Solar Engineering, Procurement, and Construction Market Outlook
The global solar engineering, procurement, and construction market was valued at USD 1,25,537 Mn in 2020 and is anticipated to reach USD 3,00,000 Mn by 2028, expanding at a CAGR of 11.6% during the forecast period, due to the growing environmental concerns, as well as strict legislative requirements to reduce GHG emissions. EPC is an acronym for engineering, procurement, and construction.
EPC is a term used in the solar industry to describe a service that includes everything from system design, component sourcing to project installation. It covers everything from coordination to government permissions to maintenance. Customer requirement analysis, site assessment, weather monitoring, structural design, calculation of power generation capability, equipment selection, engineering design, and 3D modelling of the proposed solar power plant are all included in the engineering design.
Global Solar Engineering, Procurement, and Construction Market Dynamics
Growing Focus On Renewable Energy Sources and Positive Clean Energy Outlook
Growing emphasis on renewable energy sources, as well as the positive clean energy outlook as a result of carbon dioxide (CO2) emissions from the combustion of fossil fuels and concern about reducing greenhouse gas emissions, are expected to drive the demand for solar engineering procurement and construction (EPC). Moreover, growing number of projects utilizing renewable energy sources is propelling the market. For example, in July 2020, a 750 MW solar plant was commissioned in Madhya Pradesh. The Rewa Ultra Mega Solar Power consists of three solar producing units, each having a capacity of 250 MW.
Rising Concerns for Fuel Demand
The global solar EPC market as gained significant momentum, owing to the ongoing discussion over environmental degradation. Significant growth in consumer environmental concerns, as well as the implementation of different rigorous rules to reduce greenhouse gas (GHG) emissions, drove organizations to implement effective energy saving techniques such as solar EPC. Significant changes and improvements, as well as increased cost-competitiveness, are expected to have a favorable impact on market dynamics in the future years.
Issues Related to Land Acquisition, Engineering, Supply Chain, Site Operations, and Liaising
Issues related to land acquisition, engineering, supply chain, site operations, and liaising are expected to hinder the global solar EPC market during the forecast period. Every project is unique and, to some extent, necessitates novel ideas and techniques, both on technical and operational fronts. Innovative engineering techniques and procedures help to speed up the project setup. In order to build a novel engineering system, EPC players require extensive geotechnical data, availability of solar resources, and ambient conditions. Appropriate completion as the project schedule is vastly overlapping while the implementation is driven by a lean team is a major challenge.
Growing Demand for Electricity
Global power consumption expanded significantly as a result of economic development and population growth. Rising living standards and infrastructural development are driving the demand for power generation. For example, China's power demand climbed by 4.5 percent in 2019 compared to 2018. In order to accommodate the rising demand, most nations are building new solar power facilities or expanding the capacity of existing ones.
This is expected to promote the expansion of the solar power sector, which is projected to create opportunities for players in the solar engineering procurement and construction market growth during the forecast period.
Increasing Investment in Solar Energy
Several corporations are installing renewable energy facilities as a result of environmental laws. Several countries are focusing on environment-friendly power generation options in order to minimize carbon emissions. Solar energy is one of the most affordable renewable energy sources. As a result, several governments are investing considerably in solar energy. For example, Asia Pacific deployed more than 67 GW of new solar projects in 2019. As a result, such a spectacular yearly installation of solar capacity benefits global industry growth. Increasing investment in solar energy is expected to create opportunities for the players in the solar EPC market.
The global solar engineering, procurement, and construction market is segmented on the basis of product, technology, end-user, and regions.
In terms of product, the global solar engineering, procurement, and construction market is segmented into ground mounted and rooftop. The rooftop segment is anticipated to account for a substantial share of the market and expand at a significant CAGR due to the increasing installation of rooftop units throughout residential and commercial premises in the current industrial environment.
Based on technology, the global solar engineering, procurement, and construction market is bifurcated into concentrated solar power and photovoltaic. The photovoltaic segment held a considerable share of the market in 2020 and this trend is anticipated to persist during the forecast period owing to the ongoing reforms and expansion across the energy industry.
In terms of end-user, the global solar engineering, procurement, and construction market is segmented into commercial, industrial, residential, and utility. The residential segment held a considerable share of the market in 2020 and is projected to account for a substantial share of the market during the forecast period owing to the favorable regulatory environment, technical advancement, and several reforms such as feed-in tariff, subsidies, and incentives for grid-tied installations along with the continuous development and integration of effective operating technologies.
Based on regions, the global solar engineering, procurement, and construction market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America held a significant share of the market in 2020 and is anticipated to expand at a substantial CAGR during the forecast period due to the increasing investment in renewable energy sources and favorable government policies in the region is expected to boost the regional market during the forecast period.
The Asia Pacific market is expected to expand significantly for solar engineering, procurement, and construction (EPC) during the forecast period. The region's demand is anticipated to be driven by some of the fastest-growing economies and the rising demand for energy and power engineering procurement and construction (epc) to meet the region's growing population and industries.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the global solar engineering, procurement, and construction market
- Historical, Current and Projected Market Size in terms of Value and Volume
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Global Solar Engineering, Procurement, and Construction Market Performance
- Concentrated Solar Power
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
Key Market Players Profiled in the Report
- Candian Solar
- BELECTRIC Solar & Battery Holding GmbH
- Becthel Corp.
- Alsa Solar System LLC
- Adani Group
- Abudant Solar Energy
- Blattner Energy
- ENERPARC AG
- Sterling and Wilson Pvt.Ltd.
- Q Cells
- Juwi AG
- Black and Veatch Holding Co
- Renewable Energy System Ltd.
- DEPCOM Power
- First Solar
- Greenspark Solar
- STRATA SOLAR
- Swinerton Renewable Energy (SOLV Energy)
- Hild Energy Pvt. Ltd.
- Top players in the market include Candian Solar; BELECTRIC Solar & Battery Holding GmbH; Becthel Corp.; Alsa Solar System LLC; Xylem; Adani Group; Abudant Solar Energy; Blattner Energy; ENERPARC AG; Enviromena; Sterling and Wilson Pvt.Ltd.; Q Cells; Juwi AG; Black and Veatch Holding Co; Renewable Energy System Ltd.; DEPCOM Power; First Solar; Greenspark Solar; STRATA SOLAR; Swinerton Renewable Energy (SOLV Energy); and Hild Energy Pvt. Ltd.
- These companies are considered as key EPC contractors’/ service providers of solar energy modules based on their revenue, product offerings, regional presence, and supply chain management system.
- The players are adopting key strategies such as acquisition, collaborations, and geographical expansion where potential opportunity for the Solar Engineering, Procurement, and Construction market.