Report Description

Forecast Period

2024-2028

Market Size (2022)

USD 117.6 Billion

CAGR (2023-2028)

4.73%

Fastest Growing Segment

Renewable

Largest Market

Asia-Pacific


Market Overview

Global Power EPC Market was valued at USD 117.6 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 4.73% through 2028. The Global Power Engineering, Procurement, and Construction (EPC) market refers to the industry segment responsible for designing, managing, and executing comprehensive projects related to power generation, transmission, and distribution infrastructure. This market encompasses a wide range of activities, including engineering, procurement of equipment and materials, construction, installation, testing, and commissioning of power facilities. The primary goal of the Global Power EPC market is to deliver turnkey solutions that enable the establishment of efficient, reliable, and sustainable power systems to meet the energy needs of societies, industries, and economies.

Key Market Drivers

Energy Demand and Supply

The fundamental driver of the Global Power EPC market is the insatiable demand for electricity and power generation to meet the needs of growing populations, expanding industries, and technological advancements. As societies become more electrified, the need for reliable and efficient power sources drives investments in power projects worldwide.: Rapid urbanization and industrial growth require robust power infrastructure. EPC companies play a pivotal role in constructing power plants, transmission lines, and substations to provide reliable electricity to urban centers and industrial hubs. The global shift toward cleaner energy sources and reduced carbon emissions is transforming the energy landscape. The integration of renewable energy, such as solar, wind, and hydropower, requires EPC expertise to build and manage the infrastructure needed for these new energy technologies.

Growing Power industry

In India, EPC contracts are commonly utilized to create power from various resources, both renewable and non-renewable. These contracts are "turnkey," meaning that an external contractor takes complete responsibility for designing and constructing the power generation units to the client's specifications. The contractor oversees the project from the initial development phase to the final fabrication of the facility, which is ready for operation.

On the other hand, India's power industry is undergoing a significant shift as a result of the nation's rapid increases in electricity demand. Several Parts of India experience frequent power outages because of rising electrical demand and a supply gap. The government has set regulations into place to increase power generation, transmission, and distribution to address the issue of reliability. It is anticipated that initiatives like the Integrated Power Development Scheme (IPDS) and Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY) will increase electrification across the country. 100% FDI (Foreign Direct Investment) allowed in the India power sector has boosted FDI inflow in this sector. From April 2000 and June 2022, the electricity sector saw a total FDI infusion of USD 16.39 billion.

Growing demand of electricity & increasing contracts in the India EPC Market

The India power EPC (Efficient Power Conversion) market is experiencing significant growth due to the country's increasing demand for electricity to support its rapidly expanding population and economy. For instance, India saw a rise of 10.67% YoY with electricity generation (including renewable sources) of 846.18 BU between April and September 2022. The Ministry of Power's data shows that India's power consumption rose 1.64% YoY to 114.64 BU in October 2022. The market is characterized by a rising investment in the creation of power generation facilities that utilize both renewable and non-renewable sources of energy. For instance, from 2005 to 2050, numerous energy strategies will employ scenarios that will primarily include the adoption of renewable energy sources and investments in energy-saving technology to cut CO2 emissions by up to 50%. As of February 2023, more than 174.53 Giga Watts of renewable energy have been installed in India over the previous 8.5 years, accounting for 42.5% of the nation's total capacity (including big hydro). India saw the highest year with the growth of 9.83% for renewable energy additions in 2022.

The demand for consistent energy supply is being driven by the growing digitization and dependence on power-operated equipment in various critical industries. EPC contracts are favoured in India due to the contractors' expertise in creating more efficient production units. The contractors have access to the best subcontractors, raw material vendors, cost-effective procurement channels, specific technological tools, and human resources. For instance, Electricity utilization increased by 8% in 2021 to 1282 TWh, after a 6.7% contraction in 2020. It grew rapidly over 2010-2019 (7%/year). Hence the India EPC Market is anticipated to register a high CAGR during the forecast period.

Patratu Super Thermal Power Plant Project

India is also investing heavily in the development of EPC POWER projects, which is expected to further fuel growth in the power EPC market. Overall, the India power EPC market presents lucrative opportunities for investors, contractors, and vendors in the power generation industry. In Jharkhand, India, the Patratu Super Thermal Power Plant began in 2018 and is expected to be completed in 2022. The project, which burns coal, is expected to have a 4000 MW power capacity. In 2018, BHEL (Bharat Heavy Electricals Ltd) was awarded a contract of USD 1423.4 Million (INR 11,700 crore) for the construction of Jharkhand's phase 1 (3x800 MW) of a supercritical thermal power plant. India, coal has been a substantial energy basis in the past and still holds a considerable share in the country's energy generation sources. This is expected to have a positive impact on the power EPC market in the country.

