Saudi Arabia Mechanical, Electrical and Plumbing Services Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Saudi Arabia MEP Services Market Size

Saudi Arabia MEP Services Market Trends & Growth Drivers

Adoption of Building Information Modeling (BIM) Is Key Trend

• BIM provides a visual representation of the physical and functional characteristics of buildings. It is being widely adopted by organizations due to its better accuracy, virtual reality, and increased efficiency.
• This provides a concept for the comprehension, visualization, and idealization of what needs to be done and how.
• Additionally, BIM has clash detection features, which provide real-time data insights, identify potential conflict areas in the system, and remove them to save money and effort.
• It has a virtual reality option allowing people to walk into buildings and interrelate with the MEP system and components.
• It also permits 4D models to be produced and used, which are useful in determining the proper sequence of tasks for any MEP project.

Rising Number and Size of Construction Projects Are Prominent Drivers

• The kingdom is witnessing major growth in construction activities in every sector, which is simultaneously increasing the demand for MEP services.
• Many ongoing and planned projects, such as educational institutes, hospitals, airports, commercial towers, residential developments, new cities, and entertainment complexes, contribute to the growth of the market.
• These projects need modern MEP systems for effective operation and sustainability.
• Moreover, Saudi Vision 2030, which aims to diversify the economy and involves large-scale economic projects, is also being developed.

Coordination among Team Members Is Challenge

• The primary obstacle the market is facing is team coordination, as various teams comprising disparate personnel are linked to a project, leading to a lack of coordination and misunderstandings.
• This causes a lot of issues since stakeholders who are responsible for managing the resources are not properly informed.

Saudi Arabia MEP Services Market Analysis

Services Type Insights

• Electrical will be the largest category, with a market share of around 45%, in 2024. It is because it consists of various systems, including UPS, security, lighting design and control, home automation, and building management.
• These systems' servicing is necessary for efficient functioning, long life, and energy efficiency. Saudi Arabia has made significant investments in renewable energy projects as well as electricity generation, transmission, and distribution infrastructure.
• Electricity is the main service that is required, even for the construction of roads, bridges, highways, and other development projects.

The service types covered in this report are:

• Mechanical
• Electrical (Largest and Fastest-Growing Category)
• Plumbing

End User Insights

Commercial is the largest category, with USD 3,253.0 million revenue in 2024. This is due to the economic diversification strategy of the Saudi government, which is leading to the expansion of the corporate & IT sector. Just like initially in Jeddah, business districts are growing in Riyadh and Dammam, which is reflected in the construction of sleek office buildings. These buildings are being designed with expansive MEP fixtures in a way that ensures energy efficiency, occupant comfort and safety, and sustainability.

The hospitality category is predicted to witness the fastest growth over the forecast period. This is credited to the increasing migration of people to Saudi Arabia from all over the world for work, many of whom stay at hotels, at least for short durations. Moreover, the footfall in Makkah and Medinah continues to increase, which is why new hotels are being constructed and the existing ones expanded to accommodate the burgeoning pilgrim numbers. Tourism is also one of the sectors highlighted in Vision 2030, under which the government seeks to host 150 million tourists by decade-end.

We have analysed the below-mentioned end users:

• Residential
•  Retail
• Commercial (Largest Category)
• Industrial
• Government
• Healthcare
• Hospitality (Fastest-Growing Category)
• Others

Phase Insights

The implementation/execution category holds the largest share in 2024. This is because this is the most-important phase over the lifetime of any built asset, as it includes the actual construction and installation of MEP equipment and fixtures. Therefore, this is the costliest phase of any building’s lifecycle and demands the most resources, in terms of labourers, volume of equipment and construction materials and time. The growth of this category is essentially driven by the large number of mega construction projects in the execution phase in the kingdom.

O&M is the fastest-growing category in the market due to the kingdom’s increasing focus on sustainability, long asset life, occupant safety, and energy efficiency. All these efforts demand that buildings be renovated and serviced periodically, which drives the demand for MEP services during this stage. Keeping MEP fixtures in perfect working condition lessens energy usage, reduces the risk of electrical shocks, falls due to water leakage, and injuries due to falling objects. Further, the retrofitting of advanced appliances and building management systems might require additional MEP work.

The phases studied in the report include:

• Design
• Implementation/Execution (Largest Category)
• Installation/Commissioning
• O&M (Fastest-Growing Category)

Regional Analysis

Al-Riyadh Is Largest Province

• Al-Riyadh is the largest province, with a market share of 35%, in 2024, and it is also the fastest-growing province, with a CAGR of 13.7% during the forecast period. This is due to the numerous residential, commercial, and industrial projects located across Riyadh City, as well as the significant role Vision 2030 is playing in promoting these industries.
• Al-Riyadh is the capital of the country and serves as the political, administrative, and financial hub of Saudi Arabia. Moreover, numerous projects are going on in this province, including the King Abdulaziz Project for Riyadh Public Transport, the Riyadh Art Project, the Sports Boulevard Project, the King Salman Park Project, and the King Abdullah Road Development Program.

The provinces analyzed in this report are:

• Al-Riyadh (Largest and Fastest-Growing Province)
• Makkah
• Al-Madinah
• Al-Qaseem
• Eastern Region
• Aseer
• Tabouk
• Hayel
• Northern Border
• Jazan
• Najran
• Al-Baha
• Al-Jouf

Saudi Arabia MEP Services Market Share

Market Concentration – Fragmented

The Saudi Arabia MEP services market is fragmented with several key players. These players compete with each other on customer service, distribution network, cost, advanced technology, and product quality.