Oil And Gas EPC Market Size, Share, Growth and Industry Analysis by Type (Public Type, And, Private Type) By Application (Oil Industry, And, Gas Industry), Regional Insights, and Forecast To 2032

Updated On: 08 April 2024

Oil And Gas EPC Market REPORT OVERVIEW

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The global oil and gas EPC market size was USD 173290 million in 2022 to USD 311692 million by 2032, at a compound annual growth rate (CAGR) of 5.4% during the forecast period.

EPC in oil and gas market stands for engineering, Procurement, and Construction. There are certain firms that provide EPC and they help in delivering a package of all the necessary resources required to complete the construction of infrastructures. EPC firms become the source that is single-handedly responsible for completing the entire project.

Requirement of energy everywhere has increased tremendously. The rising need for oil and gas has propelled the market growth. This is considered as the latest trend in the market.

Hydrocarbons are in high demand. New pipelines are getting constructed to transport oil and gases across countries. All of these factors are driving the oil and gas EPC market growth.

COVID-19 impact: Decline in the Business of Oil and Gas Market Decreased Market Growth

The pandemic of COVID-19 had an adverse effect on all the markets. This reduced the demand for all products. Pandemic also proved detrimental to the oil and gas market which in turn affected the EPC market.

Loss faced by the commercial sector was the primary reason for the downfall of the market during the pandemic. Energy and power required to run the machines was not available sufficiently. There was shortage of power as well as raw materials. Many contracts were abruptly stopped in between without any prior notice. High supply and low demand also affected the market to a great extent. These factors were responsible for the decline in the oil and gas EPC market share.

LATEST TRENDS

"Rising Consumption of Energy All Over the World to Increase Market Growth"

Energy in the form of fuel like petrol, diesel, kerosene, and electricity have become the primary requirement of people. Offices, factories, and industries cannot work without the presence of energy. Oil and gas form the main source of energy.

Growing population, increasing number of industries, and factories, higher per capita power consumption, have all increased the demand for energy sources. Even though renewable sources of energy are being developed, the usage of oil and gas is still dominant in many areas. This has become a favorable factor in developing the oil and gas EPC market.

Oil And Gas EPC Market SEGMENTATION

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• By Type:

The market can be divided on the basis of type into the following segments:

Public  type, and, Private type. The public type segment is anticipated to dominate the market during the forecast period.

• By Application:

Classification based on application into the following segment:

Oil industry, and, Gas industry. The oil industry segment is predicted to dominate the market during the research period.

DRIVING FACTORS

"Growing Demand for Hydrocarbon to Accelerate Market Growth"

Hydrocarbons are required by different industries in large amounts. There has been a constant increase in the need for hydrocarbons. In order to satiate the need of hydrocarbons governments and private institutions have taken up the initiative to make investments in large-scale exploration of hydrocarbons. This is an important factor accelerating the market growth.

Technological developments, change in the population and economical growth of various countries have had an impact on the prices of oil. Economy of middle East countries is totally dependent on their reserve of oil and gases. Another major factor that has positively impacted the market growth is the steadily improving exploration of oil and gases.

"Building of New Pipelines in Gas and Oil Sector to Propel the Market Growth "

One of the positive improvements that has taken place in this market is the construction of new pipelines for transporting oil and gases from countries to countries. The contracts between companies have also increased recently. Government initiatives are augmenting the market growth. Government of several countries have come forward in order to remove hurdles from on going projects. Many projects are getting re-bids.

Government is following certain mechanisms like long-term funding and is promoting low oil prices in order to increase External Commercial Borrowing (ECB). Rapid developments in aviation, automotives, automobiles, construction, manufacturing is indirectly having a good impact on the market. Urbanization and industrialization are the two most vital factors that have resulted in market growth. Developing and growing transportation channels have increased the demand for hydrocarbons, oils, and gases.

RESTRAINING FACTOR

"Growing Concern About Environment to Bring Down the Market Growth"

Hydrocarbons, oils, and gases are the major sources of pollution. Emission of green house gases have resulted in the depletion of the ozone layer. Also, oils and gases are non-renewable sources of energies and can deplete in the near future. Hence people are shifting their focus on extracting renewable sources of energy. This can hamper the oil and gas EPC market growth.

Another reason that can restrain the market growth is the constant fluctuation of oil and gas prices. Wind, solar, and geothermal energies are being put to better use to generate reliable source of energy. Shift of customer preferences from fuel-based vehicles to electric vehicles have also had a negative impact on the market as electric vehicles do not use oil and gases for their operations. The above-mentioned factors are preventing the market growth.

Oil And Gas EPC Market Regional Insights

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"Asia Pacific to Dominate the Market in Upcoming Years"

Asia Pacific is the largest shareholder of the oil and gas EPC market. China is one of the highly flourishing markets in Asia Pacific due to its upper hand in technological advancements. Similarly South Korea, India, and, Japan have many key industrial players contributing to the share of Asia Pacific.

Natural gas has gained tremendous demand in this region. Along with natural gas LNG that is liquified natural gas facilities are also being developed. Noticeable offshore oil and gas exploration as well as production activities are contributing to the market development.

Key Industry Players

"Leading Players adopt Acquisition Strategies to Stay Competitive "

Several players in the market are using acquisition strategies to build their business portfolio and strengthen their market position. In addition, partnerships and collaborations are among the common strategies adopted by companies. Key market players are making R&D investments to bring advanced technologies and solutions to the market.

List of Market Players Profiled

• WorleyParsons (Australia)
• CB&I (India)
• Technip (France)
• Hyundai Heavy Industries (Korea)
• Saipem (Italy)
• Wood (U.K.)
• GS Engineering & Construction Corporation (South Korea)
• Daelim Industrial (South Korea)
• Daewoo Engineering & Construction (South Korea)
• SK Engineering & construction
• Samsung Engineering (South Korea)
• KBR (U.S.)
• Técnicas Reunidas (Spain)
• Petrofac (U.K.)
• Bilfinger (Germany)
• NPCC (India)
• TATA Projects (India)

Report Coverage

The report provides an insight into the industry from both the demand and supply sides. Further, it also gives information on the impact of COVID-19 on the market, the driving and the restraining factors along with the regional insights. Market dynamic forces during the forecast period have also been discussed for the better understanding of the market situations