Global EPC (Engineering, Procurement, and Construction) Market Report and Forecast 2024-2032

Global EPC (Engineering, Procurement, and Construction) Market Size

The global EPC (Engineering, Procurement, and Construction) market reached a value of approximately USD 837.78 billion in 2023. The market is projected to grow at a CAGR of 3.20% between 2024 and 2032, reaching a valuation of around USD 1,112.4 billion by 2032.

EPC (Engineering, Procurement, and Construction) Market Outlook

• According to OFNS, in Greater Britain, new orders for construction surged by 15.9% in Quarter 1 2024 versus Quarter 4 2023.

• According to U.S. BLS, the number of establishments in private buildings was 293,411 in the 3rd quarter of 2023.

• According to EPC (engineering, procurement, and construction) market analysis, in March 2024, the total investment in building construction was USD 20.4 billion.

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EPC (Engineering, Procurement, and Construction) Market Growth

The growth in the EPC (engineering, procurement, and construction) sector is rising due to the adoption of sophisticated project management software, including AI-driven analytics and real-time monitoring systems, optimising resource allocation, scheduling, and risk management.

Investments in transportation, utilities, and smart city projects drive demand of EPC (engineering, procurement, and construction) market to upgrade ageing infrastructure, enhance resilience, and incorporate digital technologies for efficient operation and maintenance. According to ABS, in March 2024, the total construction work done was USD 64,032.5m and the engineering work done was USD 30,717.4m.

Key Trends and Recent Developments

Modular construction, remote monitoring and control, lean construction practices, and resilience and risk management are the major trends impacting global EPC (engineering, procurement, and construction) market growth.

April 16, 2024

The CSCEC concluded the development of 7,000 social housing units in the Maldives, marking the largest affordable housing project undertaken in the country and addressing the longstanding demand for economical housing.

April 3, 2024

Samsung E&A secured a significant USD 6 billion Aramco Fadhili Gas Project to boost the Fadhili Gas Plant's capacity in Saudi Arabia, increasing daily gas processing from 2.5 billion to 3.8 billion cubic feet.

February 28, 2023

L&T Heavy Engineering became the first Indian company to attain ISO 19443:2018 Certification, highlighting its commitment to quality and safety in the nuclear supply chain and bolstering its position in both global and national nuclear reactor manufacturing.

June 24, 2021

The joint venture between Tekfen Construction and HMB Hallesche Mitteldeutsche Bau AG commenced construction of the Sulphur Recovery Unit at Tupras's Kirikkale Refinery. The EPC project, valued at USD 53.9 million, was scheduled for completion by late 2024.

Modular Construction

Adopting modular construction techniques, including prefabrication and off-site manufacturing, accelerates project delivery and reduces construction timelines. Modularisation enhances quality control, safety, and cost-effectiveness in EPC projects.

Remote Monitoring and Control

Advancements in remote monitoring and control technologies enable real-time monitoring of project progress, equipment performance, and safety conditions, enhancing project visibility, decision-making, and risk management.

Lean Construction Practices

Implementing lean construction principles, like just-in-time delivery, waste minimization, and ongoing enhancement, enhances project workflows and resource allocation, leading to heightened productivity and improved cost-effectiveness. Such practices will eventually aid the EPC (engineering, procurement, and construction) demand growth.

Resilience and Risk Management

Heightened focus on resilience and risk management is prompting companies in the EPC (engineering, procurement, and construction) market to incorporate measures for disaster preparedness, business continuity planning, and supply chain resilience into project design and execution.

EPC (Engineering, Procurement, and Construction) Market Trends

The EPC (engineering, procurement, and construction) market is being driven by the integration of digital technologies such as Building Information Modeling (BIM), Internet of Things (IoT), and Artificial Intelligence (AI) in optimising project planning, design, and execution, leading to improved efficiency, cost savings, and project delivery timelines.

