Power EPC Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Type (Thermal, Oil & Gas, Renewable, Nuclear, Others), By Component (Engineering Design, Procurement, Construct) By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 135.96 Billion
CAGR (2026-2031)	5.21%
Fastest Growing Segment	Renewable
Largest Market	Asia Pacific
Market Size (2031)	USD 184.40 Billion

Market Overview

The Global Power EPC Market will grow from USD 135.96 Billion in 2025 to USD 184.40 Billion by 2031 at a 5.21% CAGR. The Global Power EPC Market involves the holistic delivery of energy infrastructure where contractors assume full responsibility for engineering designs, material procurement, and the physical construction of power plants. This sector is fundamentally driven by the accelerating global shift toward clean energy sources, the critical necessity to modernize older grid networks, and the escalating demand for electricity across industrializing economies. These core drivers necessitate the deployment of large scale infrastructure and specialized technical services to ensure reliable energy supply.

According to the International Renewable Energy Agency, in 2024, the global power sector added 585 gigawatts of new renewable capacity. This significant increase in installation activity highlights the robust demand for specialized construction services. However, persistent volatility in raw material prices remains a notable challenge that could impede market expansion by increasing project costs and disrupting supply chain stability.

Key Market Drivers

The rising global demand for clean and renewable energy infrastructure is a primary catalyst propelling the EPC sector, as nations aggressively transition away from fossil fuels to meet decarbonization mandates. This shift necessitates the deployment of complex, utility-scale generation assets, requiring contractors to possess advanced capabilities in site engineering, material procurement, and project management. The scale of this development is particularly evident in the wind sector, where specialized firms are essential for handling logistics and the installation of massive turbines. According to the Global Wind Energy Council, April 2024, in the 'Global Wind Report 2024', the global wind industry installed a record 117 gigawatts of new capacity in 2023. This rapid expansion underscores the critical role of EPC providers in delivering the physical assets required for the energy transition.

Simultaneously, the surging power requirements for data centers and AI infrastructure are creating a distinct, high-growth revenue stream for the market. As technology firms scale their operations to support artificial intelligence workloads, they require hyper-scale facilities with significant, reliable base-load electricity and sophisticated cooling systems. According to Goldman Sachs, April 2024, in the 'Generative AI is closing the likely power gap' report, data center power demand is expected to grow 160 percent by 2030. To accommodate these evolving consumption patterns and generation shifts, capital expenditure is scaling massively. According to the International Energy Agency, in 2024, global investment in clean energy technologies and infrastructure is set to reach USD 2 trillion, highlighting the substantial financial volume supporting the sector.

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Key Market Challenges

Persistent volatility in raw material prices significantly hampers the Global Power EPC Market by destabilizing the financial models essential for long-term infrastructure projects. Contractors in this sector frequently operate under fixed-price agreements, assuming the liability for cost escalations that occur after contract signing. When input costs rise unpredictably, project margins are decimated, compelling firms to increase bid prices to cover potential risks or decline participation in tenders altogether. This financial uncertainty limits the availability of capable firms for critical energy developments and creates friction in contract negotiations, slowing the pace of infrastructure deployment.

This instability is underscored by sharp inflationary trends in key structural materials required for power plants and grid networks. According to the Associated General Contractors of America, in September 2025, the producer price index for aluminum mill shapes increased by 26% compared to the previous year, while steel mill products saw a 12.4% rise. Such substantial fluctuations make accurate budgeting nearly impossible and disrupt supply chains as manufacturers struggle to maintain delivery schedules at agreed rates. Consequently, project timelines are frequently extended as stakeholders pause to renegotiate terms or secure alternative suppliers, directly impeding the sector's ability to meet capacity targets.

Key Market Trends

The Development of Green Hydrogen and Ammonia Infrastructure is creating a new asset class for the Global Power EPC Market, requiring contractors to integrate power generation with complex chemical processing facilities. This trend necessitates the deployment of large-scale electrolyzers and balance-of-plant systems, forcing firms to bridge the technical gap between electrical engineering and process engineering. As industrial decarbonization accelerates, EPC providers are securing contracts that encompass not just the renewable energy source but also the hydrogen production and storage infrastructure. According to the International Energy Agency, October 2025, in the 'Global Hydrogen Review 2025', capital spending on low-emissions hydrogen projects reached USD 4.3 billion in 2024, highlighting the transition of these technologies from pilot stages to commercial execution.

