|Fastest Growing Market:||North America|
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Global Mechanical Electrical and Plumbing (MEP) Services Market is expected to register a CAGR of more than 7% during the forecast period (2022-2027).
The COVID-19 pandemic severely impacted the MEP services sector, as several countries imposed restrictions and various measurement which disrupted the supply chains. As a result, the materials and components used in MEP equipment, such as refrigerants, compressors, and embedded systems, are in short supply. But now the industry is recovering to pre pandemic levels.
Furthermore, the MEP services contribute to the significant portion of projects' construction cost. With the growing number of construction projects across Asia-Pacific, North America, Europe regions, it is expected to drive the growth of the market. However, design plays a vital role in MEP services as a significant share of the revenue for any service provider is generated from MEP design. In addition, MEP designs are delivered remotely using e-commerce services. With the development of modern design software and collaboration tools, architects and engineers are delivering customized MEP designs services, based on specific tasks or amounts of work.
Scope of the Report
MEP Services encompasses the design, engineering, consulting, and maintenance-related activities provided by engineering firms across a wide range of end-user verticals. Furthermore, report offers a complete background analysis of Global Mechanical Electrical and Plumbing (MEP) Services Market, which includes an assessment of the economy, market overview, market size estimation for key segments, and emerging trends in the market, market dynamics, and key company profiles are covered in the report.
The Global Mechanical Electrical and Plumbing (MEP) Services Market is segmented by Type (Mechanical Services, Electrical Services and Plumbing Services), by End-Users (Commercial and Residential) and by Geography (North America, Europe, Asia Pacific, Middle East and Africa and South America). The report offers market size and forecasts for Global Mechanical Electrical and Plumbing (MEP) Services Market in value (USD Billion) for all above segments.
Key Market Trends
Rise in Construction Sector to Drive the Market Growth
The construction industry faced challenges during the pandemic crisis, now it is in the recovery phase. Despite the economic challenges, the Asia Pacific construction industry recorded significant growth in 2021. The growth is driven by increasing demand for the residential construction sector, which remained strong in big economies. In addition, the infrastructure construction sector experienced increasing investments. According to an industry Survey, in Q4 2021, demand for commercial properties remained stable as key e-commerce companies create demand for larger commercial spaces and this trend is expected to continue further.
Furthermore, countries like China, and Japan are relaxing restrictions on home approvals and lending to boost the construction industry, in Q4 2021, a huge number of bank credits were offered to property firms in China. In addition, mortgage lending in China increased by more than USD 30 billion (CNY 200 billion ) in October 2021 from around USD 23 billion (CNY 150 billion ) in September 2021.
Also, increasing transportation construction projects support the demand for MEP services in MENA region. For instance, major projects in United Arab Emirates such as the metro railway expansion projects, Route 2020 project, an extension of Dubai metro red line, phase III of Etihad Rail, which is a 1,200-km rail network across the United Arab Emirates aimed at exporting granulated Sulphur, and Port of Ruwais, are supporting the sales and installation and maintenance demand for HVAC systems, lighting systems, gas pipelines, and plumping systems.
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North America Experiencing Significant Growth in the Market
The demand for MEP services in North America is driven by new construction, retrofit and renovation. However, new construction activities in North America holding largest share in MEP services market, when compared to renovation activities. Moreover, the concept of sustainability is gaining momentum in the construction design industry, further resulted in installation of eco-friendly systems in the industry which benefits both environment and budget.
According to the Environmental Protection Agency of the United States, electricity generation in the country accounts for 40% of the total energy consumption. In order to meet the increasing demand, vendors in the region were utilizing MEP technologies such as solar collectors, ventilation with heat recovery, etc. accompanied by their service. Thus, MEP service providers are becoming important in developing robust designs that enable consumers to reduce cost.
Furthermore, the United States is leading in MEP services market in North America region, as the country is experiencing positive growth in new construction projects, also evolving in residential market. Moreover, the country is witnessing lucrative growth in MEP services sector, where the demand is supported by retrofit and building renovations, and healthcare sector. However, homeowners undertake home improvement projects to improve energy efficiency, repair and upgrade their homes, etc. which resulted in remodeling expenditure in the country amounted to USD 353 billion in Q1 2021.
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Global Mechanical Electrical and Plumbing (MEP) Services Market is fragmented with many players. Key players in the market are leveraging partnerships, acquisitions, and mergers to capture the market share. Some of the major players in the market include Jacobs Engineering Group Inc, Atkins, ETA Engineering, WSP, AECOM, etc.
March-2021: Al-Futtaim Engineering Company LLC (a large conglomerate based in Dubai) signed an agreement with LG (a South Korean multinational conglomerate corporation) for the distribution of a range of the latter’s commercial ACs across the U.A.E., as a part of the former’s HVAC installation services.
February-2021: Bowman Consulting Group, Ltd. (a multi-disciplinary professional services firm), acquired KTA Group, Inc. KTA is a forty-person engineering firm with core expertise in mechanical, electrical, and plumbing engineering, commissioning third-party plan review, and lighting design. The move supports Bowman’s continued growth and substantially broadens its scope of service offerings.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Current Market Scenario
4.2 Industry Policies and Regulations
4.3 Technological Developments in the Sector
4.4 Insights on Cost Structure Analysis
4.5 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.2 Market Restraints
5.3 Market Opportunities
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Threat of New Entrants
5.4.2 Bargaining Power of Buyers
5.4.3 Bargaining Power of Suppliers
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Mechanical Services
6.1.2 Electrical Services
6.1.3 Plumbing Services
6.2 By End-Users
6.3 By Geography
6.3.1 North America
126.96.36.199 United States
188.8.131.52 Rest of North America
184.108.40.206 United Kingdom
220.127.116.11 Rest of Europe
18.104.22.168 Rest of Asia-Pacific
6.3.4 Middle East & Africa
22.214.171.124 Saudi Arabia
126.96.36.199 United Arab Emirates
188.8.131.52 South Africa
184.108.40.206 Rest of Middle East & Africa
6.3.5 South America
220.127.116.11 Rest of South America
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Market Concentration Overview
7.2 Company Profiles
7.2.2 Drake & Scull Engineering
7.2.4 ETA Engineering
7.2.6 Habtoor Leighton Specon
7.2.7 Hyder Consulting Limited
7.2.9 Dar Al-Handasah
7.2.11 Bowman Consulting Group, Ltd.*
8. FUTURE OF MECHANICAL, ELECTRICAL, AND PLUMBING (MEP) MARKET
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Frequently Asked Questions
What is the study period of this market?
The Global Mechanical Electrical and Plumbing (MEP) Services Market market is studied from 2018 - 2027.
What is the growth rate of Global Mechanical Electrical and Plumbing (MEP) Services Market?
The Global Mechanical Electrical and Plumbing (MEP) Services Market is growing at a CAGR of >7% over the next 5 years.
Which region has highest growth rate in Global Mechanical Electrical and Plumbing (MEP) Services Market?
North America is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Global Mechanical Electrical and Plumbing (MEP) Services Market?
Asia-Pacific holds highest share in 2021.
Who are the key players in Global Mechanical Electrical and Plumbing (MEP) Services Market?
Jacobs, Atkins, ETA Engineering, WSP, AECOM are the major companies operating in Global Mechanical Electrical and Plumbing (MEP) Services Market.