DUBLIN--(BUSINESS WIRE)--The "United States (US) MEP Services Market - Growth, Trends, and Forecasts (2020-2025)" report has been added to ResearchAndMarkets.com's offering.
The United States MEP Services Market is expected to grow at a CAGR of 16% during the forecast period 2020 to 2025
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.
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 provider's become vital in developing robust designs that enable consumers to reduce cost.
However, the pandemic COVID-19 is causing attendant effects on the markets and commercial activities in the region. The engineering and construction industry is presented with challenges that could deepen depending on the length and severity of the crisis in the US. The uncertainty is surrounded by the duration and severity of the crisis resulting in engineering & Design firms anticipating the recovery.
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 the market growth.
Key Market Trends
Retrofit and Renovation to Drive the Market Growth
Over recent years, despite the recession, construction projects in the United States have experienced positive growth. The United States is considered one of the paramount regions for the construction market worldwide due to its evolving residential market. Moreover, the country's demand for retrofit and home/building renovations are on the surge; According to a 2019 report by Harvard Joint Center for Housing Studies, the US market for home improvements and repair was over USD 400 billion annually.
Demand from Healthcare Institutions to Drive Market Growth
The healthcare sector in the region is considered one of the crucial sectors for the optimal functioning of the economy. However, it faces the huge problem of inefficient planning and insufficient resources at the healthcare facilities. For instance, researchers from Humana and the University of Pittsburgh reported from their study based on the data from January 2012 to May 2019 that approximately 25% of healthcare spending can be characterized as inefficient.
Competitive Landscape
The United States MEP Services Market is moderately fragmented. The major companies include Jacobs Engineering Group Inc, HDR Inc, AECOM, and Arup Group. Vendors in the market are leveraging partnerships and collaborations to capture the market share.
Key Topics Covered:
1 INTRODUCTION
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.3 Assessment on the impact of COVID-19 on the Design & Engineering Services industry
4.4 Current Employment Index of MEP Engineers in the United States
4.5 Impact of Technological Advancements on the MEP Services Industry (CAD, BIM, MEP Software, etc)
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Emphasis on Outsourcing of MEP Services to Focus on Core Offering
5.1.2 Steady Demand from Commercial and Healthcare Institutions
5.1.3 Evolving Business Models and Nature of Collaboration between Firms and Service Vendors
5.2 Market Restraints
5.2.1 Operational Challenges in High Market Concentration and Growing Demand for End-to-end Offering Affect Smaller Firms
6 MARKET SEGMENTATION
6.1 By Type
6.1.1 New Construction
6.1.2 Retrofit & Renovation
6.1.3 Commissioning Activity
6.1.4 Other Types
6.2 By End-user Vertical
6.2.1 Healthcare
6.2.2 Commercial Offices
6.2.3 Educational Institutions
6.2.4 Public Institutions
6.2.5 Industrial establishments & 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
7.1.4 AECOM
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 Consulting
7.1.11 Burns Engineering
7.1.12 Wiley Wilson
8 INVESTMENT ANALYSIS
9 FUTURE OF THE MARKET
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