20-Sep-2022 | Facts and Factors
According to Facts and Factors, the global power EPC market size was worth around USD 654.5 billion in 2021 and is predicted to grow to around USD 848.7 billion by 2028 with a compound annual growth rate (CAGR) of roughly 4.9% between 2022 and 2028.
Power EPC refers to engineering, procurement, and construction contracts related to power development with the help of multiple sources including renewable and non-renewable raw materials. EPC contracts are turnkey contracts where the entire aspects of a project from the initial phase of the development to the creation of the final facility, ready for operation, are handled by an external consultant or a contractor that is entirely responsible for building the desired units as per client requirements. These facilities are different from build-to-order units that are specific to client requirements and can be modified. However, in EPC contracts, the contractor becomes responsible for the entire project development once the contract is signed, and only after the completion of the project, it is handed over to the client. The contractor carries out facility creation at a prefixed cost and a deadline. EPC contracts allow the contractor to have more authority over decisions pertaining to subcontractors and the design of the project. Since the risks associated with these contracts are a part of the contractor's liabilities, they can control the final cost of construction.
Browse the full “Power EPC Market Size, Share, Growth Analysis Report By Power Generation (Nuclear, Hydroelectric, Renewables, and Thermal), By Power Status (Transmission, and Distribution), and By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2022 – 2028" report at https://www.fnfresearch.com/power-epc-market
Covid-19 resulted in a lowered revenue during the peak of the pandemic which was majorly owing to the problems associated with procurement of raw materials, unavailability of essential human resources, along with delays in the launch of new projects.
The global power EPC market is projected to grow owing to the rising investment toward developing facilities that use renewable sources of energy and the ongoing demand for non-renewable sources of energy, which up until a few years ago have been solely responsible for a major share of power generation. Growing digitalization and higher dependence on power-run devices in healthcare, building construction, food & clothing, along with other essential sectors are propelling the demand for constant energy supply. The growing population, which is currently over 7 billion, is a major contributor to the rise in demand for energy. EPC contracts are preferred over other forms of facility creation since it utilizes the expertise of contractors to create a unit that allows more efficient output in comparison to a company that lacks the necessary resources. Since contractors functioning with the EPC model are aware of the best in the market subcontractors, raw material vendors, and cost-effective procurement channels, which is coupled with high accessibility to specific technological tools and human resources, EPC contractors deliver better results and are more preferred for large-scale investments.
The phasing out of coal-based power may restrict the global market growth whereas growing investments in wind energy are projected to provide excellent growth opportunities. The fluctuating oil & gas prices could challenge the global market expansion
The global power EPC market is segmented based on power status, power generation, and region.
Based on power status, the global market is divided into transmission and distribution. The global market generates the highest revenue from the transmission segment since transmission lines generally require high investment and providers incorporate third-party to help them build the unit. For instance, out of 20,000 circuit miles transmitting high power lines, the operation of over two-thirds is undertaken by utilities owned by investors.
Based on power generation, the global market is divided into nuclear, hydroelectric, renewables, and thermal. Currently, the global market is dominated by thermal sources of power generation however, renewables are projected to lead the global market growth in the next few years owing to the efficiency achieved in delivering the required units of power supply. As per a July 2022 report by World Economic Forum, India’s investment in renewable energy reached a record landmark with a total of USD 14.5 billion in the financial year 2020-2021.
Asia-Pacific is projected to generate the highest revenue in the global power EPC market owing to rising investments in the renewable sector. India's investment in renewable sources of power generation in the financial year 2021-2022 went up by 125% as compared to the FY 2020-2021. Countries like Japan, China, India, and neighboring regions that are working toward becoming dominant nations in the next few years are investing heavily in power generation by collaborating with domestic players along with international investors may lead to a high regional market share. The Middle East is an extremely important revenue-generating region for the global market owing to the dominating oil & gas sector in middle-eastern countries. Some of the top power EPC companies operating in the gulf area include Larsen & Toubro Hydrocarbon Engineering with the most noteworthy contract with the Kuwait Oil Company and an estimated value of USD 720 million.
Report Scope
Report Attribute |
Details |
Market Size in 2021 |
USD 654.5 Billion |
Projected Market Size in 2028 |
USD 848.7 Billion |
CAGR Growth Rate |
4.9% CAGR |
Base Year |
2021 |
Forecast Years |
2022-2028 |
Key Market Players |
McDermott International Ltd, Bechtel Corporation, Fluor Corp., Kiewit Corporation, KBR Inc, and others. |
Key Segment |
By Power Generation, Power Status, and Region |
Major Regions Covered |
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa |
Purchase Options |
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The global power EPC market is dominated by players like McDermott International Ltd, Bechtel Corporation, Fluor Corp., Kiewit Corporation, and KBR Inc.
Recent Developments:
- In November 2021, China National Chemical Engineering (CNCE), and National Petroleum Construction Company (NPCC), initiated the signing of a memorandum of understanding (MoU) to enhance cooperation to explore opportunities in the oil & gas sector in the United Arab Emirates (UAE)
- In May 2021, HyDeal España announced its partnership with four EPC firms, namely Técnicas Reunidas, TSK, Vinci Construction, and PowerChina Guizhou.
The global power EPC market is segmented as follows:
By Power Generation
- Nuclear
- Hydroelectric
- Renewables
- Thermal
By Power Status
- Transmission
- Distribution
By Region
- North America
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic Countries
- Benelux Union
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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