Global Power Engineering, Procurement, and Construction (EPC) Market 2026 – 2035

The market size of global Power Engineering, Procurement, and Construction (EPC) will be estimated at USD 765 billion in 2025 and is expected to grow to between USD 815 billion in 2026 and about USD 1436 billion by 2035, with a current CAGR (compound annual growth rate) of 6.5% during the period of 2026 to 2035.

Power Engineering, Procurement and Construction (EPC) is defined as a methodology adopted in the power industry whereby a project is implemented on a turnkey basis through the involvement of a sole contractor who implements all aspects of a project. The EPC contract involves a process whereby the sole contractor takes charge of all aspects of the project, which include designing, engineering, and procurement of the necessary materials before the construction phase starts.

The advantage of implementing an EPC is that the owner enjoys benefits of timely completion of the project at a stipulated cost, with the contractor taking up most of the risks associated with cost and schedule. In terms of power generation projects, EPC services may be adopted in projects of various natures, including thermal power plant projects, renewable power projects (solar, wind and hydro), and power transmission/distribution projects among others.

Market Highlight

• In 2025, the Asia Pacific will dominate the global market with an estimated market share of 59%. This growth is driven by the region’s presence of major players and rising focus on renewable energy.

• Europe is growing at a highest CAGR over the analysis period. Increasing decarbonization goal drives the industry growth.

• By power generation, the thermal segment represented the highest revenue share in 2025 of over 45%.

• By equipment, the steam turbines segment would have the highest share of the market in 2025 of 28%.

Significant Growth Factors

The Power Engineering, Procurement, and Construction (EPC) market trends present significant growth opportunities due to several factors:

• Rising Global Energy Demand: Growing energy demand across the world is another significant driver of the development of the EPC market. Indeed, it leads to the emergence of a great necessity in terms of installing new facilities for energy generation, transmission, and distribution. Thus, according to the International Energy Agency, in 2024, the global energy demand rose by 2.2%, which is notably higher compared to the average annual growth during the period of 2013-2023 (1.3%). Similarly, the world-wide consumption of electricity grew by almost 1,100 TWh in 2024 – the largest rise of its kind excluding post-recession years. Moreover, developing countries were among the leaders. It can be anticipated that until 2026, the annual increase in electricity consumption in the global context would remain around 3.3%-3.7%. Currently, the world-wide consumption of electricity equals almost 28,000 TWh and is steadily growing because of the development of economy and modernization of technology (e.g., vehicles, refrigeration units). The countries experiencing rapid growth of energy demand include India and China, with an annual rise estimated at 5-6% being caused by factors such as urbanization, industrialization, and improved standard of living. The described situation indicates that there is an urgent need for massive expansion of the capacity of energy infrastructure in order to satisfy the emerging demands. According to estimations, energy demand will keep on growing up until 2050 in most scenarios, requiring billions of dollars in investments. This trend directly results in the expansion of the EPC market, which is caused by the necessity to construct power stations, especially renewable ones, to upgrade old grids, and to develop new transmission networks.

• Rapid Infrastructure Development In Emerging Economies: Development in fast-tracked infrastructure projects in emerging economies is among the major factors driving growth in the Power Engineering, Procurement, and Construction (EPC) market. Emerging nations are making huge investments in infrastructure development in their energy sectors, including the construction and modernization of the existing structures in order to increase the supply of electricity. Emerging countries such as India, China, and Brazil are implementing major power infrastructure projects to accommodate the growing energy demands in the face of industrial growth, urban population expansion, and efforts to achieve rural electrification. Additionally, governments are implementing policies that are geared towards increasing the installed capacity, incorporation of renewable energy resources, and improving grid resilience. India is working on major expansions in its renewable energy sector while building transmission lines between different states, while China is focusing on ultra-high voltage transmission and renewable energy projects. Further contributing to infrastructure development are increased flows of foreign direct investments (FDIs), the emergence of public-private partnerships (PPPs), and funding from global financing organizations such as the World Bank. This, therefore, increases the number of power projects being carried out in emerging nations, hence promoting EPC services.

What are the Major Advances Changing the Power Engineering, Procurement, and Construction (EPC) Market Today?

• Shift Toward Renewable & Hybrid Energy Projects: The adoption of renewable and hybrid energy projects is a key development in the EPC market that will change the nature of power infrastructure deployment. The market has shifted from its previous focus on thermal power plants that use fossil fuels to embrace solar and wind and hydroelectric power generation. The trend exists because various governments have dedicated themselves to reducing carbon dioxide emissions while they implement climate policies that promote sustainability. The International Energy Agency has stated that renewables represent most additions of power capacity in the world at the moment, and solar and wind power plants form the base of this growth. In addition, hybrid power plants combining different sources of energy (for instance, solar panels with batteries or wind farms supplemented with solar panels) are becoming increasingly popular because they eliminate the problem of intermittency and allow maintaining a stable energy supply. As it can be seen, the shift leads to a rise in the scale and complexity of projects in the EPC market because contractors are required to integrate a number of components in their projects – various sources of power, batteries, and smart grids. Besides, governments around the world, including India and China, offer various financial support tools to encourage renewable and hybrid energy projects. As a result, EPC companies transform into providers of integrated energy solutions involving advanced technologies and a variety of components.

