United States (US) MEP Services Market Size (2024 - 2029)

US MEP Services Market Analysis

The United States MEP Services Market size is estimated at USD 45.39 billion in 2024, and is expected to reach USD 87.96 billion by 2029, growing at a CAGR of 14.15% during the forecast period (2024-2029).

• Mechanical electrical and plumbing (MEP) involves planning, designing, and managing various MEP systems of a building, and with the increasing incorporation of BIM in building construction, planning, and management, MEP services are further gaining traction.
• The MEP contribute to the significant portion of projects' construction cost. With the growing number of construction projects in the region, such as Denver International Airport renovation and New York City transit upgrades, it is expected to drive the growth of the market.
• The COVID-19 pandemic has impacted the MEP services market with respect to disruptions in the supply chain. Lead times for some products were increased due to factory shutdowns. However, now with factories functioning at full capacities, production levels are beginning to see significant improvements.
• Design plays a vital role in MEP services as a significant share of the revenue for any service provider is generated from MEP design. According to a study by Consulting-Specifying Engineer, over half (58%) of the revenue from all of MEP giants combined during 2019 was generated from MEP design, with an average MEP design revenue of USD 83.9 million per firm and observed a significant increase compared to the previous year.
• The US demand for MEP services is driven by new construction and retrofit and renovation demand with both segments, driving a prominent share of the market. However, the new construction segment commands a slight upper hand when it comes to the MEP services market share in the country.
• The concept of sustainability is gaining momentum in the construction design industry; the industry consensus is that installing eco-friendly systems would eventually benefit the environment and the budget. According to the EPA, electricity generation in the US accounts for 40% of the total energy consumption. Thereby vendors in the regions are leveraging the MEP technologies such as solar collectors and ventilation with heat recovery accompanied by their services to counter the demand.
• According to the US Energy Information Administration (EIA), in a commercial building, major energy-consuming sections are HVAC systems at 35% of the total building energy, lighting at 11%, appliances, such as refrigerators, water heaters, and freezers at 18%, and the remaining is shared among various other electronics. This is where MEP service providers become vital in developing robust designs that enable consumers to reduce costs.
• However, in the current market scenario, some of the construction projects have been delayed, and some resulted in cancellation as the result of the impact of COVID-19 on the companies and government bodies that commissioned them. For instance, nearly 30% of imported construction material deployed by the end-user firms from China due to supply chain constraints manufacturing output has declined. These instances showcase some of the negative outlooks of the MEP services market that holds the potential to hinder market growth.

US MEP Services Industry Segmentation

MEP Services encompasses the design, engineering, consulting, and maintenance-related activities provided by engineering firms across a wide range of end-user verticals. The study's scope includes MEP services provided to new and renovated installations in a wide range of end-user verticals, such as healthcare, industrial facilities, commercial offices, public buildings, educational institutions, and other verticals. The study tracks the impact of COVID-19 on the overall industry landscape.