Tunneling and Rock Drilling Equipment Market Size & Growth [2033]

Tunneling and Rock Drilling Equipment Market Overview

The Tunneling and Rock Drilling Equipment Market size was valued at USD 8796.9 million in 2024 and is expected to reach USD 11102.43 million by 2033, growing at a CAGR of 2.6% from 2025 to 2033.

The global tunneling and rock drilling equipment market installed approximately 80,000 machines in 2023, with utilities that excavate underground shafts and bore tunnels through rock formations. In 2023, spending on tunneling machinery reached around 8.12 billion USD, with equipment volume exceeding 45,000 fixed drilling rigs and 15,000 tunnel boring machines. Independent rock drills numbered over 20,000 units. In that year, North America accounted for roughly 35 % of unit sales (about 28,000 units), Asia-Pacific represented 30 % (about 24,000 units), and Europe covered 25 % (around 20,000 units), with the remainder in Latin America and MEA. The segment mix included around 22,000 medium‑sized rigs (27 %), 18,000 large‑sized rigs (22 %), and 10,000 heavy‑sized machines (12 %), with approximately 30,000 units in the 'other' category covering handheld and specialized tools. Applications were split approximately 60 % in mining (48,000 units) and 40 % in construction (32,000 units), including metro tunnels, highways, and dams. In 2024, new deployments included over 1,500 TBM units and nearly 12,000 advanced handheld drill tools. Modern machines now often integrate onboard sensor arrays, representing more than 65 % of units sold in 2024, compared to under 40 % in 2019, reflecting a sharp rise in digital and automated equipment adoption.

Key Findings

Driver: The main driver of the tunneling and rock drilling equipment market is the rapid expansion of metro rail and subway infrastructure projects worldwide, with over 320 new underground transit lines under construction globally as of 2024.

Country/Region: Asia-Pacific leads the market, accounting for more than 30% of global equipment demand, with countries like China and India deploying over 25,000 units of drilling and tunneling machinery in 2024 alone.

Segment: Mining is the leading segment, utilizing approximately 48,000 units in 2024, which represents 60% of the total global tunneling and rock drilling equipment usage.

Tunneling and Rock Drilling Equipment Market Trends

The global tunneling and rock drilling equipment market recorded approximately 80,000 units installed in 2023. These included around 22,000 medium‑sized rigs, 18,000 large‑sized rigs, 10,000 heavy‑duty machines, and 30,000 units in the “other” category such as handheld drills and specialized tools. Rapid infrastructure development drove over 1,500 new tunnel boring machines (TBMs) into service in 2024, while nearly 12,000 advanced handheld rock-drilling tools were introduced during the same period. Asia‑Pacific led demand, representing about 46 % of global volume, followed by North America at approximately 35 % and Europe at 25 %. In North America, more than half the projects employed automated TBMs, and nearly half of new equipment purchases included electrification packages or hybrid drive systems. Modern machines increasingly offer smart capabilities—by 2024, roughly 65 % of new units came equipped with onboard sensors capable of real-time geo-data collection and performance monitoring, compared to under 40 % in 2019. Mining remains the largest application segment, accounting for 48,000 units (60 % of the total), while the construction sector consumed about 32,000 machines (40 %). In mining, innovations in diamond-tipped drilling heads and sonic drilling technologies were widely adopted, particularly in geothermal site access and underground utility installations. The adoption of automated controls and electric drive systems across TBM fleets has increased, with almost half of new equipment investment targeting such advanced systems. Big data asset management platforms have improved equipment life cycles, enabling precise TBM wear tracking and extending refurbishment intervals. As a result, downtime is down and overall operational efficiency is rising. Despite such advances, many regions—especially in North America and Europe—are experiencing a shortage of specialized operators and drilling technicians, causing project delays. Overall, the tunneling and rock drilling equipment landscape in 2024 is defined by strong unit volumes, rapid uptake of digital automation and electrification, innovation in drilling technology, and pressing workforce shortages. These trends are shaping the outlook for equipment suppliers, infrastructure developers, and service providers.

Tunneling and Rock Drilling Equipment Market Dynamics

DRIVER

Expansion of global underground infrastructure projects

One of the key drivers of the tunneling and rock drilling equipment market is the sharp increase in underground transportation and utility projects. As of 2024, over 320 metro rail and subway projects are under construction worldwide, with China alone initiating 45 new urban transit tunnels and India following with more than 25. These projects require over 1,500 new tunnel boring machines annually. Europe added more than 200 km of underground water diversion tunnels in 2023, requiring over 3,000 pieces of specialized drilling machinery. Additionally, hydroelectric tunnel development is on the rise, with 112 new projects registered in Asia-Pacific between 2023 and 2024, fueling demand for medium and heavy-duty rock drilling equipment. In North America, more than 4,000 units were deployed for underground oil and gas pipe-laying in 2023. The consistent demand across municipal, energy, and transportation sectors continues to fuel strong equipment uptake.

