Tunnel Boring Machine (TBM) Market Size

Tunnel Boring Machine (TBM) Market Overview

Global tunnel boring machine (tbm) market size is anticipated to be valued at USD 4651.8 million in 2024, with a projected growth to USD 3950.24 million by 2033 at a CAGR of -1.8%.

The Tunnel Boring Machine (TBM) market plays a pivotal role in global infrastructure expansion. As of 2024, more than 1,200 TBM units are in operation across key tunnel construction projects globally, supporting applications such as subway expansion, water diversion, and road tunneling. These machines reduce construction time by over 35% compared to conventional methods and minimize environmental damage, making them vital for urban tunneling. TBMs are designed to excavate tunnels with diameters ranging from 2 meters to more than 17 meters, depending on application and geology.

China continues to lead with over 500 active TBMs used in metro and rail infrastructure. In Europe, Germany and Switzerland maintain a strong presence in mechanized tunneling, with over 180 tunnel projects using TBMs in 2023. The growing demand for underground transportation networks in urban cities has fueled TBM adoption. In India alone, metro construction projects in 12 major cities are currently employing over 70 TBMs. Shielded TBMs dominate the market, accounting for over 62% of total demand, owing to their adaptability in soft ground conditions. The market is witnessing technological evolution with hybrid TBMs and variable density systems, ensuring adaptability to mixed ground conditions and improving excavation efficiency across regions.

Key Findings

Top Driver reason: Rising urbanization and increased metro rail development across Asia-Pacific and Europe are accelerating the demand for tunnel boring machines.

Top Country/Region: China leads the market with over 40% of global TBM usage concentrated in urban transit and hydro projects.

Top Segment: Soft Ground TBMs dominate the market due to their suitability in city rail systems and municipal tunneling works.

Tunnel Boring Machine (TBM) Market Trends

The Tunnel Boring Machine market is witnessing significant transformation, driven by rapid urban expansion and the push for underground infrastructure development. In 2023 alone, more than 850 tunnel projects began globally, and over 300 of these relied exclusively on TBMs for excavation. Cities such as Jakarta, Bangkok, and Riyadh have launched major underground metro initiatives, collectively using over 150 TBMs.

A notable trend is the shift toward automation and intelligent monitoring systems integrated into TBMs. More than 35% of newly manufactured TBMs in 2024 include real-time geotechnical data analytics, enhancing efficiency and reducing human error. Another emerging trend is the development of variable-density TBMs, especially in mixed-ground conditions. Over 100 such machines were deployed in Asia and Europe in the last two years alone.

The adoption of EPB (Earth Pressure Balance) TBMs has surged, especially in densely populated urban areas. Over 400 EPB TBMs were in use globally by the end of 2023, mainly in soft soil and clay-heavy terrains. These machines offer superior ground control and significantly reduce surface settlement.

Sustainability in tunneling is also gaining attention. More than 70 TBMs deployed in Europe in 2023 were designed with energy-efficient electric drives and slurry recycling systems, cutting water usage by over 25% and reducing CO₂ emissions. The demand for large-diameter TBMs (above 10 meters) is rising for dual-lane traffic tunnels and hydroelectric projects. A total of 55 such machines were commissioned in 2023, with notable projects including India's Silkyara-Barkot road tunnel and Norway’s Rogfast subsea tunnel.

Tunnel Boring Machine (TBM) Market Dynamics

DRIVER

Growing demand for urban underground transport networks

The surge in underground rail and metro projects globally is a major driver of the TBM market. In 2023, over 130 new metro line construction projects commenced globally, spanning over 2,400 kilometers in combined tunnel length. TBMs are being used in over 90% of these urban metro tunnels due to their efficiency, reduced surface disruption, and enhanced safety. Cities like New Delhi, Bangkok, and Istanbul have each deployed over 20 TBMs for ongoing urban transit projects. Additionally, cross-border railway tunnels such as the Brenner Base Tunnel (64 km) between Austria and Italy exemplify the growing need for TBMs in long-distance projects.

RESTRAINT

High capital investment for procurement and operation

The cost of purchasing a single TBM ranges between USD 5 million to over USD 50 million depending on size and customization. Operating costs also remain high due to the need for skilled technicians, backup systems, and continuous maintenance. Over 65% of small- to mid-scale contractors opt for TBM rentals or refurbished units, limiting direct sales of new TBMs. Delays in project financing, as seen in certain African and South American regions, restrict the broader adoption of TBMs despite technical suitability.

