by Mechanical, electrical and plumbing (MEP) services mainly involve installation, maintenance, and repair of electrical, plumbing, HVAC, fire protection, and other building technology systems. MEP services are used in both residential and commercial buildings for delivering critical infrastructure systems. Mechanical systems include plumbing, HVAC, refrigeration, and fire protection. The electrical systems encompass power distribution, lighting, fire/security alarms, and others. Some key uses of MEP services include installation of HVAC ductwork, piping, electrical wiring, fire sprinklers, and associated components in buildings under construction. The global mechanical, electrical and plumbing services market comprises numerous small- and medium-sized local service providers as well as large multinational companies.
The global mechanical, electrical and plumbing (MEP) Market is estimated to be valued at US$ 1.2 trillion in 2023 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing construction industry is one of the key drivers expected to flourish the mechanical, electrical and plumbing services market over the forecast period. Rapid urbanization and infrastructure growth in developing economies have increased construction activities globally. According to the Global Construction 2030 report, the global construction output is projected to grow by 85% to $15.5 trillion worldwide by 2030. The residential sector alone is forecast to expand by 71% over the next decade. This rising construction activities will subsequently drive demand for MEP services during project development and building construction stages. Another driver is increasing adoption of green building codes that mandate use of energy and water efficient mechanical and electrical systems. This is prompting builders to invest more in high-quality and sustainable MEP installations.
Segment Analysis
The mechanical, electrical and plumbing services market is segmented into mechanical services, electrical services and plumbing services. Mechanical services dominates the market with around 45% share owing to growing need for repairs and maintenance of HVAC systems, machinery and equipment across industries. Mechanical services include installation, repair and maintenance of HVAC systems, elevators, plumbing systems and industrial machinery among others.
PEST Analysis
Political: The regulations around ductwork, insulation and piping systems are becoming more stringent to enhance energy efficiency and reduce environmental impact. This is positively impacting the demand for MEP services.
Economic: With rapid urbanization and industrialization, construction of new commercial and industrial facilities is booming. This is generating high demand for integrated MEP installation services. However, rising costs of raw materials can squeeze profit margins of service providers.
Social: Growing environmental consciousness is driving demand for green buildings with efficient mechanical, electrical and plumbing systems. This presents new opportunities for service providers capable of handling such projects.
Technological: Adoption of IoT, BIM, VR/AR and other digital technologies in construction is enhancing collaboration and project execution. Service providers integrating such technologies can gain competitive edge through improved quality, speed and cost control.
Key Takeaways
Global Mechanical, Electrical And Plumbing Services Market Size is expected to witness high growth over the forecast period.
Regional analysis: The Asia Pacific region accounts for over 35% share of the global MEP services market led by China, India and other developing countries. Rapid urbanization and government investments in transportation, utilities and real estate construction are driving strong demand for integrated MEP installation and maintenance services. Countries like China and India are emerging as the fastest growing markets in the region.
Key players operating in the mechanical, electrical and plumbing services market are CBRE Group, AES Engineering, United Technologies, Honeywell, Schneider Electric, Siemens, Johnson Controls, Ingersoll Rand, Emerson Electric and Rockwell Automation.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
