by The Mechanical, Electrical, And Plumbing (MEP) Services Market includes services related to design, engineering consulting, and construction management for projects involving mechanical, electrical & plumbing. MEP works ensure smooth flow of utilities including ventilation, air conditioning, heating, lighting, power distribution and fire protection system in commercial, industrial and institutional buildings. MEP contractors help in designing a building’s energy efficiency, sustainability and maintainability. Their expertise aids in designing HVAC system, plumbing, communication infrastructure as per building codes and client requirements.
The global Mechanical, Electrical And Plumbing (MEP) Services Market is estimated to be valued at US$ 55.64 Bn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period of 2023–2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Green buildings are designed to reduce energy consumption and conserve natural resources through efficient plumbing, heating, ventilation and air conditioning systems. MEP services play an important role in obtaining green building certifications like LEED by selecting energy efficient equipment and sustainable materials. This is expected to drive increased demand for specialized MEP contractors with expertise in designing and installing green building infrastructure.
Porter’s Analysis
Threat of new entrants: Low capital requirements and established buyer relationships in the industry pose a moderate threat of new entrants.
Bargaining power of buyers: Large buyers have significant bargaining power due to the fragmented nature of the market and flexibility to change suppliers.
Bargaining power of suppliers: A few major global contractors and several regional players operate in this market, giving them moderate bargaining power over buyers.
Threat of new substitutes: No close substitutes exist for MEP services due to requirements of specialized skills and licensing for plumbing, HVAC, electricity and other services.
Competitive rivalry: The global MEP services market is highly competitive due to the presence of numerous global and regional players.
Key Takeaways
The Global Mechanical Electrical And Plumbing Services Market Demand is expected to witness high growth, exhibiting CAGR of 6.3% over the forecast period, due to increasing construction activities globally driven by rapid urbanization. The market size for 2023 is US$ 55.64 Bn.
North America dominates the global MEP services market, with the largest share in 2023. Growth in the region is mainly driven by recovery in non-residential construction activities post COVID-19. Asia Pacific exhibits the fastest growth in the forecast period due to increasing investments in infrastructure development and building construction in China and India.
Key players operating in the Mechanical Electrical and Plumbing (MEP) Services Market are Jacobs, Atkins, ETA Engineering, WSP and AECOM. Jacobs is one of the largest MEP services providers globally while Atkins, WSP and AECOM have a strong presence across regions. AECOM reported impressive growth in 2023 from expansion of sustainable buildings services portfolio.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