Growing awareness of environmental concerns and regulatory requirements is driving EPC (engineering, procurement, and construction) demand, particularly for sustainable EPC solutions. Incorporating renewable energy sources, energy-efficient designs, and green building materials into projects is becoming increasingly important.

Industry Outlook

According to BASF SE, the production of chemicals worldwide is likely to witness an increase of 2.0 percent in the year 2023. However, on a global basis, there are varied trends for the increase. The European Union is facing a huge setback as it is likely to slide down by 5.2 percent. In the United States, the production of chemicals is likely to drop by 2.0 percent.

In Asia, ex-China, the growth of the EPC (engineering, procurement, and construction) market in the developing nations would be around 1.0%. In China, there could be a significant production surge in chemicals by 5.9%. Japan's growth rate is at 1.0% and South America at 0.9%. Overall, from the aggregate global level, the prospects of chemical production in 2023 seem mixed with dwindling and increasing trends across various regions, based on an analysis by BASF SE.

According to several articles on the industry, from 2015 to 2023 there are major highs and lows in worldwide electricity generation that is somehow affecting the demand in the EPC (engineering, procurement, and construction) market. In 2015, electricity generation was around 24,309 terawatt-hours. In 2016, it rose to approximately 24,952 terawatt-hours. It continued its slight increase in 2017, reaching approximately 25,699 terawatt-hours.

In 2018, electricity generation went even higher to about 26,746 terawatt-hours. The rise continued in 2019, where generation reached about 27,100 terawatt-hours. A slight fall was experienced in 2020, where it dropped to nearly 26,987 terawatt-hours.

In 2021, there was a recovery, with the generation of electricity going back to nearly 28,520 terawatt-hours. The highest surge during this period occurred in 2022 when electricity generation surged to approximately 29,165 terawatt-hours.

In summary, this is the period from 2015 to 2022, with a steady rise for electricity generation, coupled with minor fluctuations in general, as shown by industry publications.

This steep growth in chemical production and electricity generation from 2015 to 2023 provides ample support for growth of EPC (engineering, procurement, and construction) market. Second, with growing industrial activity and infrastructure development in China and other emerging Asian markets, there is a corresponding surge in EPC services to establish and upgrade facilities, thus driving EPC (engineering, procurement, and construction) market growth. This fact is corroborated by data from BASF SE and articles on the industry.

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EPC (Engineering, Procurement, and Construction) Industry Segmentation

“Global EPC (Engineering, Procurement, and Construction) Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Engineering

• Procurement

• Construction

Market Breakup by Application

• Chemicals

• Power

• Oil and Gas

• Manufacturing

• IT and Telecom

• Roads, Railways, and Bridges

• Airports and Ports

• Building Construction

• Others

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

EPC (Engineering, Procurement, And Construction) Market Share

Engineering Segment To Gain Traction By Tailoring EPC Solutions To Meet Each Project's Unique Needs

Engineering professionals assess and mitigate risks throughout the project lifecycle, identifying potential hazards, developing contingency plans, and implementing risk mitigation strategies. Engineers are critical in designing and planning EPC projects to maximise efficiency and optimise resource utilisation.

Effective procurement strategies optimise the supply chain by sourcing materials, equipment, and services from reliable suppliers at competitive prices. This ensures timely delivery of quality resources, minimises project delays and enhances overall project efficiency, pushing the demand of the EPC (engineering, procurement, and construction) industry.

Building Construction Contributes To The Market Share Through Technological Innovations

The growing demand for residential, commercial, and industrial infrastructure worldwide fuels the need for EPC services. Governments and private sector entities invest in construction projects such as highways, bridges, airports, and urban development, driving the demand for EPC services, aiding the EPC (engineering, procurement, and construction) market.

Oil and gas companies invest in exploration and production projects to find new reserves and extract hydrocarbons. EPC firms help by designing, engineering, procuring, and constructing infrastructure like drilling rigs, production platforms, pipelines, and processing facilities needed for these activities.

