Oil and Gas EPC Market Size
| Study Period | 2020 - 2029 |
| Market Size (2024) | USD 456.91 Billion |
| Market Size (2029) | USD 576.52 Billion |
| CAGR (2024 - 2029) | 4.76 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Oil and Gas EPC Market Analysis
The Oil & Gas EPC Market size is estimated at USD 456.91 billion in 2024, and is expected to reach USD 576.52 billion by 2029, growing at a CAGR of 4.76% during the forecast period (2024-2029).
- Over the medium term, the growing demand for oil & gas and the rising consumption of natural gas, which is creating a need to develop the natural gas infrastructure, and an increase in offshore oil and gas exploration and production (E&P) activities are also expected to drive the growth of the market studied.
- On the other hand, the high volatility of oil and gas prices is one of the major restraints for the oil and gas EPC market.
- Nevertheless, the discovry of new oil and gas fields in various countries are exoected to create ample opportunities for the oil and gas EPC market for all the upstream, midstream, and downstream sectors during the forecast period.
- The Asia-Pacific region dominates the market and is also likely to witness significant growth during the forecast period. This growth is attributed to the increasing demand for natural gas and upcoming LNG facilities resulting in massive demand for EPC services.
Oil and Gas EPC Market Trends
Upstream Segment Expected to Dominate the Market
- The EPC in the upstream oil and gas sector includes onshore and offshore exploration and production-related services. Traditionally, the total investments in onshore EPC are more than that of the offshore segment, mainly due to lower investment requirements, lesser complexity, more accessible sites, and lower risk than the offshore segment. However, investment in the offshore segment has risen during the last decade due to maturing onshore fields.
- The EPC services for offshore, such as installations, including design, fabrication, installation, commissioning, and start-up of a fixed platform, floating production storage and offloading (FPSO) units, and floating production facilities for shallow, deep water, and ultradeep waters, are gaining traction.
- Concerning the EPC for offshore structures, identifying and assessing development options for offshore facilities, whether based on fixed or floating structures, is crucial. The EPC services for fixed platforms used for shallow waters include constructing and deploying jackets, tripods, integrated topsides, compression platforms, etc., to ensure that fixed platforms are stable and resilient to wind and water movements. The floating platform services, generally for deepwater, include constructing and deploying hulls and decks for semi-submersible platforms, modules and turrets for FPSOs, and mooring systems and buoys.
- Floating platforms generally eliminate the need for laying expensive long-distance pipelines from the production facility to an onshore terminal. Floating platforms are also economical in smaller oil fields, where the expense of installing a fixed oil platform and pipeline is too high. Once the field is depleted, FPSOs may be moved and used at a new location instead of decommissioning a fixed platform.
- According to BP Statistical Review of World Energy 2023, in 2022, global crude oil production amounted to about 4.4 billion metric tons. The figure peaked in 2018 when oil production worldwide reached nearly 4.5 billion metric tons. The crude oil production witness about 4.2% growth compared to previous year.
- In Africa, the operators have signed many new exploration and production contracts. For example, in January 2022, Eni, the Italy-based oil and gas company, clinched an exploration contract in five blocks in Egypt. The blocks are located in the Eastern Mediterranean Sea, Western Desert, and Gulf of Suez. Seven oil and gas production agreements were signed for the Eastern and Western deserts by other companies in the country.
- Such developments are likely to propel the oil and gas EPC market rapidly in the future.
Asia-Pacific Expected to Dominate the Market
- The growing energy demand due to the high urbanization rate in Asian countries has led to the region's high oil and gas production rate. The presence of countries like China is the main driver of the region's EPC market's growth.
- China is the largest crude oil and natural gas producer in Asia-Pacifi. In 2020, the country accounted for around 30% of the total natural gas production. The country has planned even more upstream and midstream projects to achieve an equilibrium in the demand-supply situation of natural gas in the country. China has witnessed an upsurge in the natural gas demand in both the industrial and commercial sectors.
- Many companies have blueprints for exploration and production activities onshore and offshore. In February 2021, CNOOC Ltd stated its plans to accelerate the exploration and development of natural gas, including deepwater reserves in the South China Sea and unconventional resources onshore in China. The company planned a capital spending of around USD 13.93-USD 15.48 billion in 2021 to make gas part of 30% of its portfolio by 2025 and 50% by 2035.
