Tunnel and metro market is anticipated to grow at a considerable CAGR of 9.9% during the forecast period (2024-2031). Tunnel and metro industry involve construction and maintenance of tunnels for various purposes, while the global metro market pertains to urban railway systems, including infrastructure and operations.

Market Dynamics

Growing demand for tunnelinMetro Cities

Rapid urbanisation, congestion, environmental concerns, and government investments in metro cities drive growth in tunnel and metro markets. For instance, in March 2024, Kolkata inaugurated India's inaugural underwater metro tunnel,spanning 520 meters beneath the Hooghly River, the tunnel connects the Howrah Maidan-Esplanade section of the East-West corridor, positioning Kolkata among global cities with underwater metro systems that are scheduled for trains every 12 minutes, the corridor will link Salt Lake City with Howrah, enhancing urban connectivity. With a budgetary allocation of Rs 2,550 crore for FY 2023-24, Kolkata's metro expansion.

Infrastructure Developmentto Drive Global Market

Urbanization pressure, driven by rapid population growth, strains cities' transportation infrastructure, leading to congestion and wear on roads. This highlights the need for efficient and sustainable solutions like metro systems and tunnels. These projects alleviate congestion, offer reliable mobility, optimize land use, and mitigate environmental impact. Strategic planning and investment in transportation infrastructure are crucial to address the challenges posed by urbanization while promoting sustainable urban development.

Market Segmentation

Our in-depth analysis of the global Tunnel and Metro market includes the following segments by ventilation type and application:

• Based on ventilation type, the market is sub-segmented into Axial Flow Fans, Jet Fans and Centrifugal fans.

• Based on application, the market is sub-segmentedinto tunnel and metro.

Metro is Projected to Emerge as the Largest Segment

Based on the application, the global tunnel and metro market is sub-segmented into tunnels and metro. Among these, the metro sub-segment is expected to hold the largest share of the market. The primary factor supporting the growth market is rapid urbanization. As more people move to cities worldwide, there is an increasing need for efficient, reliable, and sustainable transportation solutions to mitigate congestion, reduce pollution, and improve urban mobility. Metro systems offer a high-capacity mode of transportation that can efficiently serve densely populated urban areas, making them a crucial component of urban infrastructure. Additionally, government investments in metro projects to address these urbanization challenges further drive the growth of the metro segment in the global tunnel and metro market. 

In December 2023, Engineering and construction firm Kalpataru Projects International announced significant new orders totalling Rs 3,244 crore, including projects in the underground metro rail tunnelling segment. Contracts are ordered for the design and construction of an underground metro rail project, representing the company's entry into the electric mobility sector, specifically with tunnel boring machine (TBM) tunnelling capabilities. This expansion underscores Kalpataru's commitment to diversifying its portfolio and leveraging its expertise in infrastructure development to contribute to the growing transportation sector.

Centrifugal Fans Sub-segment to Hold a Considerable Market Share

Centrifugal fans are commonly used in tunnel ventilation systems due to their ability to efficiently move large volumes of air, making them suitable for maintaining air quality and controlling airflow in underground environments such as tunnels and metro stations.

Regional Outlook

The global tunnel and metro market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). 

Global Tunnel and Metro Market Growth by Region 2024-2031

Asia-Pacific is Anticipated to Exhibit Highest CAGR

Asia-Pacific region has emerged as the fastest-growing market in the global tunnel and metro industry, driven by several key factors such as rapid urbanization across many countries in the region has spurred a heightened demand for efficient transportation systems like metros and tunnels, essential for addressing congestion and enhancing mobility in densely populated urban areas. Substantial government investments in infrastructure development, including metro and tunnel projects, have been instrumental in supporting economic growth, improving connectivity, and catering to the needs of burgeoning populations. Technological advancements in tunnelling technology and metro systems have facilitated the construction of more sophisticated and efficient transportation networks, meeting the evolving demands of urbanization.

For instance, in January 2024, India's metro rail systems experienced a significant surge in ridership, surpassing the 10 million daily mark and expected to reach 12.5 million soon, reports the Ministry of Housing and Urban Affairs and has been tripling since 2019, factors like worsening traffic congestion and a growing preference for faster transit options.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the global tunnel and metromarket include ABB Ltd., Epiroc AB, Chart Industries, Inc., Kruger Ventilation Industries Asia Co., Ltd., Twin City Fan, and others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance, in March 2023, ACI Mechanical and HVAC Sales (ACI) partnered with Twin City Fan & Blowers (TCF), expanding their offerings to commercial customers in Washington, Oregon, and Northern Idaho. TCF's wide range of air movement solutions, including industrial and commercial fans, aligns with ACI's commitment to providing top-notch products and meeting customer needs efficiently. Both companies look forward to a successful collaboration built on quality, innovation, and exceptional customer service.

The Report Covers

• Market value data analysis of 2023and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global tunnel and metromarket. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.