Oil and Gas EPC Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Service Type (Engineering, Procurement), By Location (Onshore, Offshore), By End User (Upstream, Midstream), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 50.75 Billion
CAGR (2026-2031)	5.71%
Fastest Growing Segment	Upstream
Largest Market	Middle East & Africa
Market Size (2031)	USD 70.82 Billion

Market Overview

The Global Oil and Gas EPC Market will grow from USD 50.75 Billion in 2025 to USD 70.82 Billion by 2031 at a 5.71% CAGR. The Global Oil and Gas EPC Market comprises contractual arrangements wherein contractors execute detailed engineering, procurement of materials, and construction of infrastructure for upstream, midstream, and downstream sectors. Growth in this domain is fundamentally driven by rising global energy consumption and the urgent requirement to modernize aging facilities for enhanced operational efficiency. Additionally, the strategic prioritization of energy security has prompted increased capital allocation toward exploration and production, thereby sustaining demand for comprehensive project execution services.

However, the market encounters a significant impediment regarding geopolitical and economic instability, which induces volatility in raw material costs and project financing. This unpredictability often forces operators to delay Final Investment Decisions, disrupting the project pipeline. According to the International Energy Agency, in 2024, global upstream oil and gas investment is projected to increase by 7% to reach USD 570 billion. While this data indicates robust activity, EPC contractors must navigate these fluctuating market dynamics and stringent regulatory pressures that challenge project timelines and profitability.

Key Market Drivers

Escalating global energy demand is driving a distinct rise in upstream investment, necessitating extensive engineering, procurement, and construction services to bring new reserves online. As mature fields decline, operators are compelled to sanction capital-intensive greenfield projects to ensure supply stability, directly resulting in large-scale contract awards for facility fabrication and installation. According to the Organization of the Petroleum Exporting Countries, September 2024, in the 'World Oil Outlook 2050', the global oil industry requires a cumulative investment of USD 17.4 trillion through 2050 to meet projected consumption needs. This long-term financial commitment underscores the critical role of EPC contractors in designing and building the essential infrastructure required to sustain production levels amidst growing energy requirements.

The substantial expansion of Liquefied Natural Gas infrastructure serves as a secondary but equally potent catalyst for market activity, driven by the geopolitical prioritization of energy security and diversification. This trend has triggered a wave of construction for both liquefaction trains and regasification terminals, requiring specialized contractors capable of executing complex cryogenic projects. According to the International Gas Union, June 2024, in the 'World LNG Report 2024', global LNG receiving capacity increased by 69.7 million tonnes per annum in 2023, marking the highest annual addition in over a decade. Reflecting the magnitude of these opportunities, according to Saipem, in 2024, the company was awarded a strategic offshore contract from QatarEnergy valued at approximately USD 4 billion, illustrating the massive scale of capital deployment currently characterizing the sector.

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Key Market Challenges

Geopolitical and economic instability represents a critical impediment to the Global Oil and Gas EPC Market, primarily by introducing severe volatility into raw material pricing and capital financing. This unpredictability disrupts the precise cost estimation required for large-scale Engineering, Procurement, and Construction contracts, often forcing contractors to absorb unexpected cost overruns on fixed-price agreements or resulting in contentious contract renegotiations. When supply chain costs for essential materials like steel and specialized equipment fluctuate rapidly due to regional conflicts or trade tensions, the financial viability of long-term infrastructure projects becomes difficult to secure, creating significant operational friction.

Furthermore, this instability hampers market growth by compelling energy operators to postpone Final Investment Decisions (FIDs) to preserve capital liquidity. Such delays stall the project pipeline essential for maintaining global supply levels. The scale of the investment at risk is immense. According to the Organization of the Petroleum Exporting Countries, in 2024, the global oil sector requires cumulative investments of approximately USD 17.4 trillion through 2050 to effectively meet rising demand. However, persistent economic volatility acts as a deterrent to the consistent capital deployment necessary to reach these targets, thereby restricting the sector's expansion potential.

Key Market Trends

The incorporation of Carbon Capture, Utilization, and Storage (CCUS) infrastructure has emerged as a definitive trend reshaping the Global Oil and Gas EPC Market, driven by stringent decarbonization mandates rather than pure capacity expansion. EPC contractors are increasingly tasked with designing complex retrofits for existing facilities and engineering extensive transport pipeline networks to manage carbon emissions. This shift requires specialized technical expertise in high-pressure CO2 handling and geological storage integration, fundamentally altering the scope of traditional hydrocarbon projects. According to the Global CCS Institute, December 2024, in the '2024 Global Status of CCS Report', the global pipeline of carbon capture and storage facilities expanded by 60% year-over-year, reaching a total of 628 projects in development or operation, underscoring the rapid scale at which this infrastructure is being prioritized.

