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The global MEP services market is projected to increase by USD 111.19 billion at a CAGR of 13.5% between 2023 and 2028. The market refers to the industry sector that provides Mechanical, Electrical, and Plumbing services for buildings and infrastructure. This market plays a crucial role in the design, installation, and maintenance of various systems such as HVAC (Heating, Ventilation, and Air Conditioning), electrical power distribution, plumbing, and fire protection. The HVAC segment dominates the market. The market overview delves into costs, generators, and various aspects. It explores market opportunities, global growth, and trends, providing a comprehensive analysis and forecasting in market research reports. With a focus on global market growth and forecasting, the report analyzes key factors influencing the MEP market, ensuring a detailed and insightful understanding. Energy efficiency and sustainability have become important factors influencing the market as there is a growing demand for eco-friendly solutions that consume less energy and reduce environmental impact. This market research and growth report includes key drivers, trends, and challenges during the forecasted period.
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The market is witnessing significant growth fueled by rising construction projects worldwide. Design innovations, facilitated by modern design software and collaboration tools, enhance efficiency in MEP systems. Architects and engineers play pivotal roles in residential segment, commercial segment, and infrastructure construction projects. Financing through bank credits and mortgage lending further propels market expansion. Notable projects like the Metro railway expansion and Port of Ruwais underscore the market's breadth. HVAC, lighting, gas pipelines, and plumbing systems are integral components, alongside elevators, fire protection, heating, cooling, and ventilation services, shaping the dynamic landscape of the market globally.
In addition, the market in the MENA region, encompassing infrastructure like the Dubai Metro Red Line and Etihad Rail, focuses on integrating advanced MEP technologies such as solar collectors and heat recovery systems. These technologies are pivotal in optimizing energy consumption across various sectors. The market also emphasizes robust communication systems and efficient sewage systems to meet the region's growing urbanization and infrastructure needs. As demand for sustainable and energy-efficient solutions rises, MEP services play a crucial role in enhancing operational efficiencies and reducing environmental impact through innovative technological applications in building and infrastructure projects throughout the MENA region.
Risk minimization through outsourcing is notably driving market growth. Outsourcing various property-related services such as HVAC, water supply and other electromechanical support functions helps end users to focus on their core business. Today, companies tend to profit from their core processes by selling or outsourcing non-profitable/co-related processes to third parties who may be qualified to bear the responsibility. The abundance of growth opportunities in the end-user segment further emphasizes the development of outsourced services in the market. Infrastructure and real estate development in the region will become crucial to enable end users to outsource their support processes to MEP providers.
These MEP companies, in turn, have the necessary skills and knowledge to handle such activities. Outsourcing also ensures that end users can focus more on their core business while companies are responsible for services and potential risks associated with them. The internal maintenance of the facilities requires effective training of the workforce in the service of the parliamentarians. This, in turn, increases the liability of building owners and the potential risks associated with moving trained personnel. These factors are expected to drive the market growth and trends during the forecast period.
The evolving nature of service contracts is an emerging trend in the market. Contractual arrangements for MEP services are gradually moving towards a long-term relationship between providers and end users. As the global market enters a phase of stable growth and the market becomes more solution-oriented, we can expect a shift in the trend from medium-term contracts to long-term contracts.
Additionally, the nature of contracts is changing from single-service or basic labor services to multi-purpose contracts. It aims to provide complete solutions from the project design phase to the post-commissioning of the building. It is also expected that customer-supplier relationships will evolve from a transactional nature to a more collaborative and partnership role. These factors are expected to drive the growth of the market in focus during the forecast period.
Limited differentiation in services is a major challenge impeding market growth. Global providers in the market face greater competition from several local and regional providers because services are not differentiated. The services offered by many established companies have very small differences in quality and performance that are difficult to measure, which increases the bargaining power of customers. As these markets experience slower technological innovation, providers face the challenge of differentiating their offerings.