The government's initiative for the “Smart Cities” Mission project to upgrade and develop various infrastructure for selected cities throughout the nation, where efficient energy management solutions and energy storage solutions are required for improvement, redevelopment, extension of various utilities, infrastructure, and transportation developments. Moreover, according to the mission's standards, 80% of the buildings in smart cities must be energy-efficient with a "green building" design, and 10% of the energy needs of a smart city must stand satisfied by solar energy. Owing to which the market is expected to register a high CAGR during the forecast period.



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Key Market Challenges

Rising Cost of Energy Generation

For instance, India presently loses 0.4% of its GDP due to power outages. Backup energy sources (mostly diesel gensets) and arrange production operations based on power shortages in their location. Due to the scarcity of traditional energy sources, cost of energy generation has also been rising significantly and is predicted to continue to rise in the future. Therefore, above mentioned factors are restraining the growth of the India power EPC the forecast period.

Key Market Trends

Growing Trend of Digitalization & Solar Energy Utilization in Power Sector Fueling the Market Growth

This trend of digitalization of the energy models offers superior efficiency and is also growing its value. The modernization of EPC processes allows for connecting and coordinating all the network's equipment and devices, which is central to greater efficiency gain. Moreover, communication with smart power grids could be made possible by a building's digital connectivity.

In order to develop numerous ICT and internet of things (IoT) solutions that aid in maintaining and optimizing the infrastructure in smart cities, a stable power supply is required. However, combining energy storage with renewable energy sources like solar power would make it possible for the structures to have a constant supply of electricity. These activities will therefore increase the India power EPC market during the projected period.

Additionally, the Ministry of Power, through the Bureau of Energy Efficiency (BEE), has started several energy efficiency initiatives in the areas of residential lighting, commercial buildings, and equipment standards. Moreover, demand side EPC has been started processing for emerging energy consumption norms to lower down electricity capacity for agriculture/municipalities, SMEs, and large industries usage. Owing to which the demand of EPC is growing rapidly during the forecast period.

Segmental Insights

Type Insights

The renewable energy segment is expected to grow at the highest CAGR during the forecast period. Renewable energy sources have developed significantly in recent years. By the end of 2021, global renewable generation capacity was 3,064 gigawatts (GW), increasing renewable energy stocks by 9.1%, the fastest annual growth since the 1970s. Excluding large hydropower, solar power and wind power, the world's renewable capacity is the main driver of two-thirds of renewable energy growth. China alone will account for almost half of global renewable electricity growth in 2021, followed by the US, the EU and India. Consequently, the growth of the segment during the forecast period.


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Regional Insights

The Asia Pacific region has established itself as the leader in the Global Power EPC Market with a significant revenue share in 2022. Asia Pacific is expected to dominate the market during the forecast period. The Asia-Pacific region is home to more than 50% of the world's population and 60% of its largest cities. Future electricity consumption in the continent will increase, as millions of new users will receive electricity because of rapid population growth and industrialization. For instance, according to the BP Statistical Review of World Energy 2022, the region's primary energy consumption increased from 220.48 exajoule in 2013 to 272.45 exajoule in 2021.

