Power Engineering, Procurement & Construction (EPC) Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The Power Engineering, Procurement, & Construction (EPC) market size was estimated at USD 696 billion in 2023 and is projected to reach USD 958 billion in 2030 at a CAGR of 4.67% during the forecast period 2023-2030.

Power engineering, procurement and construction (EPC) is a type of contract used to undertake the construction of power generation, transmission and distribution projects. EPC stands for engineering, procurement and construction. Engineering involves the detailed design of a project, including the selection of equipment and materials, and the preparation of construction drawings and specifications. Procurement involves the identification and acquisition of all the equipment and materials necessary to complete the project. Construction involves the actual construction of the project, including the erection of building and structures, the installation of equipment, and the commissioning of the project.

EPC contracts are typically used for large-scale and complex power projects, as they allow the client to outsource the entire projects, as they allow the client to outsource the entire project to a single contractor. This can save time and money, and it can also help to ensure that the project is completed on time and within budget.

There are various benefits to EPC contracts such as single point of responsibility, increased efficiency and reduced risk. However, there are certain drawbacks as well including, increased cost, less flexibility and increased risk of delays. Overall, EPC contracts can be a good option for clients who are looking to build a large-scale and complex power project.

The power engineering, procurement and construction (EPC) market can be segmented by power generation into thermal, hydroelectric, nuclear, and renewables. It can be segmented based on equipment into steam turbines, gas turbines, boilers, control systems, generators, others and based on region into North America, Europe, Asia-Pacific, Middle East and Africa and South America. The market is driven by the increasing demand for electricity generation and energy consumption, as well as the changing power generation industry dynamics.

The Power EPC market is facing some challenges, such as the increasing competition from local players, the rising cost of raw materials, and the shortage of skilled labour. However, the market is expected to grow in the forecast years due to increasing demand for electricity generation and power consumption.

The COVID-19 pandemic significantly impacted the market as growth declined due to the lockdowns imposed. Commodity prices for fossil fuels (including oil, natural gas, and coal) declined due to decreased demand globally, and limitations in personnel mobility slowed project development and implementation of new energy infrastructure across the globe.

Delvens Industry Expert's Standpoint

The growth of the power EPC market is being driven by factors such as the increased demand for renewable energy sources such as solar and wind and the growing trend of privatization of power utilities. Moreover, the increasing focus on energy efficiency is creating new opportunities for the power EPC market. In addition to that, the rising demand for smart grid technologies is also contributing to the growth of the market. However, the rising cost of raw materials and the shortage of skilled labour can act as a barrier to the growth of the market during forecast period.

Market Portfolio

Key Findings

• Based on power generation, the market is segmented into thermal, hydroelectric, nuclear and renewables. The thermal segment is the largest segment followed by the hydroelectric segment. Thermal power plants are the most common type of power plant in the world. They use fossil fuels, such as coal, natural gas, and oil, to generate electricity. Thermal power plants are mature technology, and they are relatively efficient. The renewables segment is expected to grow at the fastest pace during the forecast period. Renewable energy sources, such as solar and wind, are becoming increasingly popular as they are a clean and sustainable source of electricity, but they are also intermittent.
   
• Based on equipment, the market is segmented into steam turbines, gas turbines, boilers, control systems, generators and others. The turbine segment is the largest segment, followed by the generators segment. The turbines segment is expected to grow at the fastest pace during the forecast period, driven by the increasing demand for renewable energy sources, such as solar and wind.
   
• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. Asia Pacific is the largest market for power EPC, followed by North America and Europe. The growth of the power EPC market in Asia-Pacific is being driven by the rapid economic growth in the region, urbanization and commercialization which is leading to an increase in the demand for electricity.

Regional Analysis

Asia Pacific to Dominate the Market

• Asia Pacific is estimated to account for the largest market share during the forecast period. The increasing demand for power along with rapid population growth and industrialization is driving the growth of the market.
   
• China dominates the power EPC market in the region, and the energy sector is transitioning towards a cleaner and sustainable energy source to reduce carbon emission and achieve net zero carbon emission.

Competitive Landscape

• Fluor Ltd
• John Wood PLC
• Kiewit Corporation
• McDermott International Inc.
• Bechtel Corporation
• Saipem SpA
• Larsen & Toubro Limited
• KBR Corp.
• ERGIL
• Tekfen Holding
• Tecnimont
• Sime
• Flexitallic
• General Electric Company
• Siemens Energy AG
• ABB Ltd
• Doosan
• Clarke Energy
• Anesco
• Prado Power

Recent Developments

• In June 2022, Tata Power Solar Systems commissioned an engineering, procurement, and construction (EPC) project of 66 megawatts (MW) for Vibrant Energy. This project will generate 110,029 units of energy annually and a reduction of carbon emissions by up to 9 lakh tonnes.
   
• In May 2022, Mitsubishi Heavy Industries Ltd (MHI) and the SEPCOIII consortium signed an agreement with Aluminium Bahrain BSC (Alba) to expand Power Station 5 at Alba, adding a new 680.9 megawatts (MW) Combined Cycle Gas Turbine Power Block.

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
   
• Gain authentic and granular data access for the Power Engineering, Procurement, & Construction (EPC) Market to understand the trends and the factors involved in changing market situations.
   
• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.
   
• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope