EPC Market Size, Share & Growth Report 2031
EPC Market Size, Share & Growth Report 2031
Segments - EPC (Engineering, Procurement, and Construction) Market 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 ID :CM-5448
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| 194 Pages
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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.
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Attributes |
Details |
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Report Title |
EPC (Engineering, Procurement, and Construction) Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
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Base Year |
2022 |
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Historic Data |
2016–2021 |
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Forecast Period |
2023–2031 |
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Segmentation |
Type (Design, Engineering, Procurement, and Construction), and Application (Industry, Chemicals, Petrochemicals, Power, and Others) |
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Regional Scope |
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
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Report Coverage |
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast |
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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.
Table Of Content
1. Executive Summary2. 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 (000’ 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
Methodology
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