Simultaneously, the sector is undergoing a strategic diversification into green hydrogen and renewable energy hybrid systems to mitigate long-term volatility in fossil fuel markets. Major contractors are pivoting their business models to include the engineering and construction of electrolyzer plants and the integration of solar or wind power into upstream operations to reduce carbon intensity. This transition is not merely aspirational but is backed by substantial capital reallocation from traditional operators seeking to future-proof their assets. According to the International Energy Agency, June 2024, in the 'World Energy Investment 2024' report, the oil and gas industry increased its capital expenditure on clean energy technologies to USD 30 billion in 2023, signaling a tangible structural shift in project procurement demands.

Segmental Insights

The Upstream segment represents the fastest-growing category in the Global Oil and Gas EPC Market, driven by renewed capital flows into exploration and production activities. This expansion is necessitated by the urgent requirement to replace depleting reserves and satisfy escalating global energy consumption. Energy companies are prioritizing investments in complex offshore projects and brownfield revitalization to maintain output levels against natural field declines. The International Energy Agency emphasizes that robust upstream development is crucial to ensure future supply stability, thereby creating substantial opportunities for contractors specializing in drilling infrastructure and field development.

Regional Insights

The Middle East and Africa region commands the leading position in the global oil and gas EPC market, driven by substantial capital expenditure from National Oil Companies aiming to maximize resource monetization. Major producers in the region are actively investing in the expansion of offshore and onshore fields to support long-term export strategies. Furthermore, member nations of the Organization of the Petroleum Exporting Countries are prioritizing the development of downstream refining and petrochemical infrastructure. This sustained focus on capacity enhancement and infrastructure modernization ensures the region remains the primary hub for major EPC project contract awards.

Recent Developments

• In December 2025, Saipem, in a consortium with Offshore Oil Engineering Co. Ltd., was awarded a major offshore contract by QatarEnergy LNG for the North Field Production Sustainability project. The agreement, valued at approximately $4 billion, involves the engineering, procurement, fabrication, and installation of two offshore compression complexes aimed at sustaining production from the massive natural gas reservoir. The scope of work encompasses compression platforms, living quarters, and interconnecting bridges. This strategic award reinforces the company's position in the region and its capability to execute large-scale energy infrastructure projects.
• In November 2024, Technip Energies and Shell Catalysts & Technologies announced a strengthened strategic alliance to accelerate the deployment of carbon capture solutions for the energy industry. The companies agreed to move towards global exclusivity for the delivery of amine-based post-combustion carbon capture systems utilizing a proprietary technology. This collaboration integrates leading technology licensing expertise with advanced project delivery capabilities to address the growing demand for scalable decarbonization solutions. The partnership aims to offer investable, end-to-end solutions that support the industrial transition to net-zero emissions.
• In August 2024, McDermott was awarded an engineering, procurement, construction, and installation contract by Shell Trinidad and Tobago for the Manatee gas field development project. The scope of the agreement includes the design, fabrication, hook-up, and commissioning of a platform and jacket, as well as the installation of a gas pipeline connecting the platform to a processing facility. Located off the southeast coast of Trinidad and Tobago, this project highlights the company's integrated capabilities in delivering complex offshore infrastructure and supports the development of the country's gas resources.
• In April 2024, a consortium comprising Samsung Engineering, GS Engineering & Construction, and Nesma & Partners secured engineering, procurement, and construction contracts worth $7.7 billion from Saudi Aramco. The project involves the expansion of the Fadhili Gas Plant in Saudi Arabia, aiming to increase its processing capacity from 2.5 billion to 4 billion standard cubic feet per day. This expansion is part of the country's strategy to boost natural gas production and reduce reliance on oil for power generation. The joint venture will execute multiple packages to deliver the additional capacity for the facility.

Key Market Players

• Bechtel Corporation
• TechnipFMC plc
• McDermott International, Ltd
• Saipem S.p.A.
• Fluor Corporation
• Petrofac Limited
• Larsen & Toubro Limited
• Halliburton Energy Services, Inc

By Service Type	By Location	By End User	By Region
Engineering Procurement	Onshore Offshore	Upstream Midstream	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Oil and Gas EPC Market, By Service Type:

• Engineering
• Procurement

• Oil and Gas EPC Market, By Location:

• Onshore
• Offshore

• Oil and Gas EPC Market, By End User:

• Upstream
• Midstream

• Oil and Gas EPC Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE