EPC (Engineering, Procurement, and Construction) Market

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Segments - by Type (Design, Engineering, Procurement, and Construction), Application (Industry, Chemicals, Petrochemicals, Power, and Others), and Region (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031

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Report Description

The global EPC (engineering, procurement, and construction) market size was USD 7.9 Tn in 2022 and is likely to reach USD 13.7 Tn by 2031, expanding at a CAGR of 5.8 % during 2023–2031. The market growth is fueled by the rising infrastructure development and power generation facilities globally and the subsequent need for engineering services that facilitate cost-driven project management solutions for project management companies.

EPC (engineering, procurement, and construction) services are aimed at increasing profitability by reducing risks and costs associated with industrial project management. The EPC contractors have niche experience and a dedicated network of consultants, suppliers, transporters, and subcontractors to carry out turnkey projects in an efficient and organized manner to enhance efficiency and cost-effectivity.

The team of professionals involved in the EPC projects plans baseline schedules on defined metrics based on various parameters set by the project companies. These schedules allow contractors to take corrective actions to mitigate cost overruns or avoid delays caused by the uncertainties and disruptions such as technical or natural complexities involved in project management.

The market report finds that the COVID-19 pandemic has hampered the growth of the market due to the complexities arising in the supply chain management operations and economic slowdown. The oil & gas and manufacturing companies slowed down the production rates due to the slump in demand for products and services due to pandemic-induced volatile economic conditions. The construction industry in the U.S. lost nearly USD 61 Bn in GDP due to COVID-19-associated impact. This was due to the temporary closure of construction activities owing to the lockdown measures enacted by the government. The EPC services in the construction sector suffered major setbacks as the construction projects were postponed during the pandemic period.

EPC (Engineering, Procurement, and Construction) Market Dynamics

Drivers

Rising preference for infrastructure development by various governments to boost economic activities is expected to drive the market. Complex structures such as bridges, tunnels, and railroads in geographically diverse areas require engineering excellence and high-end machinery to complete the project in a time-bound manner with an emphasis on cost-efficiency.

The engineering, procurement, and construction contractors have niche expertise in handling turnkey complex engineering projects with the help of efficient designing, procurement, and a skilled workforce. Government bodies dedicated to infrastructure development engage engineering, procurement, and construction contractors to execute the projects with high-quality assurance and cost-efficiency.

Increasing power consumption in emerging economies and the subsequent need for power generation facilities globally are anticipated to drive the market. According to International Energy Agency, an intergovernmental organization, global electricity demand is anticipated to grow at a pace of 3% annually in the forecast period of 2023-2025 while renewable energy share in the global power generation segment is expected to rise from 29% in 2022 to 35% in 2025.

Restraints

Supply chain disruptions and economic uncertainties caused by geopolitical unrest and lack of skilled manpower in the EPC sector are likely to hinder the market. The geopolitical unrest in the OPEC countries or the ongoing events such as the Russia-Ukraine war is likely to create supply chain disruption of the material required for infrastructure development of manufacturing and oil & gas infrastructure facilities. Similarly, a shortage of skilled employees to execute the project efficiently and complexities in the project execution cause significant reductions in the profit margin for the EPC companies. These factors act as a restraint to the market.

Opportunities

Infrastructure push by the governments to promote renewable energy sources is expected to create significant opportunities for the market. Governments around the world are engaged in bilateral deals to build cross-border infrastructure to promote trade activities. The cross-border infrastructure developments including highways, roadways, and dams depend on EPC services to ensure the timely completion of the projects and quality assurance. The geopolitical uncertainties in the OPEC (Organization of the Petroleum Exporting Countries) and its associated effects on oil prices due to supply chain disruptions are encouraging major economies to adopt renewable sources of energy such as solar power or wind energy to generate electricity.

Scope of the EPC (Engineering, Procurement, and Construction) Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Attributes	Details
Report Title	EPC (Engineering, Procurement, and Construction) Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Base Year	2022
Historic Data	2016–2021
Forecast Period	2023–2031
Segmentation	Type (Design, Engineering, Procurement, and Construction), and Application (Industry, Chemicals, Petrochemicals, Power, and Others)
Regional Scope	Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Report Coverage	Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
Key Players Covered in the Report	SAMSUNG Engineering; MaireTecnimont S.p.A.; AECOM; Flexitallic Group; Saipem SpA; AZCO Inc.; ERGIL; KBR; Prokon Software Limited; Tekfen Holding A.Ş.; SIMEconst.com; BCC Construction; and Fluor Corporation

Market Segment Insights

Type Segment Analysis

Based on type, the EPC (engineering, procurement, and construction) market is divided into design, engineering, procurement, and construction. The engineering segment is expected to expand at a significant growth rate during the projection period owing to the rising adoption of EPC models by companies in the infrastructure development and energy sector. The infrastructure projects are aimed at giving a boost to the economies.

