Tunneling and Rock Drilling Equipment Market Report 2026

The tunneling and rock drilling equipment market size has grown strongly in recent years. It will grow from $14.55 billion in 2025 to $15.32 billion in 2026 at a compound annual growth rate (CAGR) of 5.3%. The growth in the historic period can be attributed to expansion of underground infrastructure projects, growth in mining activities, increasing demand for metro and rail tunnels, rising investments in hydropower projects, availability of advanced drilling technologies.

The tunneling and rock drilling equipment market size is expected to see strong growth in the next few years. It will grow to $18.63 billion in 2030 at a compound annual growth rate (CAGR) of 5%. The growth in the forecast period can be attributed to increasing investments in smart tunneling solutions, rising demand for low-emission construction equipment, expansion of deep underground mining projects, growing adoption of autonomous drilling systems, increasing focus on operational efficiency. Major trends in the forecast period include increasing adoption of automated tunnel boring systems, rising demand for high-precision rock drilling equipment, growing use of electrified and hybrid drilling machines, expansion of remote-controlled and autonomous operations, enhanced focus on equipment safety and reliability.

The increasing infrastructure development activities are expected to stimulate the growth of the tunneling and rock drilling equipment market going forward. Infrastructure development involves the planning, construction, and maintenance of critical physical systems such as transportation, energy, water, and communication networks. The surge in infrastructure projects is fueled by economic expansion and urbanization, which increase the need for improved transport, energy, and public utility networks. Tunneling and rock drilling equipment facilitate these activities by enabling efficient underground excavation and rock removal, which are crucial for building tunnels, roads, and utilities. These tools enhance project speed and safety, supporting the construction of durable and complex infrastructure systems. For example, in July 2024, the Office for National Statistics, a UK government agency, reported that infrastructure sector investment reached $17.25 billion (£13.8 billion) in 2023, reflecting a 3.9% rise from 2022. Therefore, the growth in infrastructure development activities is driving demand for tunneling and rock drilling equipment.

Leading companies in the tunneling and rock drilling equipment market are prioritizing the development of advanced technologies such as emission-free surface drills, aimed at minimizing environmental impact and complying with sustainability and regulatory requirements. Emission-free surface drills are machines powered by electricity or alternative clean energy sources designed to operate without emitting harmful gases. For instance, in November 2023, Sandvik AB, a Sweden-based engineering and manufacturing firm, launched its second battery-electric concept surface drill rig. This innovative rig can drill down-the-hole (DTH) holes up to 229 mm (9 inches) in diameter. It combines battery-powered mobility with the steady output of a cable-connected system, creating a hybrid design that improves operational flexibility and reduces emissions during surface drilling.

In July 2024, Komatsu Ltd., a Japan-based machinery manufacturer, acquired GHH Group GmbH for an undisclosed amount. Through this acquisition, Komatsu intends to strengthen its position in underground mining and tunneling equipment, advance its technology, and broaden its global reach across Europe, Africa, and India. GHH Group GmbH is a Germany-based company specializing in tunneling and rock drilling machinery manufacturing.

Major companies operating in the tunneling and rock drilling equipment market are Atlas Copco AB, Sandvik AB, Caterpillar Inc, Komatsu Ltd, Hitachi Construction Machinery Co Ltd, Herrenknecht AG, China Railway Engineering Equipment Group Co Ltd, Furukawa Rock Drill Co Ltd, SANY Group Co Ltd, DH Mining System, Sunward Equipment Group, Hitachi Zosen Corporation, Boart Longyear Ltd, Liebherr‑International AG, Normet Group Oy, The Robbins Company, Junjin CSM Co Ltd, Terratec Ltd, IHI Corporation, Akkerman Inc.

North America was the largest region in the tunneling and rock drilling equipment market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the tunneling and rock drilling equipment market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the tunneling and rock drilling equipment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The tunneling and rock drilling equipment market consists of sales of hydraulic drills, percussion drills, blast hole drills, horizontal directional drills, roadheaders, and hydraulic breakers. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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