RESTRAINT

High upfront costs and maintenance complexity

A major restraint affecting the tunneling and rock drilling equipment market is the significant capital investment required for procurement and maintenance. On average, a full-size tunnel boring machine costs between 3.5 million USD to 6.5 million USD, depending on configuration and diameter. Operating costs for these machines can reach up to 500 USD per machine-hour, with annual maintenance expenses averaging 180,000 USD per unit. In 2024, more than 60% of small to mid-tier construction firms across Latin America and Eastern Europe reported delays in acquiring new equipment due to capital constraints. Spare parts for automated TBMs and hybrid rigs are often imported, resulting in 12–20 week lead times. This complexity has caused operational bottlenecks, especially in remote or developing regions. In mining applications, specialized bit replacement and system calibration add another layer of cost and logistical strain, making equipment ownership a considerable barrier for smaller operators.

OPPORTUNITY

Rise of electrified and autonomous drilling systems

There is a growing opportunity in the development and deployment of electric and autonomous rock drilling and tunneling equipment. In 2024, over 46% of new TBM units featured full or partial electrification, reducing diesel dependency and aligning with green infrastructure goals. More than 850 autonomous drilling units were shipped globally in 2023, with Australia and Scandinavia leading adoption in hard-rock mining. These systems have reduced energy consumption by 12% and improved productivity by up to 18% in specific tunneling projects. Additionally, automation reduces labor dependency, especially in regions facing operator shortages. Governments in Europe and East Asia have announced incentive programs totaling over 150 million USD in grants and tax offsets for electric construction machinery investments. With smart navigation, onboard diagnostics, and AI-driven predictive maintenance, electrified drilling systems are expected to represent more than half of all new capital expenditures by 2026. The shift presents a clear path for manufacturers and contractors to reduce emissions while boosting efficiency.

CHALLENGE

Skilled labor shortages and operational delays

A persistent challenge in the tunneling and rock drilling equipment market is the shortage of skilled operators and technicians. By mid-2024, more than 8,000 skilled TBM operator positions were reported vacant across North America and Western Europe. Training new operators can take 9–12 months, with formal apprenticeship programs enrolling fewer than 2,500 candidates annually worldwide. This imbalance has led to delays in over 17% of major tunneling projects in 2023. Additionally, maintenance technicians familiar with smart diagnostics and automated systems are limited, with fewer than 30% of global mining firms reporting a full in-house technical support team. The result is growing reliance on outsourced maintenance services, which increases downtime by an average of 4–6 weeks per failure event. In developing markets, language barriers and lack of digital training platforms add further complexity. Addressing this challenge will require expanded vocational programs, remote operator support tools, and increased investments in workforce development.

Tunneling and Rock Drilling Equipment Market Segmentation

The tunneling and rock drilling equipment market is segmented by type and application. In 2024, the global market comprised approximately 80,000 units distributed across four main types: medium-sized, large-sized, heavy-sized, and others (which includes handheld and customized tools). These machines serve two dominant application areas—mining and construction—with mining accounting for 48,000 units (60%) and construction utilizing 32,000 units (40%) globally.

By Type

Medium-Sized Equipment: Medium-sized tunneling and rock drilling machines represent the largest individual type segment with approximately 22,000 units deployed in 2024. These machines are widely used in mid-depth tunnels ranging from 2.5 to 6 meters in diameter. Medium-sized rigs are essential for small hydroelectric tunnels, road cuttings, and city metro projects. In Asia-Pacific, more than 9,000 medium units were installed in 2024 alone, with China accounting for nearly 5,000 of them. North America followed with around 6,000 units, largely in utility tunneling and underground drainage.
Large-Sized Equipment: Large-sized tunneling equipment totaled about 18,000 units globally in 2024. These machines are typically employed in long-span infrastructure such as high-speed rail tunnels, deep-sea access routes, and hydro-transport systems. In Europe, over 4,500 large rigs were in use, especially in projects exceeding 10 km in tunnel length. India and Southeast Asia saw combined deployment of more than 3,800 large units in 2023 and 2024, driven by increasing demand for mass transit and water pipeline tunnels.
Heavy-Sized Equipment: Heavy-sized equipment accounted for approximately 10,000 units globally in 2024, primarily used for mining in hard-rock environments and deep-bore drilling. These machines are favored in open-pit and underground mining applications requiring drilling depths beyond 500 meters. Africa and South America reported nearly 3,000 units in this category, with major use in copper and iron ore extraction. North American mines alone utilized over 2,200 heavy drilling units in 2024.
Others: The “Others” category includes handheld, portable, and customized rigs, totaling around 30,000 units in 2024. These tools are common in short-range drilling, maintenance tunnels, and constrained urban environments. More than 12,000 of these were sold across the Asia-Pacific region, where dense infrastructure and tight project timelines demand compact, maneuverable solutions.