The construction segment is anticipated to grow significantly during the forecast period owing to the development of turnkey projects undertaken by governments to boost the economy. The major government initiatives such as building high-speed rail connectivity and airports rely on EPC services for the completion of projects as the EPC contractors have niche experience and resources to complete the project in a prescribed time.

Application Segment Analysis

On the basis of application, the global market is segregated into industry, chemicals, petrochemicals, power, and others. The power segment is projected to register a considerable CAGR during the forecast period due to rising power demand in developed and developing economies. The globalization and liberalization of economies have accelerated the demand for power in different sectors.

Power companies are expanding their infrastructure to cater to the rising demand for power. Moreover, the clean energy transition has fueled the infrastructure growth in the power sector as traditional power generation facilities are replaced with facilities that support renewable energy generation. The demand for power EPC services is increasing due to these factors.

The industry segment is expected to dominate the market in the projected period owing to efficient offsite manufacturing, prefabrication, and designing services provided by the EPC contractors. Contract-based project delivery model offered enables the contractors to reduce the uncertainties in the project execution and implementation.

Regional Outlook

In terms of region, the global EPC (Engineering, Procurement, and Construction) market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the projection period owing to rising urbanization and industrialization in the region. Large-scale capital investment by both foreign and domestic investors is creating lucrative opportunities for the growth of the industrial sector. Infrastructure development companies engaged in the development of a network of highways, railroads, and airports to support industrial growth by catering to the logistical and infrastructural requirements of the industries.

North America is expected to grow at a significant rate in the forecast period due to the growth of the infrastructure and energy sector due to supportive government policies and funding. In a recent study conducted by the U.S. Census Bureau construction expenditure during April 2023, was anticipated at an annual rate of USD 1,908.4 Bn which is 7.2 % above the April 2022 estimate of USD 1,780 Bn. Moreover, the enactment of the Infrastructure Investment and Jobs Act (IIJA) facilitated USD 550 Bn toward conventional and next-generation infrastructure development projects. This factor is likely to drive the market in the region.

Segments

The EPC (Engineering, Procurement, and Construction) market has been segmented on the basis of

Type

Design
Engineering
Procurement
Construction

Application

Industry
Chemicals
Petrochemicals
Power
Others

Region

Asia Pacific
North America
Latin America
Europe
Middle East & Africa

Key Players

SAMSUNG Engineering
MaireTecnimont S.p.A.
AECOM
Flexitallic Group
Saipem SpA
AZCO Inc.
ERGIL
KBR
Prokon Software Limited
Tekfen Holding A.Ş.
SIMEconst.com
BCC Construction
Fluor Corporation

Competitive Landscape

Key players competing in the global EPC (engineering, procurement, and construction) market are SAMSUNG Engineering; MaireTecnimont S.p.A.; AECOM; Flexitallic Group; Saipem SpA; AZCO Corp.; ERGIL; KBR; Prokon Software Limited; Tekfen Holding A.Ş.; SIMEconst.com; BCC Construction; and Fluor Corporation

These companies adopted development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production expansion to expand their consumer base worldwide. For instance,

On November 4, 2022, AECOM announced that it has been selected by the Glassboro-Camden Line (GCL) Project Team to provide engineering, procurement, and construction services for the GCL Light Rail project in New Jersey. The AECOM is committed to offering cost-effective and comprehensive project management services including structural engineering, track design, quality assurance, risk management, and quality assurance.