Industrial and infrastructure development, particularly in emerging markets like Asia, drives demand for EPC services.

• Technological and project management improvements are resulting in better construction efficiency and cost-effectiveness, accelerating the EPC (engineering, procurement, and construction) industry in Asia Pacific.

• More investment in renewable energy projects and investments in smart infrastructure are some of the elements supporting market growth.

• The prevailing global urbanisation and industrialization trends require bulk construction and other engineering infrastructure.

High capital investment and long project cycles can strain financial resources.

• These rigid environmental and safety laws and regulations increase the cost of compliance and operational complexity.

• Volatility in the financial markets and economic ups and downs can affect funding for projects and their duration.

• This means a shortage of skilled labour and its cost increase may influence project execution and profitability, hindering the EPC (engineering, procurement, and construction) industry revenue.

Government initiatives and policies promoting infrastructure development provide significant opportunities.

• Increased focus on sustainability and green construction practices boosts demand for innovative EPC solutions within the EPC (engineering, procurement, and construction) market.

• Inventions, such as BIM and automation, improve the delivery and efficiency of projects.

• Investments by the world in energy transition projects, particularly on renewable energy and smart grids, open up opportunities for EPC services.

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EPC (Engineering, Procurement, and Construction) Market Regional Analysis

The Europe region is the powerhouse behind the global EPC market's growth. This is due to their booming economies with rapid urbanisation and industrialisation, requiring extensive infrastructure development.

According to Eurostat, in July 2023, compared to June 2023, the seasonally adjusted production in the construction sector increased by 0.8% in the euro area and by 0.7% in the EU.

Additionally, being the world's largest energy consumer, APAC constantly needs new power plants and refineries, all projects that rely on EPC services. Government support for infrastructure and renewable energy further fuels the market's growth in this region.

Competitive Landscape

The companies in the EPC (engineering, procurement, and construction) market are a provider of services including oil and gas, infrastructure, construction, aviation, transportation, and others.

Fluor Corporation, established in 1912 in Texas, operates worldwide through subsidiaries, providing infrastructure, oil and gas, and power services, ranking among industry leaders.

Larsen & Toubro Limited, established in 1938 and presently based in Maharashtra, India, goes beyond conventional engineering and construction. Its diverse portfolio includes technology, manufacturing, hydraulics, shipbuilding, valves, and construction and mining equipment.

Saipem SpA, established in 1957 in Italy, excels in energy and infrastructure project engineering, operating through five core business lines: asset-based services, energy carriers, offshore wind, sustainable infrastructures, and robotics.

Mitsubishi Heavy Industries, Ltd., headquartered in Chiyoda-ku, Tokyo, offers various products including energy, aviation, space, transportation, automotive, environment, and others.

Other global EPC (engineering, procurement, and construction) market key players are John Wood Group plc, McDermott International Ltd., Bechtel Corporation, DEPCOM Power, Inc., Petrofac Limited, Blue Ridge Power, Blattner Energy Inc., Quanta Services, Inc., The Shaw Group Inc., Sentry Electrical Group, Inc., and Sinopec Engineering (Group) Co., Ltd., among others.

Competitive Strategies in the Global EPC (Engineering, Procurement, and Construction) Market

The global EPC (engineering, procurement, and construction) market is extremely competitive, ranging from major players such as Fluor Corporation, Bechtel Corporation, TechnipFMC, Saipem, KBR Inc., Hyundai Engineering & Construction Co., Ltd, Jacobs Engineering Group Inc., WorleyParsons Limited, and Larsen & Toubro Limited. Each company has its strengths that will further help in consolidating and increasing the market share, making the landscape dynamic and competitive.

Fluor Corporation

• Heavily invest in project management and technological innovations that raise efficiency and delivery of projects.

• Delivering project execution and customer interaction on digital platforms for operational excellence.

