The oil and gas industry has undergone remarkable transformations in recent years, and in tandem, the oil and gas Engineering, Procurement, and Construction (EPC) contractors have been evolving to meet the industry’s changing demands. EPC contractors play a crucial role in executing large-scale projects for oil and gas companies, necessitating skilled labor and precise project management. While the current landscape offers numerous prospects for EPC players, it also presents challenges, such as inflated bidding processes, backlogs, and a shortage of skilled labor. Additionally, the burden of risk falls squarely on the contractor, discouraging the entry of smaller local players into the global oil and gas EPC market.

Increased Investments in Digitalization to Boost EPC Demand
The oil and gas EPC market is being driven by a surge in digitalization investments, shale gas exploration, production, processing activities, and increased investments in offshore oil and gas assets. The extraction of shale gas is gaining traction for economic reasons, with significant surface and subsea pipelines required for transportation, primarily built by EPC companies. The demand for these pipelines is expected to experience substantial growth in the near future. The COVID-19 pandemic disrupted various oil and gas EPC processes, necessitating seamless digital solutions for cost and schedule optimization. Consequently, EPC companies in the oil and gas sector are increasingly embracing digitalization to thrive amidst changing customer demands, narrowing margins, and evolving geopolitical influences in the post-pandemic era.

Shift Towards Cleaner Energy Segments
Historically, oil and gas organizations’ investments outside their core business areas have accounted for less than 1% of total capital expenditure. However, there are now signs of a significant shift in investment spending. To enhance their energy operations, companies are reallocating capital towards low-carbon businesses, seeking appealing investment opportunities in new energy markets and capacities within their organizations. Oil and gas EPC firms are also adapting to this trend, as they explore renewable and other clean energy sectors for future growth. Leading oil and gas EPCs, such as Aker Solutions, TechnipFMC, and Petrofac, have restructured their organizations to establish dedicated units for low-carbon projects.

Rebound Expected in the Offshore EPC Market
Oil and gas EPC activities encompass project management, process engineering, procurement, construction, commissioning, start-up, and maintenance. Increasing investments in oil and gas, coupled with rapid globalization, are driving EPC activities in the industry. While offshore oil and gas investments faced a downturn in recent years due to oil price concerns, 2021 presents a promising outlook for the offshore EPC market. The rebound is attributed to projects deferred from the previous year, including backlogs and greenfield and brownfield projects. Furthermore, onshore oil and gas EPC activities are poised for significant growth, driven by new asset discoveries and developments in upstream, midstream, and downstream activities.

North America and Asia Pacific Lead the Way
North America remains the leading global EPC market for oil and gas, driven by the shale boom and increased exploration and production activities in the Gulf of Mexico. Asia Pacific is emerging as one of the fastest-growing regional markets, fueled by rapidly developing economies like India and China. The Middle East and North Africa also hold significant shares in the global market, with national oil companies driving vertical integration to boost their downstream portfolios. In Latin America, substantial EPC awards are expected in 2021, with a Brazilian state-owned company contributing significantly across various projects.

Competitive Landscape
In 2019, 4-5 upstream players accounted for over 75% of the award value in 23 projects, with the top five projects contributing nearly 56% of the total offshore EPC value. Key players in the global oil and gas EPC market include Saipem SpA, McDermott International, Inc., TechnipFMC, Plc., John Wood Group PLC, WorleyParsons Limited, Mott MacDonald, Aker Solutions, Fluor Corporation, LARSEN & TOUBRO LIMITED, TechnipFMC, and Petrofac Limited. Increased spending by major E&P players, such as Petrobras, Royal Dutch Shell, and Woodside, is expected to drive a surge in offshore EPC awards in 2021.

Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 – By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)
https://www.fairfieldmarketresearch.com/report/oil-and-gas-epc-market

Visit Our Blog :
Packaging Automation Market :
https://hackmd.io/@MiPo9y8gSzqfVbzUSf8hig/SynItmRZa

Optical Brighteners Market
https://medium.com/@maverickmp07/optical-brighteners-market-forecast-trend-analysis-competition-tracking-2022-to-2030-47d50d9db74d

About Us
Fairfield Market Research is a UK-based market research provider. Fairfield offers a wide spectrum of services, ranging from customized reports to consulting solutions. With a strong European footprint, Fairfield operates globally and helps businesses navigate through business cycles, with quick responses and multi-pronged approaches. The company values an eye for insightful take on global matters, ably backed by a team of exceptionally experienced researchers. With a strong repository of syndicated market research reports that are continuously published & updated to ensure the ever-changing needs of customers are met with absolute promptness.

Contact
Fairfield Market Research
London, UK
UK +44 (0)20 30025888
USA (Toll-free) +1 (844) 3829746
Web: https://www.fairfieldmarketresearch.com/
Email: sales@fairfieldmarketresearch.com
LinkedIn | Twitter
This press release first seen on Brilad

Fairfield Market Research