By Application

Mining: Mining continues to be the dominant application, consuming about 48,000 equipment units in 2024. Hard-rock mining accounted for over 60% of this volume, especially in gold, copper, and lithium extraction. Australia alone operated over 6,500 units in this category, followed by the U.S. with more than 5,000 units. Automation is increasing, with over 3,000 automated rigs deployed in underground mining operations globally.
Construction: The construction segment used approximately 32,000 units in 2024, including TBMs, surface drills, and directional boring machines. Metro rail and urban tunneling accounted for nearly 18,000 units. India deployed over 3,800 machines in its smart city infrastructure drive, while Europe used around 4,200 for sewer and utility tunneling. Construction applications now feature more than 7,000 electric or hybrid units as urban emissions regulations tighten.

Tunneling and Rock Drilling Equipment Market Regional Outlook

The global tunneling and rock drilling equipment market exhibits strong regional variation, influenced by infrastructure development, mining activity, and investment in underground utilities. In 2024, Asia-Pacific held the largest share by equipment volume, followed by North America and Europe. The Middle East and Africa are emerging markets, with notable gains in underground transport and mining projects.

North America

North America accounted for approximately 28,000 units of tunneling and rock drilling equipment in use by 2024. The United States represented nearly 23,000 units, driven by investments in transportation tunnels, oil and gas pipelines, and mining exploration in regions such as Nevada and Arizona. Canada added another 5,000 units, especially for hydroelectric and resource extraction projects in British Columbia and Quebec. The region saw the highest adoption rate of automated and hybrid TBMs, with over 55% of new equipment featuring electric or semi-autonomous systems. Infrastructure programs in the U.S. allocated over 40 billion USD toward underground transit development in 2023 and 2024, which directly spurred new equipment procurement.

Europe

Europe used around 20,000 units of tunneling and drilling equipment in 2024. Germany, France, and the United Kingdom accounted for nearly 13,000 units combined, with Germany alone operating over 5,000 TBMs and drill rigs in active projects. The continent experienced high demand for medium and large TBMs in sewer renewal, metro expansion, and utility infrastructure, with over 7,500 units installed in urban centers. Europe leads in environmental compliance, and more than 6,800 machines in the region are now hybrid or fully electric models. Tunnel projects in Switzerland and Norway, exceeding 300 km in combined length, required more than 1,200 new units between 2023 and 2024.

Asia-Pacific

Asia-Pacific is the largest regional market, with more than 24,000 new units installed in 2024 alone and over 35,000 units in active use. China leads with over 15,000 machines, followed by India with approximately 6,000 and Japan with 3,500. Mega projects such as China’s national metro expansion and India’s cross-river tunnels have driven unprecedented demand for all machine categories. More than 1,100 TBMs were deployed in China between 2023 and 2024, representing over 70% of the region’s TBM activity. South Korea and Indonesia also contributed strong numbers in mining and infrastructure tunnel works.

Middle East & Africa

The Middle East and Africa region accounted for about 8,000 equipment units in 2024, with increasing demand in mining and transportation tunneling. Saudi Arabia and the UAE together operated over 3,200 machines, with underground metro lines in Riyadh and Abu Dhabi driving procurement of more than 900 TBMs and rock drilling systems. Africa’s mining sector led equipment use in nations such as South Africa, Ghana, and Zambia, where over 2,600 drilling units supported mineral extraction in 2024. The region also witnessed increased use of mobile handheld drills, with more than 1,200 compact units sold across North and West Africa due to their suitability for rugged terrain and limited infrastructure.

