Underground Construction Equipment Market Expected to Reach $31.3 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Underground Construction Equipment Market," The Underground Construction Equipment Market Size was valued at $19.4 billion in 2021, and is estimated to reach $31.3 billion by 2031, growing at a CAGR of 4.7% from 2022 to 2031.

The global underground construction equipment market was valued at $19,418.9 million in 2021 and is projected to reach $31,256.9 million by 2031, registering a CAGR of 4.7% from 2022 to 2031. The underground construction equipment is specially designed machinery used for performing construction operations. These equipment are used for different functions such as drilling, hauling, tunneling, compacting, and dewatering below the surface of the earth. It has various applications in the construction of oil & gas, railway and highway and mining and others. The rise in demand for the construction of infrastructure such as railways and highways is expected to boost the growth of the market. For different type of construction activities, there are different kinds of underground construction equipment such as tunneling equipment, piercing tools, vibratory plows, load and haul equipment, underground utility vehicles, dewatering system and shotcrete solutions.

Among these tunneling equipment accounted for the highest market share, which is used in the construction of tunnels, shafts and chambers. By solution type, the market is bifurcated into products and services. Out of these, the product segment accounted for the largest market share in 2021, and the services segment is expected to grow with a significant CAGR during the forecast period. By application, the market is categorized into oil & gas, railway and highway, municipal engineering, underground mining, and others. The railway and highway segment accounted for the highest market share owing to a rise in demand for infrastructure and the oil and gas segment is anticipated to grow at a significant CAGR. In 2021, Asia-Pacific dominated the global underground construction equipment market, in terms of revenue. Moreover, the market in LAMEA is anticipated to grow with the highest CAGR, owing to growth in industrialization in the region. The market is mainly driven by the rise in the construction & infrastructure industry, growth in focus on Public-private partnerships (PPP), and surge in popularity of robust and compact equipment.

Technological developments by major players such as John Deere, Caterpillar, and Epiroc AB, have amplified the demand for underground construction equipment products. John Deere deals in an embedded payload scale along with an advanced payload scale through additional limited detail functionality. This payload weighing system by John Deere measures loaded trucks, cycle times, and total bucket loads. Furthermore, the penetration of automation technologies has made it possible to track equipment productivity from remote platforms such as mobile equipment type platforms and computer software. Automation technologies include inventory management solutions to conserve time and monetary expenses caused by mismanagement of equipment operations. The major manufacturers have already adopted these technologies to improve equipment performance and increase their underground construction equipment market share.

However, strict government regulations for initiating construction work negatively impacts the growth of the market. On the other hand, technological advancements in underground construction equipment are expected to provide growth opportunities in the market. Major players are adopting various strategies such as product launch and acquisition to sustain the intense competition and improve the product portfolio. For instance, in December 2022, Komatsu Ltd. acquired GHH Group GmbH, which is a leading manufacturer of underground mining, tunneling and special civil engineering equipment with its headquarter in Gelsenkirchen, Germany.

However, various businesses in the underground construction equipment market had to stop their business in countries such as India, China, Vietnam, Germany, and the U.S., during the pandemic. This break directly impacted the sales of underground construction equipment manufacturers. In addition, the lack of workforce and raw materials constricted the supply of raw materials for manufacturing various underground construction equipment; and negatively influenced the underground construction equipment market growth

However, after two years of the COVID-19 outbreak and the introduction of vaccinations, the severity of the pandemic has significantly reduced and key players in the market are recovering rapidly. The underground construction equipment market has witnessed significant growth over the past decade, owing to a rise in investment in various end-user industries such as oil & gas, railway and highway, municipal engineering, underground mining, and others. A number of players are expanding their business globally, owing to increased customer base, enhanced effective operations, developed product portfolios, and expanded geographical reach. This is anticipated to fuel the growth of the global underground construction equipment market.

Key Benefits for Stakeholders 

• The report provides an extensive analysis of the current and emerging underground construction equipment market trends and dynamics.
• In-depth market underground construction equipment market analysis is conducted by constructing market estimations for key market segments between 2022 and 2031.
• Extensive analysis of underground construction equipment market is conducted by following key product positioning and monitoring of top competitors within the market framework.
• A comprehensive analysis of the region is provided to determine the prevailing opportunities.
• Underground construction equipment market forecast analysis from 2022 to 2031 is included in the report.
• The key players within underground construction equipment market are profiled in this report and their strategies are analyzed thoroughly, which help understand the competitive outlook of underground construction equipment industry.