POWER EPC MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025-2032)

Global Power EPC Market Size and Forecast – 2025-2032  

The Global Power EPC Market is estimated to be valued at USD 732.23 Bn in 2025 and is expected to reach USD 1,130.41 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 6.4% from 2025 to 2032.

Key Takeaways of the Power EPC Market :

• The thermal power segment is expected to account for 40. 6% of the market share in 2025.
• The engineering segment is projected to contribute 39. 8% of the market share in 2025.
• The steam turbines segment is expected to account for 26. 7% of the market share in 2025.
• Asia Pacific is the leading and fastest-expanding region in the global power EPC market, projected to account for 37 6% of the market share in 2025.

Market Overview:

The market trend for the power engineering, procurement, and construction (EPC) sector is characterized by a shift towards renewable energy sources, such as solar, wind, and hydro power generation. Governments worldwide are implementing policies and regulations to reduce carbon emissions and promote sustainable energy production, driving the demand for power EPC services in the green energy sector. Additionally, the adoption of advanced technologies, such as smart grids and energy storage systems, is expected to further boost the growth of the power EPC market during the forecast period.

Currents Events and their Impact

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Power EPC Market Segmental Analysis

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Power EPC Market Insights, By Service - Engineering Services Lead as they Aid in Designing Efficient and Sustainable Power Plants

Engineering segment is expected to contribute 39.8% share of the market in 2025. Engineering services play a crucial role in the power EPC market, as they lay the foundation for the successful design, construction, and operation of power plants. The growing demand for efficient, reliable, and sustainable power generation has driven the need for advanced engineering solutions that can optimize plant performance and minimize environmental impact.

Power EPC Market Insights, By Equipment - Steam Turbines Dominate Due to their Efficiency and Reliability

Steam turbines segment is projected to contribute 26.7% share of the market in 2025. Steam turbines have been the workhorse of the power generation industry for over a century, and their dominance in the equipment segment is a testament to their efficiency, reliability, and versatility.

Steam turbines are used in a wide range of power generation applications, from coal-fired and nuclear power plants to combined-cycle natural gas plants and concentrated solar power plants. They are capable of generating large amounts of electricity with high efficiency, making them an attractive option for baseload power generation. Moreover, steam turbines are known for their reliability and durability, with some units operating for over 50 years with proper maintenance and upgrades.

Regional Insights:

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Asia Pacific Power EPC Market Analysis and Trends

Asia Pacific is both the dominating and fastest-growing region in the global power EPC market. It is expected to hold 37.6% share of the market share in 2025. This dominance is driven by the rapid economic growth of countries like China and India, which has significantly increased energy demand due to industrialization, urbanization, and population expansion. Governments in the region have actively promoted power infrastructure development—across thermal, hydroelectric, and renewable energy—through supportive policies and initiatives. The presence of leading EPC players such as Power Construction Corporation of China (PowerChina), Larsen & Toubro (India), and Mitsubishi Heavy Industries (Japan) has further reinforced the regional market. These companies are known for their capabilities in executing large-scale projects and maintaining strong ties with government bodies and utility firms.

Global Power EPC Market Outlook for Key Countries

China Power EPC Market Trends

The China power EPC market is characterized by its vast scale and government-driven initiatives. The country's ambitious energy targets, coupled with its focus on reducing carbon emissions, have propelled the growth of renewable energy projects. China's Belt and Road Initiative has also created opportunities for Chinese EPC companies to expand their presence in other regions. Key players in China power EPC market include PowerChina, China Energy Engineering Corporation (CEEC), and Harbin Electric Corporation.

U.S.  Power EPC Market Trends

The U.S. power EPC market is driven by the need to modernize aging power infrastructure and the increasing adoption of clean energy technologies. The country's focus on reducing greenhouse gas emissions has led to the growth of renewable energy projects, particularly wind and solar power. Notable companies in the U.S. power EPC market include Bechtel Corporation, Fluor Corporation, and Black & Veatch, which have extensive experience in executing complex power projects.

India Power EPC Market Trends

India continues to be a leading market for power EPC, driven by its growing population and rapid industrialization. The government's initiatives, such as "Power for All" and the promotion of renewable energy, have created significant opportunities for EPC companies. The country's focus on developing ultra-mega power projects (UMPPs) and expanding its transmission and distribution network has further fueled market growth. Major players in the India’s power EPC market include Larsen & Toubro, Tata Projects, and NTPC Limited.

Germany Power EPC Market Trends

Germany power EPC market is characterized by its strong focus on renewable energy and energy efficiency. The country's "Energiewende" (energy transition) policy has driven the growth of solar, wind, and biomass power projects. Germany's expertise in engineering and technology has also positioned it as a leader in the development of advanced power solutions. Key players in the Germany power EPC market include Siemens Energy, E.ON, and RWE.

In September 2024, Namibian utility NamPower moved forward with its 100 MW Rosh Pinah solar PV project by securing financing and appointing contractors for construction. The company signed a USD 72.8 million loan agreement with German development bank KfW, which will cover 80% of the project cost, while the remaining funding will be sourced from NamPower’s own balance sheet.

