U.S. Oil & Gas EPC Market Size, Share, Growth and Global Industry Analysis By Type & Application, Regional Insights and Forecast to 2024-2032

U.S. Oil & Gas EPC Market Size, Share, Growth and Global Industry Analysis By Type & Application, Regional Insights and Forecast to 2024-2032

Growth Factors of U.S. Oil & Gas EPC Market

The U.S. oil & gas EPC market size was valued at USD 13.54 billion in 2023, and is estimated to grow from USD 14.23 billion in 2024 to USD 22.42 billion by 2032, exhibiting a CAGR of 5.84% during the forecast period.

With an upward trajectory projected in the coming years, the market is anticipating astonishing results in the U.S. This growth is relied on EPC organizations as they are instrumental in managing comprehensive project delivery from design through to construction and procurement. With the U.S. government’s laser focus on domestic energy generation and infrastructure upgrades, the demand for EPC services is bound to propel.

Lately, the U.S. is injecting funds in natural gas infrastructure for improving energy security while reducing carbon emissions. This financial support can be observed with projects such as the Mountain Valley Pipeline (MVP), a 303-mile interstate natural gas pipeline system. This project is worth USD 6 billion which underscores the scale and complexity of infrastructure projects, whilst increasing the demand for EPC services.

The streamlined approach of the EPC model where project execution and centralizing management is done under a single contractor reduces client risk and improves project efficiency. As the U.S. government continues to focus on domestic energy production and infrastructure upgrades, the demand for EPC services is expected to grow. The Petra Nova project in Texas is a prime example which showcases stern environmental policies shaping the EPC landscape.

The U.S. has catapulted its growth in shale gas production with market leaders making substantial investments to address the augmented demand for oil & gas. As per the American Petroleum Institute (API), private investment will cross USD 1.34 trillion till 2035 in natural gas and oil infrastructure. In this gigantic investment a notable portion will be allocated for the expansion of natural gas infrastructure.

Another major reason for the U.S. oil & gas EPC market growth is the surge in offshore exploration and production of oil and gas activities. These initiatives are powered by cutting-edge technology, some of which include the subsea processing and enhanced oil recovery techniques. The Bureau of Ocean Energy Management (BOEM) has been active in auctioning offshore drilling rights, paving the way for new endeavors in the EPC market.

Comprehensive Analysis of U.S. Oil & Gas EPC Market

With the largest U.S. oil & gas EPC market share of 56.34% in 2023, upstream is the leading end-user. Upstream segment’s growth is reflected in the substantial investments for drilling, field equipment, and expansion on gas fields. Midstream and downstream are other end-users focusing on storage and transportation and covering processing and marketing respectively.

Construction & installation encompasses the installation of platforms, pipes, and other critical infrastructure. The segment’s prominent position is backed by the development of oil & gas fields. Further the contract type includes fabrication & equipment, management services, and others. Onshore and offshore are major applications, where onshore projects remain traditional, supported by investments in the reclamation and modernization of facilities. Meanwhile, offshore investments are increasing with advancements in deep-water drilling and floating production systems.

The oil & gas EPC market in the U.S. witnesses the presence of numerous medium and large players delivering diverse products and services. The market’s fragmented nature can be observed with the highly competitive landscape. Companies are keenly focused on new-age technology and are joining forces to cement market presence while catering to the evolving needs. This dynamic environment reflects the sector’s commitment to innovation and efficiency in infrastructure development.

Shell formalized a three-year EFA with Wood in August 2023 to extend its support for Shell's global projects. This partnership will focus on energy security and energy transition initiatives, including carbon capture, low-carbon fuels, and hydrogen. Under this agreement, Wood will deploy its expertise in decarbonization, digitalization, and asset life extension across North America, Europe, Latin America, Southeast Asia, Australia, and the Middle East.

Leading industry figures are crucial in the evolution of the U.S oil & gas EPC market and establishing industry benchmarks. Among them, John Wood Group PLC (U.K.), Petrofac Limited (U.K.), Worley (Australia), Fluor Corporation (U.S.), Bechtel Corporation (U.S.), Aker Solutions (Norway), SLB (U.S.), KBR (U.S.), TechnipFMC (U.K.), Larsen & Toubro Ltd (L&T) (India), are essential for ensuring equitable competition and promoting a balanced market framework.

Nacero engaged Bechtel in May 2021 to undertake the Front-End Engineering and Design (FEED) for a pioneering natural gas-to-gasoline manufacturing facility in the U.S. This facility will be the world’s first gasoline manufacturing unit to integrate carbon capture, sequestration, and operate entirely on renewable power. The designed capacity of 115,000 barrels per day marks a significant advancement in sustainable fuel production.

Segmentation Table

U.S. Oil & Gas EPC Market Scope

Study Period 2019-2032

Base Year 2023

Forecast Period 2024-2032

Historical Period 2019-2022

Growth Rate CAGR of 5.84% from 2024 to 2032

Unit Value (USD Billion)

Segmentation By Contract Type, End-User, and Application

Segmentation By Contract Type

Fabrication & Equipment

Construction & Installation

Management Services

Others

By End-User

Upstream

Midstream

Downstream

By Application

Onshore

Offshore