- India is the second-largest crude oil producer in the Asia-Pacific region. It accounted for 9.5% of the regional crude oil production in 2022, according to the BP Statistical Review of World Energy 2023. Although the country has a relatively less complex and new oil and gas infrastructure than China, India's oil and gas industry includes various installations, including drilling rigs, production platforms, refineries, pipelines, and terminals.
- As of June 2022, India has 77 active rigs. The country's oil production has been falling for almost a decade due to aging fields and the absence of major discoveries. Both state-owned and private players have been working on investment plans to raise recovery from older fields.
- For instance, in April 2022, Indian Oil Corporation Limited (IOCL) announced its plans to invest USD 102 billion in petroleum, oil, and lubricant (POL) storage capacities, including setting up a greenfield facility in the northeast region.
- Owing to such developments, the region is likely to witness rich growth in the oil and gas EPC market in the coming years.
Oil and Gas EPC Industry Overview
The oil and gas EPC market is fragmented. Some of the major players in the market (in no particular order) include Saipem SpA, TechnipFmc PLC, Petrofac Limited, Fluor Corporation, and Bechtel Corporation.
Oil and Gas EPC Market Leaders
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Saipem SpA
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TechnipFmc PLC
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Fluor Corporation
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Bechtel Corporation
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Petrofac Limited
*Disclaimer: Major Players sorted in no particular order
Oil and Gas EPC Market News
- May 2023, QatarEnergy announced the award of the engineering, procurement, and construction (EPC) contract for the North Field South (NFS) project, which comprises two LNG mega trains with a combined capacity of 16 million tons per annum (MTPA). NFS, jointly with the North Field East (NFE) project, will expand Qatar’s LNG production capacity from the current 77 MTPA to 126 MTPA. QatarEnergy maintains a 75% interest in the NFS project and has already signed partnership agreements with TotalEnergies, Shell, and ConocoPhillips for the remaining 25%.
- July 2022, Saipem SpA was awarded several onshore and offshore contracts worth approximately USD 1.25 billion in the Middle East. The first group of contracts involves extending onshore drilling contracts in the Middle East for roughly USD 600 million. Another four new contracts in the region contain the EPC and installation of several offshore jackets, decks, subsea pipelines, subsea composite cables, umbilicals, fiber optic cables, and brownfield modifications. The combined value of these contracts is worth USD 650 million.
Oil and Gas EPC Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD, till 2028
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
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4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.1.1 Growing Demand to Develop the Natural Gas Infrastructure
- 4.5.1.2 Increase in Offshore Oil and Gas Exploration and Production (E&P) Activities
- 4.5.2 Restraints
- 4.5.2.1 High Volatility of Oil and Gas Prices
- 4.6 Supply Chain Analysis
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4.7 Porter's Five Forces Analysis
- 4.7.1 Bargaining Power of Suppliers
- 4.7.2 Bargaining Power of Consumers
- 4.7.3 Threat of New Entrants
- 4.7.4 Threat of Substitutes Products and Services
- 4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Sector
- 5.1.1 Upstream
- 5.1.2 Downstream
- 5.1.3 Midstream
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5.2 Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)})
- 5.2.1 North America
- 5.2.1.1 United States
- 5.2.1.2 Canada
- 5.2.1.3 Rest of North America
- 5.2.2 Europe
- 5.2.2.1 Germany
- 5.2.2.2 France
- 5.2.2.3 United Kingdom
- 5.2.2.4 Rest of Europe
- 5.2.3 Asia-Pacific
- 5.2.3.1 China
- 5.2.3.2 India
- 5.2.3.3 Japan
- 5.2.3.4 South Korea
- 5.2.3.5 Rest of Asia-Pacific
- 5.2.4 South America
- 5.2.4.1 Brazil
- 5.2.4.2 Argentina
- 5.2.4.3 Rest of South America
- 5.2.5 Middle East and Africa
- 5.2.5.1 Saudi Arabia
- 5.2.5.2 United Arab Emirates
- 5.2.5.3 South Africa
- 5.2.5.4 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 National Petroleum Construction Company
- 6.3.2 Petrofac Limited
- 6.3.3 Técnicas Reunidas SA
- 6.3.4 Daewoo Engineering & Construction Co. Ltd
- 6.3.5 Fluor Corporation
- 6.3.6 Samsung Engineering Co. Ltd
- 6.3.7 Korea Shipbuilding & Offshore Engineering Co. Ltd
- 6.3.8 Hyundai Engineering & Construction Co. Ltd
- 6.3.9 John Wood Group PLC
- 6.3.10 TechnipFMC PLC
- 6.3.11 Bechtel Corporation
- 6.3.12 Saipem SpA
- 6.3.13 McDermott International Ltd
- 6.3.14 KBR Inc.