Simultaneously, the Incorporation of Utility-Scale Energy Storage Systems is fundamentally altering project specifications as grid operators seek to mitigate the intermittency of renewable generation. Contractors are increasingly tasked with installing massive battery energy storage systems (BESS) that require specialized thermal management, safety containment, and grid synchronization capabilities. This shift demands that EPC firms develop competencies in integrating storage assets directly with wind and solar farms to ensure reliable power delivery during peak demand. According to the European Association for Storage of Energy, March 2025, in the 'European Market Monitor on Energy Storage (EMMES) 9.0', Europe's energy storage capacity reached 89 gigawatts by the end of 2024, underscoring the rapid expansion of this critical infrastructure segment.

Segmental Insights

The renewable energy sector currently represents the fastest-growing segment within the Global Power EPC market, driven by accelerating global decarbonization mandates and the diminishing costs of solar and wind technologies. Major institutions such as the International Energy Agency emphasize the critical need for clean energy infrastructure to meet net-zero targets, prompting governments to implement favorable regulatory frameworks and investment incentives. Consequently, utility companies are increasingly shifting capital expenditure toward non-fossil fuel assets, thereby driving the demand for engineering and construction services dedicated to large-scale renewable energy integration.

Regional Insights

Asia Pacific leads the Global Power EPC Market due to sustained industrial growth and escalating urbanization in key economies like China and India. This dominance is underpinned by extensive capital allocation toward upgrading power transmission networks and expanding generation capacity. Furthermore, a decisive shift toward renewable energy sources drives demand for specialized engineering services. Regulatory frameworks established by bodies such as the Central Electricity Authority in India facilitate these large-scale projects to meet soaring energy needs. Consequently, the region remains the central focus for procurement and construction activities within the global power sector.

Recent Developments

• In January 2025, Power Construction Corporation of China (PowerChina) signed an EPC contract for the MAS and AHK2 solar photovoltaic projects in Riyadh, Saudi Arabia. These projects, part of the Kingdom’s Round 5 National Renewable Energy Program, have installed capacities of 1,250 MW and 500 MW, respectively. The agreement covers the design, procurement, construction, commissioning, and operation of the facilities. Once completed, the plants are expected to generate 4.4 billion kilowatt-hours of clean electricity annually. This collaboration underscores the company’s growing footprint in the international renewable energy EPC market and supports Saudi Arabia’s Vision 2030 energy transition targets.
• In September 2024, KEC International secured substantial new orders worth Rs 1,423 crore within its Transmission & Distribution business, marking a continued expansion in the Middle East. The company was awarded contracts for the design, supply, and installation of 380 kV transmission lines in Saudi Arabia. These wins followed previous successful orders in the United Arab Emirates and Oman, consolidating the firm’s position in the region's power infrastructure market. The Managing Director noted that these projects significantly strengthened the international order book and highlighted the robust demand for grid connectivity solutions in key global markets.
• In June 2024, Bharat Heavy Electricals Limited (BHEL) received a significant EPC order valued at Rs 13,300 crore to establish a 1,600 MW thermal power station in Koderma, Jharkhand. Awarded by the Damodar Valley Corporation, the contract entails the setting up of two 800 MW supercritical thermal power units. The project scope encompasses the design, engineering, manufacturing, supply, erection, testing, and commissioning of the main plant and balance of plant systems. This development aligns with the national goal of augmenting baseload power capacity and demonstrates the company's enduring capabilities in executing large-scale thermal energy projects.
• In January 2024, the renewable engineering, procurement, and construction (EPC) business of Larsen & Toubro secured a major turnkey order to construct a 1,800 MWac solar photovoltaic plant in Dubai, United Arab Emirates. This project constitutes the sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park, recognized as the largest single-site solar park globally under the Independent Power Producer model. The scope involves the complete power infrastructure deployment, aiming to reduce carbon emissions by approximately 2.4 million tonnes annually. This contract reinforces the company’s leadership in the Middle East’s renewable energy sector and its commitment to sustainable power solutions.

Key Market Players

• General Electric
• Siemens AG
• ABB Group
• Mitsubishi Hitachi Power Systems
• Doosan Heavy Industries & Construction
• Bechtel Corporation
• China Energy Engineering Corporation
• 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:

• Power EPC Market, By Type:

• Thermal
• Oil & Gas
• Renewable
• Nuclear
• Others

• Power EPC Market, By Component:

• Engineering Design
• Procurement
• Construct

• Power 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