According to the Market Statsville Group (MSG), the global epc market size is expected to grow from USD 7,927.5 million in 2022 to USD 14,286.09 million by 2033, growing at a CAGR of 5.5% from 2023 to 2033. Factors such as real estate growth, the oil and manufacturing industries' growth, and people's desire to seek expert advice for construction projects drive the worldwide EPC market. Furthermore, technological breakthroughs like 3D printing and drone surveillance are expected to help the industry grow even faster. However, the market's growth is being stifled by issues such as a long procurement cycle and increased production, shipping, and investment expenses. Nonetheless, factors such as expanding infrastructure spending, rising energy demand due to a growing population, and real estate growth to supply homes for the growing population are likely to create chances for the EPC industry in the coming years.

Furthermore, the ever-increasing demand for oil and gas for everyday operations and the rise in mining activities have driven corporations to adopt efficient technologies to increase output. As a result, the EPCM market is expected to develop.

Definition of the Global EPC Market

Engineering, Procurement, and Construction (EPC) is a sort of contracting structure employed in certain industries. In EPC, the contractor or the company is responsible for the project's end-to-end completion, from design to raw material procurement to construction to execution to handover to the end-user. The contractor is responsible for finishing the project within the specified time frame, which can be done remotely or on-site at the location.

This method of contracting EPC services is one type of project management that may be used in plant construction. It requires the contractor to deliver the completed (turnkey) construction to the client, such as a tank terminal. Many organizations in the development and infrastructure, renewable energy, and power industries prefer to manage complicated projects using Engineering, Procurement, and Construction contracts.

COVID-19 Impact on the Global EPC Market

During the inception of the COVID-19 pandemic, the global demand for engineering, procurement, and construction market was slightly reduced due to the reduced spending by government and private companies in infrastructure development, which led to cutbacks in service infrastructure. Thus, it can be defined that the recent outbreak of the novel COVID-19 diseases has steadily dropped new smart city networks' deployment, thereby hampering the adoption of such services. Furthermore, the disease has left governments and industrial enterprises throughout the world in an unprecedented dilemma. This has frequently resulted in lockdowns and company shutdowns in many nations throughout the world, forcing workers/individuals to stay at home in order to stop the spread of the virus.. In addition, shutdowns of the manufacturing industry have often disrupted the supply chains due to strict lockdown of countries, which has created stress on the supplies of the several products and services offered by this industry. Combined with the global shutdowns, this has often resulted in disruptions in global engineering, procurement, & construction, owing to the government putting on hold their investment or spending for projects. This, in turn, is expected to limit the growth of the global engineering, procurement, & construction market.

Global EPC Market Dynamics

Drivers: Surging adoption of the smart city across the world

Emerging economies have faced new challenges as a result of their rapid economic growth in recent decades. High-earning millennials seek to live in a world-class environment. With the help of technology, economies have vastly improved the level of living in urban areas; yet, the ever-growing population and continuous migration from rural areas have countered the impacts of modern technology. Cities are getting increasingly unliveable with each passing day, despite having world-class roads, power, public transportation, malls and supermarkets, and internet connectivity. Poor environmental conditions, traffic bottlenecks, waste, and other issues have become too often.

 However, in order to address such issues, the government, businesses, and communities are working tirelessly to create sustainable cities that are not only smart but also offer a high quality of life, thereby driving the demand for engineering, procurement, and construction (EPC) market growth. For instance: The European Commission combined the community's idea with the European Innovation Partnership on Smart Cities. The program strives to improve urban life through more viable integrated solutions and focuses on city-specific concerns from various policy areas, such as energy, transportation, mobility, and ICT infrastructure. According to the Consumer Technology Association, the sending on smart city projects globally reached almost USD 35.35 billion in 2020 from USD 14.85 billion in 2015. Thus, the rapid adoption of smart cities worldwide has significantly augmented the market growth in the forecasting period.

Restraints: High procurement cycle along with huge investment costs

The Construction Industry is complex and fragmented worldwide with regards to its supply chain, products, and processes and is faced with a similar dilemma as faced by manufacturers during its time in past decades. Construction projects generally involve complex and fragmented multi-tasks carried out by several professionals and non-professionals within the Project Life Cycle (PLC), including engineering, procurement, and construction (EPC) phases.

Construction projects comprise building and infrastructure projects and need accurate coordination to meet project success. Accordingly, the construction industry is often confronted with dilemmas in its processes that cause poor performance. As such, the construction industry is left embattled by the resulting flow-on effects of low efficiency and productivity. The significance of these inefficiencies within the construction industry is heightened in terms of cost and time overruns. As per MDPI or Multidisciplinary Digital Publishing Institute, around 14% of project contract sum is consumed by cost overruns, while time overrun happens to more than 70% of all construction projects, and 10% of projects materials end up as waste material. Time, cost, and quality are the three most essential elements of construction projects used to determine and measure the efficacy of project success. These three elements exist throughout the entire project lifecycle, commencing with the planning and design stages and culminating with the final handover stage. Any delay or disruption in the aforementioned elements will significantly impact the entire project completion, thereby restraining the market growth.

