India Tunnel Construction Equipment Market

India Tunnel Construction Equipment Market Size and Share: 

The India tunnel construction equipment market size reached USD 310.0​​​​​​​ Million in 2024. Looking forward, IMARC Group expects the market to reach USD 890.0 Million by 2033, exhibiting a growth rate (CAGR) of 12.48% during 2025-2033. The market is expanding due to the rising underground infrastructure and transportation projects. Urban congestion, high-speed rail development, and smart city planning are accelerating the demand for compact, automated, and precise machinery suited for geotechnically complex and space-constrained tunneling environments.

India Tunnel Construction Equipment Market Trends:

Expansion of Smart Cities and Underground Infrastructure

The development of underground infrastructure in India is speeding up tunnel construction efforts in urban and industrial areas. Limited space, increasing land costs, and overcrowding in large urban areas are leading to the transition to underground development. City governments and urban designers are focusing on subterranean options for metro rail, utilities, stormwater systems, parking, and communication networks. In 2024, the Delhi Metro Rail Corporation (DMRC) completed the longest underground tunnel on the Tughlakabad-Aerocity corridor of Phase-IV, with a 2.65-km-long tunnel between Tughlakabad Airforce Launching Shaft and Maa Anandmayee Marg. These initiatives require high-accuracy, low-vibration machinery that can function in limited spaces with little impact on the surface. Tunnel boring machines, segment installers, and ventilation systems are common in urban infrastructure projects. Additionally, industrial areas are implementing underground tunnels for logistics, storage, and waste handling, particularly in areas with high surface density. Equipment manufacturers are adjusting their product ranges to fulfill particular geotechnical and operational needs for urban tunneling, focusing on automation, compact size, and adherence to environmental standards.

Rising Demand for High-Speed Rail and Urban Transportation Projects

The increasing need for high-speed rail systems and extensive urban transport initiatives is supporting the market growth. These transportation systems are being emphasized to foster economic growth, decrease travel duration, and enhance convenience for commuters in urban and intercity routes. High-speed rail corridors, frequently passing through geologically intricate areas and heavily populated urban settings, for instance, in 2024, it was reported that India's first bullet train project between Ahmedabad and Mumbai included a 7-kilometer undersea tunnel beneath Thane Creek. The tunnel, part of a 21-kilometer underground stretch, was being constructed using large tunnel boring machines. These projects necessitate a range of sophisticated tunneling techniques for effective implementation, which encompasses mechanized drilling systems, ventilation tools, and tunnel lining equipment that comply with both technical and safety regulations. Urban transit systems, particularly in tier-1 and developing tier-2 cities, are progressively leaning towards underground options to combat land shortages and reduce surface-level disturbances. The intricacy of these projects is encouraging contractors to utilize more dependable, automated, and high-capacity machinery designed for extended use. The growing government investment, coupled with institutional funding for mobility infrastructure is catalyzing the demand for tunnel construction equipment market. Additionally, in 2025, Tata Projects Limited launched the first Tunnel Boring Machine (TBM), named Kurinji, for Corridor 5 of the Chennai Metro Phase 2 project. The machine began tunneling from Kolathur Ramp, marking a significant milestone in the city's metro expansion. The 47-kilometer Corridor 5 will connect key locations and feature both underground and elevated stations.

India Tunnel Construction Equipment Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on type and application.

Type Insights:

• Excavator
• Forklift
• Spray Car

The report has provided a detailed breakup and analysis of the market based on the type. This includes excavator, forklift, and spray car.

Application Insights:

• Subway
• Mining
• Others

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes subway, mining, and others.

Regional Insights:

• North India
• South India
• East India
• West India

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

India Tunnel Construction Equipment Market News:

• In March 2025, a 650-ton tunnel boring machine (TBM) reached Kolkata after a 1,653 km journey from Tamil Nadu to continue work on the city's Purple Line Metro project. Despite ongoing land issues for Kidderpore station, tunneling progressed from Kidderpore to Park Street. The TBM, mostly built in India, will help construct 5 km of underground Metro corridors.
• In December 2024, Normet launched new equipment for India's growing construction market, including the Aliva Elementa and Aliva Mortera spraying machines, along with the MRB B24 hydraulic breaker. The Aliva rotor machines were designed to address concrete spraying needs in confined spaces such as tunnel cross passages and vertical shafts.

India Tunnel Construction Equipment Market Report Coverage:

Key Questions Answered in This Report:

• How has the India tunnel construction equipment market performed so far and how will it perform in the coming years?
• What is the breakup of the India tunnel construction equipment market on the basis of type?
• What is the breakup of the India tunnel construction equipment market on the basis of application?
• What is the breakup of the India tunnel construction equipment market on the basis of region?
• What are the various stages in the value chain of the India tunnel construction equipment market? 
• What are the key driving factors and challenges in the India tunnel construction equipment market?
• What is the structure of the India tunnel construction equipment market and who are the key players?
• What is the degree of competition in the India tunnel construction equipment market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India tunnel construction equipment market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India tunnel construction equipment market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India tunnel construction equipment industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.