• Modular & Prefabricated Construction Techniques: New innovative approaches that have been introduced recently into the EPC business sector consist of modular and prefabricated construction. In this way, it is possible to implement EPC projects more efficiently and cut down expenses and costs related to construction works. In case of using modular and prefabricated construction, the principal components of the system are prefabricated in factories, and afterwards installed at the site. In this manner, it becomes possible to minimize on-site work, lower the need for labor force and provide higher-quality work. Moreover, the increasing demand for the use of these innovative approaches to construction is caused by the desire of organizations to cut down project timelines in order to prevent possible complications such as delays, over-budgeting, and shortage of qualified labor force. Besides, modular and prefabricated construction will be especially useful in case of working on renewable energy projects since most of them are implemented in remote areas where there are certain difficulties associated with logistics. Modular and prefabricated construction helps to increase safety during construction process and decrease possible negative impacts on environment as well.

Category Wise Insights

By Power Generation

Why Thermal Hold a Prominent Position in the Market?

The thermal segment represented the highest revenue share in 2025 of over 45%. The growth of this sector exists because power plants need to provide base-load electricity during their current facilities. Developing areas continue to depend on thermal power plants which use coal, natural gas and oil to meet their growing energy needs while they develop renewable energy systems.

India and China maintain their commitment to build high-efficiency low-emission thermal power plants which will support their electrical grid needs and industrial energy demands. The aging thermal infrastructure in developed markets undergoes modernization through advanced technology upgrades which include supercritical and ultra-supercritical boilers and emission control systems that drive EPC contract growth.

The renewables segment is growing at a highest CAGR during the forecast period. The global shift toward clean energy and robust climate regulations drives the current expansion of the market. Governments across the world implement financial support mechanisms to promote solar, wind and hydropower as renewable energy sources which help them achieve their carbon reduction targets and net-zero objectives.

The International Energy Agency reports that renewable energy sources account for most of the new global electricity generation capacity which solar photovoltaics lead because of their decreasing costs and faster deployment times. The growing number of renewable energy systems requires EPC services because solar parks, wind farms and hybrid systems need specialized engineering, procurement and construction services.

By Equipment

Why Steam Turbines Capture the Highest Market Share in the Power Engineering, Procurement, and Construction (EPC) Market?

The steam turbines segment would have the highest share of the market in 2025 of 28%. The main reason for this situation exists because the technology functions as an essential component for producing thermal energy, generating electricity on a large scale because it finds growing use in nuclear power plants and concentrated solar power facilities.

Steam turbines remain a core component in coal, natural gas (combined cycle), and nuclear power facilities, which are essential for providing reliable base-load electricity in many regions. India and China continue to develop advanced thermal and nuclear power projects to fulfill their growing energy requirements while maintaining their electricity grid stability which creates ongoing demand for steam turbine-based EPC projects.

The gas turbines segment is growing at a steady rate over the projected period. This expansion derives its momentum from the worldwide shift which seeks to establish clean and flexible energy production methods. Combined cycle power plants use gas turbines as their primary energy source because these turbines achieve high efficiency while producing lower carbon emissions compared to coal and their design permits quick power adjustments which enable solar and wind energy balance management.

Natural gas serves as an essential transitional energy source which allows nations to reduce greenhouse gas emissions while they sustain their electrical power networks. The United States and India together with China are building natural gas power facilities to fulfill their growing electricity requirements while they develop their renewable energy programs.

Report Scope

Regional Analysis

How Big is the Asia Pacific Power Engineering, Procurement, and Construction (EPC) Market Size?

Its market size, in terms of the Asia Pacific Power Engineering, Procurement, and Construction (EPC), is projected to be USD 451 billion in 2025 with a growth of about USD 1020 billion in 2035 with a CAGR of 8.5% between 2026 and 2035.

Why did the Asia Pacific Dominate the Power Engineering, Procurement, and Construction (EPC) Market in 2025?

In 2025, the Asia Pacific will dominate the global market with an estimated market share of 59%. Its causes include fast-paced economic development, high use of electric energy, and the establishment of power infrastructure in countries such as China, India, Japan, and Southeast Asia. Such countries have been heavily investing in power generation from traditional and alternative energy resources because of their fast pace of industrialization and urbanization along with rising demands caused by their large populations.

China Power Engineering, Procurement, and Construction (EPC) Market Trends

In the Asia Pacific region, China is expected to dominate the market over the projected period. The rising ultra-high-voltage transmission projects drives the country market growth.