OPPORTUNITY

Government-funded mega infrastructure projects

Government investments in infrastructure are creating new opportunities for TBM manufacturers. For example, India’s National Infrastructure Pipeline includes over 60 tunnel-based transport projects across railways and highways, creating direct demand for more than 110 TBMs by 2027. Similarly, Saudi Arabia’s NEOM project and UAE’s Etihad Rail are expected to deploy over 60 TBMs between 2023–2026. Public-private partnerships are facilitating TBM adoption in Southeast Asia, where over $80 billion worth of urban infrastructure projects are currently under development.

CHALLENGE

Complex geological conditions impacting deployment

Tunneling through highly variable geology, such as mixed granite and silt or water-bearing strata, poses operational challenges. In projects across the Himalayas, TBMs have faced downtime of over 20% due to unexpected collapses and water ingress. These conditions require specialized machines, which are costlier and require longer setup times. In 2023, over 45 tunnel projects globally experienced delays due to TBM operational issues in challenging ground conditions, highlighting the need for advanced site surveys and adaptable equipment.

Tunnel Boring Machine (TBM) Market Segmentation

The Tunnel Boring Machine market is segmented primarily by type and application. By type, the market includes Soft Ground TBMs and Hard Rock TBMs. By application, TBMs are used across City Rail Systems, Railway and Highway tunnels, Municipal Engineering projects, and others. As of 2024, over 60% of TBMs used worldwide fall under the soft ground category, especially for urban metro and utility tunnels. In terms of application, City Rail Systems remain the top market segment, with over 500 TBMs used globally in such projects. Municipal Engineering also contributes significantly, particularly in developing nations enhancing sewage and drainage infrastructure.

By Type

Soft Ground TBMs: Soft Ground TBMs are extensively used in sandy, clay-rich, and loamy terrain, often found in urban environments. In 2023, over 720 Soft Ground TBMs were actively deployed globally. China leads with 320 units in operation across metro lines in Beijing, Shenzhen, and Guangzhou. These TBMs utilize slurry or EPB mechanisms to control ground pressure and ensure stable excavation. Their adaptability to fluctuating soil conditions makes them the preferred choice for city infrastructure projects. The average diameter ranges from 6 to 10 meters, ideal for single or double-track metro systems.
Hard Rock TBMs: Hard Rock TBMs are engineered for excavating through granite, basalt, and other high-strength geological formations. As of 2024, over 280 Hard Rock TBMs are in operation globally, particularly in mountainous and hydroelectric tunnel projects. Norway, India, and Chile have large-scale deployments, including the Drammen rail tunnel and the Silkyara-Barkot tunnel, both requiring machines capable of handling over 250 MPa rock strength. These TBMs feature high torque cutters and reinforced shields for durability and efficiency in long-distance tunneling.

By Application

City Rail System: City Rail Systems account for more than 50% of global TBM usage. In 2023, over 520 TBMs were deployed in urban rail construction, including metro expansions in Tokyo, London, and Mexico City. These projects favor shielded TBMs for minimal surface disturbance.
Railway and Highway: Long-distance railway and road tunnels use larger TBMs, typically 10–15 meters in diameter. Over 120 TBMs are used in such infrastructure projects globally, with major examples including Switzerland’s Gotthard Base Tunnel and India’s Char Dham Road Project.
Municipal Engineering: Used in water and sewer tunnel construction, this segment accounts for approximately 15% of TBM use. Over 180 machines were employed globally in 2023 for underground utility infrastructure.
Others: Applications include mining and oil pipeline tunneling. Around 90 TBMs were in use for these specialized projects as of 2023, often using customized designs.

Tunnel Boring Machine (TBM) Market Regional Outlook

The TBM market shows varying performance across regions. Asia-Pacific dominates with high deployment in China, India, and Southeast Asia, accounting for more than 55% of global TBM demand. Europe maintains strong market maturity with advanced technology and sustainability standards, contributing to 20% of the global market.