Opportunities: Technological advancements such as 3D printing and drone supervision

Customers and technology are at the forefront of EPC enterprises' restructuring efforts. Many EPC firms are attempting to realize their long-term vision through developing technology to meet their objectives. The old value chain and current regional operating paradigms are expected to be disrupted by these technologies. Visualization (vs. modelling), robots (vs. building), 3D printing production (vs. procurement), and the Internet of Things (vs. project monitoring and controls) are illustrations of such transitions. Even technologies can install or construct based on 3D model-derived blueprints. Drones are being utilized to track project progress in a number of projects. Over the recent years, governments are also pushing infrastructure projects to aid their economies to become more sustainable. Almost all countries are likely to increase their infrastructure budgets to accelerate the construction sector. Thus, with the growth of the construction industry, the adoption & utility for IoT technology and drone mapping in EPC management is also growing significantly due to it assists in obtaining real-time data regarding the workers, inventory, and ongoing construction operations.

These omnipresent technologies will undoubtedly necessitate new ways of working both inside and outside the organization. Consolidation and simulations or testing scenarios will become obsolete in the near future. Rather than changing schedules based on on-site inputs, it now simply needs to monitor and link 3D models as needed.

Scope of the Global EPC Market

The study categorizes the epc market based on type, and application area at the regional and global levels.

By Type Outlook (Sales, USD Million, 2019-2033)

• Engineering
• Procurement
• Construction
• Design
• Others

By Application Outlook (Sales, USD Million, 2019-2033)

• Chemical
• Petrochemical
• Gasification
• Electric Power
• Oil & Gas
• Mining
• Civil Constructions
• Others

By Region Outlook (Sales, USD Million, 2019-2033)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

Construction segment accounts for the largest market share by type

Based on the type, the market is divided into engineering, procurement, construction, design, and others. The construction segment is expected to dominate the market share in 2022 in the global epc market. The construction segment currently dominates the market share in the epc market. Industrial real estate has demonstrated its resilience, particularly after the emergence of the COVID-19 pandemic. This has accelerated the expansion of e-commerce and increased demand for distribution space to unprecedented levels. Furthermore, the residential construction sector has been the standout performer in the US economic recovery from the COVID-19 crisis, delivering double-digit growth rates and making major contributions to the recovery of the economy and the broader construction industry. And also, government initiative has also boosted this segment over the forecasting period.

North America is expected to witness the largest market share by Region

Based on the regions, the global epc market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific, and South America. North America is projected to account for the highest market share in 2022. This region’s market growth is being driven by an increase in infrastructure development in the United States. With the expansion of infrastructure, the need for engineering, procurement, and construction services is predicted to rise in order to supervise projects, evaluate progress based on performance, and complete project development with precision and accuracy.

The United States spends around 2.3% of its GDP on infrastructure development every year. In addition, the United States tops the list of oil-producing nations in the world. Due to these reasons this market has seen a tremendous growth in this region over the forecasting period.

Competitive Landscape: Global EPC Market

The epc market is a significant competitor, and extremely cutthroat in the sector are using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.

Major key players in the global epc market are:

• Flexitallic
• Tecnimont
• Maire Tecnimont
• Samsung Engineering
• Fluor
• ERGIL
• Saipem
• Azco
• Tekfen Holding
• BCC Group
• Velesstroy
• NIPIGAS
• YokoGawa
• Renaissance Hi
• TechnipFMC

Recent Development

• In April 2021, Octagon acquired a stake in Authentic Celebrity Experiences (ACE) as a part of a strategic partnership. This partnership will enhance the teamwork in order to plan and execute Octagon’s talent and geographical expansion. The company will further focus on introducing on board the video platform talents from various sports like basketball, cricket, and football to increase fan engagement across the Asian market.
• In March 2021, Wasserman Media Group acquired Paradigm Talent Agency with an aim to open a new operating unit in order to divest its business and have better management control with increasing the overall profit margin.
• In June 2020, Minnesota Timberwolves agreed a partnership with Excel Sports Management to expand the team’s search for its next jersey patch sponsor. The company aims to offer Minnesota’s exclusive third-party agency to help secure a new jersey patch partner in advance of the 2020-21 NBA season.
• In March 2020, Sportstars Inc. celebrates the best in Indian athletics in 2011-2020. It has a tagline of ‘Giants of the Decades’ that begins on March 27. This will further target thousands of customers in the sports industry by engaging the staff on a deeper level to improve productivity, identify revenue opportunities, and reward staff performance
• In May 2019, MVP sports marketing partners with Blueframe technology to create and sell the high school, college, and league-wide network agreements. MVP Sports is working with partners across the country to build local networks and provide fully integrated sponsorships.

Key Issues Addressed

• What is the market size by various segmentation of the epc by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the epc market?
• What are the key opportunities and trends for manufacturers involved in the epc supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of epc in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.