EPC Market Dynamics and Trends

Market Dynamics

The power engineering, procurement and construction (EPC) market is expected to register a CAGR of over 3% during the forecast period 2022-2027. The COVID-19 outbreak in the first quarter of 2020 has been significantly impacted, with lower global demand leading to lower commodity prices for fossil fuels, including oil, gas, and coal, leading to lower market growth and restrictions on the movement of people slowing the global new energy base project development and implementation of facilities. Factors such as increasing generation capacity along with changing dynamics in the power generation industry along with demand for energy consumption are expected to drive the demand for the power EPC market. Moreover, investments in the power sector, including increasing government spending on renewable energy, are expected to further boost the market. However, phase-out of coal-fired power plants, which account for a major share of global electricity generation, and volatility in crude oil prices leading to delays in several upstream projects are expected to hamper the growth of the power EPC market. 

• The renewable energy segment is expected to be the fastest-growing segment of the electricity EPC market during the forecast period owing to rising investments in renewable energy and lower generation costs, as well as government commitments to reduce dependence on fossil fuel generation.
• New high-efficiency technologies such as supercritical and ultra-supercritical coal-fired power plants, and government initiatives to increase the share of renewable energy are likely to create several opportunities for the power EPC market in the future.
• Asia Pacific is expected to be the largest market during the forecast period owing to high urbanization growth rate and growing demand for electricity mainly from China and India.

Market Trends

The renewable energy sector is expected to be the fastest growing market.

• In an effort to reduce greenhouse gas (GHG) emissions and encourage the use of clean energy to generate electricity, some counties have been actively promoting renewable and natural gas generation. In addition, global installed renewable energy capacity doubled from 1,226 GW in 2010 to nearly 2,799 GW in 2020.
• On a cost-adjusted basis, growth in investment activity in solar PV and wind has been the strongest over the past five years, leading to several projects in the pipeline that are expected to come on stream during the forecast period, according to the IEA.
• In addition, government policies such as the establishment of a carbon tax on coal-fired power plants and the establishment of a contract for difference (CFD) mechanism in the UK, coupled with the reduction in the cost of equipment and energy storage systems, are expected to reduce emissions to a "net zero" state by 2050. Further complementing the global demand for renewable energy, thereby driving the power EPC market.

Xiamen Link Solar Energy is crucial role in EPC. We supply for the solar mounts and provide the installation suggestions.