EPC Market Key Players

Table Of Content

1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. EPC Market Overview
  4.1. Introduction
     4.1.1. Market Taxonomy
     4.1.2. Market Definition
  4.2. Macro-Economic Factors
     4.2.1. Industry Outlook
  4.3. EPC Market Dynamics
     4.3.1. Market Drivers
     4.3.2. Market Restraints
     4.3.3. Opportunity
     4.3.4. Market Trends
  4.4. EPC Market - Supply Chain
  4.5. Global EPC Market Forecast
     4.5.1. EPC Market Size (US$ Mn) and Y-o-Y Growth
     4.5.2. EPC Market Size (000â€™ Units) and Y-o-Y Growth
     4.5.3. EPC Market Absolute $ Opportunity
5. Global EPC Market Analysis and Forecast by Types
  5.1. Market Trends
  5.2. Introduction
     5.2.1. Basis Point Share (BPS) Analysis by Types
     5.2.2. Y-o-Y Growth Projections by Types
  5.3. EPC Market Size and Volume Forecast by Types
     5.3.1. Design
     5.3.2. Engineering
     5.3.3. Procurement
     5.3.4. Construction
  5.4. Absolute $ Opportunity Assessment by Types
  5.5. Market Attractiveness/Growth Potential Analysis by Types
6. Global EPC Market Analysis and Forecast by Applications
  6.1. Market Trends
  6.2. Introduction
     6.2.1. Basis Point Share (BPS) Analysis by Applications
     6.2.2. Y-o-Y Growth Projections by Applications
  6.3. EPC Market Size and Volume Forecast by Applications
     6.3.1. Industry
     6.3.2. Chemicals
     6.3.3. Petrochemicals
     6.3.4. Power
     6.3.5. Others
  6.4. Absolute $ Opportunity Assessment by Applications
  6.5. Market Attractiveness/Growth Potential Analysis by Applications
7. Global EPC Market Analysis and Forecast by Region
  7.1. Market Trends
  7.2. Introduction
     7.2.1. Basis Point Share (BPS) Analysis by Region
     7.2.2. Y-o-Y Growth Projections by Region
  7.3. EPC Market Size and Volume Forecast by Region
     7.3.1. North America
     7.3.2. Latin America
     7.3.3. Europe
     7.3.4. Asia Pacific
     7.3.5. Middle East and Africa (MEA)
  7.4. Absolute $ Opportunity Assessment by Region
  7.5. Market Attractiveness/Growth Potential Analysis by Region
  7.6. Global EPC Demand Share Forecast, 2019-2026
8. North America EPC Market Analysis and Forecast
  8.1. Introduction
     8.1.1. Basis Point Share (BPS) Analysis by Country
     8.1.2. Y-o-Y Growth Projections by Country
  8.2. North America EPC Market Size and Volume Forecast by Country
     8.2.1. U.S.
     8.2.2. Canada
  8.3. Absolute $ Opportunity Assessment by Country
  8.4. North America EPC Market Size and Volume Forecast by Types
     8.4.1. Design
     8.4.2. Engineering
     8.4.3. Procurement
     8.4.4. Construction
  8.5. Basis Point Share (BPS) Analysis by Types
  8.6. Y-o-Y Growth Projections by Types
  8.7. North America EPC Market Size and Volume Forecast by Applications
     8.7.1. Industry
     8.7.2. Chemicals
     8.7.3. Petrochemicals
     8.7.4. Power
     8.7.5. Others
  8.8. Basis Point Share (BPS) Analysis by Applications
  8.9. Y-o-Y Growth Projections by Applications
  8.10. Market Attractiveness/Growth Potential Analysis
     8.10.1. By Country
     8.10.2. By Product Type
     8.10.3. By Application
  8.11. North America EPC Demand Share Forecast, 2019-2026
9. Latin America EPC Market Analysis and Forecast
  9.1. Introduction
     9.1.1. Basis Point Share (BPS) Analysis by Country
     9.1.2. Y-o-Y Growth Projections by Country
     9.1.3. Latin America Average Pricing Analysis
  9.2. Latin America EPC Market Size and Volume Forecast by Country
      9.2.1. Brazil
      9.2.2. Mexico
      9.2.3. Rest of Latin America
   9.3. Absolute $ Opportunity Assessment by Country
  9.4. Latin America EPC Market Size and Volume Forecast by Types
     9.4.1. Design
     9.4.2. Engineering
     9.4.3. Procurement
     9.4.4. Construction
  9.5. Basis Point Share (BPS) Analysis by Types
  9.6. Y-o-Y Growth Projections by Types
  9.7. Latin America EPC Market Size and Volume Forecast by Applications
     9.7.1. Industry
     9.7.2. Chemicals
     9.7.3. Petrochemicals
     9.7.4. Power
     9.7.5. Others
  9.8. Basis Point Share (BPS) Analysis by Applications
  9.9. Y-o-Y Growth Projections by Applications
  9.10. Market Attractiveness/Growth Potential Analysis
     9.10.1. By Country
     9.10.2. By Product Type
     9.10.3. By Application
  9.11. Latin America EPC Demand Share Forecast, 2019-2026
