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.
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.
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.
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.
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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.
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.
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.
Competitive Landscape
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.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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Table of Contents
1 INTRODUCTION
2 RESEARCH METHODOLOGY
4 MARKET DYNAMICS AND INSIGHTS
5 MARKET DYNAMICS
6 MARKET SEGMENTATION
7 COMPETITIVE LANDSCAPE
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Jacobs
- Drake & Scull Engineering
- Atkins
- ETA Engineering
- WSP
- Habtoor Leighton Specon
- Hyder Consulting Limited
- AECOM
- Dar Al-Handasah
- Al-Futtaim
- Bowman Consulting Group, Ltd.*
Methodology
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