Global Power Generation EPC Market - 2022-2029

Market Overview

The global power generation EPC market was valued at US$ XX billion in 2021; it is projected to reach US$ XX billion by 2029, with growth at a CAGR of 6.9% over the forecast period 2022-2029.

The term EPC stands for 'Engineer, Procure and Construct.' The key to this concept is that one organization, namely the contractor, undertakes virtually all aspects of the project and provides a single point of communication and responsibility for the owner. The use of EPC contracts in the power generation industry has continuously evolved over the last few years due to tremendous changes in this industry's business and technology areas. Almost all modern power generation projects use EPC contracts.

Market Dynamics

The increasing global investment in power generation is a major driver for the global market:

Countries are becoming more concerned about energy supply and are investing massive capital in the power generation sector. With the increase in economic growth and population, the demand for more power output continues to increase and as a result, the power generation sector is attracting huge investments globally. Emerging and developed countries are undertaking many power generation projects to increase total capacity and ensure energy security.

The lack of productive output is expected to restrain the global power generation EPC market:

Defects, delays and failures to meet performance requirements likely result in severe consequences for the utility company regarding lost income. Some performance failures may even make it impossible to operate the plant, such as failure to meet the required safety, noise or emissions standards. Bureaucratic regulations and lowered productive output have led to massive cost overruns in current power generation EPC projects. It will be a key factor in preventing the growth of the global market during the forecast period.

Increasing power projects in Asia-Pacific are expected to generate new opportunities for the global market:

Asia-Pacific is a rapidly industrializing region with growing energy demand. Major countries such as China, India and Vietnam are undertaking new power generation projects to meet the growing energy demand. The growing power generation EPC projects in Asia-Pacific will generate new opportunities for the global market during the forecast period.

Land acquisition issues are expected to present challenges for the global market:

A large amount of land is required for the construction of renewable as well as non-renewable power plants. Legal hurdles and a scientific evaluation of land parameters such as soil geology and topography can lead to major delays and raise project costs. Issues with land acquisition will be a major challenge for the growth of the global power generation EPCs market.

COVID-19 Impact Analysis

The global power generation EPCs market was affected by the COVID-19 pandemic. With government-instituted lockdowns, construction work on power generation projects was halted. Supply chain issues caused by the pandemic have caused shortages of essential equipment required for power plant construction. Despite the various ongoing challenges, the pandemic is not expected to impact the long-term growth of the global power generation EPC market and

Recent Developments in the Industry:

1. In July 2022, Rosatom, a Russian nuclear technology company, announced the formation of an EPC to complete the 4800MW Akkuyu nuclear power plant in Turkey.

2. In July 2022, General Electric emerged as the EPC for constructing a 745MW combined cycle power plant in Ostroleka, Poland.

Market Segmentation:

The scope of the report covers segmentation based on non-renewable, renewable and region. The global power generation EPC market is segmented by non-renewable into nuclear and fossil. The global power generation EPC market is segmented by renewable into hydro and tidal, solar, wind and others. The global Power generation EPC market is segmented by region into North America, South America, Europe, Asia-Pacific, Middle East and Africa.

1. Nuclear: A nuclear power generation plant operates on the principle of nuclear fission. A controlled energy release from the splitting of the uranium atom generates heat used to produce steam and generate electricity.

2. Fossil: In a fossil power generation plant, the combustion of fossil fuels such as coal and natural gas is used to produce steam and generate electricity.

Regional Classification:

According to the DataM Intelligence market research report, the global Power generation EPC market is divided into North America, South America, Europe, Asia-Pacific, Middle East and Africa.

In North America, power generators in these countries are shifting towards EPC firms owing to technological and operational benefits offered by these service providers. North American countries like U.S. and Canada are increasingly adopting renewable energy such as wind and solar to fulfill growing energy demands. In Mexico, the government is focused on constructing conventional and renewable power plants to meet the growing energy demand from industrial activities. Growing investment in the adoption of renewable energy is expected to propel the North American power generation EPC market during the forecast period.

EPC contracts evolved as the most common form of agreement in the power industry, particularly in the private sector, to construct infrastructure in Europe. The EU's big 5 economies - Germany, UK, Spain, Italy and France, are leading the EPC services market in Europe with a large demand for energy for heating & cooling, electricity and transport applications. The European Union is leading the global energy shift towards carbon-neutral technologies, with many renewable energy projects being installed and under construction across the region. It will be a major factor in driving the growth of the European power generation EPCs market.

Economies in the Asia-Pacific are moving to power generation EPC to meet the rising demand for effective power generation infrastructure from generating firms and governments alike, meeting the economic, environmental and quality standards. Major emerging economies of the region, such as India, China, Indonesia, Vietnam, Malaysia and Thailand, are expanding power generation capacity to meet growing energy demand. Due to growing demand from many key regional countries, the Asia-Pacific power generation EPC market will likely witness sustained growth in the coming years.

Competitive Analysis:

The global power generation EPC market is fragmented, with major international players having a large market share. The companies are competing within the market regarding partnership, cooperation, agreements for expansion and project acquisition.

Major Companies:

Some key companies contributing to the growth of the global Power generation EPC market include DOOSAN Corporation, TATA Projects, WorleyParsons Limited, SK E&C CO., LTD, KBR Inc, Kiewit Corporation, Rosatom, Bechtel Corporation, McDermott, SAIPEM SpA and Larsen & Toubro Limited, among others.

The Full Report has the below insights.

• The report offers a comprehensive evaluation of the market in terms of Market Value (US$) and Y-o-Y Growth Rates (%). It does so via in-depth qualitative insights, historical data (2020-2021) and verifiable projections about market size during the forecast period (2022-2029).
• Visualize the composition of the global Power generation EPC market segmentation by drone type, application and region, highlighting the key commercial assets and players.

By Non-Renewable: Nuclear, Fossil

By Renewable: Hydro and Tidal, Solar, Wind and Others

By Region: North America, South America, Europe, Asia-Pacific, Middle East and Africa

• Identify commercial opportunities in the global Power generation EPC market by analyzing trends and co-development deals.
• The report also covers data insights on various industry forces such as porter's five forces, regulations in each country, reimbursement scenario, technological advancements, PEST analysis and pricing analysis.
• Excel data sheet with thousands of global Power generation EPC market-level 4/5 segmentation data points.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The global power generation EPC market report would provide access to approx: 53 market data tables, 42 figures and 202 pages.

Target Audience 2022

• Power Generation EPC Providers/Buyers
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Emerging Companies
• Power Manufacturers