U.A.E. Mechanical, Electrical and Plumbing Services Market Research Report: By Service Type (Electrical, Mechanical, Plumbing), End User (Residential, Retail, Commercial, Industrial, Government, Healthcare, Hospitality) - Industry Analysis and Growth Forecast to 2030

Market Overview

The U.A.E. mechanical, electrical, and plumbing (MEP) services market stood at $3,025.9 million in 2020, and it is expected to grow at a CAGR of 15.7% during the forecast period (2021–2030). The key factors responsible for the growth of the industry include the growing hospitality industry in the U.A.E. and increasing construction projects in the transportation sector.

The COVID-19 pandemic forced governments around the world to impose various measures, which severely disrupted the supply chains. As a result, the materials and components used in MEP equipment, such as refrigerants, compressors, and embedded systems, are in short supply, since they have to be imported from countries such as China and Vietnam. Furthermore, the construction industry in the U.A.E has been impacted due to the decreased number of projects in the sector, which, in turn, has affected the U.A.E. mechanical, electrical, and plumbing services market.

Electrical services held largest market share

In 2020, the electrical category held the largest share in the U.A.E. mechanical, electrical, and plumbing services market, on the basis of service type, because it includes services for various systems, such as uninterruptable power supply (UPS) systems, lighting design and control systems, and building management systems, all of which are pre-requisite in any building. Furthermore, the maintenance of these systems is important, as improper wiring and loose connections are a hazard.

HVAC category to generate highest revenue throughout forecast period

On the basis of application, the heating, ventilation, and air conditioning (HVAC) category held the largest market share in 2020, and it is expected to continue its domination in the forecast period. This is mainly because HVAC systems are crucial in commercial, industrial, and residential buildings, considering the hot weather of the country. With these systems, the occupants of buildings have benefits such as variable temperature and cleaner air to breathe.

Home automation is projected to be fastest-growing category

The home automation category in the application segment is expected to witness the fastest growth during the forecast period. This can be attributed to the high disposable income of the people in the country and growing preference for an elegant and luxurious lifestyle. Furthermore, home automation systems are designed to interact with various systems, such as lighting, audio systems, and air conditioners. Such systems allow people to operate lights, TVs, speakers, and ACs via voice commands, hence making life more convenient. Thus, with the increasing adoption of home automation systems, the demand for their repairs and maintenance is rising.

Water treatment plants to become fastest-growing category during forecast period

The water treatment plants category is expected to witness the highest CAGR in the forecast period, mainly because of the upcoming water treatment plants in the country, which will eventually require maintenance and repairs. For instance, the Sharjah wastewater treatment plant treats more than 30,000 cubic meters of wastewater every day. The Sharjah Investment and Development Authority (Shurooq) and Belgian construction heavyweight BESIX are planning to expand its capacity. Furthermore, other upcoming projects, such as the Sewerage System Implementation Project, Sewerage System Project, and Ajman Sewerage Network Project, are further expected to contribute to the growth of the water treatment plants category.

Growing hospitality industry in U.A.E. driving mechanical, electrical, and plumbing services market

The hospitality industry in the U.A.E. is growing and is, hence, supporting the MEP market in the country Furthermore, the travel and tourism industry in U.A.E. is growing, which is helping the hospitality industry advance. The announcement of tourism development strategies, such as the Dubai Tourism Vision and Sharjah Tourism Vision 2021, has brought millions of travelers from all over the globe. Furthermore, the Forbes travel guide has listed Dubai in its list of the top 20 destinations for 2020, which will further boost the hospitality industry in the city in the coming years.

Increasing constructions projects in transportation sector propelling demand for MEP services

An increase in the number of construction projects has been seen in the country’s transportation sector. Major projects such as the metro railway expansion projects, Route 2020 project, which is an extension of Dubai metro red line; phase III of Etihad Rail, which is a 1,200-km rail network across the U.A.E. aimed at exporting granulated sulphur; and Port of Ruwais, are supporting the sales and installation and maintenance demand for HVAC systems, lighting systems, gas pipelines, and plumping systems.

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Market players involved in partnerships and collaborations to gain significant position

The U.A.E. MEP services market is fragmented in nature. The major players in the market are EFECO LLC, China State Construction Engineering Corporation Middle East, Anel Group, SEMCO - Al Sabbah Electro Mechanical, Albonian International, Plafond, Emitech, GECO Mechanical & Electrical Company, Smart Mep Solution, Al Qabdah Global Building Contracting, Fawaz Trading & Engineering Services, Future Metro LLC, Elemec Electro Mechanical Contracting Company LLC, Madeena Alfunoon Electromechanical LLC, and Magna MEP.

They are focusing on partnerships and collaborations to improve their product and service portfolios. For instance;

• In March 2021, Al-Futtaim Engineering Company LLC signed an agreement with LG for the distribution of a range of the latter’s commercial ACs across the U.A.E., as a part of the former’s HVAC installation services.
• In July 2020, WESCO Distribution Inc. (WESCO) announced a long-term partnership with Eaton FZE in the U.A.E. to receive safe, reliable, and energy-efficient electrical products. This new partnership will strengthen WESCO’s market position throughout the U.A.E. and provide new growth opportunities, by helping widen its product portfolio and target a larger consumer base.

Some Key Players in U.A.E. Mechanical, Electrical, and Plumbing Services Market Are:

Market Size Breakdown by Segments

The U.A.E. mechanical, electrical, and plumbing services market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.

Based on Service Type

• Electrical
  • HV / MV /LV Substations
  • UPS Systems
  • Lighting Design and Control
  • Building Management Systems
  • Telephone, Data, and IT Systems
  • Security Systems
  • Audio Visual Systems
  • Home Automation
• Mechanical
  • HVAC
  • Fire Protection and Suppression
  • Sewage Treatment Plants
  • Water Treatment Plants
  • Irrigation Systems
  • District Cooling
• Plumbing

Based on End User

• Residential
•  Retail
• Commercial
• Industrial
• Government
• Healthcare
• Hospitality