Power Engineering, Procurement, & Construction (EPC) Market, by Power Generation (Thermal, Hydroelectric, Nuclear, and Renewables), By Equipment (Steam Turbines, Gas Turbines, Boilers, Control Systems, Generators, Others), and region (North America, Europe, Asia-Pacific, Middle East and Africa and South America).
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.
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.
Asia Pacific to Dominate the Market