Engineering, Procurement, and Construction (EPC) Procurement Revenue Forecast

Engineering, Procurement, and Construction (EPC) Category Overview

The Engineering, Procurement, and Construction (EPC) Category is anticipated to grow at a CAGR of 5.5% from 2023 to 2030. North America holds the largest share of over 35% and APAC is expected to be the fastest-growing region during the forecast period. The EPC category is driven by factors such as the growing need for infrastructure development, particularly in developing economies such as India, China, & Brazil, increasing adoption of renewable energy sources such as solar and wind, and people's desire to seek expert assistance for construction projects. Furthermore, the introduction of new technologies such as 3D printing and Building Information Modelling (BIM) is likely to open up new avenues for market expansion.

There are several key trends emerging in the category and some of them include rising demand for infrastructure, the emergence of new technologies, and growing investments in the oil & gas industry, for example:

• The U.S. Infrastructure Investment and Jobs Act, signed in November 2021, aims to provide USD 1.2 trillion in funding for EPC projects over the next five years
• In April 2022, CWP Global partnered with Bechtel to develop large-scale green hydrogen and ammonia facilities, providing conceptual and early planning solutions for optimal integrated configurations.
• The UK plans to accelerate HS2 rail network construction using on-site 3D reinforced concrete printing using robots, developed by SCS JV (Skanska Costain STRABAG Joint Venture)

Building planning and design is a collaborative process that necessitates participation from a variety of stakeholders, including engineers, architects, builders, and clients. The conventional method makes it impossible to visualize changes in real time because everyone works on their own files. It leads to the creation of many copies of the same plan, which in turn leads to confusion. Advanced Building Information Modelling (BIM) systems address this issue by centralizing data and allowing everyone to collaborate on a single shared model.

Order your copy of the Engineering, Procurement, and Construction (EPC) Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

This category is fragmented and very competitive with the presence of multiple established enterprises. To increase their market share, these companies are implementing methods such as mergers and acquisitions, partnerships, and collaborations. Many big players are focusing on expanding their global operations by gaining contracts and providing EPC services to develop plants and production facilities in many industry verticals, for instance: 

• In May 2022, Mitsubishi Heavy Industries Ltd and the SEPCOIII consortium inked a contract with Aluminum Bahrain BSC (Alba) to expand Power Station 5 at Alba by installing a new 680.9-megawatt Combined Cycle Gas Turbine Power Block
• In December 2021, Saudi Aramco awarded McDermott three new EPC and installation projects. EPCI of four drilling jackets, seven oil production deck modules, and three contract release purchase orders for the construction of 45 kilometers of pipeline, more than 100 kilometers of subsea cables, and tie-in works to existing facilities are all part of the project 

There are three main sourcing factors to consider in this category: contracting bundled suppliers, multiple suppliers, and preferred suppliers. Contracting bundled suppliers is a common practice in Asia-Pacific, where local and regional players engage with clients. Multiple suppliers allow projects of all categories to be addressed, and it is helpful to have a set of pre-qualified suppliers in place for any required region over 3-5 years. Preferred suppliers involve selecting a set of 5-8 service providers, and then initiating a bidding process only among these preferred partners every time a project is planned.

Engineering, Procurement, and Construction (EPC) Procurement Intelligence Report Scope

• Engineering, Procurement, and Construction (EPC) Category Growth Rate: CAGR of 5.5% from 2023 to 2030
• Pricing growth Outlook: 5 - 7% (Annually)
• Pricing Models: Maximum price model, cost plus pricing model, fixed price model
• Supplier Selection Scope: Cost and pricing, Past engagements, Productivity, Geographical presence
• Supplier selection criteria: End industry application, quality compliance, financial stability, service provision, technical specifications, operational capabilities, regulatory standards and mandates, category innovations, and others
• Report Coverage: Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Key Companies

• Fluor
• Flexitallic
• Saipem
• ERGIL
• Tekfen Holding
• Maire Tecnimont
• BCC Group
• Azco
• Samsung Engineering
• Bechtel

Brief about Pipeline by Grand View Research: 

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions. 

Our services include (not limited to): 

• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions