Market Trends of Global Mechanical Electrical and Plumbing (MEP) Services Industry
This section covers the major market trends shaping the Mechanical Electrical & Plumbing Services Market according to our research experts:
Rise in Construction Sector to Drive the Market Growth
The construction industry faced challenges during the pandemic crisis, now it is in the recovery phase. Despite the economic challenges, the Asia Pacific construction industry recorded significant growth in 2021. The growth is driven by increasing demand for the residential construction sector, which remained strong in big economies. In addition, the infrastructure construction sector experienced increasing investments. According to an industry Survey, in Q4 2021, demand for commercial properties remained stable as key e-commerce companies create demand for larger commercial spaces and this trend is expected to continue further.
Furthermore, countries like China, and Japan are relaxing restrictions on home approvals and lending to boost the construction industry, in Q4 2021, a huge number of bank credits were offered to property firms in China. In addition, mortgage lending in China increased by more than USD 30 billion (CNY 200 billion ) in October 2021 from around USD 23 billion (CNY 150 billion ) in September 2021.
Also, increasing transportation construction projects support the demand for MEP services in MENA region. For instance, major projects in United Arab Emirates such as the metro railway expansion projects, Route 2020 project, an extension of Dubai metro red line, phase III of Etihad Rail, which is a 1,200-km rail network across the United Arab Emirates aimed at exporting granulated Sulphur, and Port of Ruwais, are supporting the sales and installation and maintenance demand for HVAC systems, lighting systems, gas pipelines, and plumping systems.
North America Experiencing Significant Growth in the Market
The demand for MEP services in North America is driven by new construction, retrofit and renovation. However, new construction activities in North America holding largest share in MEP services market, when compared to renovation activities. Moreover, the concept of sustainability is gaining momentum in the construction design industry, further resulted in installation of eco-friendly systems in the industry which benefits both environment and budget.
According to the Environmental Protection Agency of the United States, electricity generation in the country accounts for 40% of the total energy consumption. In order to meet the increasing demand, vendors in the region were utilizing MEP technologies such as solar collectors, ventilation with heat recovery, etc. accompanied by their service. Thus, MEP service providers are becoming important in developing robust designs that enable consumers to reduce cost.
Furthermore, the United States is leading in MEP services market in North America region, as the country is experiencing positive growth in new construction projects, also evolving in residential market. Moreover, the country is witnessing lucrative growth in MEP services sector, where the demand is supported by retrofit and building renovations, and healthcare sector. However, homeowners undertake home improvement projects to improve energy efficiency, repair and upgrade their homes, etc. which resulted in remodeling expenditure in the country amounted to USD 353 billion in Q1 2021.