However, the stability and reliability of suppliers have encouraged reputable end-users to engage with global players in the market. To differentiate their offerings, companies are looking to expand their scope to include a level of customization for specific end users. However, as these are largely similar, the incumbent providers will face stiff competition during the forecast period. Consulting services appear to be one area where only established providers have a foothold in the market. Domestic tier II and tier III providers have not yet acquired knowledge of these, mainly due to the lack of qualified workers. Domestic Tier II and III providers need to increase their capabilities, or such factors are expected to hinder the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecast report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Camelot Facility and Property Management - The key offerings of the company include MEP services.
The market forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the consulting and engineering services segment will be significant during the forecast period. MEP consulting and engineering services are expected to witness stable growth during the forecast period owing to the level of new infrastructure development globally.
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The consulting and engineering segment was valued at USD 33.71 billion in 2018. Engineering services are mostly carried out for new development projects where builders design the electrical, mechanical, and civil systems during the project planning phase to enhance project deliverables. High awareness is reflected in the increase in engineering contracts globally, with several MEP players specializing only in the consulting and engineering aspects of the market. Some of the experts involved in consulting and engineering activities in a building include HVAC design engineers, electrical engineers, MEP coordinating engineers, and plumbing and firefighting designers.
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North America holds the largest market share in the global market, contributing around 47% of the total revenue. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in North America is expected to grow owing to the risk reduction achieved through outsourcing activities. Currently, different business units are concentrating on maximizing profits from their core processes by outsourcing related processes to outside companies. Along with this, the trend of MEP construction infrastructure and real estate development in North America will increase the prevalence of outsourcing support processes to MEP companies. For end-users to concentrate more on their core business operations, these MEP companies are handling the responsibility of these and any associated risks. Hence, the market in North America is expected to grow at a moderate rate during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The market is witnessing robust growth driven by advancements in technology and increased infrastructure construction activities across residential and commercial sectors. Refrigerants, compressors, and HVAC systems play a crucial role in maintaining optimal temperature conditions, while modern design software and collaboration tools aid architects in creating efficient building designs. E-commerce services facilitate seamless procurement of MEP components, while embedded systems enhance the functionality of various building systems like lighting systems, plumbing systems, and elevators. Infrastructure expansion projects, such as metro railway expansions and gas pipelines, further boost the demand for MEP services. Property firms rely on MEP services for home approvals and bank credits, ensuring compliance with regulations and standards in residential construction. The Port of Ruwais serves as a strategic hub for MEP infrastructure development and maintenance. The market caters to various sectors including office buildings, retail spaces, hotels, and healthcare facilities, driven by urbanization, industrialization, and globalization trends.
Further, the market plays a vital role in the construction sector, serving the residential segment, infrastructure, and commercial properties. MEP equipment and service providers cater to various needs, including lighting, plumbing, cooling, and electrical services. E-commerce companies facilitate the procurement of MEP equipment, while lending and mortgage lending support financing for construction projects. Metro railway expansion projects drive demand for MEP services, ensuring efficient communication and drainage systems. However, challenges such as labor shortages, stringent building regulations, and slow adoption of new technologies persist. Service providers navigate these complexities while adhering to environmental standards, building codes, and regulatory compliance. The market encompasses the mechanical services segment, electrical services segment, and plumbing services segments, addressing diverse needs in the construction industry.
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Industry Scope |
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Report Coverage |
Details |
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Page number |
157 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 13.5% |
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Market growth 2024-2028 |
USD 111.19 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
12.16 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 47% |
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Key countries |
US, China, Japan, South Korea, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AECOM, Camelot Facility and Property Management, Caravan Facilities Management LLC, Choice Maintenace, Continuum Services, Crockett Facilities Services Inc., Dohn Engineering PLC, Ecolab Inc., EI Design Pvt. Ltd., EMCOR Group Inc., GDI Integrated Facility Services, Global Facility Solutions LLC, Knight FM, M and W Group GmbH, MEP Engineering Inc., NV5 Global Inc., Resolute Engineering, Sterling and Wilson Pvt. Ltd, WSP Global Inc., and XS CAD Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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