Mechanical Electrical & Plumbing (MEP) Services Market Analysis
Mechanical, Electrical, and Plumbing (MEP) Services Market - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2026
Global mechanical, electrical, and plumbing (MEP) services market is consistently driven by increasing infrastructural development worldwide. Mechanical, electrical and plumbing services, including designing, implementation, and maintenance form an integral part of the residential, commercial, and government buildings. Increasing infrastructure development in emerging economies and the requirement of the developed economies to upgrade their existing infrastructure is in turn expected to create highly conducive environment for growth of the global mechanical, electrical, and plumbing (MEP) services market.
Rampant urbanization in emerging economies to present favorable growth prospects
According to World Bank Group, the global urban population growth rate has declined, which witnessed growth of over 2% in 2016. However, the global urban population accounted for over 54% of the globe in 2016. According to UN projections, this is expected to witness considerable surge in the years and will account for 66% of the global population by 2050. Increasing urbanization will present significant demand for the infrastructural development over the next few years. In conjunction with the development of residential facilities, requirement to avail the basic amenities of income and livelihood will drive demand for commercial and MEP services market over the forecast period.
Global Mechanical, Electrical, and Plumbing (MEP) Services Market Taxonomy
On the basis of services, the global mechanical, electrical, and plumbing (MEP) services market is classified into:
On the basis of end use, the global mechanical, electrical, and plumbing (MEP) services market is classified into:
On the basis of regions, the global mechanical, electrical, and plumbing (MEP) services market is classified into:
Service outsourcing to ensure timely project completion and ensure fixed costs will present strong growth landscape
Considerable reduction of risks through outsourcing of business operations to MEP services market participants is expected to drive the growth of the business. These vendors handle the mechanical, electrical and plumbing associated tasks with the end users can maintain their focus on their core activities for the construction development. End user problems associated with the training, maintaining, and retaining the skilled workforce is considerably reduced. Moreover, expertise of these businesses in the quality and durability of the projects within the stipulated time and costs is expected to be prominent growth factor fueling the industry growth.
3D modeling and virtual project planning to streamline the project costs has gained significant traction over the past few years
Preplanning the design layouts and associated approximation of the cots can be approximated at the project initiation. However, these 3D modeling and virtual project planning aids the participants in gaining better approximations and explore design defects. Moreover, the related costs associated with the project prototyping, layout designs and time required is significantly reduced. Thus, virtual project planning has gained significant traction in the industry, is expected to be among the key trends that will help the participants garner better margins.
Consultant and engineering services are expected to dominate the global mechanical, electrical, and plumbing (MEP) services market share over the forecast period
Increasing infrastructure investments in the developing economies, specifically in the BRIC nations and the requirement to implement energy efficient and reliable building designs are expected to be the major factor driving the growth of the business segment.
Asia Pacific is expected to account for the largest share over the forecast period owing to numerous infrastructural activities taking place in the countries that include China, India and Indonesia. Moreover, growing multitudes of commercial activities that include manufacturing activities, multi-channel retail operations and IT product and service sector in these countries will present considerable growth prospects over the forecast period. U.S. and Europe are expected to witness considerable demands for upgrade and modernization of existing infrastructure, which will drive growth of the MEP services market in the region. Multibillion projects in the Middle East, commencement of the 2022 FIFA World Cup in Qatar will help the region witness highest growth over the forecast period.
Global Mechanical, Electrical, and Plumbing (MEP) Services Market: Key Players
Chief industry participants in the Global Mechanical, Electrical, and Plumbing (MEP) Services Market includes, EMCOR, Global Facility Solutions, Macro, MEP Engineering, and WSP. Mergers and acquisitions, acquiring service contracts and establishing long term partnerships with the major construction industry participants is expected to remain the major focus of the industry participants to strengthen their industry foothold over the next few years. For instance in May 2012, EMCOR completely acquired Dalkia India, to expand its regional consumer base in India.
Global Mechanical, Electrical, and Plumbing (MEP) Services Market: Key Developments