The tunnel boring machine market in SAM is expected to grow from US$ 427.43 million in 2019 to US$ 591.09 million by 2027; it is estimated to grow at a CAGR of 4.5% from 2020 to 2027.
Technological developments are of greater use in tunnel construction since they allow easy access to construction in any ground conditions. Innovative monitors and sensors placed in the tunnel boring machines help in the smooth functioning of machines while excavating. Large diameter tunnel projects for transport infrastructures have influenced the research and development in tunnel boring machine design. Advanced machines can cope with mixed rock/ground conditions and change their operational mode depending on ground conditions. Large machines with diameters ranging from 14 to 17 meters have been manufactured and utilized across the world. Innovative technologies are being developed in various countries across SAM to treat the ground ahead of the machine and control the groundwater inflows. In the coming years, the trend toward the machines with large diameters and the innovations in tunnel boring machine technology will surge, which will increase the focus on developing new and more efficient systems to treat the ground ahead of the tunnel in different geologies. Thus, these factors would open the doors for opportunities for the market players in the coming years. Also, tunnel boring machines with advanced technology is among the other factors expected to positively influence the demand for tunnel boring machines during the forecast period.
In terms of end-user, the transportation segment led the SAM tunnel boring machine market in 2019. Tunnels are becoming more necessary as the world's population grows and countries around the world demand more transportation services. The system is widely used in both road and rail transport. The demand for tunnel boring machine is growing due to the expansion of metropolitan rail networks and increased government investments in pipelines, highways, and road infrastructure across SAM. The deployment of these devices for urban transportation is a priority for major countries. As a result, the investments in the construction industry for urban transportation as well as the penetration of tunnel boring machines would drive market growth over the forecast period.
Brazil recorded the highest number of COVID-19 positive cases in SAM. The government of SAM has taken an array of actions to protect their citizens and contain the spread of novel coronavirus. The region has faced lower export revenues in 2020, both from the drop in commodity prices and reduction in export volumes—especially to China, Europe, and the US, which are important trade partners. Also, in manufacturing, Brazilian companies imported components from Chinese companies. The presence of various developing nations makes the region one of the major markets for the growth of the tunnel boring machine market. However, the sharp decline in manufacturing, construction, and infrastructure development activities in this region due to COVID-19 lockdown measures is expected to negatively impact the growth of the market till mid-2021. In addition, the disruptions in supply chain and shortage of raw materials also aggravated various industries operating in this region. Hence, the decline in business operations and infrastructure development activities hindered the growth rate of the tunnel boring machine market in SAM in 2020, and it is likely to continue in 2021, too.
The overall SAM tunnel boring machine market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the SAM tunnel boring machine market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the SAM tunnel boring machine market. Dalian Huarui Heavy Industry Group Co., Ltd.; Herrenknecht AG; Kawasaki Heavy Industries, Ltd.; Komatsu Ltd.; and TERRATEC Ltd.; The Robbins Company are among the players operating in the market.