Tunnel Construction in the US - Industry Market Research Report

Tunneling through: Decreased federal funding for transportation will hinder industry revenue

Revenue for the Tunnel Construction industry has expanded largely as a result of surging state and local spending in conjunction with sharp inclines in federal funding for transportation in response to the pandemic. Increases in industry revenue have been driven by a near consistent influx in federal funding for transportation, including an explosion of investment in 2020 to support the industry during the pandemic. Typically, this industry performs well during recessions due to the fact that over 90.0% of funding for industry projects is derivative to either federal, state or local authorities and the industry was the benefit of a surge in spending. Industry revenue has climbed at a CAGR of 7.3% over the past five years to reach an estimated $3.0 billion in 2023, including growth of 3.9% in 2023 alone as profit reaches 9.1%.

This industry constructs tunnels; the types of industry projects include new work, reconstruction and repairs. This industry does not include road and highway construction activity.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.