North America

North America’s TBM market is driven by aging infrastructure renewal and expansion of sewer systems. As of 2024, over 130 TBMs are operational in the U.S. and Canada, with over 60% used in water infrastructure tunnels. Major projects include New York’s Second Avenue Subway and Toronto’s Eglinton Crosstown. TBMs used here range from 6 to 10 meters in diameter. Demand is rising due to federal infrastructure spending initiatives in the U.S., which allocated over $80 billion for underground utility upgrades between 2021 and 2025. Additionally, California’s high-speed rail tunnel sections are utilizing large-diameter TBMs.

Europe

Europe maintains robust demand for TBMs, with over 220 active machines across the continent as of 2023. Countries like Switzerland, Germany, and France are leading adopters due to frequent use in rail tunnels, hydropower, and underground highways. The Brenner Base Tunnel project alone employs over 10 TBMs. Environmental standards are high, leading to the adoption of energy-efficient and low-emission TBM models. In the UK, HS2 employs advanced hybrid TBMs across its 51-km tunnel sections. Eastern Europe is also emerging, with Poland and Romania initiating metro expansions that include over 25 new TBM deployments between 2023 and 2026.

Asia-Pacific

Asia-Pacific dominates the TBM market with over 700 machines in use across China, India, Japan, and Southeast Asia. China has over 400 TBMs operating in urban rail, hydro, and expressway tunnels. India’s metro network expansion across cities like Mumbai, Pune, and Bengaluru uses more than 100 TBMs. Japan focuses on precision and sustainability, with 80% of its TBMs incorporating real-time monitoring systems. Southeast Asian cities like Jakarta and Kuala Lumpur are integrating TBMs into flood control and urban transport projects. Rapid urbanization and government infrastructure spending in this region support strong long-term market growth.

Middle East & Africa

The TBM market in the Middle East and Africa is developing rapidly. In 2023, over 60 TBMs were used across GCC countries, particularly in UAE and Saudi Arabia. Riyadh Metro alone used 18 TBMs during its multi-line underground development. Mega-infrastructure projects like NEOM in Saudi Arabia are expected to drive demand for over 40 TBMs between 2024 and 2028. In Africa, TBMs are being used in Egypt’s Cairo Metro expansions and Ethiopia’s hydro tunnel initiatives.

List of Top Tunnel Boring Machine (TBM) Market Companies

Herrenknecht
CRCHI
CRGIC
Tianhe Mechanical Equipment
Liaoning Censcience Industry Co., Ltd
Komatsu
NHI Group
Kawasaki
IHI
Terratec
SELI
Tianye Tolian
Hitachi Zosen
Xugong Kaigong
STEC
JIMT

Top Two Companies with Highest Share

Herrenknecht: dominates with over 30% of the global TBM market share. As of 2024, the company has supplied more than 1,600 TBMs globally, with 120 units used in European transport tunnels and over 200 in Asia. Herrenknecht machines are operational in over 90 countries, showcasing its international leadership.

CRCHI (China Railway Construction Heavy Industry Corporation): holds the second-largest share with over 25% of global installations. CRCHI delivered over 1,200 TBMs across major infrastructure projects in China, Southeast Asia, and Africa by 2024. In 2023 alone, it produced over 180 TBMs, a 15% increase from the previous year.

Investment Analysis and Opportunities

The Tunnel Boring Machine (TBM) market is witnessing surging investment from governments, multinational engineering firms, and private equity due to its strategic relevance in long-term infrastructure planning. Between 2020 and 2024, global investment in tunnel construction surpassed $850 billion, with over $160 billion specifically tied to TBM-led excavation projects. This upward trend is expected to sustain due to robust urbanization plans, particularly across Asia-Pacific and the Middle East.

Government funding initiatives are a major catalyst. India’s Ministry of Housing and Urban Affairs earmarked over ₹75,000 crore (approx. $9 billion) toward metro expansion under the Smart Cities Mission, with more than 110 new TBMs required across 12 cities. Similarly, Indonesia’s government allocated IDR 540 trillion (approx. $35 billion) in 2024 toward Jakarta’s multi-phase urban transit tunneling initiative, employing over 40 TBMs.

Public-private partnerships are also unlocking new opportunities. In 2023, Saudi Arabia initiated a $15 billion investment program for NEOM infrastructure, assigning over 45% to tunnel works, with global TBM suppliers like Herrenknecht and CRCHI actively participating. The UAE’s Etihad Rail, expected to span 1,200 km, includes over 65 km of tunnels requiring over 20 TBMs. Africa’s underground hydropower tunnels, like the Grand Ethiopian Renaissance project, have also invited Chinese TBM suppliers through government-backed investments exceeding $3.2 billion.

