United States Mechanical, Electrical and Plumbing (MEP) Services Market Report 2020-2025 – ResearchAndMarkets.com
DUBLIN – (BUSINESS WIRE) – Added United States (US) MEP Services Market – Growth, Trends, and Forecast (2020-2025) report ResearchAndMarkets.com Offer.
The U.S. MEP services market is expected to grow 16% over the forecast period 2020-2025
Mechanical Electrical and Plumbing (MEP) involves planning, designing, and managing various MEP systems in a building. With the increasing inclusion of BIM in the construction, planning and management of buildings, MEP services continue to gain in importance. The MEP contributes a significant part of the construction costs of the projects. Given the growing number of construction projects in the area such as the renovation of Denver International Airport and modernization of the New York transit area, this is expected to spur growth in the market.
Design plays an important role in MEP services as a significant part of the revenue for any service provider is generated through MEP design. According to a study by Consulting-Specifying Engineer, more than half (58%) of the revenue of all MEP giants in 2019 was from MEP design, with an average MEP design revenue of $ 83.9 million per company and there was a significant increase compared to the previous year.
US demand for MEP services is driven by demand for new builds, retrofits and renovations in both segments, which represent a significant market share. However, the new construction segment has a slight upper hand when it comes to the market share of MEP services in the country.
The concept of sustainability is becoming increasingly important in the construction planning industry. The industry consensus is that installing green systems would ultimately benefit the environment and the budget. According to the EPA, electricity generation accounts for 40% of total energy consumption in the US. Providers in the regions use MEP technologies such as solar collectors and ventilation with heat recovery, accompanied by their services, in order to counteract the demand.
According to the US Energy Information Administration (EIA), in a commercial building, the main energy-consuming areas are HVAC systems, which account for 35% of the total building energy, lighting 11%, appliances such as refrigerators, water heaters, and freezers 18%, and the rest is among various others Electronics shared. This is where MEP service providers play an important role in developing robust designs that consumers can use to reduce their costs.
However, the COVID-19 pandemic is having an associated impact on markets and commercial activities in the region. The engineering and construction industries are facing challenges that could deepen depending on the length and severity of the US crisis. Uncertainty is surrounded by the duration and severity of the crisis, leading engineering and construction firms to await the recovery.
In the current market scenario, some of the construction projects have been delayed and some have resulted in cancellations due to the impact of COVID-19 on the companies and government agencies that have hired them. For example, almost 30% of imported building materials used by end-user companies from China has declined due to supply chain restrictions. These examples illustrate some of the negative outlook for the MEP services market, which has the potential to hamper market growth.
Important market trends
Retrofitting and renovation to drive market growth
In recent years, construction projects in the US have seen positive growth despite the recession. The United States is considered one of the most important regions for the construction market worldwide due to its developing residential real estate market. In addition, the country’s demand for retrofitting and renovation of houses and buildings is increasing. The U.S. home improvement and repair market was over $ 400 billion a year, according to a 2019 report by the Harvard Joint Center for Housing Studies.
Demand from healthcare facilities to drive market growth
The health sector in the region is considered to be one of the crucial sectors for the optimal functioning of the economy. However, it faces the major problem of inefficient planning and insufficient resources in healthcare facilities. For example, researchers from Humana and the University of Pittsburgh reported from their study, based on data from January 2012 to May 2019, that about 25% of healthcare spending can be classified as inefficient.
The US MEP services market is moderately fragmented. Key companies include Jacobs Engineering Group Inc., HDR Inc., AECOM and Arup Group. Vendors in the market use partnerships and collaborations to gain market share.
Main topics covered:
2 RESEARCH METHODOLOGY
4 MARKET INSIGHTS
4.1 Market overview
4.2 Industry Attractiveness – Porter’s Five Forces Analysis
4.3 Assessing the Impact of COVID-19 on the Design & Engineering Services Industry
4.4 Current MEP Engineer Employment Index in the United States
4.5 Impact of technological advances on the MEP service industry (CAD, BIM, MEP software, etc.)
5 MARKET DYNAMICS
5.1 Market drivers
5.1.1 Growing emphasis on outsourcing MEP services to focus on the core offering
5.1.2 Constant demand from commercial and health establishments
5.1.3 Development of business models and the type of cooperation between companies and service providers
5.2 Market Restrictions
5.2.1 Operational challenges with high market concentration and growing demand for end-to-end offerings affect smaller companies
6 MARKET SEGMENTATION
6.1 By type
6.1.1 New building
6.1.2 Retrofitting and renovation
6.1.3 Commissioning activities
6.1.4 Other types
6.2 By vertical end-user
6.2.2 Commercial offices
6.2.3 Educational institutions
6.2.4 Public institutions
6.2.5 Industrial plants and warehouses
6.2.6 Other commercial entities (data centers, research, etc.)
7 COMPETITIVE LANDSCAPE
7.1 Company profiles
7.1.1 Jacobs Engineering Group Inc.
7.1.2 HDR Inc.
7.1.3 Arup Group
7.1.5 MEP Engineering
7.1.6 Stantec Inc.
7.1.7 Affiliated Engineers Inc.
7.1.8 Macro Services
7.1.9 WSP group
7.1.10 AHA advice
7.1.11 Combustion technology
7.1.12 Wiley Wilson
8 INVESTMENT ANALYSIS
9 THE FUTURE OF THE MARKET
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