Why is Europe Experiencing a Significant Growth in the Power Engineering, Procurement, and Construction (EPC) Market?

Europe holds a significant market share in 2025. This is attributed to the priority that is accorded to the energy transition, decarbonization, and modernizing the existing power infrastructure. The countries like Germany, the United Kingdom, and France have invested substantial sums of money in renewable energy plants like offshore wind turbines, solar plants, and energy storage, in line with their commitments to achieve carbon neutrality. There have been strict environmental policies introduced by the European Union, including the European Green Deal, which is further driving the demand for EPC contracts in the clean energy sector.

UK Power Engineering, Procurement, and Construction (EPC) Market Trends

UK held the dominant position in the market in 2025. The deployment of smart grids and aging power infrastructure propel the industry growth in the area.

Why is North America Growing at the Steady Rate in the Power Engineering, Procurement, and Construction (EPC) Market?

North America is expected to grow at the steady rate over the projected period. This development is supported by investments in renewable energy sources, improvements in the electricity grid infrastructure, and upgrading existing power plants. The USA is the leading player in this regional market due to the existence of favorable policy regimes for encouraging the use of renewable energy sources at both federal and state levels through measures such as tax credits under policies like the Inflation Reduction Act.

There is a definite trend toward increased investment in large-scale solar and wind energy projects, along with advancements in battery energy storage solutions to ensure greater grid reliability and support renewable integration. Furthermore, ongoing upgrades to transmission and distribution networks, including smart grid deployment and resilience-focused infrastructure, are creating significant EPC opportunities across the region.

US Power Engineering, Procurement, and Construction (EPC) Market Trends

US holds the prominent market share in the industry. High investment in renewable energy is expected to florish the industry growth.

Why is the Middle East & Africa Region is growing rapidly in the Power Engineering, Procurement, and Construction (EPC)?

The MEA region is growing at a steady rate over the projected period. The growth has been realized thanks to investments in power supply networks, the growing need for electrical power, and the diversification of the economy. Countries like Saudi Arabia, the UAE, and South Africa have been making significant investments in increasing their power production capacities to enable industrialization, urbanization, and population increase.

UAE Power Engineering, Procurement, and Construction (EPC) Market Trends

UAE is growing at the highest CAGR during the forecast period. The rising emphasis on green energy drives the market growth of the country.

Top Players in the Power Engineering, Procurement, and Construction (EPC) Market and Their Offerings

• Bechtel Corporation
• PowerChina
• Larsen & Toubro
• Fluor Corporation
• McDermott International
• Saipem SpA
• Kiewit Corporation
• John Wood Group PLC
• KBR Inc.
• Black & Veatch
• China Energy Engineering Corp
• ACS Group – Cobra
• Hitachi Energy
• Siemens Energy AG
• General Electric
• Others

Key Developments

Power Engineering, Procurement, and Construction (EPC) market has experienced considerable changes in the last two years as the market players are trying to diversify their technological aspects and develop product portfolio using strategic approaches.

• In April 2026, Hitachi Energy, a global leader in electrification, and Samsung C&T Engineering & Construction Group, one of the world’s largest engineering and construction companies, signed a Memorandum of Understanding (MoU) to deepen their collaboration on high-voltage alternating current (HVAC) grid infrastructure worldwide. Building on their longstanding relationship, the companies are strengthening their collaboration to shape the evolving global energy landscape.

• In January 2025, The renewables business vertical of L&T has been selected by Masdar, as one of the preferred Engineering, Procurement and Construction (EPC) contractors for the north site of the world’s first 24/7 solar PV and battery storage gigascale project which will be built in Abu Dhabi. Abu Dhabi Future Energy Company PJSC – Masdar, the UAE’s clean energy leader, in collaboration with EWEC (Emirates Water and Electricity Company), announced at Abu Dhabi Sustainability Week (ADSW) that it is developing the gigascale project, capable of delivering up to 1 gigawatt (GW) of baseload power 24 hours a day, seven days a week. The project will feature a 5.2GW (DC) solar photovoltaic (PV) plant and both coupled with a 19 gigawatt-hour (GWh) BESS, making it the largest solar and BESS project in the world. The project will constitute a north site and a south site, amounting to 2.6GW and 9.5GWh PV capacity each.

These strategic measures have enabled the companies to reinforce their competitive positions, increase the product line, boost their technological competencies and also seize growth opportunities in the fast-growing Power Engineering, Procurement, and Construction (EPC) market.

The Power Engineering, Procurement, and Construction (EPC) Market is segmented as follows:

By Power Generation

• Thermal
• Renewables
• Hydroelectric
• Nuclear

By Equipment

• Steam Turbines
• Gas Turbines
• Boilers
• Control Systems
• Generators
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America