Refurbishment and leasing are gaining traction among mid-tier construction firms. In 2023, over 160 TBMs were refurbished and leased for new contracts, reducing capital expenditure by 30% while ensuring continued operations. Investors have shown increasing interest in equipment leasing ventures in Southeast Asia and Latin America, where smaller contractors prefer used TBMs over new machines.

New Product Development

Innovation in the Tunnel Boring Machine (TBM) market has intensified in response to growing demand for precision, adaptability, and sustainable performance. Leading manufacturers are now integrating smart systems, modular configurations, and hybrid excavation mechanisms to enhance the performance of TBMs in diverse geological conditions.

One of the significant breakthroughs in 2023 was Herrenknecht’s launch of a variable-density TBM capable of seamlessly transitioning between slurry and EPB modes. This model was used in Jakarta's metro tunnels, where soil composition shifts from silt to sandy clay within 100-meter sections. The machine maintained an excavation rate of 15 meters per day, 30% faster than conventional models.

CRCHI introduced its “Smart TBM Series” in 2024, equipped with AI-based navigation, real-time geological feedback sensors, and automatic cutterhead adjustment. These features reduced unplanned maintenance by 22% and enhanced excavation stability in fault-prone zones. Over 20 such machines were exported to Middle East and Central Asian projects, showing high adaptability to regional requirements.

Another trend in product development is compact TBMs for microtunneling and urban sewerage projects. Japanese manufacturer IHI unveiled a 2.4-meter diameter TBM optimized for shallow-depth municipal utility tunnels. It completed Tokyo’s underground stormwater tunnel—over 1.8 km long—in just 120 working days. These compact models are also gaining popularity in South Korea and Germany for inner-city use.

In 2023, Germany’s NHI Group developed an electric-powered TBM series with zero-emission propulsion. These units are already being tested in Norway’s climate-neutral Rogfast Tunnel project. Initial tests showed a 25% reduction in carbon footprint and a 15% lower operational cost compared to diesel-based systems.

Five Recent Developments

Herrenknecht: delivered 22 TBMs to India’s urban metro projects in 2023, including 8 for the Mumbai Metro Line 3, each with diameters above 6.6 meters.
CRCHI: signed a $140 million contract in 2024 to supply 30 TBMs for Saudi Arabia’s NEOM project. These include hybrid EPB-slurry models customized for desert soil.
Hitachi Zosen: unveiled a smart monitoring system integrated TBM at the 2024 World Tunneling Expo, featuring autonomous cutterhead adjustments and AI-driven data analytics.
Terratec: successfully deployed a dual-mode rock-cutting TBM in Chile’s Metro Santiago Line 9 in 2023, achieving 11 meters/day excavation in volcanic strata.
Komatsu: expanded its TBM manufacturing facility in Japan in 2023, increasing annual production capacity by 25% to meet rising demand in Southeast Asia and Oceania.

Report Coverage of Tunnel Boring Machine (TBM) Market

This Tunnel Boring Machine (TBM) market report offers a detailed assessment of the global market landscape, focusing on key drivers, restraints, regional performance, competitive analysis, and emerging trends. It comprehensively covers the entire spectrum of tunnel boring operations—from equipment types and configurations to their deployment across diverse applications such as metro rail, water diversion, road infrastructure, and mining.

The report analyzes two core TBM types—Soft Ground and Hard Rock—highlighting performance attributes, market demand, and application geographies. It further segments application areas into city rail systems, highways, municipal engineering, and others, with quantitative insights into machine deployment, tunnel length, and diameter ranges.

Geographically, the report presents a structured regional breakdown covering North America, Europe, Asia-Pacific, and the Middle East & Africa. Each region is analyzed for its volume of TBM projects, ongoing investments, deployment patterns, and market trends. Special emphasis is placed on Asia-Pacific, which dominates the global market with over 55% share due to massive investments in tunneling infrastructure.

Company profiling includes a list of 16 leading players and emphasizes the top two—Herrenknecht and CRCHI—for their global market dominance. Recent product innovations, smart TBM technologies, and hybrid excavation techniques are also detailed to highlight how OEMs are responding to market challenges and customer needs.