The Global Power Plant EPC Market is predicted to progress valued at USD 129.2 billion in the year 2022 and is foreseen to reach a valuation of USD 158.6 billion by the end of the year 2028, with a CAGR of 3.60% over the outlook period 2023-2028.
The word EPC refers to "Engineer, Procurement, and Construction". The key to this concept is that one organization, namely the contractor, supports virtually every aspect of the project and provides a single point of communication and responsibility for the owner. The use of EPC contracts in the power generation sector has evolved constantly in recent years due to the tremendous changes that are taking place in the business and technology areas of this industry. Almost all power generation projects use EPC contracts. All projects must be time-bound to be profitable; however, the market still suffers inherent delays for a variety of reasons, especially for larger and more complex projects that are delayed due to land acquisition complications or environmental remediation issues.
MARKET TRENDS
Countries are highly concerned about energy supply and are investing heavily in the power generation sector. With rising economic and population expansion, the call for more power generation continues to increase, and therefore the power generation sector attracts huge investments worldwide. The high stakes in the electricity sector will explode the EPC market in the power generation sector.
MARKET DRIVERS
Defects, delays, and failure to meet performance requirements can have serious consequences in terms of lost income. Certain performance failures can even make plant operation impossible, such as failure to meet minimum required noise or emission levels. The remedies/penalties available to the owner for these breaches must be adequate to offset the losses incurred, thereby increasing the demand for the EPC market. The call for power plants EPC is increasing worldwide, due to the rising call for electricity in the world. The expansion of urbanization and industrialization around the world has increased the call for power generation, which is supposed to drive the worldwide power plant EPC market during the outlook period. Additionally, advances in gas turbines, renewable energy, and digital solutions are likely to drive investment in the worldwide power generation industry. This, in turn, is expected to fuel the global power plant EPC market over the conjecture period.
MARKET RESTRAINTS
Due to growing environmental awareness, there has been a rising concern related to the use of coal as an energy source because it produces a considerable amount of carbon dioxide which is responsible for the greenhouse effect.
MARKET OPPORTUNITIES
EPC contracts for renewable energy production sources are escalating because they are environmentally friendly and do not deplete natural resources. Population expansion and urbanization have increased the call for electricity. Additionally, increased industrial development around the world has stimulated the call for electricity. Investments in the power generation sector in several countries are rising to meet the call for power in those countries. This, in turn, is estimated to drive the global power plant EPC market over the outlook period.
REPORT METRIC |
DETAILS |
Market Size Available |
2022 – 2028 |
Base Year |
2022 |
Forecast Period |
2023 - 2028 |
CAGR |
3.60% |
Segments Covered |
By Type, Equipment, and Region. |
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
Market Leaders Profiled |
Saipem, WorleyParsons, SK Engineering and Construction, Technip, Hyundai Heavy Industries, Samsung Engineering, Fluor, CBandI, Petrofac and NPCC, and Others. |
Market Segmentation:
Thermal energy sources will be the fastest-growing segment. It is believed to be growing due to its low carbon emissions, low manufacturing cost, and excessive efficiency in nuclear power plants. Combined cycle power sources are estimated to continue to be the most widely employed thermal power plants and are expected to have the largest share in power plants and in power distribution, by 2025, in the world. More efficient automation such as ultra-surface coal automation also reduces the amount of pollution, restores old power plants, and becomes a market opportunity.
Asia-Pacific is estimated to be the dominant region in the power plants EPC market. Due to the development of industrialization and technology in the area, it is estimated that the movement will continue for the predicted period, generally in countries such as China, India, South Korea, and Japan. China is experiencing an increase in spending on sustainable energy sources, followed by Japan and India. The Middle East, Africa, and Latin America are supposed to be captivating areas of the all-inclusive power plant market throughout the foreseen period. The market in these areas is growing at a remarkable rate. Saudi Arabia has declared a plan to create the world's highest solar energy activity, worth $ 200 billion, that would end the country's dependence on oil. This solar power plant would distribute enough electricity not only to Saudi Arabia but to much of the Middle East. The market in North America and Europe is likely to develop in a depressed stage during the foreseen period. The market in North America and Europe is developed and therefore spending is predicted to be low in the coming years.
Asia-Pacific leads the worldwide market due to the resources of this region and the governments of countries such as India and China are investing heavily in power generation EPC projects. The trend is predicted to continue during the foreseen period, especially in countries such as China, India, Japan, and South Korea. China has significant investments in renewable energy plants, followed by India and Japan. The Middle East, Africa, and Latin America are expected to be attractive regions of the global power plant EPC market during the conjecture period. The market in these regions is developing at a steady pace. The North American and European markets are foreseen to develop at a slow pace during the envisioned period. The North American and European market is mature and therefore likely to experience low investment in the near future.
The ongoing human tragedy of the coronavirus pandemic is having a rapid and profound impact on livelihoods and businesses, around the world and, of course, in all sectors without exemption from the power. Although it is difficult to speculate on the course of the evolution and the promising recovery of the declared pandemic, considering some of the possible effects on the sector in the long term. Human and economic impacts are closely related and have manifested themselves in multiple ways. The reduction in the availability and productivity of the workforce, either due to direct diseases or due to imposed or recommended social distancing measures, induces a slowdown in the activity and mobility of companies and a relaxation of the worldwide call for energy. In the short term, the weakness of the commercial activity entails a decrease in the consumption of energy and electricity, at least in the sectors of activity, if not so much in the residential sector, such as school closings and work-from-home practices partially displacing call for electricity from companies to the residential sector.
Market Key Players:
Some of the major players operating in the Global Power Plant EPC Market are
Market Recent Developments:
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