Power EPC Market Forecasts to 2028 – Global Analysis By Power Generation (Thermal, Hydroelectric, Nuclear and Renewables), Equipment (Boilers, Control Systems, Gas Turbines and Other Equipments), Power Status (Transmission and Distribution) and By Geography
According to Stratistics MRC, the Global Power EPC Market is accounted for $131.9 billion in 2022 and is expected to reach $178.8 billion by 2028 growing at a CAGR of 5.2% during the forecast period. Power On large-scale, intricate energy infrastructure projects, the construction of power generation, transmission, and distribution projects is undertaken under the terms of an EPC contract. Engineering, procurement, and commissioning are referred to as EPC. Engineering and procurement involve developing a project's detailed engineering plan and acquiring all the tools and raw materials required. Engineering functions, including basic, advanced, planning, and construction engineering, are some of the topics covered by EPC contracts. Construction activities include electrical, civil, and mechanical tasks, while procurement activities include logistics support, receiving, procurement, invoicing, and purchasing.
According to Information and communication technologies (IEA), the share of renewables in global electricity production was 23.9% in 2017 and is expected to reach 29.4% by 2023.Market Dynamics:Driver:
Expanding contract business to drive market growth
The increased spending on creating facilities that use renewable energy sources and the continuing demand for non-renewable energy sources, which recently accounted for the majority of power generation, are two factors contributing to the projected growth of the global power EPC market. The demand for a consistent energy supply is being driven by rising digitalization and increased reliance on power-run devices in industries like healthcare, building construction, food, and apparel, among others. Due to their knowledge of the top suppliers of raw materials, labor, and subcontractors on the market, along with their easy access to specialized technological resources and human resources, EPC contractors produce better results and are more frequently chosen for major investments.Restraint:
Fluctuating oil & gas prices
During the forecast period, the decline in crude oil prices will be a significant obstacle for the power EPC market. When it comes to generating electricity, biomass is a sustainable alternative to fossil fuels. Biomass is favored over many other energy sources due to the abundance of its feedstocks. Additionally, the pricing of non-renewable energy sources is very susceptible to outside influences and presents a challenge for the expansion of the global power EPC market because it affects the project's overall cost, which is typically predetermined in EPC contracts and results in losses for contractors.Opportunity:
Rising need for power
The demand for power plant EPC is rising as a result of the increased demand for electricity on a global scale. Additionally, global urbanization and industrialization have increased the need for electricity generation, which is anticipated to fuel the global power plant EPC market over the course of the forecast period. Additionally, it is predicted that advancements in digital technologies, gas turbines, and renewable energy sources will boost investments in the global power generation industry. As a result, it is going to fuel the global EPC market for power plants during the forecasted timeframe.Threat:
Phasing out coal based energy
While growing investments in wind energy are predicted to offer excellent growth opportunities, the phase-out of coal based power may limit global market growth. Additionally, the expansion of the global market may be hampered by the fluctuating price of oil and gas.
Due to the lockdown restrictions, the COVID-19 pandemic had a significant negative impact on the world market. A rise in fuel prices, including those for oil and gas, which increased the cost of transportation and construction, caused a further decline in the global market in 2021. Companies' activity and mobility slow down, and there is a reduction in the demand for energy globally as a result of the workforce's decreased availability and productivity, whether as a result of direct illnesses or as a result of imposed or encouraged social isolation measures. The availability of manpower caused delays in completing projects on schedule. But over the long term, barring a few obstacles, the global market might experience rapid growth.
The steam turbines segment is expected to be the largest during the forecast period
During the forecast period, steam turbines are anticipated to hold the largest market share. Because of their dependability, reduced vibrations, and capacity for high output power, steam turbines are widely used. Additionally, steam turbines require fewer parts, which reduces their reliance on outside resources for energy production. Consequently, steam turbines have a high power-to-weight ratio, making them effective tools for generating energy, which is expanding the market.
The renewables segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the renewable energy segment is anticipated to grow at the highest CAGR. Renewable energy sources have made significant advancements in recent years. The capacity of renewable energy increased by 9.1% by the end of 2021, reaching 3,064 gigawatts (GW), the fastest annual growth since the 1970s. Two-thirds of the increase in renewable energy is primarily driven by the global capacity for producing renewable energy, with the exception of large hydropower, solar PV, and wind. In 2021, China alone accounted for almost half of the increase in renewable electricity globally, followed by the US, the EU, and India, driving segmental growth throughout the forecast period.Region with largest share:
During the forecast period, Asia-Pacific is anticipated to dominate the market. As a result of the continent's rapid industrialization and population growth, millions of new users will have access to electricity in the future, driving up power consumption across the continent. The movement is anticipated to continue for the anticipated period, primarily in nations like China, India, South Korea, and Japan, due to the growth of industrialization and technology in the region. Spending on renewable energy is rising, with China leading the way, followed by Japan and India. The energy industry is changing course by switching to cleaner, more sustainable energy sources in order to reduce carbon emissions, with China leading the region's power EPC market. These elements promote market expansion in the area.Region with highest CAGR:
Due to its abundant resources and the substantial investments made in power generation EPC projects by governments in nations like China and India, the Asia-Pacific region dominates the global market, which is projected to expand at a profitable rate during the forecast period. Asia-Pacific is home to 60% of the world's major cities and more than 50% of its total population. India and Japan are the next two countries with significant investments in renewable energy facilities. During the anticipated time, the trend is expected to persist, especially in nations like China, India, Japan, and South Korea.
Key players in the market
Some of the key players profiled in the Power EPC Market include ABB Ltd, Bechtel Corporation, Doosan Corp, Eaton Corporation PLC, Fluor Corp., General Electric Company, Hindustan Construction Co. Ltd., John Wood PLC, KBR Inc., Kiewit Corporation, Larsen & Toubro Limited, McDermott International Inc., Saipem SpA, Schneider Electric SE, Siemens Energy AG, Sterlite Power Transmission Ltd. and Tata Sons Pvt. Ltd.Key Developments:
In March 2023, Fluor Corporation announced that the company sold its AMECO South America business, which includes assets in Chile and Peru, to STRACON Group, a diversified strategic partner to the mining sector in the Americas. This transaction marks the completion of the AMECO divestiture which was a strategic initiative to allow Fluor to focus on its core businesses and capital priorities.
In January 2023, Bechtel announced the completion of the Cutlass Solar project in Fort Bend, Texas. The solar photovoltaic project added 140 MWDC to the Electric Reliability Council of Texas’ Houston Zone, enough to power approximately 20,000 homes with zero-carbon electricity and eliminate 300,000 metric tons of CO2 emissions.
In December 2022, Bechtel has been selected to build a 272 MWdc solar facility for Sabanci Renewables, Inc. in Fort Bend County, Texas. The Fort Bend facility will be the first utility-scale solar project in the United States for Sabanci Renewables, Inc., a subsidiary of Sabanci Holding, one of Turkey’s leading companies. Sabanci Renewables will own and operate the facility.
Power Generations Covered:
• Control Systems
• Gas Turbines
• Steam Turbines
• Other Equipments
Power Status Covered:
• North America
o Rest of Europe
• Asia Pacific
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o South Africa
o Rest of Middle East & AfricaWhat our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements