The mechanical, electrical and plumbing (MEP) services market involves installation, maintenance, design, and management of mechanical, electrical and plumbing systems in residential and commercial buildings. MEP services enable engineering and installation of important systems such as heating, ventilation, air conditioning (HVAC), vertical transportation, fire protection, and building automation. Growing global construction activities have increased the demand for advanced MEP infrastructure in buildings. MEP services ensure efficient functioning of building systems and infrastructure as per statutory regulations.
Key Takeaways
Key players operating in the mechanical, electrical and plumbing services are RSA Security LLC (a subsidiary of Dell Technologies), Symantec Corporation (acquired by Broadcom Inc.), Vasco Data Security International, Inc. Rapid urbanization and infrastructure development especially in emerging economies have boosted construction of residential, commercial and industrial buildings. This has propelled the demand for MEP services during pre-construction and post-construction phases. Rising energy costs have compelled building owners and facility managers to invest in advanced building automation systems and energy-efficient infrastructure requiring MEP expertise. Global expansion of major construction firms into new markets has facilitated international expansion of leading MEP service providers.
Market Drivers
Growing construction industry is one of the key drivers of MEP Market Size. Rising investments in building new residential, commercial and industrial infrastructure in both developed and developing economies is propelling the demand for MEP services. According to World Bank, the global construction industry market size is expected to reach US$ 15.2 trillion by 2030 driven by major infrastructure development projects worldwide. Rapid urbanization accompanied with the need for smart cities and green buildings has further augmented the construction sector, thereby boosting MEP services demand.
Impact of geopolitical situation on growth of Mechanical, Electrical and Plumbing Services Market
The geopolitical tensions across parts of Europe and Asia are impacting trade flows and business operations for players in the mechanical, electrical and plumbing services market. The Russia-Ukraine conflict has disrupted supply chains of critical raw materials for these services. Supply shortages of steel, copper and aluminum are pushing up project costs. At the same time, economic sanctions on Russia are redirecting trade flows and investments to other countries.
To cope with these challenges, companies in the MEP services market need to diversify their sourcing networks and establish alternative supply routes. They will have to scout opportunities in new markets that face fewer geopolitical issues. Adopting flexible business models and nimble operations will help minimize disruptions. Investing in innovation and advanced offerings can also open up new growth avenues amid geopolitical uncertainty. Multi- national firms are exploring partnerships with local players in relatively stable markets to expand their geographical footprints.
Regions with higher market concentration of Mechanical, Electrical and Plumbing Services Market
The Asia Pacific region accounts for the largest share of the global mechanical, electrical and plumbing services market in terms of value. This is attributed to strong construction spending across China, India and Southeast Asian countries. Major infrastructure projects, real estate development and rising urbanization are driving strong demand for MEP services in the region. Countries such as China and India are estimated to spend billions of dollars on upgrading transportation, power and water supply infrastructure over the next decade. This presents substantial opportunities for established as well as new entrants in the MEP services domain.
Fastest growing region for Mechanical, Electrical and Plumbing Services Market
The Middle East and Africa region is projected to be the fastest growing market for mechanical, electrical and plumbing services during the forecast period till 2031. This is underpinned by large-scale construction works associated with urbanization, economic diversification and public facilities development. Oil-rich Gulf economies are making huge investments to expand smart city infrastructure and modernize existing buildings, transport networks and industrial parks. The upcoming FIFA World Cup 2022 infrastructure projects in Qatar and preparations for Expo 2020 in Dubai are propelling the MEP services requirement in the Middle East.
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