Japan Power EPC Market Size (2024 - 2029)

The Japan power EPC market is poised for growth, driven by increased investments in renewable energy and smart grid deployment, which are expected to enhance the market size over the forecast period. Despite challenges posed by the volatility of fuel prices like coal and gas, the market has rebounded to pre-pandemic levels. The digitalization of the electricity sector, fueled by advancements in big data, IoT, cloud computing, and machine learning, is anticipated to transform generation, distribution, and consumption, offering substantial opportunities for power EPC contractors to expand their market share.

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Market Size of Japan Power EPC Industry

Japan Power EPC Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 4.00 %
Market Concentration Medium

Major Players

Japan Power EPC Market Major Players

*Disclaimer: Major Players sorted in no particular order

Japan Power EPC Market Analysis

Japan's power EPC market is expected to register a CAGR of more than 4% during the forecast period.

In 2020, COVID-19 had a detrimental effect on the market. Presently, the market has reached pre-pandemic levels.

  • Over the medium term, factors such as increased investment in renewable energy are likely to propel the demand for power EPC in the forecast period. Increased investment in smart grid deployment is anticipated to drive the power EPC market in the forecast period.
  • On the other hand, the high volatility of fuel prices such as coal and gas is anticipated to restrain the Japan power EPC market during the forecast period.
  • Nevertheless, digitalization in the electricity sector in Japan has witnessed significant growth in the last few years. Generation, distribution, consumption, and smart energy production are expected to undergo enormous revolutionary changes due to big data, IoT, cloud computing, and machine learning technologies, resulting in a stable and reliable power supply, which is likely to provide a significant opportunity for the power EPC contractors.

Japan Power EPC Industry Segmentation

Power EPC is a form of contract used to undertake the construction of power generation, transmission, and distribution projects on large-scale and complex energy infrastructure projects. EPC stands for engineering, procurement, and commissioning. Engineering and procurement involve the detailed engineering design of a project and procuring all the equipment and raw materials necessary. Construction is related to delivering a functional facility to the client.

The Japan power EPC market is segmented by power generation and power transmission and distribution (T&D). By power generation source, the market is segmented into thermal, hydroelectric, nuclear, and renewables. For power transmission and distribution (T&D), only qualitative analysis is provided. For each segment, market sizing and forecasts have been done based on revenue (USD billion), except for power transmission and distribution (T&D), for which only qualitative analysis will be provided.

Power Generation
Thermal
Hydroelectric
Nuclear
Renewables
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Japan Power EPC Market Size Summary

The Japan power EPC market is poised for growth, driven by increased investments in renewable energy and smart grid deployment. The market has rebounded to pre-pandemic levels after the setbacks caused by COVID-19. The shift towards renewable energy sources is gaining momentum as Japan seeks to reduce its dependence on non-renewable energy and enhance energy security. Government policies and private sector investments are expected to boost the demand for power EPC services, particularly in solar projects, as the country aims to achieve its net-zero emission target by 2050. The integration of digital technologies such as big data, IoT, and machine learning in the electricity sector is also anticipated to create significant opportunities for power EPC contractors, ensuring a stable and reliable power supply.

The aging grid infrastructure and the need for resilient power networks, especially in earthquake-prone areas, have led to increased investments in smart grid projects. These advancements are crucial for improving the quality of electricity delivery and supporting the integration of renewable energy sources. The smart grid initiatives are expected to enhance asset utilization and increase the hosting capacity for renewable generation, aligning with Japan's environmental goals. The rising demand for electricity, driven by technological advancements and growth in industrial and commercial sectors, further underscores the need for robust power EPC services. Key players in the market, such as Shizen Energy Inc., Electric Power Development Co., Ltd., and Toshiba Energy Systems & Solutions Corporation, are actively involved in projects that reflect these trends, contributing to the market's moderate fragmentation and competitive landscape.

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Japan Power EPC Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD billion, till 2028

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 PESTLE Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 Power Generation

      1. 2.1.1 Thermal

      2. 2.1.2 Hydroelectric

      3. 2.1.3 Nuclear

      4. 2.1.4 Renewables

    2. 2.2 Power Transmission and Distribution (T&D) - (Qualitative Analysis Only)

    3. 2.3

Japan Power EPC Market Size FAQs

The Japan Power EPC Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)

SHIZEN ENERGY Inc., JUWI GmbH, Sumitomo Corporation, Toshiba Energy Systems & Solutions Corporation and Electric Power Development Co.,Ltd. are the major companies operating in the Japan Power EPC Market.

Japan Power EPC Report Snapshots

Japan Power EPC Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)