EPC CONSULTING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The EPC (engineering, procurement, and construction) consulting market size is expected to reach US$ 20.32 Bn by 2030, from US$ 11.40 Bn in 2023, exhibiting a compound annual growth rate (CAGR) of 8.6% during the forecast period. EPC (engineering, procurement, and construction) consulting involves providing services to support and manage large-scale construction projects in industries like oil and gas, chemicals, mining, power, and infrastructure. The key drivers of the EPC (engineering, procurement, and construction) consulting market include rising investments in renewable energy projects, increasing focus on improving operational efficiency, and growth in infrastructure development.

The EPC (engineering, procurement, and construction) consulting market is segmented service type, end user industry, and region. By service type, the market is segmented into consulting, design & engineering, procurement, construction, maintenance, and others. The engineering segment accounted for the largest share in 2022 due to rising demand for specialized engineering services for complex industrial projects. Engineering services ensure optimal plant design, integration of advanced technologies, and adherence to industry standards.

EPC (engineering, procurement, and construction) consulting Market Regional Insights

• North America: This region is expected to be the largest market for EPC (engineering, procurement, and construction) consulting market during the forecast period, accounting for over 35% of the market share in 2023. The growth of the market in North America is due to the well-developed energy and utilities sector, presence of leading EPC companies, and increasing number of power generation and transmission projects in the region.
• Europe: Europe market is expected to be the second-largest market for EPC (engineering, procurement, and construction) consulting market, accounting for over 25% of the market share in 2023. The growth of the market in Europe is due to the rising investments in renewable energy projects, redevelopment of aging infrastructure, and strict regulations regarding energy efficiency and emissions.
• Asia Pacific: This region is expected to be the fastest-growing market for EPC (engineering, procurement, and construction) consulting market, with a CAGR of over 12% during the forecast period. The growth of the market in Asia Pacific is due to rapid industrialization, growing power demand, and government support for infrastructure development in the region.

Figure 1. EPC (engineering, procurement, and construction) Consulting Market Share (%), By Region, 2023

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Analyst View point:

The EPC consulting market is expected to experience moderate growth in the near future. North America  dominates the market however Asia Pacific is projected to be the fastest growing region due to increasing industrialization in developing countries such as India and China.

The market is driven by rising demand for specialized engineering and consultancy services from core industries such as oil and gas, chemicals and petrochemicals, and power generation. Stringent environmental regulations in developed nations are also pushing industries to rely more on EPC firms to ensure compliance.

EPC (engineering, procurement, and construction) Consulting Market Drivers

• Increasing investments in energy infrastructure projects: Increasing number of large-scale energy infrastructure projects across the globe is a major driver for the EPC (engineering, procurement, and construction) consulting market. Governments and private players are investing heavily in renewable energy projects, oil and gas exploration, power transmission networks, mining facilities, and other energy-related infrastructure. According to the International Energy Agency, the global investment in energy supply infrastructure is projected to reach US$1.9 trillion annually by 2030. This will create significant demand for EPC (engineering, procurement, and construction) consulting services to ensure timely and successful execution of these complex capital projects while optimizing budgets and mitigating risks by 2030.
• Focus on improving energy efficiency and sustainability: With rising environmental concerns and stringent regulations, companies across the energy value chain are focused on deploying solutions to improve energy efficiency, lower emissions, and advance sustainability. EPC consultants play a vital role in helping organizations design and implement strategies to reduce their carbon footprint and meet ESG (Environmental, Social, and Governance) goals. According to the International Energy Agency, global investment in energy efficiency is projected to increase by over 15% annually until 2023, led by growth in industries, buildings and transportation sectors.
• Consolidation and expansion of leading EPC firms: The EPC (engineering, procurement, and construction) consulting domain has witnessed significant consolidation over the past decade with leading players acquiring niche firms to expand their services portfolio and geographic presence. Large firms like Worley, an Australian engineering professional services company which provides project delivery and consulting services to the resources and energy sectors, and complex process industries, Jacobs, an American international technical professional services firm which provides engineering, technical, professional and construction services, as well as scientific and specialty consulting for a broad range of clients globally, including companies, organizations, and government agencies, Fluor, an American multinational engineering and construction firm that provides services through its subsidiaries in the following areas: oil and gas, industrial and infrastructure, government and power, have made strategic acquisitions to gain competitive advantage. According to data from the World Bank, public-private partnership (PPP) infrastructure investment commitments witnessed a 17% jump from US$91 Bn in 2020 to US$106 Bn in 2021 across developing countries.
• Adoption of digital technologies in construction: Construction is one of the least digitized industries but this is changing with various new technologies being deployed to improve productivity, efficiency, and safety. EPC consultants are adopting digital solutions like building information modeling, virtual reality, predictive analytics, drones, and artificial intelligence (AI) to enable data-driven decision making during design and construction. According to a report by the World Economic Forum, in 2021, the adoption of digital technologies in construction could reduce carbon emissions by up to 20% through more efficient processes and materials usage.

