Middle East & Africa Tunnel Boring Machine Market Forecast to 2027 - COVID-19 Impact and Regional Analysis By Type, Geology, and End-User

The tunnel boring machine market in MEA is expected to grow from US$ 257.61 million in 2019 to US$ 338.06 million by 2027; it is estimated to grow at a CAGR of 3.8% from 2020 to 2027.

Tunnels are also widely used for rail transportation in subways and metros across various MEA countries. Proper construction, management, and maintenance of tunnel systems include monitoring of multiple parameters, such as ventilation, lighting, signaling, gas concentration, air velocity & direction, temperature, and emergency response. Developed as well as developing economies in MEA are experiencing a growth in the railway industry; thus, the demand for tunnel boring machines in the region is increasing. Governments across the region are investing in rail infrastructure that comprises various tunnels in the route, and they are well equipped with smart devices. Hence, rising rail projects in developed and developing countries and increasing investments in new infrastructure development are among the key factors offering lucrative growth opportunities to the players operating in the MEA tunnel boring machine market. 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 type, the multi-mode TBM segment led the MEA tunnel boring machine market in 2019. The multi-mode tunnel boring machine type includes a crossover tunnel boring machine. In this multi-mode machine, the tunneling mode can be changed in a relatively short time and low cost. This machine excavates tunnels safely and cost-efficiently, even in extreme ground conditions. Crossover machine can cross over between broadly varying ground types that would normally need multiple machines. This machine is also known as hybrid or dual mode in the tunneling industry.

The COVID-19 pandemic has adversely affected MEA. Iran and South Africa have the highest number of the COVID-19 positive cases in the MEA. The majority of the businesses in these countries have come to a halt and are expected to continue slower than usual pace. The countries are taking significant containment measures to control the spread of the virus. The COVID-19 pandemic in the Gulf Cooperation Council (GCC) is happening against already bleak economic conditions, in which consumer confidence has been weakening for the past few years owing to sluggish GDP growth, regional turbulence, and oil price declines. The region comprises many growing economies, such as UAE, that are prospective markets for tunnel boring machine providers due to the growing construction and infrastructure industry. Countries such as Dubai are at the forefront of technology adoption in various industries, including transportation. The demand for tunnel automation in Dubai is quite high, and the COVID-19 outbreak may hinder the demand till mid-2021 due to a decline in new infrastructure projects and activities.

The overall MEA 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 MEA 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 MEA tunnel boring machine market. Dalian Huarui Heavy Industry Group Co., Ltd.; Hitachi Zosen corporation; IHI Corporation; Kawasaki Heavy Industries, Ltd.; Komatsu Ltd.; and TERRATEC Ltd. are among the players operating in the market.