Regulatory and Policy Framework:

• Government Policies and Initiatives: Data on government regulations, policies, and subsidies that affect the power EPC market, especially in the power sector (e.g., renewable energy policies, infrastructure development programs).
• Environmental and Safety Standards: Data regarding compliance with environmental standards and safety regulations within the power EPC projects.

Market Players, Key Development, and Competitive Intelligence:

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Key Developments:

• In November 2024, South Korea’s Hyundai Engineering & Construction (Hyundai E&C) entered into an Engineering, Procurement, and Construction (EPC) agreement with Bulgaria’s Kozloduy NPP-New Builds Plc (KNPP NB) to construct two new nuclear reactors at the Kozloduy nuclear complex. The project, valued at about USD 14.5 Bn combined, will involve the design and construction of two reactors, each capable of generating 2,200 megawatts. The Kozloduy site is located roughly 200 kilometers north of Sofia, Bulgaria’s capital. Hyundai E&C, a subsidiary of the Hyundai Motor Group, partnered with U.S.-based Westinghouse Electric Co. to secure this significant engineering contract.
• In July 2024, India-based company, Megha Engineering & Infrastructures (MEIL), secured a USD 1.53 Bn EPC contract to build two additional 700 MW pressurized heavy water reactors (PHWRs) at the Kaiga nuclear power plant in Karnataka, India. The contract was awarded by the Nuclear Power Corporation of India (NPCIL), which manages the country’s nuclear power facilities. Located in Uttara Kannada district, the Kaiga plant currently operates four 220 MW PHWR units, totaling 880 MW. The new reactors, designated as units 5 and 6, will expand the plant’s capacity further.
• In July 2024, PowerChina Huadong Engineering Corporation Limited won an EPC contract for the Al Ajban Solar Photovoltaic Independent Power Plant in Abu Dhabi. Upon completion, this facility is expected to be among the world’s largest single-site solar power plants, with operations scheduled to begin in the third quarter of 2026. The project highlights the region’s drive to strengthen its sustainable energy infrastructure.
• In April 2024, a consortium including EDF Renewables, KOWEPO, and Masdar signed a power purchase agreement with EWEC, committing the group to design, finance, build, and operate the plant. Situated in Al Ajban, about 70 kilometers northeast of Abu Dhabi, the solar plant is projected to reduce annual carbon emissions by approximately 2.4 million tons and supply electricity to around 160,000 households.

Top Strategies Followed by Global Power EPC Market Players

• Established players in the global power EPC market are focusing on various strategies to maintain their competitive edge and expand their market presence. One key approach is investing heavily in research and development (R&D) to innovate high-performance products. These companies allocate significant resources to develop cutting-edge technologies and solutions that cater to the evolving needs of the industry.
• For example, General Electric (GE) has been actively investing in advanced gas turbine technologies to improve efficiency and reduce emissions in thermal power plants. Siemens Energy has developed cutting-edge solutions in grid integration and hybrid power systems to address the evolving demands of global power infrastructure.

• Mid-level players in the global power EPC market are adopting strategies that focus on delivering cost-effective solutions to attract price-sensitive consumers. These companies prioritize offering quality products at competitive prices to gain a competitive advantage.
  • For instance, Sterling and Wilson (India-based) has built a strong reputation for delivering competitively priced EPC services in the solar power domain, particularly in emerging markets like Africa and the Middle East.

• Small-scale players in the global power EPC market are employing niche specialization strategies to differentiate themselves from larger competitors. These companies target specific market segments with unique features or innovative products tailored to meet the distinct needs of those niches. Moreover, small-scale players are leveraging cutting-edge technologies to remain competitive in the market.
  • For example, small players often form local partnerships to gain regional traction. A case in point is Juwi India Renewable Energies Pvt. Ltd., which partners with local firms to deliver solar EPC services in India's rural areas, combining global best practices with regional knowledge.

Market Report Scope

Power EPC Market Dynamics

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Power EPC Market Driver - Increasing Investments in Renewable Energy Projects

The global power EPC market is witnessing a significant driver in the form of increasing investments in renewable energy technologies. Governments, private organizations, and investors worldwide are actively channeling funds into the development and implementation of clean energy solutions to combat climate change and reduce carbon footprints. This surge in investments is fueling the demand for Engineering, Procurement, and Construction (EPC) services in the power sector, particularly in the realm of renewable energy. EPC companies are playing a crucial role in the design, procurement, and construction of solar power plants, wind farms, hydroelectric projects, and other sustainable energy infrastructure.

For example, in 2021, the European Investment Bank (EIB) approved a USD 1.28 billion loan to support the construction of a large-scale offshore wind farm in the Netherlands, showcasing the scale of investments in renewable energy projects. Moreover, the U.S. Department of Energy announced in 2021 that it would provide USD 52.5 million in funding for 31 projects to advance next-generation solar technologies, further demonstrating the commitment to renewable energy development.

