The global mechanical, electrical, and plumbing services market is experiencing significant growth and is anticipated grow considerably in next few years. With the rise in urbanization, major players in the construction industry across the world are building big and complex residential and commercial buildings. These structures require basic amenities such as a continuous supply of clean & fresh water, air, and electricity to ensure a better quality of life for the residents.
To fulfill these requirements, mechanical, electrical, and plumbing services are needed. This includes services such as consulting and engineering services, under which the service provider plans, designs, schedules and executes the installation of all kinds of mechanical, electrical, and plumbing needs. Moreover, mechanical, electrical, and plumbing service providers provide maintenance and auditing services for their clients to meet the statutory requirements of their respective countries. Major players in this industries adopt advanced technologies to sustain the competition in the mechanical, electrical, and plumbing service market.
Market Scope and Structure Analysis
Description
Mechanical, electrical, and plumbing services specifically deal with the design, selection, and installation of the integrated mechanical, electrical, and plumbing systems. These services include installing air-conditioning systems, power and lighting systems, water supply and drainage, fire prevention and fighting systems, and telephones. By integrating these separate systems into one, their operation can be made more energy effective.
COVID-19 Impact Analysis
- The COVID-19 pandemic ceased the production of various products in the mechanical, electrical and plumbing service industry, which is attributed to the global. This has hampered the growth of mechanical, electrical and plumbing service market from the last few months and is likely to continue during 2021.
- COVID-19 has already affected the sales of mechanical, electrical, and plumbing service market in the first quarter of 2021 and is anticipated to cause a negative impact on the market growth throughout the year.
- The major demand for mechanical, electrical, and plumbing services was previously noticed from giant developed and developing countries, including the U.S., Germany, Italy, UK, India and China, which are negatively affected by the spread of the coronavirus, thereby declining the demand for mechanical, electrical, and plumbing services.
- Further, potential impact of the lockdown is currently vague and financial recovery of companies is totally based on its cash reserves. Mechanical, electrical, and plumbing service industry can afford a lockdown only for a few months, after which the players have to modify their investment plans. For instance, various players in the market halted their activities for several weeks to reduce their expenses. On the contrary, few players adopted employee lay-offs to sustain themselves during the COVID-19 health crisis.
- Mechanical, electrical and plumbing service providers are expected to focus on protecting their workforce, operations, and supply chains to respond to immediate crises and find new ways of working after COVID-19. For instance, provision of sanitizers, maintaining social distancing, as well as ensuring the vaccination of every employee in the company can assist in promoting the health & safety of the workforce.
Top Impacting Factors
The rapid rise in urbanization across the world has boosted the demand in construction industry for the construction of residential and commercial buildings. This is anticipated to increase the demand for the mechanical, electrical and plumbing services market. Moreover, rise in disposable income of people in general has boosted the demand in home renovation projects. This is expected to hugely boost the demand for mechanical, electrical, and plumbing services. Moreover, these services require a significant level of expertise, which many general contractors often do not have. Hence, outsourcing of mechanical, electrical, and plumbing services significantly reduces their financial risks. This is one of the major drivers that is anticipated to increase demand in the mechanical, electrical, and plumbing service markets. However, the dearth of skilled labor for efficient delivery of these services is one of the restraining factors hindering the growth of the mechanical, electrical, and plumbing services market. According to a study done by the UN, the urban population is anticipated to increase from 54% in 2016 to 66% in 2050, which require a rapid development in the urban infrastructure. This is expected to create lucrative opportunities for the mechanical, electrical, and plumbing services market growth during the forecast period.
Market Trends
- As a result, Sterling & Wilson merged its entire mechanical, electrical, and plumbing service business in March 2018 and expects to generate USD 30 billion in revenue in the coming years.
- Furthermore, many competitors are using acquisition as a development strategy to improve features and add new capabilities to their services. For instance, in February 2019, EI Design, Inc., a consulting engineering design firm that provides mechanical, electrical, and plumbing (MEP) services, acquired the MEP business of Wright Engineers to gain the best assets in the MEP industry.
Key Benefits of the Report
- This study presents the analytical depiction of the mechanical, electrical and plumbing services industry along with the current trends and future estimations to determine the future investment pockets.
- The report presents information related to key drivers, restraints, and opportunities, along with detailed analysis of the mechanical, electrical, and plumbing services market share.
- The current market is quantitatively analyzed to highlight the mechanical, electrical and plumbing services market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed mechanical, electrical, and plumbing services market analysis based on competitive intensity and how the competition will take shape in coming years.
Mechanical, Electrical, and Plumbing Services Market Report Highlights
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