Recent Developments

  • In 2019, the Gorakhpur Haryana Anu Vidyut Pariyojana (GHAVP) Units 1 and 2 (2X700 MW) nuclear power plant was going to be completed.
  • End-shields and steam generators, among other items for extended deliveries, were ordered last year. Several stages of the tendering process are underway for the main plant civil work as well as many additional packages. 2025 is the projected completion date for the project's first phase, which consists of the two GHAVP-1&2 (2X700 MW) units.
  •  In 2019, Sterlite Power obtained a letter of award for two significant interstate projects, Udupi-Kasargode and WRSS 21 (Part B), involving lines and GIS substations, totaling more over USD 365 Million (INR 3000 crore).
  • The Udupi-Kasargode project is essential for facilitating smoother electricity flow from Karnataka's Southern Region States to Kerala and decongesting the ISTS transmission corridor. On the other side, the Gujarati GEC project of Lakadia-Vadodara (WRSS 21 - Part B) is projected to link the wind energy zones of the Bhuj region to the load centres of Gujarat and Maharashtra.
  • Khargone Super Thermal Power Station in Madhya Pradesh's unit-1 was officially opened in 2019 by India's state-owned National Thermal Power Company (NTPC). India's first ultra-supercritical coal-fired plant, the Khargone thermal power station has a 660-megawatt installed capacity and a 41.5% efficiency (MW). Larsen & Toubro Ltd (L&T) and Sterlite Power Grid Ventures Limited are the projects' major contractors.
  • in November 2022, Tata Power Renewable Energy Limited (TPREL), a Tata Power subsidiary, received the "Letter of Award" (LoA) from the Maharashtra State Electricity Distribution Company Limited (MSEDCL) to construct a 150 MW solar project in Solapur, Maharashtra.
  •  SJVN Limited started operating its 75 MW solar power project in the Parasan Solar Park in Tehsil Kalpi, District Jalaun, close to Kanpur, Uttar Pradesh, in October 2022.

Key Market Players

  • General Electric (GE)
  • Siemens AG
  • ABB Group
  • Mitsubishi Hitachi Power Systems (MHPS)
  • Doosan Heavy Industries & Construction
  • Bechtel Corporation
  • China Energy Engineering Corporation (CEEC)
  • Black & Veatch
  • The Tata Power Company Limited
  • Samsung C&T Corporation.

 By Type

By Component

By Region

  • Thermal
  • Oil & Gas
  • Renewable
  •  Nuclear
  • Others
  • Engineering Design
  • Procurement
  • Construct
  • North America
  • Europe
  • Asia Pacific
  • South America
  • Middle East & Africa

 

Report Scope:

In this report, the Global Power EPC Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • Global Power EPC Market, By Type:

o   Thermal

o   Oil & Gas

o   Renewable

o   Nuclear

o   Others

  • Global Power EPC Market, By Component:

o   Engineering Design

o   Procurement

o   Construct

  • Global Power EPC Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Asia-Pacific

§  China

§  India

§  Japan

§  South Korea

§  Indonesia

o   Europe

§  Germany

§  United Kingdom

§  France

§  Russia

§  Spain

o   South America

§  Brazil

§  Argentina

o   Middle East & Africa

§  Saudi Arabia

§  South Africa

§  Egypt

§  UAE

§  Israel

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Power EPC Market.

Available Customizations:

Global Power EPC Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

Global Power EPC Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.    Product Overview

