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Strategic Infrastructure Development Strengthens the Global Oil and Gas EPC Market Outlook 2025-2033

11-12-2025 08:19 AM CET | Chemicals & Materials

Press release from: IMARC Group

Strategic Infrastructure Development Strengthens the Global

Market Overview
The global Oil and Gas EPC Market reached a value of USD 52.9 Billion in 2024 and is expected to grow to USD 76.7 Billion by 2033, exhibiting a CAGR of 4.2% during the forecast period of 2025-2033. The growth is driven by escalating global energy demand, technological advancements such as hydraulic fracturing and horizontal drilling, and stringent regulatory policies emphasizing safety and environmental sustainability. The market spans sectors including upstream, midstream, and downstream, with geographic focus across North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa.

Study Assumption Years
Base Year: 2024
Historical Year/Period: 2019-2024
Forecast Year/Period: 2025-2033

Oil and Gas EPC Market Key Takeaways
• Current Market Size: USD 52.9 Billion in 2024
• CAGR: 4.2% during 2025-2033
• Forecast Period: 2025-2033
• Upstream sector holds the majority market share due to exploration and production activities.
• Construction is the dominant service type segment with extensive labor and materials involved.
• Offshore locations account for the largest market share owing to deep-water exploration and production.
• North America is a major market, supported by shale revolution technologies and substantial reserves.
• Asia Pacific is the fastest growing region driven by industrialization and increasing energy consumption.
• Stringent environmental and safety regulations are influencing market practices and infrastructure investments.

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Market Growth Factors
The global oil and gas EPC market is chiefly propelled by the escalating global energy demand, especially in developing nations. This increased energy requirement boosts exploration and production activities, notably in offshore and unconventional reserves, necessitating enhanced infrastructure and technology upgrades. EPC providers offer comprehensive services encompassing design, engineering, procurement, and construction, effectively responding to the surge in energy needs witnessed across traditional and unconventional resources such as shale gas.

Technological advancements significantly drive market growth. Innovations like hydraulic fracturing and horizontal drilling have unlocked access to previously unreachable reserves, including deep-water and remote oil and gas fields. The integration of digital technologies-artificial intelligence (AI), Internet of Things (IoT), and cloud computing-into EPC project execution enhances efficiency, streamlines project management, and reduces operational timelines and costs. These technological developments position EPC companies as critical facilitators in modernizing oil and gas infrastructure.

Stringent regulatory policies and heightened environmental considerations further stimulate the market. Governments worldwide enforce robust safety, emission, and environmental protection standards, compelling the oil and gas industry to modernize infrastructure to ensure compliance. Additionally, there is a growing emphasis on sustainable practices, with EPC companies investing in carbon capture and storage (CCS) technologies and incorporating renewable energy sources into operations. These trends broaden the scope of EPC services and create new market opportunities aligned with global climate goals.

Market Segmentation
Breakup by Sector:
• Upstream: Encompasses exploration and production (E&P) activities, driving the majority market share due to extensive exploration for new reserves, including unconventional resources like shale gas and deep-water reserves. EPC services here are technologically advanced involving seismic surveys, geological modeling, drilling, and well completion.
• Midstream: Covers transportation and storage infrastructure including pipelines, storage facilities, and transportation systems for crude oil, natural gas, and refined products. Growth is supported by expanding transportation networks and investments in liquefied natural gas (LNG) terminals.
• Downstream: Includes processing, refining, and distribution of petroleum products. This segment focuses on refinery construction, petrochemical plants, and distribution networks, with a trend towards digital solutions and environmentally compliant refining processes.

Breakup by Service Type:
• Engineering: Involves design, planning, feasibility studies, detailed engineering, and project management. Driven by the need for innovative and efficient designs especially in complex environments.
• Procurement: Entails sourcing and supply of materials and equipment, managing complex logistics and supply chains with digital platforms and data analytics to ensure timely cost-effective delivery.
• Construction: Involves the building and installation of infrastructure such as drilling rigs, platforms, pipelines, and refineries. Dominates market share due to labor and material intensity and adoption of modular and automated construction.
• Fabrication: Covers manufacturing of components like welded assemblies for offshore platforms and pipelines, focusing on quality, precision, and durability to meet industry standards.

Breakup by Location:
• Onshore: Projects located on land including oil and gas fields, refineries, pipelines, and storage facilities. Benefits from lower costs and accessibility with recent technological advances boosting onshore production.
• Offshore: Projects in sea or ocean beds, dominating the market due to increased exploration activities in deep-water reserves, requiring advanced engineering, equipment, and construction to handle harsh marine environments.

Breakup by Region:
• North America (United States, Canada): Fueled by large oil and natural gas reserves, shale revolution technologies, and favorable policies, with a focus on reducing environmental impact.
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others): Rapid growth driven by industrialization, rising energy consumption in China and India, LNG projects in Australia, and expanding oil and gas sectors in Indonesia.
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others): Mature fields requiring upgrades and strict environmental regulations; leaders in advanced technologies and sustainable energy integration.
• Latin America (Brazil, Mexico, Others): Growth driven by Brazil's deep-water pre-salt fields and Mexico's energy reforms, but challenged by political and economic instability.
• Middle East and Africa: Holds vast conventional reserves; Middle Eastern countries invest heavily in infrastructure expansion, while African markets like Nigeria and Angola grow steadily despite geopolitical risks.

Regional Insights
North America stands out as a dominant market for the oil and gas EPC industry, driven by substantial oil and natural gas reserves and advancements in extraction technology such as hydraulic fracturing and horizontal drilling. The United States and Canada benefit from government support and environmental initiatives focused on lowering the industry's carbon footprint. Additionally, Asia Pacific is rapidly growing due to increasing industrialization and energy consumption, notably in China and India, further reinforcing these regions as pivotal in shaping global EPC market trends.

Recent Developments & News
• December 2024: Samsung E&A secured a USD 955 million contract to develop a biorefinery in Malaysia, its first venture into the Sustainable Aviation Fuel (SAF) market. This facility will process 650,000 tons of raw materials annually, including waste feedstocks like used vegetable oils and animal fats, aiming to produce SAF, Renewable Diesel, and bio-naphtha. This project involves a joint venture with PETRONAS and Euglena Co., Ltd.
• November 2024: NMDC Group UAE was awarded a USD 300 million EPC contract by TA'ZIZ, a chemical production company in the UAE, to develop an exclusive chemicals port for a transition fuels ecosystem.
• October 2024: Petrofac received a multi-million-dollar, two-year contract from Bapco Upstream W.L.L in Bahrain to support gas demand plans, involving pipelines, well hook-ups, and tie-ins for new wells in the Bahrain Field.

Key Players
• Bechtel Corporation
• Fluor Corporation
• John Wood Group PLC
• KBR Inc.
• Larsen & Toubro Limited
• McDermott
• NMDC Group
• Petrofac Limited
• SAIPEM SpA
• Samsung E&A
• TechnipFMC plc
• Técnicas Reunidas S.A.
• Worley

Request for customization: https://www.imarcgroup.com/request?type=report&id=4997&flag=E

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

Contact Us
IMARC Group,
134 N 4th St. Brooklyn, NY 11249, USA
Email: sales@imarcgroup.com
Tel No: (D) +91 120 433 0800
United States: +1-201971-6302

About Us
IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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