Oil and Gas EPC Services

Oil and Gas EPC Services Global Market Outlook

• The global oil and gas EPC services demand is estimated to be at $49.3 billion in 2023 and is expected to reach $55.6 billion by 2025, growing at the CAGR of 5-6 percent

• With the oil and gas market bouncing back, the EPC market is expected to increase in the upcoming days though there is an apprehension caused due to an increase in the energy crisis

Global Market Overview for EPC services

• Global EPC services market is estimated to be at $266.5 billion in 2023, growing at CAGR of 5-6 percent, to reach $294.7 by 2025

• The global EPC services market is estimated to be at $266.5 billion in 2023. The market is forecasted to reach $294.7 billion by the end of 2025, with a CAGR of 5 to 6 percent

• The EPC market is growing, supported by the introduction of advanced technologies, for instance in an industry, like healthcare and consumer electronics virtual inspection and remote audits expands the service deliverables beyond classification activities

• Although the preference for government or in-house EPC services is high in the current market. A shift to outsourcing and privatization is observed in the industry. This shift is due to the need to protect the global corporation’s brand image in the international market coupled with regulatory compliance

Regional Oil and Gas Market Overview for EPC Services 

• The European and North American market has stumbled, due to the economic downturn. Even then, they share 50 percent of the total market

• On the other hand, Asia Pacific, Middle East and Africa have an uptrend in the oil and gas EPC market services

Market Drivers and Constraints : Oil and Gas EPC Services

• Fluctuation in oil prices would directly impact the EPC services especially for exploration activities. This could be used as negotiating lever while engaging with EPC service provider in U/S sector

Drivers

Demand from Oil & Gas sector

• Steady demand for services like risk analysis, environmental impact assessments to mitigation plans, construction assistance, and integrity of assets and equipment in operation for subsectors such as exploration, production, refining and processing ​is expected to drive the EPC market in the upcoming quarters

Increase in Stringent Rules

• Increase in stringent rules to maintain standards across multiple industries, especially in developing countries such as China, India and other Asian emerging economies is expected to drive the demand for EPC services in the APAC region in the upcoming years

Recovering Oil Prices

• Recovering oil price is driving the need EPC to cut short the expenses, as most of the oil and gas players now would focus on cost-saving strategies

Constraints

Fluctuation in Commodity Prices

• Oil price have registered a plunge in recent times and also went into negative territory few months back. This has led to reduced scope for exploration activities. Hence, this is expected to reduce the demand for EPC services from the upstream sector

Inflation and Economic Situation

• Across the world, the Russia–Ukraine crisis has created a supply chain disruption. Lingering pandemic effects have created instability in most of the markets. With the increasing economic downturn and rising inflation, it has become difficult for most of the markets to regulate investments