1.1.  Market Definition

1.2.  Scope of the Market

1.3.  Markets Covered

1.4.  Years Considered for Study

1.5.  Key Market Segmentations

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary

4.    Voice of Customers

5.    Global Power EPC Market Outlook

5.1.  Market Size & Forecast

5.1.1.    By Value

5.2.  Market Share & Forecast

5.2.1.    By Type (Thermal, Oil & Gas, Renewable, Nuclear, Others)

5.2.2.    By Component (Engineering Design, Procurement, Construct)

5.2.3.    By Region

5.3.  By Company (2022)

5.4.  Market Map

6.    North America Power EPC Market Outlook

6.1.  Market Size & Forecast

6.1.1.    By Value

6.2.  Market Share & Forecast

6.2.1.    By Type

6.2.2.    By Component

6.2.3.    By Country

6.3.  North America: Country Analysis

6.3.1.    United States Power EPC Market Outlook

6.3.1.1.        Market Size & Forecast

6.3.1.1.1.           By Value

6.3.1.2.        Market Share & Forecast

6.3.1.2.1.           By Type

6.3.1.2.2.           By Component

6.3.2.    Canada Power EPC Market Outlook

6.3.2.1.        Market Size & Forecast

6.3.2.1.1.           By Value

6.3.2.2.        Market Share & Forecast

6.3.2.2.1.           By Type

6.3.2.2.2.           By Component

6.3.3.    Mexico Power EPC Market Outlook

6.3.3.1.        Market Size & Forecast

6.3.3.1.1.           By Value

6.3.3.2.        Market Share & Forecast

6.3.3.2.1.           By Type

6.3.3.2.2.           By Component

7.    Asia-Pacific Power EPC Market Outlook

7.1.  Market Size & Forecast

7.1.1.    By Value

7.2.  Market Share & Forecast

7.2.1.    By Type

7.2.2.    By Component

7.2.3.    By Country

7.3.  Asia-Pacific: Country Analysis

7.3.1.    China Power EPC Market Outlook

7.3.1.1.        Market Size & Forecast

7.3.1.1.1.           By Value

7.3.1.2.        Market Share & Forecast

7.3.1.2.1.           By Type

7.3.1.2.2.           By Component

7.3.2.    India Power EPC Market Outlook

7.3.2.1.        Market Size & Forecast

7.3.2.1.1.           By Value

7.3.2.2.        Market Share & Forecast

7.3.2.2.1.           By Type

7.3.2.2.2.           By Component

7.3.3.    Japan Power EPC Market Outlook

7.3.3.1.        Market Size & Forecast

7.3.3.1.1.           By Value

7.3.3.2.        Market Share & Forecast

7.3.3.2.1.           By Type

7.3.3.2.2.           By Component

7.3.4.    South Korea Power EPC Market Outlook

7.3.4.1.        Market Size & Forecast

7.3.4.1.1.           By Value

7.3.4.2.        Market Share & Forecast

7.3.4.2.1.           By Type

7.3.4.2.2.           By Component

7.3.5.    Indonesia Power EPC Market Outlook

7.3.5.1.        Market Size & Forecast

7.3.5.1.1.           By Value

7.3.5.2.        Market Share & Forecast

7.3.5.2.1.           By Type

7.3.5.2.2.           By Component

8.    Europe Power EPC Market Outlook

8.1.  Market Size & Forecast

8.1.1.    By Value

8.2.  Market Share & Forecast

8.2.1.    By Type

8.2.2.    By Component

8.2.3.    By Country

8.3.  Europe: Country Analysis

8.3.1.    Germany Power EPC Market Outlook

8.3.1.1.        Market Size & Forecast

8.3.1.1.1.           By Value

8.3.1.2.        Market Share & Forecast

8.3.1.2.1.           By Type

8.3.1.2.2.           By Component

8.3.2.    United Kingdom Power EPC Market Outlook

8.3.2.1.        Market Size & Forecast

8.3.2.1.1.           By Value

8.3.2.2.        Market Share & Forecast

8.3.2.2.1.           By Type

8.3.2.2.2.           By Component

8.3.3.    France Power EPC Market Outlook

8.3.3.1.        Market Size & Forecast

8.3.3.1.1.           By Value

8.3.3.2.        Market Share & Forecast

8.3.3.2.1.           By Type

8.3.3.2.2.           By Component

8.3.4.    Russia Power EPC Market Outlook

8.3.4.1.        Market Size & Forecast

8.3.4.1.1.           By Value

8.3.4.2.        Market Share & Forecast

8.3.4.2.1.           By Type

8.3.4.2.2.           By Component

8.3.5.    Spain Power EPC Market Outlook

8.3.5.1.        Market Size & Forecast

8.3.5.1.1.           By Value

8.3.5.2.        Market Share & Forecast

8.3.5.2.1.           By Type

8.3.5.2.2.           By Component

9.    South America Power EPC Market Outlook

9.1.  Market Size & Forecast

9.1.1.    By Value

9.2.  Market Share & Forecast

9.2.1.    By Type

9.2.2.    By Component

9.2.3.    By Country

9.3.  South America: Country Analysis

9.3.1.    Brazil Power EPC Market Outlook

9.3.1.1.        Market Size & Forecast

9.3.1.1.1.           By Value

9.3.1.2.        Market Share & Forecast

9.3.1.2.1.           By Type

9.3.1.2.2.           By Component

9.3.2.    Argentina Power EPC Market Outlook

9.3.2.1.        Market Size & Forecast

9.3.2.1.1.           By Value

9.3.2.2.        Market Share & Forecast

9.3.2.2.1.           By Type

9.3.2.2.2.           By Component

10. Middle East & Africa Power EPC Market Outlook

