The growing hospitality industry and increasing number of construction projects in the transportation sector are the key driving forces behind the growth of the mechanical, electrical, and plumbing (MEP) services market in the U.A.E. It is set to reach $12,946.9 million in 2030, progressing with a CAGR of 15.7% during the forecast period (2021–2030).
The COVID-19 pandemic has caused disruptions in industries across the world. The manufacturing sector has been impacted strongly, which is further causing a shortage of the components required in MEP processes. Refrigerants, compressors, embedded systems, and other components and materials are required in MEP systems. All of them have to be imported from China and Vietnam, and with the lockdowns in place, the ban on the import and export of such components is leading to numerous challenges for U.A.E. MEP services market players.
The MEP services market is categorized into mechanical, electrical, and plumbing services based on the type. Among these, the electric services category is projected to witness the fastest growth in the forecast period. This can be attributed to the presence of a large number of uninterruptable power supply (UPS) systems, building management systems, lights and related control systems, security systems, and other types of systems in any large premises. Furthermore, since all other services within a building depends on electricity supply, which acts as the base for other functions, its servicing is of high importance. Therefore, servicing of electrical systems brings in higher revenue for companies.
On the basis of end user, the commercial category generated the highest revenue in 2020. This was because of the presence of a great number of commercial buildings in the U.A.E. Furthermore, regular MEP maintenance is advantageous for buildings, as it helps in keeping the occupants safe, by preventing potential hazards, and saves money, as routine maintenance is cheaper than unplanned repairs and sudden replacements.
The U.A.E. MEP services market is fragmented in nature. Players in the MEP services market are involved in partnerships and collaborations to obtain a significant position.
For instance, in November 2020, Azizi Developments contracted Mario Associates to provide MEP design review and advisory services for Azizi Developments’ upcoming projects across Dubai.
In February 2020, Leminar Air Conditioning Company signed a distribution deal with Zurn Industries (USA), a provider of plumbing products, to be the U.A.E. distributor for the latter’s complete range of specialty plumbing valves.
In November 2019¸ Imdaad signed a new contract with ADIB for a full range of MEP and HVAC services at the latter’s branch offices in the U.A.E.
Key market players include 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.