10. Europe EPC Market Analysis and Forecast
  10.1. Introduction
     10.1.1. Basis Point Share (BPS) Analysis by Country
     10.1.2. Y-o-Y Growth Projections by Country
     10.1.3. Europe Average Pricing Analysis
  10.2. Europe EPC Market Size and Volume Forecast by Country
     10.2.1. Germany
     10.2.2. France
     10.2.3. Italy
     10.2.4. U.K.
     10.2.5. Spain
     10.2.6. Russia
     10.2.7. Rest of Europe
  10.3. Absolute $ Opportunity Assessment by Country
  10.4. Europe EPC Market Size and Volume Forecast by Types
     10.4.1. Design
     10.4.2. Engineering
     10.4.3. Procurement
     10.4.4. Construction
  10.5. Basis Point Share (BPS) Analysis by Types
  10.6. Y-o-Y Growth Projections by Types
  10.7. Europe EPC Market Size and Volume Forecast by Applications
     10.7.1. Industry
     10.7.2. Chemicals
     10.7.3. Petrochemicals
     10.7.4. Power
     10.7.5. Others
  10.8. Basis Point Share (BPS) Analysis by Applications
  10.9. Y-o-Y Growth Projections by Applications
  10.10. Market Attractiveness/Growth Potential Analysis
     10.10.1. By Country
     10.10.2. By Product Type
     10.10.3. By Application
  10.11. Europe EPC Demand Share Forecast, 2019-2026
11. Asia Pacific EPC Market Analysis and Forecast
  11.1. Introduction
     11.1.1. Basis Point Share (BPS) Analysis by Country
     11.1.2. Y-o-Y Growth Projections by Country
     11.1.3. Asia Pacific Average Pricing Analysis
  11.2. Asia Pacific EPC Market Size and Volume Forecast by Country
     11.2.1. China
     11.2.2. Japan
     11.2.3. South Korea
     11.2.4. India
     11.2.5. Australia
     11.2.6. Rest of Asia Pacific (APAC)
  11.3. Absolute $ Opportunity Assessment by Country
  11.4. Asia Pacific EPC Market Size and Volume Forecast by Types
     11.4.1. Design
     11.4.2. Engineering
     11.4.3. Procurement
     11.4.4. Construction
  11.5. Basis Point Share (BPS) Analysis by Types
  11.6. Y-o-Y Growth Projections by Types
  11.7. Asia Pacific EPC Market Size and Volume Forecast by Applications
     11.7.1. Industry
     11.7.2. Chemicals
     11.7.3. Petrochemicals
     11.7.4. Power
     11.7.5. Others
  11.8. Basis Point Share (BPS) Analysis by Applications
  11.9. Y-o-Y Growth Projections by Applications
  11.10. Market Attractiveness/Growth Potential Analysis
     11.10.1. By Country
     11.10.2. By Product Type
     11.10.3. By Application
  11.11. Asia Pacific EPC Demand Share Forecast, 2019-2026
12. Middle East & Africa EPC Market Analysis and Forecast
  12.1. Introduction
     12.1.1. Basis Point Share (BPS) Analysis by Country
     12.1.2. Y-o-Y Growth Projections by Country
     12.1.3. Middle East & Africa Average Pricing Analysis
  12.2. Middle East & Africa EPC Market Size and Volume Forecast by Country
     12.2.1. Saudi Arabia
     12.2.2. South Africa
     12.2.3. UAE
     12.2.4. Rest of Middle East & Africa (MEA)
  12.3. Absolute $ Opportunity Assessment by Country
  12.4. Middle East & Africa EPC Market Size and Volume Forecast by Types
     12.4.1. Design
     12.4.2. Engineering
     12.4.3. Procurement
     12.4.4. Construction
  12.5. Basis Point Share (BPS) Analysis by Types
  12.6. Y-o-Y Growth Projections by Types
  12.7. Middle East & Africa EPC Market Size and Volume Forecast by Applications
     12.7.1. Industry
     12.7.2. Chemicals
     12.7.3. Petrochemicals
     12.7.4. Power
     12.7.5. Others
  12.8. Basis Point Share (BPS) Analysis by Applications
  12.9. Y-o-Y Growth Projections by Applications
  12.10. Market Attractiveness/Growth Potential Analysis
     12.10.1. By Country
     12.10.2. By Product Type
     12.10.3. By Application
  12.11. Middle East & Africa EPC Demand Share Forecast, 2019-2026
13. Competition Landscape
  13.1. Global EPC Market: Market Share Analysis
  13.2. EPC Distributors and Customers
  13.3. EPC Market: Competitive Dashboard
  13.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
     13.4.1. SAMSUNG Engineering
     13.4.2. MaireTecnimont S.p.A.
     13.4.3. AECOM
     13.4.4. Flexitallic Group
     13.4.5. Saipem SpA
     13.4.6. AZCO Inc.
     13.4.7. ERGIL
     13.4.8. KBR
     13.4.9. Prokon Software Limited
     13.4.10. Tekfen Holding A.Ş.
     13.4.11. SIMEconst.com
     13.4.12. BCC Construction
     13.4.13. Fluor Corporation

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