The MEP services market in the Middle East was valued at almost USD 10 billion in 2015 and is expected to reach USD 16 billion by 2020, says Technavio.
Technavio has announced its latest market research report on MEP services in the Middle East for the forecast period, 2016-2020. This market analysis, under the automation vertical, discusses the major drivers and key emerging trends that influence the growth of the MEP services market in the Middle East during the forecast period. Some of the top vendors listed in this industry analysis include ALEMCO, Arabian MEP contracting, BK Gulf, China State Construction Engineering, AE Arma-Elektropanç, EFECO, Al-Futtaim Engineering, and Trans Gulf Electromechanical.
In terms of geographical analysis, the Kingdom of Saudi Arabia (KSA) is expected to be the dominant shareholder by contributing almost 48% of the MEP services market in the Middle East.
“Insuring building assets is an emerging trend in the MEP services market in the Middle East. Building assets need to be protected through timely maintenance services. The role of MEP service vendors is to ensure that the investment behind these assets remains insured. The role of MEP service providers in insuring building assets is vital during the lifecycle of building operations,” says Bharath Kanniappan, a lead analyst at Technavio for automation.
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The new industry research report from Technavio analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Risk mitigation through outsourcing services
As the Middle East is symbolic of its infrastructure and construction activities, it is imperative for user industries to outsource their support processes to MEP vendors. The vendors, in turn, have the pre-requisite skills and knowledge to handle such activities. Outsourcing ensures that end-users can focus more on core activities, while vendors handle the responsibility of MEP services and possible risks associated with it. With the help of outsourcing, training and operational costs can be minimized to a large extent.
Rising levels of urbanization
Owing to rapid urbanization, the infrastructure and construction sectors in the Middle East are experiencing exponential growth. The total construction projects in the GCC alone, in 2015, was valued to be USD 172 billion. Another set of projects worth almost USD 3 trillion is already in progress or the planning stage. With the rising levels of urbanization, mega-scale projects planned for the forecast period will generate a growing need for design, installation, operation, and maintenance of HVAC, plumbing lines, water storage tanks, and other electromechanical systems in newly constructed facilities. The demand for new contracts with MEP vendors in associated areas of specialization is expected to increase with the rising focus on improving the facility and provide modern infrastructure amenities among end-users.
Improved cost savings for businesses
The outsourcing of MEP services also spares end-users from investing in training employed personnel for in-house services. MEP vendors by providing specialized services help end-users save 30%-40% of the overall cost associated with building operations. Cost savings are brought about as a result of the technical expertise that lies with professional vendors only. In some cases, the lack of knowledge on the end-users part can lead to the installation of inefficient or faulty machinery, which can increase the cost of operation.
This research report includes an in-depth analysis, market shares, and sizes of the sub-segments and geography. It provides a comprehensive analysis of the key companies, including their market shares, business overview, and key financials. The market study also offers a detailed analysis of key drivers, challenges, and opportunities influencing this market.
A more detailed analysis is available in the Technavio report titled, ‘MEP Services Market in the Middle East 2016-2020’. Technavio also customizes reports by other regions and specific segments upon request.
Other related reports:
- Facility Management Services Market in Middle East 2016-2020
- Building Energy Management Services Market in Middle East 2016-2020
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