Mechanical Electrical and Plumbing (MEP) Services Market size in North America is set to grow by USD 23.37 billion from 2024-2028, Rising construction activities in both residential and non-residential sectors, Technavio

NEW YORK, May 21, 2024 /PRNewswire/ -- The mechanical electrical and plumbing (MEP) services market size in North America is estimated to grow by USD 23.37 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 7.73% during the forecast period.

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Key Market Trends Fueling Growth

Construction activity in North America, particularly in the US, Canada, and Mexico, is on the rise, leading to increased demand for mechanical, electrical, and plumbing (MEP) services. Mega infrastructure projects are set to kick off, boosting the need for efficient facility management services. The US sees a surge in commercial building construction, particularly in industries like IT, apparel, and consumer goods. Healthcare facility advancements further drive construction activities.

Government financing facilitates these projects. In Canada, urbanization fuels real estate growth, especially in Toronto and Western cities like Vancouver and Calgary. Multi-purpose buildings are on the rise, compensating for shrinking retail spaces. In Mexico, infrastructure development focuses on hospitality and airports, attracting foreign investments.

Building owners across North America are prioritizing sustainability, necessitating streamlined facility operations. Despite COVID-19 disruptions, precautions like hiring industrial hygienists and implementing temperature screenings ensure project continuity. This trend is set to drive the MEP services market in North America.

Market Challenges

• The mechanical, electrical, and plumbing services market in North America is witnessing heightened competition from local and regional vendors due to the absence of clear service distinctions. Established companies offer services with minimal differences in quality and performance, making it challenging for customers to differentiate.
• This situation increases customer bargaining power. Despite slow technological advancements, global vendors maintain stability and reliability, attracting reputable end-users. To stand out, vendors aim to expand operations and customize services for end-users. However, competition remains fierce among established vendors due to similar offerings.
• Consulting services present an area dominated by established vendors, as tier II and III domestic vendors lack expertise due to a shortage of skilled personnel. These factors are expected to hamper market growth in the forecast period.

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Segment Overview 

1. Service 
• 1.1 Consulting and engineering
• 1.2 Maintenance and support
• 1.3 System integration
2. End-user 
• 2.1 Commercial
• 2.2 Government
• 2.3 Residential
3. Geography 
• 3.1 North America

1.1 Consulting and engineering- The consulting and engineering sector is poised for substantial growth in the North America - MEP services market, driven by burgeoning infrastructure projects. With a focus on optimizing energy use and enhancing operational efficiency, there's a heightened demand for consulting services, particularly in existing buildings.

Valued at USD 16.05 billion in 2018, the consulting and engineering segment dominates the market, buoyed by increased engineering contracts. These contracts involve specialized mechanical, electrical, and plumbing players tasked with monitoring facility performance, conducting audits, and devising strategies for improvement.

As companies and end-users engage in contractual agreements, vendors play a pivotal role in bridging gaps between desired and actual facility performance. This dynamic is expected to fuel demand for mechanical, electrical, and plumbing services, further propelling the growth of the consulting and engineering segment in the market.

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Research Analysis

In the construction industry, various elements come into play, from refrigerants to HVAC systems, embedded systems to lighting installations. Architects and engineers collaborate intricately to devise designs that optimize construction costs while ensuring efficient MEP (Mechanical, Electrical, and Plumbing) designs.

As the Asia Pacific construction industry gears towards the recovery phase, focus spans across residential, infrastructure, and commercial properties. Approvals for home projects, aided by lending mechanisms such as bank credits and mortgage lending, drive momentum.

 Amidst new constructions, attention towards retrofit and renovation surges. Additionally, emphasis on sustainable practices amplifies, with ventures into electricity generation via solar collectors and ventilation with heat recovery systems, particularly targeting the residential market. This comprehensive approach underscores the evolving landscape of the MENA region's construction sector.

Market Research Overview

In the Asia Pacific region, the construction industry, encompassing architects, engineers, and builders, is navigating the recovery phase. Both residential and infrastructure sectors are gaining momentum, with an uptick in home approvals. The demand for commercial properties is also on the rise.

Engineers are crucial in ensuring the smooth execution of projects, while architects play a pivotal role in designing functional and aesthetically pleasing structures. In the residential sector, there's a noticeable surge in construction activities, driven by factors like urbanization and population growth.

Infrastructure development, including roads and bridges, is a priority to support economic growth. With the construction sector poised for growth, stakeholders are optimistic about the future prospects in the Asia Pacific region.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Service 
• Consulting And Engineering
• Maintenance And Support
• System Integration
• End-user 
• Commercial
• Government
• Residential
• Geography 
• North America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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