Power EPC Market Opportunity - Advancements in Power Generation Technologies

The global power EPC market is witnessing a significant opportunity driven by advancements in power generation technologies, small power technology. Rapid technological progress has led to the development of more efficient, cost-effective, and environment-friendly power generation solutions. For instance, advancements in gas turbine technology have resulted in higher efficiency levels and reduced emissions, making gas-based power plants an attractive option for both developed and developing nations. Similarly, renewable energy technologies, such as solar photovoltaics and wind turbines, have undergone significant improvements in terms of efficiency, reliability, and cost-competitiveness.

For instance, the International Renewable Energy Agency (IRENA) reported that the global installed capacity of renewable energy reached 2,799 GW in 2021, demonstrating a substantial increase from 2,632 GW in 2020. This growth is driven by the declining costs of renewable technologies, with solar PV and onshore wind costs falling by 85% and 56%, respectively, between 2010 and 2020, according to IRENA's Renewable Power Generation Costs in 2020 report.

Analyst Opinion (Expert Opinion):

• The global power EPC market is poised for substantial growth, driven by the urgent need for renewable energy infrastructure and the transition to sustainable power sources. Companies like Fluor Corporation are at the forefront, implementing innovative project management strategies that enhance efficiency and reduce costs.
• Recent conferences, such as the Power Gen International (2022) and the Renewable Energy World Conference (2023), have underscored the importance of collaboration among industry stakeholders to address challenges related to financing and regulatory frameworks. These events serve as critical platforms for sharing insights on technological advancements and best practices in project execution. As global investments in renewable energy continue to rise, the power EPC market is set to expand rapidly, driven by a combination of regulatory support, technological innovation, and an increasing focus on sustainability.

Market Segmentation

•  Type of Power Generation Insights (Revenue, USD Bn, 2020 - 2032)
• • Thermal Power
  • Renewable Energy (Solar, Wind, Hydro)
  • Nuclear Power
  • Others
•  Service Insights (Revenue, USD Bn, 2020 - 2032)
• • Engineering
  • Procurement
  • Construction
  • Commissioning
•  Equipment Insights (Revenue, USD Bn, 2020 - 2032)
• • Steam Turbines
  • Gas Turbines
  • Boilers
  • Control Systems
  • Generators
  • Others
• Regional Insights (Revenue, USD Bn, 2020 - 2032)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Siemens AG
  • General Electric
  • Fluor Corporation
  • Bechtel Corporation
  • McDermott International
  • ABB Ltd.
  • Kiewit Corporation
  • Black & Veatch
  • Jacobs Engineering Group
  • Samsung C&T Corporation
  • Larsen & Toubro
  • Power Construction Corporation of China
  • Toshiba Corporation
  • Babcock & Wilcox
  • Chiyoda Corporation

Sources:

Primary Research Interviews:

• Project Manager – Leading Power EPC Contractor
• Senior Engineer – Renewable Energy Power Plant Developer
• Procurement Manager – Major Power Equipment Supplier
• Environmental Consultant – Sustainability in Power Infrastructure

Stakeholders:

• Power EPC Contractors
• End-use Sectors:
• Renewable Energy (Solar, Wind, Hydropower)
• Conventional Energy (Thermal, Gas, Nuclear)
• Grid and Transmission Infrastructure
• Regulatory & Certification Bodies
• Government and Utility Companies
• Technology Providers: Smart Grid, Energy Storage Solutions

Databases:

• International Energy Agency (IEA) Database
• International Renewable Energy Agency (IRENA) Reports
• World Bank Energy Sector Database

Magazines:

• Power Engineering International – Trends in Power Plant Development
• Renewable Energy World – Innovations in Renewable Power Generation
• Energy Source – Power EPC Project Trends and Market Insights
• Utility Dive – Power Generation and Grid Modernization
• Electric Light & Power – Updates on Power Infrastructure Developments

Journals:

• Journal of Power Sources – Advances in Power Plant Technologies
• Energy Economics – Energy Policy and Infrastructure Investments
• International Journal of Renewable Energy – Innovations in Renewable Power EPC
• Journal of Electrical Engineering & Technology – Power System Engineering
• Renewable and Sustainable Energy Reviews – Best Practices in Power EPC

Newspapers

• Financial Times – Global Energy Investment Trends
• The Economist – Developments in Global Energy Infrastructure
• Power & Energy Magazine – Market Dynamics in Power EPC
• Business Insider – Investment Opportunities in Power Generation Projects

Associations:

• International Association for Energy Economics (IAEE)
• World Energy Council (WEC)
• American Society of Civil Engineers – Energy Infrastructure
• Global Wind Energy Council (GWEC)
• Solar Energy Industries Association (SEIA)
• National Hydropower Association (NHA)

Public Domain Sources

• U.S. Energy Information Administration (EIA) – Power Sector Overview
• International Energy Agency (IEA) – Global Energy Investment
• World Bank – Energy Sector Projects & Financing Guidelines
• United Nations Framework Convention on Climate Change (UNFCCC) – Renewable Energy Commitments
• U.S. Department of Energy (DOE) – Energy Technology Research and Development
• European Commission – Renewable Energy Directive

Proprietary Elements:

• CMI Data Analytics Tool, Proprietary CMI Existing Repository of information for last 8 years.