EPC (Engineering, Procurement, and Construction) Market Outlook

According to the report by Expert Market Research (EMR), the global EPC (Engineering, Procurement, and Construction) market size was a value of USD 837.78 billion in 2024. Aided by the increasing demand for infrastructure development, energy projects, and the growing application of EPC services across various industries, the market is projected to grow at a CAGR of 3.20% between 2025 and 2034 to reach a value of USD 1,112.4 billion by 2034.

The EPC model is a project delivery method in which a contractor is responsible for engineering, procurement, and construction activities under a single contract. This approach ensures streamlined communication, cost efficiency, and timely completion of complex projects, making it a preferred method for large-scale developments. EPC is widely utilised in industries such as energy, oil and gas, infrastructure, and manufacturing.

The rising demand for infrastructure development, particularly in emerging economies, is driving the global EPC (Engineering, Procurement, and Construction) market. Rapid urbanisation and industrialisation have increased the need for transportation networks, utilities, and housing developments, prompting governments and private entities to invest in EPC services. Furthermore, the global shift towards renewable energy sources has spurred demand for EPC contracts in solar, wind, and hydropower projects.

Key Drivers of the Market

The global EPC (Engineering, Procurement, and Construction) market growth is significantly bolstered by advancements in the energy sector. The increasing focus on energy transition and decarbonisation has created substantial opportunities for EPC contractors in the renewable energy space. Projects in solar and wind farms, energy storage systems, and green hydrogen facilities are gaining traction, reflecting a growing demand for sustainable infrastructure.

Additionally, the oil and gas industry continues to represent a significant portion of EPC activity. The need for refinery upgrades, petrochemical facilities, and LNG terminals is driving investments in EPC projects, particularly in regions rich in hydrocarbon resources such as the Middle East and North America. The ability of EPC contractors to handle complex, large-scale projects positions them as essential players in this sector.

The infrastructure sector is another major contributor to the EPC (Engineering, Procurement, and Construction) market. With increasing urbanisation, governments worldwide are prioritising infrastructure projects, including highways, railways, airports, and smart cities. These initiatives are creating a robust pipeline of EPC contracts aimed at meeting the growing demand for efficient and sustainable infrastructure.

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Technological Innovations Enhancing Efficiency

The integration of advanced technologies is revolutionising the EPC (Engineering, Procurement, and Construction) market, enhancing project efficiency and transparency. Building Information Modelling (BIM), digital twins, and Artificial Intelligence (AI) are increasingly being adopted to streamline project planning and execution. These technologies enable real-time monitoring, predictive maintenance, and cost optimisation, ensuring that projects are delivered within stipulated timelines and budgets.

Furthermore, modular construction techniques are gaining traction, particularly in the energy and industrial sectors. Modularisation allows components to be prefabricated off-site and assembled on-site, reducing construction timelines and improving quality control. This approach is particularly advantageous for remote and challenging environments, where traditional construction methods face logistical hurdles.

EPC (Engineering, Procurement, and Construction) Market Segmentation

The market can be divided based on type, application, marketing channel, and region.

Market Breakup by Type

  • Engineering
  • Procurement
  • Construction
  • Design
  • Others

Market Breakup by Application

  • Chemicals
  • Power
  • Oil and Gas
  • Industrial
  • IT and Telecom
  • Roads, Railways, and Bridges
  • Airports and Ports
  • Building Construction
  • Others

Market Breakup by Marketing Channel

  • Offline Channel
  • Online Channel

Market Breakup by Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East and Africa

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and acquisitions and mergers, among other major developments, of the global EPC (Engineering, Procurement, and Construction) companies. Some of the major key players explored in the report by Expert Market Research are as follows:

  • China State Construction Engineering Corporation Ltd.
  • Fluor Corporation
  • Prokon Engineering and Consulting Inc.
  • Tekfen Holding A.Ş.
  • Maire Tecnimont S.p.A.
  • SAIPEM SpA
  • Swinerton Incorporated
  • Samsung Engineering Co. Ltd
  • Larsen Toubro Limited
  • TechnipFMC plc
  • Wood plc
  • GS Engineering Construction Corporation
  • Others

Challenges and Opportunities

While the EPC (Engineering, Procurement, and Construction) market is poised for growth, it faces several challenges. Cost overruns and project delays remain key concerns, often stemming from inadequate planning, supply chain disruptions, and unforeseen complexities during execution. These factors can impact profitability and deter investment in large-scale projects.

Additionally, the industry is grappling with labour shortages and a lack of skilled professionals, particularly in highly specialised areas such as renewable energy and advanced manufacturing. However, increasing investment in training and upskilling programs is expected to address this gap over the forecast period.

Opportunities abound in digital transformation and technological advancements within the EPC industry. The adoption of Building Information Modelling (BIM), artificial intelligence (AI), and Internet of Things (IoT) technologies is revolutionising project management and execution. These tools enable real-time monitoring, predictive maintenance, and enhanced decision-making, thereby improving project efficiency and reducing risks.

Future Outlook

The global EPC (Engineering, Procurement, and Construction) market is poised for sustained growth, driven by rising infrastructure investments, the transition to renewable energy, and advancements in construction technologies. The focus on sustainability and ESG compliance is expected to reshape project priorities, with an increasing emphasis on green construction practices and community engagement.

EPC firms are likely to adopt more collaborative and integrated approaches, leveraging digital tools and data analytics to optimise project outcomes. The adoption of contract models such as integrated project delivery (IPD) and public-private partnerships (PPPs) is also expected to gain traction, enabling risk-sharing and fostering innovation.

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