Market Overview
The global Oil and Gas EPC market size reached USD 55.1 Billion in 2025 and is expected to grow to USD 78.5 Billion by 2034, experiencing a CAGR of 4.00% during the forecast period of 2026-2034. This growth is driven by rising global energy demand, technological advancements in exploration and production, and stringent regulatory policies.
Study Assumption Years
- Base Year: 2025
- Historical Years: 2020-2025
- Forecast Period: 2026-2034
Oil and Gas EPC Market Key Takeaways
- The global oil and gas EPC market size was valued at USD 55.1 Billion in 2025.
- The market is forecast to reach USD 78.5 Billion by 2034, exhibiting a CAGR of 4.00% during 2026-2034.
- The upstream sector holds the majority of the total market share.
- Construction is the dominant service type segment with the largest market share.
- Offshore represents the leading market segment by location.
- Key drivers include increasing global energy demand, technological advancements, and stringent regulatory policies.
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Market Growth Factors
Increasing energy demand across the globe, especially from developing countries, is expected to drive the growth of the global oil & gas EPC market. Additionally, a rise in exploration and production, including in unconventional resources such as shale gas, means more infrastructure and EPC services are needed. In addition, EPC companies offering integrated project execution capabilities are expected to drive the market growth.
The EPC market is also dependent on technological changes which lead to lower costs and enable companies to obtain oil reserves which were previously inaccessible, such as offshore reserves at deep water. Technological changes such as hydraulic fracturing and horizontal drilling, as well as digital technologies such as digital twins, artificial intelligence (AI) and Internet of Things (IoT) can enable this.
Due to strict regulations (health, safety, emissions, and environmental protection), oil and gas companies must invest in advanced infrastructure. EPC services help companies meet regulatory requirements, maintain compliance with regulations, and implement sustainability initiatives. This also includes technologies such as carbon capture and storage (CCS) and renewables used in the oil and gas sectors, increasing the addressable market.
Market Segmentation
Breakup by Sector:
- Upstream: Accounts for the largest market share due to extensive exploration activities driven by global energy demand. It involves complex projects such as seismic surveys, geological modeling, drilling, and well completion, focusing also on unconventional resources like shale gas and deep-water reserves.
- Midstream: Covers transportation and storage infrastructure including pipelines, storage facilities, and LNG terminals. Growth is fueled by the need to connect new production areas with processing facilities and global LNG trade.
- Downstream: Involves processing, refining, and distribution of petroleum products, driven by the need for environmentally compliant refining processes and expansion of petrochemical products, adopting digital solutions and modernization projects.
Breakup by Service Type:
- Construction: Holds the largest market share with activities involving building and installation of oil and gas infrastructure, adopting modular techniques and automation to enhance efficiency and safety.
- Engineering: Encompasses design and planning stages including feasibility studies and project management, requiring advanced methodologies and digital tools.
- Procurement: Involves sourcing materials and equipment, leveraging digital platforms for supply chain efficiency.
- Fabrication: Creation of components and structures like offshore platform parts, focusing on quality and industry standards.
Breakup by Location:
- Offshore: Leading market segment due to increased exploration in offshore reserves, necessitating specialized engineering and construction to withstand harsh marine environments.
- Onshore: Includes terrestrial projects like fields, refineries, and pipelines, benefiting from ease of access and recent extraction advancements like hydraulic fracturing.
Regional Insights
North America is a dominant region in the oil and gas EPC market, largely driven by substantial oil and natural gas reserves, with the U.S. benefitting from hydraulic fracturing and horizontal drilling in shale formations. The Canadian market is influenced by oil sands and LNG projects. Favorable policies and the push for environmental impact reduction characterize regional growth, supporting the North America EPC market's strong position.
Recent Developments & News
- December 2024: Samsung E&A secured a USD 955 million contract to develop a biorefinery in Malaysia, focusing on Sustainable Aviation Fuel (SAF), Renewable Diesel (HVO), and bio-naphtha production using waste feedstocks.
- November 2024: NMDC Group UAE was awarded a USD 300 million EPC contract by TA’ZIZ for developing a chemicals port and transition fuels ecosystem in the UAE.
- October 2024: Petrofac won a multi-million-dollar two-year contract to expand production in Bahrain, including pipeline delivery and well hook-ups to meet gas demand.
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
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