EPC (engineering, procurement, and construction) Consulting Market Opportunities

• Leveraging Big Data Analytics: The exponential growth in big data presents an opportunity for EPC consultants to leverage analytics and gather actionable insights across the project lifecycle. Data analytics can be applied to optimize plant performance, predict maintenance needs, improve supply chain planning, monitor safety parameters, and support strategic decisions. EPC firms can offer their domain expertise in deploying advanced analytics solutions to clients. As per UNIDO's World Construction Outlook for 2022-23, the global construction industry is projected to witness 2% growth annually until 2030, led by investments in sustainability and digital infrastructure.
• Modular and offsite construction: Modular construction techniques involve prefabricating building sections in a controlled facility which is then assembled onsite. This innovative approach is faster, delivers higher quality, and is more sustainable than traditional construction. EPC consultants can leverage their engineering expertise to design modular plants and advise clients on adopting modularization. A report by Global Market Insights, predicts the modular construction market to value at US$180 billion by 2027 due to increasing construction of sustainable and energy-efficient buildings.
• Growth in emerging markets: Rapid urbanization and industrialization in emerging economies is driving infrastructure development and energy demand. Markets like India, Brazil, and Southeast Asia are undertaking various power, oil and gas, mining, and infrastructure projects where EPC (engineering, procurement, and construction) consulting expertise can be leveraged. Established firms are expanding their presence in high-potential emerging markets both organically and inorganically. According to data published by the World Bank in 2022, India's national government had allotted over US$110 Bn for its infrastructure development budget for the fiscal year 2022-23, a 26% increase from the previous year.
• Solutions for decarbonization: With countries announcing net zero commitments, there is increasing focus on Decarbonization strategies across industries. EPC consultants can leverage their engineering experience to help clients reduce their carbon footprint by integrating renewable energy, deploying low-carbon technologies like green hydrogen and Carbon Capture, Usage and Storage (CCUS), utilizing negative emission solutions like BECCS, and designing sustainable practices. According to the European Commission's estimates, European Union member states will require investments worth US$260 billion annually until 2030, just to deploy sufficient renewable energy capacity for the bloc to achieve its 2030 climate goals. Similarly, the U.S. Department of Energy calculates that modernizing America's power grid alone may cost between US$300 Bn to US$500 Bn by 2030.

EPC (engineering, procurement, and construction) Consulting Market Trends

• Adoption of digital twins: A digital twin is a virtual representation of a physical asset that enables visualization, simulation, and predictive insights to optimize performance. EPC consultants are leveraging digital twins across planning, design, and construction phases to virtually build and test models, identify issues earlier, and enhance Digital twin adoption is increasing, as firms realize benefits such as reduced rework, effective collaboration, proactive maintenance, and integration with IoT (Internet Of Things) data. According to the Qatar Development Bank, the US$ 8 Bn project involved master planning, design, and construction of over 28 residential, commercial and retail buildings across 4 million sqft with tight schedules.
• Strategic partnerships and collaborations: EPC (engineering, procurement, and construction) consulting firms are entering into partnerships and joint ventures to combine complementary capabilities, access new markets, and leverage synergies. Strategic tie-ups also provide access to innovative technologies and specialized skillsets. In 2022, Jacobs, an American international technical professional services firm which provides engineering, technical, professional and construction services, as well as scientific and specialty consulting for a broad range of clients globally, including companies, organizations, and government agencies, partnered with Stantec (offers architectural, construction management and environmental services) to enhance their building engineering and sustainable building design capabilities, while AECOM Specialize in engineering, architecture, environmental and construction services, to bolster their digital infrastructure and federal services.
• Sustainability and energy transition focus: Stakeholders across the energy value chain are prioritizing business models aligned to global sustainability goals. EPC consultants are developing expertise to support clients on their energy transition journey by providing end-to-end services for renewable energy integration, energy storage, micro grids, hydrogen adoption, biofuels, and circular solutions. In 2021, the International Renewable Energy Agency reported, that over 290 gigawatts of renewable power generation infrastructure was added globally, a new record high indicating massive growth in wind and solar industries, which is driving demand for specialized EPC consulting.
• Adoption of modular and offsite construction: EPC consultants are increasingly adopting modular and offsite construction techniques as they offer several advantages over traditional onsite building. Prefabricated modules enable parallel activity, better quality control, and reduced waste. According to 2021 statistics from the U.S. Department of Housing and Urban Development, modular construction represented around 8% of the non-residential construction market, up from only 5% in 2018. To meet this increasing need, EPC consulting firms must expand their expertise in applying modern methods and new construction techniques.