- 6.3.15 Sinopec Engineering (Group) Co. Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Discovery of New Oil and Gas Fields Worldwide
Oil and Gas EPC Industry Segmentation
The oil and gas engineering, procurement, and construction (EPC) market comprises contract-based projects, including the engineering, procurement, and construction activities for upstream, midstream, and downstream oil and gas industries. Some of the EPC activities include design, fabrication, construction, installation, equipment production, pre-commissioning, and maintenance services involved at various stages of operations, right from the exploration and production of oil and gas and transporting the produced product to the refining and distribution activities.
The oil and gas EPC market is segmented by sector and geography. By sector, the market is segmented into upstream, midstream, and downstream. The report also covers the market size and forecasts for the oil and gas EPC market across major regions. For each segment, the market sizing and forecasts have been done based on revenue (USD).
| Sector | Upstream | |
| Downstream | ||
| Midstream | ||
| Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)}) | North America | United States |
| Canada | ||
| Rest of North America | ||
| Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)}) | Europe | Germany |
| France | ||
| United Kingdom | ||
| Rest of Europe | ||
| Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)}) | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)}) | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)}) | Middle East and Africa | Saudi Arabia |
| United Arab Emirates | ||
| South Africa | ||
| Rest of Middle East and Africa |
Oil and Gas EPC Market Research FAQs
How big is the Oil & Gas EPC Market?
The Oil & Gas EPC Market size is expected to reach USD 456.91 billion in 2024 and grow at a CAGR of 4.76% to reach USD 576.52 billion by 2029.
What is the current Oil & Gas EPC Market size?
In 2024, the Oil & Gas EPC Market size is expected to reach USD 456.91 billion.
Who are the key players in Oil & Gas EPC Market?
Saipem SpA, TechnipFmc PLC, Fluor Corporation, Bechtel Corporation and Petrofac Limited are the major companies operating in the Oil & Gas EPC Market.
Which is the fastest growing region in Oil & Gas EPC Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Oil & Gas EPC Market?
In 2024, the Asia-Pacific accounts for the largest market share in Oil & Gas EPC Market.
What years does this Oil & Gas EPC Market cover, and what was the market size in 2023?
In 2023, the Oil & Gas EPC Market size was estimated at USD 435.16 billion. The report covers the Oil & Gas EPC Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Oil & Gas EPC Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the major challenges faced by the Oil and Gas EPC Market?
The major challenges faced by the Oil and Gas EPC Market are a) Increasing adoption of renewable energy sources b) Stringent environmental regulations, and the fluctuating market prices of hydrocarbons
What are the key segments of the Oil and Gas EPC Market?
The key segments of the Oil and Gas EPC Market include a) Contract Type: Construction & Installation, Fabrication & Equipment b) End-Users: Upstream, Midstream and Downstream
Oil and Gas EPC Industry Report
The global Oil and Gas EPC market is experiencing significant growth driven by various factors, including the increasing demand for hydrocarbons and the expansion of oil and gas exploration activities. The market is segmented into upstream, midstream, and downstream sectors, with each segment playing a crucial role in the overall industry dynamics. Upstream activities focus on drilling and field development, midstream involves the transportation and storage of fuels, and downstream encompasses refining, sales, and distribution. Additionally, the market is divided into onshore and offshore applications, with onshore projects benefiting from lower complexity and investment requirements, while offshore projects are gaining traction due to maturing onshore fields. The market continues to expand, supported by technological advancements and strategic investments in new oil and gas projects. Oil and gas EPC companies are actively participating in this growth, contributing to the expanding EPC oil and gas market size through their expertise and innovative solutions. Statistics for the Oil & Gas EPC market share, size, and revenue growth rate are provided by Mordor Intelligence™ Industry Reports. Oil & Gas EPC analysis includes a market forecast outlook and historical overview. Get a sample of this industry analysis as a free report PDF download.
The market report provides a comprehensive industry analysis and offers valuable industry information. It includes an industry outlook, with detailed industry reports and industry research. The report highlights industry sales, industry size, and industry statistics, showcasing the latest industry trends. Market data is presented alongside a market forecast, detailing market growth and identifying market leaders. The market outlook and market overview give a thorough market review, with market predictions and market segmentation. The report also assesses market value, offering a report example and access to a report PDF. Research companies have contributed to this extensive analysis, ensuring a well-rounded perspective.
