Power Plant EPC Market Expected to Reach $179.2 Billion by 2034

According to a new report published by Allied Market Research, titled, “Power Plant EPC Market," The power plant EPC market size was valued at $128.2 billion in 2024, and is estimated to reach $179.2 billion by 2034, growing at a CAGR of 3.5% from 2025 to 2034.

Introduction

The Power Plant EPC market analysis provides a comprehensive overview of the engineering, procurement, and construction activities within the global power generation sector. The global power plant EPC market forecast growth is projected to witness significant growth in the coming years, driven by increasing investments in renewable energy projects and modernization of existing power infrastructure. The Power Plant EPC market trends indicate a growing focus on renewable energy integration, advanced project management technologies, and modular construction solutions, driven by global energy transition goals.​ The Power Plant EPC market opportunities are expanding as governments and private players increasingly invest in renewable energy projects, modernization of existing plants, and adoption of advanced technologies, driving demand for integrated engineering, procurement, and construction solutions.​​​​​​

The EPC model is particularly prevalent in power plant development due to the complexity and capital-intensive nature of such projects. Developers prefer to offload technical, logistical, and execution risks to EPC contractors who possess the expertise, manpower, and global vendor relationships needed to deliver large-scale energy infrastructure. The EPC framework ensures proper coordination across engineering design, material sourcing, civil and mechanical works, installation of systems, and performance testing. This integrated approach reduces the possibility of miscommunication and delays often observed in multi-contractor models. Power plant EPC companies specialize in the engineering, procurement, and construction of power generation facilities, delivering end-to-end solutions from design to commissioning. These companies play a crucial role in ensuring efficient, reliable, and sustainable energy infrastructure worldwide. Engineering, procurement, and construction in power plants involves the comprehensive planning, design, and execution of energy projects, ensuring efficient delivery of infrastructure from concept to commissioning. This approach integrates technical expertise, material sourcing, and project management to meet operational and regulatory standards.

Market Dynamics

Surge in demand for renewable energy is expected to drive the growth of power plant EPC market. PC firms are increasingly involved in turnkey projects that include design, engineering, procurement of equipment, construction, commissioning, and in many cases, ongoing maintenance. These contractors are particularly in demand for utility-scale renewable energy parks and hybrid systems that combine solar, wind, and energy storage solutions. In July 2025, the National Development and Reform Commission issued the first Renewable Portfolio Standards (RPS) for heavy industries and data centers: e.g., new data centers must use ≥80% renewable electricity; regional non hydro targets up to 30% Moreover, In 2025, Saudi plans to invest $8.3billion in renewable energy through ACWA Power and Aramco, targeting 15GW across solar and wind by 2028 and aspiring to 50% renewables by 2030.

However, dependence on fossil fuel economics is expected to hamper the growth of power plant EPC market in 2024. The power plant EPC industry, particularly in the thermal power segment, is heavily influenced by the economics of fossil fuels such as coal, natural gas, and oil. These traditional energy sources have historically formed the backbone of global electricity generation, and EPC contractors have long depended on them for a steady stream of large-scale projects. However, the growing volatility in fossil fuel markets driven by fluctuating prices, geopolitical tensions, and tightening environmental regulations has introduced significant uncertainty for EPC firms operating in this space.

Segments Overview

The power plant EPC market is segmented into power plant type, project type, fuel source, and region. On the basis of power plant type, the market is divided into thermal power plants, renewable power plants, nuclear power plants, and others. On the basis of project type, the market is classified into greenfield projects, and brownfield projects. On the basis of fuel source, the market is categorized into coal, natural gas, renewable energy sources, and others. On the basis of region the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of power plant type, the renewable power plants segment is the fastest growing segment in the power plant EPC market growing with the CAGR of 3.9% during the forecast period. In solar power projects, EPC contractors manage the installation of photovoltaic panels, inverters, transformers, and related infrastructure. Their role extends to site preparation, civil works, electrical cabling, and integration with local or national grids. Similarly, in wind power projects, EPC services cover turbine procurement, foundation construction, erection of towers, and installation of electrical systems. In hydropower and biomass plants, EPC contractors handle dam construction, turbine installation, biomass boilers, and related auxiliary systems, ensuring that all technical, environmental, and safety standards are met. In June 2024, Xinjiang 3.5 GW solar farm connected to grid China commissioned/connected a very large 3.5 GW solar farm in Xinjiang reported as the world’s largest solar farm coming online at that time. The project involved large-scale EPC/construction activity in western China.

On the basis of project type, the greenfield projects segment is expected to be the fastest growing segment in the power plant EPC market. In October 2024, Bilasuvar Solar PV (Greenfield) which is large utility-scale greenfield solar PV project documentation and EPC planning (AIIB / project documents) published in 2024 describe the Bilasuvar ~445 MWac solar PV greenfield development and related EPC arrangements. Developers and investors prefer EPC contracts because they transfer much of the construction and performance risk to the EPC contractor, who is accountable for delivering the plant as a ready-to-operate facility.

On the basis of fuel source, the renewable energy sources segment dominated the power plant EPC market. In the solar power sector, EPC contractors handle activities such as site preparation, solar panel mounting, inverter installation, grid interconnection, and performance testing. The rapid scaling of utility-scale solar plants across regions like Asia, the Middle East, and North America has made EPC services indispensable, as they ensure standardized execution and compliance with local grid codes.

Regional Analysis

Based on region, Asia-Pacific region was the highest revenue contributor in the power plant EPC market. In August 2025, India’s EPC landscape to reflect a balanced mix of large-scale thermal, nuclear, and renewable projects. The Buxar supercritical coal-based thermal power project (660 MW, Unit-1) has entered the generation phase, with ongoing EPC works for the second unit underway. In the nuclear segment, NPCIL has awarded EPC contracts for the upcoming Kaiga-5 and Kaiga-6 units, reinforcing the country’s focus on diversifying its energy portfolio. Parallelly, significant EPC activity is progressing in renewable infrastructure, including large-scale solar-plus-storage projects across multiple states and extensive upgrades under the Green Energy Corridor program to strengthen transmission capacity for renewable integration.

Competitive Analysis

The major prominent players operating in the power plant EPC market share include Bechtel Corporation, Siemens Energy, General Electric Company, LARSEN & TOUBRO LIMITED, Tata Projects Limited, Hyundai Engineering & Construction Co., Ltd, MITSUBISHI HEAVY INDUSTRIES, LTD, Valmet, Fluor Corporation, Technip Energies N.V., and others.