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:

  • Consulting & Engineering
  • Maintenance & Support
  • System Integration

On the basis of end use, the global mechanical, electrical, and plumbing (MEP) services market is classified into:

  • Commercial building
  • Residential building
  • Government building

On the basis of regions, the global mechanical, electrical, and plumbing (MEP) services market is classified into:

  •   North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East
  • Africa

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

  • In June 2017, NV5 Global, Inc., a provider of professional and technical engineering and consulting solutions, announced the acquisition of the Richard D. Kimball Co., Inc. (“RDK”), one of the leading Northeast MEP engineering design firm.
  • In March 2018, Sterling & Wilson, a part of the Shapoorji Pallonji Group has integrated its entire mechanical, electrical and plumbing (MEP) business under a single MEP entity and are expected to take revenue from the MEP division to Rs 3,000 crore (US$ 30 billion) by 2020.
  • In February 2019, Ei Design, Inc., one of the leading consulting engineering design ?rm that provides MEP engineering services, announced that it has signed an agreement to acquire the MEP business of Wright Engineers, one of the global leader in structural engineering. This acquisition will enhance the Ei Design best-in-class platform in the commercial MEP engineering industry while allowing Wright Engineers to continue its focus on best-in-class structural engineering.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users