• Expand offerings through services to deliver end-to-end engineering and construction solutions to a broad range of sectors.

• Form strategic partnerships and acquisitions to expand capacity and geographical reach

Bechtel Corporation

• Delivery mega infrastructure and industrial projects using innovative engineering techniques.

• Focus on sustainability by introducing environment-friendly process and materials for all projects.

• Global supply chains and Local partnerships would bring in efficiencies in the way projects are delivered, augmenting the demand of EPC (engineering, procurement, and construction) industry. 

• Utilize digital project management and client collaboration tools that help enhance transparency and productivity.

TechnipFMC

• Boost innovation in subsea, onshore, and offshore projects through a hefty investment in research and development.

• Commitment towards sustainability by working on energy-efficient solutions which will contribute towards a cleaner environment.

• Regional market targeting along with project offerings and contextual solution delivery.

• Strength in digital presence and operational efficiency would be built through advanced technologies and data analytics.

Samsung Engineering

• Investment in continuous innovation and technology for the development of advanced engineering solutions and construction in the EPC (engineering, procurement, and construction) market.

• Growth through entry into new markets and business sectors by increasing its expertise in petrochemicals and infrastructure projects.

• Form strategic alliances and partnerships to improve global presence and project capabilities.

• Effectiveness in using digital tools and platforms in better project management and client engagement.

Saipem

• Engineering of Offshore and Onshore projects with State of the Art Technologies

• View on Sustainability by Integrating Renewable Energy Solutions with a Low Carbon Footprint.

• Diversification of services to an all-inclusive practice of EPC services in varied industries will open up new EPC (engineering, procurement, and construction) industry opportunities.

• Better leverage of digital platforms and data analytics for optimization and customer collaboration in projects. KBR Inc.

• Strategically invest in new technologies and solutions to execute projects more effectively while enhancing operational performance.

• Strategic partnerships and acquisitions to enhance market position and technological expertise.

Hyundai Engineering & Construction

• Large-scale infrastructure and industrial projects that require sophisticated engineering methodology.

• Embracing sustainability by introducing environmentally-friendly processes and materials in construction projects.

• Global expertise combined with local insight for optimal project execution.

• Digital tools and platforms for project management and customer interaction.

Jacobs Engineering Group

• Increased emphasis on sustainable infrastructure and environmental solutions through heavy investment in R&D.

• Entering into reducing ecological impact with eco-friendly practices and materials.

• Targeting regional markets by offering solutions that are relevant to the region and forming local tie-ups.

• Leverage technology further in using digital tools for more effective project management and client collaboration.

WorleyParsons

• New engineering and construction technologies apply to bring in process efficiencies and better project delivery.

• Diversification of the business into energy, chemicals, and resources.

• Delivery on sustainability—implying a large focus on energy efficiency and respect for the environment.

• Use digital platforms and data analytics to optimize projects better and enable greater collaboration with clients to boost EPC (engineering, procurement, and construction) market revenue.

Larsen & Toubro

• Make international investments in comprehensive research and development to open new frontiers in engineering and construction.

• Embrace sustainability through environment-friendly processes and materials adopted in its projects.

• Diversify into newer markets and businesses using the experience and expertise gained in executing infrastructure and industrial projects.

• Create a robust digital platform backed by cutting-edge technologies and data analytics for enhanced operational efficiency.

These are what make each company in the global EPC market very competitive and able to meet the changing requirements of clients while creating innovation and growth.

Key Highlights of the Report

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EPC (Engineering, Procurement, and Construction) Market Report Snapshots

EPC (Engineering, Procurement, and Construction) Market Size

EPC (Engineering, Procurement, and Construction) Market Share

EPC (Engineering, Procurement, and Construction) Market Growth

EPC (Engineering, Procurement, and Construction) Market Trends

EPC (Engineering, Procurement, and Construction) Market Regional Analysis

EPC (Engineering, Procurement, and Construction) Manufacturers