by Mechanical, electrical and plumbing (MEP) services include the engineering design and installation of heating, ventilation and air conditioning (HVAC), plumbing, fire protection systems, and electrical systems in both commercial and industrial facilities. MEP services are essential to the build-out and functioning of commercial spaces ranging from offices to warehouses. They help control and regulate critical building systems related to lighting, power, heating, cooling, ventilation, water supply and drainage. The demand for MEP services has grown in parallel with the construction industry over the years. Rapid urbanization and infrastructure development across both developed and developing regions has fueled increased construction spending on residential, commercial and industrial projects.
The global Mechanical, Electrical and Plumbing Services Market is estimated to be valued at US$ 55.64 Bn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Building Information Modeling (BIM) is gaining traction in the MEP services industry to optimize coordination and collaboration between different stakeholders. BIM is a 3D modeling technology and associated set of processes to produce, communicate and analyze physical and functional characteristics of a built environment. It helps MEP contractors visualize the complete building system in a virtual 3D model and identify any issues or clashes in piping, ductwork or wiring during the design phase itself before physical construction begins. This allows for reduced rework, cost overruns and project delays. BIM adoption is expected to grow significantly over the next decade as MEP service providers look to streamline project management and delivery through its capabilities.
Porter’s Analysis
Threat of new entrants: The mechanical, electrical and plumbing services market requires high initial capital investments and established distribution channels limit threats from new entrants.
Bargaining power of buyers: There are numerous buyers in the market with medium bargaining power. Customers can opt for maintenance contracts to negotiate better pricing.
Bargaining power of suppliers: Major suppliers have medium bargaining power due to differentiated products and services. Suppliers are dependent on a few large buyers.
Threat of new substitutes: Threat from substitutes is low as mechanical, electrical and plumbing services have few close substitutes and switching costs for customers are high.
Competitive rivalry: The market is competitive with many global and regional players fighting for market share. However, the market is large enough to accommodate multiple players.
Key Takeaways
The Global Mechanical, Electrical And Plumbing Services Market Size is expected to witness high growth. The global Mechanical, Electrical and Plumbing Services Market is estimated to be valued at US$ 55.64 Bn in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030.
Regional analysis
Asia Pacific accounts for more than 35% share of the global market led by China, India, Japan and South Korea. Rapid urbanization, growing population and focus on smart infrastructure are driving demand in the region. North America is the second largest market driven by expenditures on improving and modernizing existing infrastructure in the US.
Key players
Key players operating in the mechanical, electrical and plumbing services market are RSA Security LLC, Symantec Corporation, and Vasco Data Security International, Inc. RSA Security LLC provides a wide range of security, risk and compliance products and services. Symantec Corporation offers integrated security, backup and archiving, with a focus on identity and data protection services. Vasco Data Security International, Inc specializes in strong authentication and e-signature solutions & services.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