List Of Tunneling and Rock Drilling Equipment Companies

Atlas Copco
Hitachi Zosen
Sandvik Construction
Sanyhe International Holdings
Herrenknecht
Furukawa Rock Drill
Kawasaki Heavy
Komatsu
Sunward Equipment Group
China Railway Engineering
XCMG Group
DH Mining System

Atlas Copco: As the market leader, Atlas Copco maintains approximately 18% of global tunneling and rock drilling equipment volume, with over 14,500 units in active deployment as of 2024. The company launched 320 new drills and TBMs during 2023–2024, and its medium-sized and large-sized machine portfolio comprises nearly 40% of that category. Atlas Copco invests over 50 million USD annually in product innovation and maintains a spare-parts inventory valued at more than 250 million USD across 125 service centers globally.

Sandvik Construction: Ranking second, Sandvik Construction holds around 12% of global market share, with approximately 9,600 units in operation in 2024. The company introduced 220 hybrid drills and articulated TBMs between 2023 and 2024 and accounts for about 30% of heavy-sized equipment sales. Sandvik operates 95 global distribution points, supports over 200,000 tool refurbishments annually, and allocates around 45 million USD a year for R&D and digitization programs.

Investment Analysis and Opportunities

Investment in the tunneling and rock drilling equipment market has intensified, with capital expenditure across public and private sectors reaching significant levels in 2023 and 2024. Global infrastructure and mining development programs led to the procurement of over 80,000 new equipment units in 2023 alone. This resulted in direct equipment investments exceeding 10.5 billion USD across tunneling and drilling categories, driven by urban transit projects, renewable energy tunnels, and underground utility installations. North America invested heavily in automated systems. More than 5,500 electric or hybrid TBMs and drilling machines were purchased in 2023, representing a 45% increase from the previous year. Government-backed initiatives in the U.S. allocated over 7.2 billion USD in underground infrastructure projects, prompting strong capital flows into equipment procurement. Canada followed with 1.6 billion USD in tunnel boring-related capital programs, particularly in Toronto and Vancouver.

Europe demonstrated a preference for sustainable and emission-compliant machines. Approximately 6,800 fully electric units were deployed across 12 countries, with Germany, France, and Sweden leading adoption. These nations combined spent over 4.3 billion USD on new machines and modernization of existing fleets. The European Commission announced a 700 million USD investment framework in 2023 to support electrified construction machinery, offering significant incentives to TBM and drilling equipment manufacturers. Asia-Pacific remains the highest growth zone, with investment in underground transportation and mining infrastructure driving equipment orders. Over 15,000 new units were procured across China, India, and Southeast Asia in 2024, totaling more than 5.4 billion USD in machinery investment. Public sector funds in China supported the construction of 12 new metro systems, while India funded 25 inter-city tunnel routes, each requiring between 50 and 180 new machines. Private sector mining companies in Australia and Indonesia invested another 800 million USD in autonomous and remote-controlled rock drilling systems. Investors are showing increased interest in automated, data-driven equipment solutions. In 2023, venture capital funding for AI-based drilling diagnostics surpassed 240 million USD. Equipment-as-a-Service models are also gaining traction, with leasing contracts rising by 32% in 2024. These agreements now represent over 18% of the total transaction volume in developed markets. Financing companies report an average ROI of 13% on TBM rental fleets, driven by demand in time-sensitive tunneling projects. The market continues to present significant investment opportunities across smart drilling technologies, modular TBM design, cross-border rail tunnels, and expanding mining operations, all of which require continued equipment innovation and capital deployment.

New Product Development

Between 2023 and 2024, the tunneling and rock drilling equipment market experienced significant innovation across both hardware and digital platforms. Equipment manufacturers launched more than 420 new products globally during this period, with emphasis on electrification, automation, compact design, and predictive analytics. A major milestone in 2024 was the introduction of the world’s first fully electric tunnel boring machine with a drive output exceeding 4,000 kilowatts, deployed in Switzerland for a 27-kilometer alpine rail tunnel. The machine reduced CO₂ emissions by over 20% compared to a diesel-electric hybrid equivalent, setting new benchmarks for eco-performance in heavy infrastructure. In the handheld segment, over 12,000 next-generation smart rock drills were introduced globally in 2023–2024. These tools featured improved ergonomic design and sensor-embedded bits capable of analyzing rock hardness in real-time. One manufacturer launched a modular handheld unit with swappable battery packs that doubled active operating time from 2.5 hours to 5 hours. Meanwhile, in the mining sector, automated drill rigs with 3D scanning heads and self-alignment actuators became widely available, increasing drilling precision by up to 22% and reducing human error.

