Regions and countries are subject to change based on data availability.

Key Elements Included In The Study: Global Tunnel Construction Market:

• Tunnel Construction Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value, 2019 - 2022
• Market Value at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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