Engineering, procurement, and construction (EPC) consulting involves comprehensive planning and management services for energy, process industries and heavy civil infrastructure projects. EPC consultants focus on project management, project cost management and project controls functions to optimize project delivery. They assist in project engineering, design, procurement, construction management and start-up. The requirement of experienced project management for complex construction projects across industries has driven demand for EPC consulting services.

The global EPC Consulting Market is estimated to be valued at US$ 11.4 Bn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
Cost reduction presents a key opportunity for growth in the EPC consulting market over the forecast period. EPC consultants help reduce project costs through value engineering by optimizing design concepts, material selection and construction methodology. They conduct cost audits and assist in negotiations with contractors to lower procurement expenditures. EPC consultants also implement cost control mechanisms through tools like earned value management and budget variance analysis. Their services in project scheduling and progress tracking ensure timely completion within budget. This cost optimization capability of EPC consultants is expected to witness increased demand from owners and contractors aiming to maximize profits in infrastructure and industrial projects.

Porter's Analysis
Threat of new entrants: The EPC Consulting market requires significant capital investments and expertise to operate, which poses challenges for new players. However, low differentiation between existing services creates opportunities.

Bargaining power of buyers: Large buyers in the oil & gas industry can negotiate lower prices and demand additional services due to their high bargaining power. Buyers have moderate switching costs.

Bargaining power of suppliers: A few large consulting firms dominate the supply side. However, the availability of niche specialized consultancies acts as a counterbalance to supplier power.

Threat of new substitutes: Related professional services like engineering and project management offer substitutes. However, EPC consultancy requires deep industry knowledge creating high barriers.

Competitive rivalry: The market comprises global consulting giants and regional mid-sized players. Intense competition on pricing and service differentiation has led to consolidation in recent years.

SWOT Analysis
Strength: Extensive experience and expertise in engineering, procurement and project execution. Proven track record of delivering large capital projects.

Weakness: High reliance on new projects from volatile industries like oil & gas exposes business to economic cycles. Resistance to contractual obligations from some clients.

Opportunity: Growing investments in renewable energy, infrastructure and process industries present adjacent growth avenues. Emerging markets in Asia Pacific expanding.

Threats: Economic slowdowns severely impact capital spending. Rising protectionism and global political tensions introduce uncertainties. Intensifying competition from nimbler niche consultancies.

Key Takeaways
The Global EPC Consulting Market Size is expected to witness high growth driven by rising investments in process industries, renewables and infrastructure sectors over the forecast period of 2023 to 2030. The market size for EPC Consulting is projected to reach US$ 11.4 Bn by 2024.

Regional analysis shows that North America dominates currently due to ongoing shale oil and gas development projects. However, the Asia Pacific region is poised to become the fastest growing regional market led by the expanding economies of China and India undertaking large refinery expansions and industrialization drives.

Key players operating in the EPC Consulting market incorporate CalAmp Corp. (US), Orbcomm Inc. (US), Sierra Wireless, Inc. (Canada). CalAmp is a prominent global player offering end-to-end project advisory and management solutions to heavy industrial clients. Orbcomm specializes in oilfield solutions while Sierra Wireless provides integrated communication technologies. The market leaders are focusing on adjacent markets and international expansion to sustain growth.

 

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