10.1.             Market Size & Forecast

10.1.1. By Value

10.2.             Market Share & Forecast

10.2.1. By Type

10.2.2. By Component

10.2.3. By Country

10.3.             Middle East & Africa: Country Analysis

10.3.1. Saudi Arabia Power EPC Market Outlook

10.3.1.1.     Market Size & Forecast

10.3.1.1.1.         By Value

10.3.1.2.     Market Share & Forecast

10.3.1.2.1.         By Type

10.3.1.2.2.         By Component

10.3.2. South Africa Power EPC Market Outlook

10.3.2.1.     Market Size & Forecast

10.3.2.1.1.         By Value

10.3.2.2.     Market Share & Forecast

10.3.2.2.1.         By Type

10.3.2.2.2.         By Component

10.3.3. UAE Power EPC Market Outlook

10.3.3.1.     Market Size & Forecast

10.3.3.1.1.         By Value

10.3.3.2.     Market Share & Forecast

10.3.3.2.1.         By Type

10.3.3.2.2.         By Component

10.3.4. Israel Power EPC Market Outlook

10.3.4.1.     Market Size & Forecast

10.3.4.1.1.         By Value

10.3.4.2.     Market Share & Forecast

10.3.4.2.1.         By Type

10.3.4.2.2.         By Component

10.3.5. Egypt Power EPC Market Outlook

10.3.5.1.     Market Size & Forecast

10.3.5.1.1.         By Value

10.3.5.2.     Market Share & Forecast

10.3.5.2.1.         By Type

10.3.5.2.2.         By Component

11. Market Dynamics

11.1.             Drivers

11.2.             Challenge

12. Market Trends & Developments

13. Company Profiles

13.1.             General Electric (GE)

13.1.1. Business Overview

13.1.2. Key Revenue and Financials (If Available)

13.1.3. Recent Developments

13.1.4. Key Personnel

13.1.5. Key Product/Services

13.2.             Siemens AG.

13.2.1. Business Overview

13.2.2. Key Revenue and Financials

13.2.3. Recent Developments

13.2.4. Key Personnel

13.2.5. Key Product/Services

13.3.             ABB Group.

13.3.1. Business Overview

13.3.2. Key Revenue and Financials (If Available)

13.3.3. Recent Developments

13.3.4. Key Personnel

13.3.5. Key Product/Services

13.4.             Mitsubishi Hitachi Power Systems (MHPS).

13.4.1. Business Overview

13.4.2. Key Revenue and Financials (If Available)

13.4.3. Recent Developments

13.4.4. Key Personnel

13.4.5. Key Product/Services

13.5.             Bechtel Corporation.

13.5.1. Business Overview

13.5.2. Key Revenue and Financials (If Available)

13.5.3. Recent Developments

13.5.4. Key Personnel

13.5.5. Key Product/Services

13.6.             The Tata Power Company Limited.

13.6.1. Business Overview

13.6.2. Key Revenue and Financials (If Available)

13.6.3. Recent Developments

13.6.4. Key Personnel

13.6.5. Key Product/Services

13.7.             China Energy Engineering Corporation.

13.7.1. Business Overview

13.7.2. Key Revenue and Financials

13.7.3. Recent Developments

13.7.4. Key Personnel

13.7.5. Key Product/Services

13.8.             Samsung C&T Corporation.

13.8.1. Business Overview

13.8.2. Key Revenue and Financials (If Available)

13.8.3. Recent Developments

13.8.4. Key Personnel

13.8.5. Key Product/Services

13.9.             Black & Veatch.

13.9.1. Business Overview

13.9.2. Key Revenue and Financials (If Available)

13.9.3. Recent Developments

13.9.4. Key Personnel

13.9.5. Key Product/Services

13.10.          Doosan Heavy Industries & Construction:.

13.10.1.              Business Overview

13.10.2.              Key Revenue and Financials (If Available)

13.10.3.              Recent Developments

13.10.4.              Key Personnel

13.10.5.              Key Product/Services

14. Strategic Recommendations

15. About Us & Disclaimer  

Figures and Tables

Frequently asked questions

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The market size of the Global Power EPC Market was USD 117.6 Billion in 2022.

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Renewable is the fastest growing segment in Global Power EPC Market.

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Navigating the complex web of regulatory requirements, environmental standards, and permitting processes across different jurisdictions can be daunting. Adhering to local laws and regulations while maintaining project timelines and budgets is a significant challenge.

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The ever-increasing global demand for electricity, driven by population growth, urbanization, and industrialization, fuels the need for new and expanded power generation and distribution facilities.

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Parvati Sharma

Account Manager BD
Press Release

Power EPC Market is expected to register a CAGR of 4.73 %

Nov, 2023

The continued demand for non-renewable sources of energy, which until a few years ago were solely responsible for a significant portion of power generation factors contributing to the projected growt