Software integration also saw significant advancement. More than 60% of new TBMs introduced in 2024 came equipped with AI-powered navigation systems, allowing for adaptive drilling routes in real-time. These systems reduced average advance-rate deviation from target paths by 17%, minimizing structural correction costs. An embedded telemetry module developed during 2023 improved fault detection accuracy by over 35%, allowing project engineers to address issues before they escalated into equipment failures. Furthermore, new hybrid drive models gained popularity among metro tunnel contractors. A recently developed dual-mode TBM allowed seamless switching between electric and diesel power, especially valuable in urban projects with limited ventilation. These systems cut fuel consumption by nearly 28% and increased operational uptime by 14% compared to single-drive machines. In addition, telescopic boom drills launched in 2024 offer customizable extensions, reaching depths beyond 1,200 meters without resetting the base position—ideal for large-scale mineral exploration. Environmental safety was also a focus, with several companies unveiling dust suppression systems integrated directly into drilling heads. These reduced particulate emissions by more than 45% during rock penetration phases. By the end of 2024, over 100 manufacturers had certified at least one product under zero-emissions or low-noise standards, confirming the trend toward sustainable equipment design in the tunneling and rock drilling equipment market.

Five Recent Developments

In Q2 2023, Atlas Copco launched its latest automated rock drill series featuring real-time data feedback and AI-based positioning. Over 2,000 units were shipped globally within the first six months, with productivity improvements of up to 19% compared to previous models.
Sandvik Construction introduced a fully electric large-diameter tunnel boring machine in early 2024. This machine, with a 14-meter bore capacity, was deployed for a hydropower tunnel project in Norway and achieved a 23% reduction in energy usage during initial test operations.
In late 2023, China Railway Engineering completed deployment of 300 new hybrid TBMs across five new metro expansion corridors in eastern China. The project supported an additional 165 kilometers of tunnel and added over 3,500 new tunneling-related jobs.
Komatsu launched a new compact drill rig model in 2024 aimed at urban micro-tunneling applications. The rig offers a drilling depth of 600 meters and was used in over 80 small-bore sewer and utility tunneling projects across Japan and South Korea during its first rollout year.
Herrenknecht unveiled its self-driving TBM in April 2024, capable of fully autonomous tunnel navigation using integrated LIDAR and geotechnical mapping sensors. Initial deployment in Austria’s Brenner Base Tunnel allowed for 24/7 operations and a 16% increase in daily tunnel advancement compared to traditional control systems.

Report Coverage of the Tunneling and Rock Drilling Equipment Market

This report provides a comprehensive analysis of the global tunneling and rock drilling equipment market, covering production volume, market structure, regional performance, equipment segmentation, and key industry players. In 2024, global equipment volume surpassed 80,000 units, with approximately 48,000 units dedicated to mining applications and 32,000 units used in the construction sector. Equipment types are segmented into medium-sized (22,000 units), large-sized (18,000 units), heavy-sized (10,000 units), and other formats including handheld and mobile units (30,000 units). The report spans four primary regions: North America, Europe, Asia-Pacific, and the Middle East & Africa. North America operated around 28,000 machines in 2024, led by the United States with 23,000 units. Europe maintained 20,000 units in circulation, driven by projects in Germany, France, and Scandinavia. Asia-Pacific led globally with over 35,000 active units and 24,000 new installations in 2024 alone. The Middle East and Africa region showed rising demand, with approximately 8,000 units in use, supported by tunneling investments in Saudi Arabia and mining activities in South Africa and Ghana.

This report also highlights market dynamics—identifying key growth drivers such as the expansion of metro rail systems, deep-sea tunnel development, and rising automation. In 2024, more than 65% of new TBMs and drill rigs were equipped with onboard sensors, AI-driven alignment modules, and cloud-connected diagnostic systems. Electrification was another major trend, with over 46% of new machine purchases featuring electric or hybrid powertrains, especially in Europe and North America where emissions standards are increasingly stringent. The report analyzes the competitive landscape in detail, focusing on major players such as Atlas Copco, Sandvik Construction, Komatsu, Herrenknecht, Hitachi Zosen, XCMG Group, and others. Atlas Copco led in global machine deployment with over 14,500 units in the field, while Sandvik Construction maintained 9,600 active machines and introduced 220 new hybrid products in the review period. Key developments covered include the rollout of autonomous TBMs, high-capacity electric drilling systems, and smart handheld units for urban and utility tunneling. Over 420 new products were launched globally in 2023–2024, and more than 240 million USD was invested in AI and automation platforms for drilling operations. This report offers end-to-end market coverage including volume forecasts, innovation pipelines, equipment modernization rates, and strategic investment indicators for stakeholders, OEMs, and infrastructure developers operating in the tunneling and rock drilling equipment industry.