EPC (engineering, procurement, and construction) Consulting Market Restraints

• Cyber security risks: Increasing digitalization and connectivity has also exposed the critical infrastructure projects to heightened cyber risks. EPC consultants handle sensitive client data across the asset lifecycle while also integrating various technology systems. Lack of cyber security safeguards can lead to vulnerabilities causing project delays and cost overruns. Firms face challenges in implementing robust cyber security practices and ensuring security across supply chains. Addressing cyber risks across diverse projects requires significant investments which restraints market growth.

Counterbalance: The key market players should be allocated required amount of investment to address cyber security risk in diverse projects

• Shortage of skilled workforce: The EPC (engineering, procurement, and construction) consulting domain demands specialized skillsets and extensive industry experience to manage large and complex projects successfully. However, the industry is facing an acute talent shortage as workforces with critical technical skills are retiring while new talent acquisition has slowed down. Shortage of qualified engineers, designers, project managers who can handle large scales programs affects the ability of EPC firms to bid for and deliver major capital projects. Availability of skilled talent continues to restrain growth opportunities.
• Geopolitical risks and trade protectionism: Geopolitical conflicts, trade wars, and sanctions are key risks for EPC (engineering, procurement, and construction) consulting firms as they handle projects across different regions and verticals. Issues like supply chain disruptions, inflation, and restrictions on technology access can adversely impact execution and cause delays. EPC consultants also face challenges in talent mobility and relocation due to unstable geopolitical dynamics. Geopolitical uncertainties remain a crucial factor restraining market growth for global EPC (engineering, procurement, and construction) consulting firms.

Recent Developments

New product launches

• In November 2022, Worley and AVEVA launched an integrated engineering and operations solution for the energy and process industries. The solution aims to improve capital project delivery and handover to operations through digital workflows.
• In June 2021, Fluor Corporation, an American multinational engineering and construction firm that provides services through its subsidiaries in the following areas: oil and gas, industrial and infrastructure, government and power, launched NuScale Power's small modular reactor design, the first to receive design approval from the U.S. Nuclear Regulatory Commission. The launch strengthens Fluor Corporation's position in providing nuclear power solutions.
• In January 2020, Aecom, infrastructure consulting firm, delivering professional services throughout the project lifecycle – from planning, design and engineering to program and construction management introduced a proprietary solution for integrating renewable energy sources into micro grid systems for resilient and sustainable energy infrastructure. The solution optimizes project lifecycle costs and energy usage.

Acquisition and partnerships

• In August 2021, Jacobs acquired BlackLynx, a leading provider of infrastructure asset management in Australia. The acquisition expands Jacobs’ digital capabilities in asset performance modeling.
• In November 2020, Fluor Corporation, provides services through its subsidiaries in the following areas: oil and gas, industrial and infrastructure, government and power, formed a strategic partnership with IHI (Ishikawajima-Harima Heavy Industries Co., Ltd.) Corporation, a Japanese engineering corporation that produces and offers ships, space launch vehicles, aircraft engines, marinediesel engines, gas turbines, gas engines, railway systems, turbochargers for automobiles, plant engineering, industrial machinery, power station boilers and other facilities, suspension bridges and other structures, under which the companies will jointly provide services to liquefied natural gas projects worldwide. The partnership enables both companies to leverage each other's expertise.

Figure 2. EPC (engineering, procurement, and construction) Consulting Market Share (%), By Service Type, 2023 

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Top Companies in EPC (engineering, procurement, and construction) Consulting Market

• Bechtel Corporation
• Fluor Corporation
• Jacobs Engineering Group
• WorleyParsons
• CH2M hill
• TechnipFMC
• Saipem
• KBR Inc
• Larsen & Toubro
• McDermott International Inc.
• Wood plc.
• SNC-Lavalin
• Hatch Ltd
• Chicago Bridge & Iron Company
• Hyundai Engineering & Construction
• National Projects Construction Corporation
• Galfar
• Tecnicas Reunidas
• Daewoo E&C
• Petrofac Ltd
• Samsung Engineering

*Definition: The EPC (engineering, procurement, and construction) consulting market involves providing services to support and manage large-scale construction projects such as power plants, oil refineries, mining facilities, and infrastructure systems. EPC consultants offer end-to-end solutions spanning conceptual design, detailed engineering, procurement of equipment and materials, construction management, and handover to operations. Key end user industries for EPC (engineering, procurement, and construction) consulting include oil & gas, chemicals, mining, power, and infrastructure. EPC (engineering, procurement, and construction) consulting services help in optimal plant design, cost and schedule control, and risk mitigation, thus ensuring compliance, and driving efficiency during project execution. Leading EPC (engineering, procurement, and construction) consulting firms provide proprietary tools and methodologies leveraging technologies such as digital twins, analytics, and automation.