According to a new report published by Allied Market Research, titled,"Tunnel Boring Machine Market by Machine Type, Geology Type, and Application: Global Opportunity Analysis and Industry Forecast, 2018 - 2025,"the tunnel boring machines market size accounted for $5,189.8 million in 2017, and is expected to reach $8,385.6 million by 2025, growing at a CAGR of 6.4% from 2018 to 2025. In 2017, Asia-Pacific dominated the global market, in terms of revenue, accounting for about 38.0% share of the global market, followed by Europe.
Tunnel boring machine is used to excavate ground for construction of tunnel for traffic infrastructure and utility purpose. It consists of cutterhead, hydraulic bracing system, and conveyor. The cutterhead rotates 360 degrees against the tunnel surface under the pressure, the cutter disc removes the rocks and mud from the surface of the tunnel, and the discharged excavated material is moved outside the tunnel through vast conveyor belt system. In 2016, around $94 billion was the global output for tunnel and underground construction. The tunneling market is anticipated to ascertain the correlation between tunnels and sustainable development in coming years. This thought impacts the TBM industry as the machines are expected to create tunnels which are can create sustainable solution in the concrete jungle ecosystem.
The tunnel boring machine market is primarily driven by rise in government and private investment for infrastructural development and reduced operation time. However, high installment cost and lack of flexibility are expected to restrain the growth of the tunnel boring machine market. On the other hand, technological advancements through automation and rock cutting technology is anticipated to create more opportunities in the coming period especially in geographies which variable and heterogenous ground. Another factor expected to crate opportunities market for players in the tunnel boring industry is increasing adoption of these machines in the mining industry.
The slurry TBM and shielded TBM segments collectively accounted for about 62.3% of the tunnel boring machine market share in 2017 and is expected to grow at a CAGR of 6.3% and 6.4%, respectively, during the forecast period. In terms of application segment, road transport segment is expected to contribute the highest market share in the coming years, owing to the increase in tunneling projects for road infrastructure. This is reflected from the modern tunnels with thoughts towards aesthetic designs, low maintenance and need for refurbishment in road tunnels. Traffic tunneling projects are increasingly placed in more difficult geology conditions and sensitive atmosphere. Moreover, increase in emphasis on utility tunneling sector is expected to provide wide growth opportunities to small players in developing economies. This is anticipated to draw attention from future applications from expansion of existing uses to new embarked concepts.
Additionally, large-bore TBMs are finding key prominence in the North America countries especially in the U.S. Moreover, real time GPS monitoring systems are keeping the TBM drives on target which allows increased evaluation of risk analysis. Moreover, as free surface land is unavailable in terms of accessibility and cost effectiveness, there is an increasing number of utilities tunneling projects witnessed in developed countries. Rising importance of tunnel liners and waterproofing industry is influencing the sales of large ancillary equipments used in shielded TBMs, and piping TBMs.
In 2017, Asia-Pacific registered the highest rate and is expected to continue this growth in the tunnel boring machines market trend during the forecast period, owing to presence of the key manufacturing companies in the region. This is owing to the highest production and consumption of tunnel boring machines witnessed in China. The Chinese players are shifting from domestic market to international market ecosystem with low cost machines as compared to foreign players
Key Findings of the Tunnel Boring Machine Market:
- In 2017, the slurry TBM segment dominated the global tunnel boring machine market size, in terms of revenue, and is projected to grow at a CAGR of 6.3% during the forecast period.
- The soft ground segment is projected to grow at a CAGR of 6.8% during the forecast period.
- Asia-Pacific is projected to register the highest growth rate in the years to come.
The major players, such as CRCHI, CREG, Dalian Huarui Heavy Industry Group Co., Ltd, Herrenknecht AG, Hitachi Zosen Corporation, IHI Corporation, Kawasaki Heavy Industries Limited, Komatsu Ltd, Northern Heavy Industries Group Co., Ltd, and Qinhuangdao Tianye Tolian Heavy Industry Co., Ltd have focused on developing new products to strengthen their presence in the market. Moreover, these companies expand their business by establishing a partnership to sustain the intense competition.