Tunnel Market Report 2025

The tunnel market size has grown strongly in recent years. It will grow from $27.11 billion in 2024 to $28.89 billion in 2025 at a compound annual growth rate (CAGR) of 6.6%. The growth in the historic period can be attributed to urbanization and infrastructure development, environmental concerns and regulations, population density and congestion, emergency and security infrastructure, mining and resource extraction.

The tunnel market size is expected to see strong growth in the next few years. It will grow to $37.78 billion in 2029 at a compound annual growth rate (CAGR) of 6.9%. The growth in the forecast period can be attributed to renewable energy infrastructure, smart infrastructure integration, high-speed rail projects, underground urban development, climate change adaptation, cross-border transportation. Major trends in the forecast period include technological advancements in tunneling, tunnel boring machine (TBM) innovation, focus on sustainability, resilience and security, digitalization and building information modeling (BIM).

The tunnel market's growth is expected to be driven by the escalation in road traffic. Road traffic involves the movement of vehicles and pedestrians along designated road networks. Tunnels serve to reroute traffic from town centers, minimizing landscape damage and optimizing underground space for transportation. Government Technology's report in January 2023 revealed that drivers collectively spent nearly 4.8 billion hours in traffic in 2022, experiencing increased financial losses an average of $869 per American driver due to traffic delays. Hence, the surge in road traffic fuels the growth of the tunnel market.

The rising demand for efficient transportation is expected to enhance the growth of the tunnel market in the future. Efficient transportation refers to systems and processes that optimize resource use, minimize delays, and improve the movement of people, goods, or services. It is often associated with reducing traffic congestion, as tunnels provide alternative routes that bypass crowded areas, leading to smoother travel. For example, a report from the Bureau of Transportation Statistics (BTS), a US government agency, noted that in 2022, the average dwell time for container vessels at the top 25 U.S. ports was 34.7 hours. That year also experienced 18 weather and climate disasters in the U.S., each causing losses exceeding $1 billion, including three tropical cyclones, ten severe storms, two tornado outbreaks, and events related to drought, flooding, and wildfires. Consequently, the increasing demand for efficient transportation is driving the growth of the tunnel market.

Acciona S.A., a Spain-based infrastructure company, unveiled Digitunnel in January 2023. This real-time tunnel technology revolutionizes tunnel construction projects by aggregating vast amounts of real-time data into accessible and actionable information. Digitunnel ensures better project control, enhances worker safety, and minimizes the need for human intervention and documentation. Additionally, it rapidly identifies potentially hazardous gases, further improving worker safety in tunnel projects.

Major companies are focusing on developing advanced technologies such as tunneling intelligence solutions to broaden their customer base, boost sales, and increase revenue. These solutions integrate various data into a comprehensive decision support system for underground mines and tunnel sites. Epiroc AB, a Sweden-based manufacturer of mining and infrastructure equipment, introduced Mobilaris Tunneling Intelligence in May 2022. This innovation significantly enhances safety measures while concurrently improving productivity. The technology benefits users by providing planning tools, productivity enhancements, 3D situational awareness, reporting, and safety measures. Notably, Mobilaris Tunneling Intelligence enhances traceability and facilitates real-time planning and scheduling through data utilization from ongoing operations.

In March 2023, Systra Group, a France-based company specializing in public transport and mobility solutions, acquired Bamser for an undisclosed amount. This acquisition enhances Systra's leadership in complex tunneling and underground infrastructure engineering, aligning with the increasing demand for innovative solutions in urban transit and energy projects. Bamser, an Australia-based firm, focuses on complex tunneling, trenchless methods, and infrastructure projects both in Australia and internationally.

Major companies operating in the tunnel market include China Railway Construction Corporation Limited, Bouygues Construction, Shanghai Construction Group Co., Ltd., Vinci Construction, Larsen & Toubro Limited, Bechtel Corporation, Strabag SE, Skanska AB, Obayashi Corporation, Kiewit Corporation, AECOM, Acciona, S.A., Taisei Corporation, Balfour Beatty plc, Webuild S.p.A. (formerly Salini Impregilo), Sacyr, S.A., PORR AG, Tutor Perini Corporation, Aecon Group Inc., Granite Construction Incorporated, Hatch Ltd., Systra Group, McConnell Dowell Corporation, Dragados USA Inc., 3TI Progetti S.p.A., Aktor S.A., ACS Group, Eiffage S.A.

North America was the largest region in the tunnel market in 2024. Europe is expected to be the fastest-growing region in the global tunnel market report during the forecast period. The regions covered in the tunnel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the tunnel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A tunnel is an enclosed structure constructed underground, typically with entry and exit points at each end, used for rail, vehicular, or pedestrian traffic. Tunnels commonly serve as essential links on highways and railroads, providing rapid transit systems.

There are primarily two main types of tunnels such as railway tunnels and highway or roadway tunnels. Railway tunnels accommodate railway tracks and are constructed to shorten travel distances by allowing train lines to pass through geographical barriers such as mountains. These tunnels commonly utilize materials such as steel, concrete, and composite materials and find applications in commercial and government construction projects.

The tunnel market research report is one of a series of new reports that provides tunnel market statistics, including tunnel industry global market size, regional shares, competitors with tunnel market share, detailed tunnel market segments, market trends, and opportunities, and any further data you may need to thrive in the tunnel industry. This tunnel market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The tunnel market includes revenues earned by entities by providing tunnel design, structural analysis, precast concrete design, geotechnical design, procurement, and project management services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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