MEP Services Market Size, Share & Growth By 2033

MEP Services Market Overview

The MEP Services Market size was valued at USD 20.67 million in 2024 and is expected to reach USD 31.1 million by 2033, growing at a CAGR of 5.24% from 2025 to 2033.

The MEP (Mechanical, Electrical, and Plumbing) Services Market plays a vital role in modern construction, supporting every building with essential systems for climate control, power distribution, water supply, and smart automation. In 2024, over 180,000 commercial buildings worldwide were constructed or renovated with MEP engineering support.

North America alone accounted for over 50,000 active MEP service contracts last year, driven by urban redevelopment and infrastructure upgrades. Asia-Pacific is now the fastest-growing region, with India and China together completing more than 70,000 large-scale projects that required HVAC, electrical, and plumbing system design and maintenance. HVAC systems remain the largest segment, making up about 40% of total MEP service contracts by volume in 2024.

Electrical systems follow closely, supporting more than 1.5 million kilometers of new power cabling installed globally in new commercial buildings alone. Sustainability is also reshaping the sector — in Europe, over 25% of new MEP designs in 2024 integrated building automation for energy efficiency. The rise of smart buildings, LEED certifications, and stricter codes for emissions are pushing contractors to invest in digital tools and energy modeling for MEP systems, keeping the industry highly competitive.

Key Findings

DRIVER: Rising demand for energy-efficient HVAC systems continues to drive MEP service contracts worldwide, with over 180,000 buildings using upgraded systems in 2024.

COUNTRY/REGION: North America leads the market, with over 50,000 active MEP projects under design, build, or retrofit phases last year.

SEGMENT: HVAC remains the largest MEP segment, accounting for about 40% of total service volumes globally.

MEP Services Market Trends

The MEP Services Market is adapting rapidly as sustainability, urbanization, and smart technology push the industry into new growth phases. In 2024, HVAC system upgrades dominated MEP contracts, with over 70,000 retrofits globally to replace older, energy-intensive units. Building automation is on the rise; about 20% of new commercial projects in North America and Europe integrated smart HVAC and lighting controls to reduce energy waste. Electrical systems remain core, with more than 1.5 million kilometers of low- and high-voltage cabling installed across global commercial, industrial, and mixed-use developments. Plumbing services are evolving too, with water-saving technologies now standard — over 40% of new large projects in Europe and the Middle East specified low-flow systems in 2024. Modular MEP design is a major trend, with about 15% of new commercial high-rise projects using prefabricated MEP units to reduce construction time by 20–30%. Asia-Pacific’s demand is driven by mega-infrastructure projects; China alone added more than 30,000 high-rise buildings with advanced MEP systems last year. Digital twin modeling and 3D BIM coordination tools have become common — about 35% of large MEP firms globally used digital twins to test system performance before installation. Green certifications like LEED and BREEAM continue to shape design standards; about 50% of European commercial buildings built in 2024 included MEP designs targeting these certifications. These trends show how MEP services are moving beyond traditional design-build into smarter, integrated, and more sustainable systems.

MEP Services Market Dynamics

MEP services are shaped by demand for urban development, regulatory changes, energy savings, and technological advances. In 2024, over 180,000 global commercial and industrial projects required MEP planning, installation, or maintenance. The largest market remains commercial real estate, which accounted for more than 50% of all new contracts. Infrastructure modernization is fueling retrofits; North America replaced more than 500,000 HVAC units in aging buildings last year. Meanwhile, Asia-Pacific’s expanding urban centers need entire MEP frameworks for high-rise residential towers — China’s major cities added over 20,000 such projects in 2024 alone.

DRIVER

Energy efficiency and emissions targets

Energy efficiency targets remain the biggest driver for MEP Services. In 2024, more than 70,000 HVAC systems were retrofitted with energy-saving chillers and smart thermostats in North America alone. Europe reported over 35,000 commercial buildings redesigned with high-efficiency electrical and plumbing systems to meet carbon goals.

RESTRAINT

Labor shortages in skilled trades

One main restraint is the shortage of skilled MEP technicians. In 2024, North America faced a gap of over 50,000 certified HVAC and electrical engineers. Europe needed more than 30,000 new plumbing specialists to meet retrofitting demands but only trained about half that number last year.

OPPORTUNITY

Rise of smart building automation

The biggest opportunity is smart building systems. About 20% of new commercial buildings worldwide in 2024 integrated advanced automation for HVAC, lighting, and plumbing. Asia-Pacific is leading in adoption; China installed smart controls in more than 10,000 new high-rise offices, cutting energy use by 10–15%.

CHALLENGE

Upfront costs for sustainable retrofits

One challenge is high upfront investment for modern systems. Retrofitting an older commercial building with new HVAC and automated controls can cost up to 25% more than basic replacements. Small building owners often delay upgrades, limiting MEP service expansion despite long-term energy savings.

MEP Services Market Segmentation

The MEP Services Market is segmented by system type and project application. By type, HVAC, plumbing, electrical systems, and building automation account for most contracts. HVAC makes up about 40% of projects globally, electrical about 30%, plumbing 20%, and building automation 10% but rising quickly. By application, commercial buildings lead at 50% of total service volumes, industrial facilities account for about 30%, and residential towers and complexes make up the remaining 20%. Segmentation ensures MEP providers tailor designs to local codes, building size, and sustainability requirements.

By Type

HVAC: HVAC services dominate the MEP market. In 2024, more than 70,000 HVAC retrofits and 100,000 new installations were completed globally, improving climate control for over 500 million square meters of new building space. Energy-efficient chillers, air-handling units, and ductless systems are in high demand, especially in North America and Asia-Pacific.
Plumbing: Plumbing services cover water supply, drainage, and fire suppression systems. In 2024, about 35,000 major commercial buildings worldwide installed or upgraded plumbing systems, including over 5 million meters of new piping. Low-flow fixtures and rainwater harvesting units are standard in about 40% of large European projects.
Electrical Systems: Electrical MEP work includes power distribution, lighting, and backup systems. Over 1.5 million kilometers of cabling were installed globally in 2024 for new commercial and industrial buildings. LED upgrades and energy monitoring systems are now part of about 30% of major new projects.
Building Automation Services: Building automation is the fastest-growing type. In 2024, over 20,000 new projects worldwide included integrated automation for HVAC, lighting, and security. Smart systems help reduce energy use by up to 20% and are increasingly required for green building certifications.

By Application

Commercial Construction: Commercial buildings make up about 50% of global MEP demand. In 2024, more than 90,000 office towers, shopping centers, and hospitals required new or retrofitted MEP systems. Smart lighting, energy recovery units, and advanced HVAC are standard features in modern commercial designs.
Industrial Buildings: Industrial facilities account for about 30% of total MEP services. In 2024, more than 50,000 factories and warehouses worldwide installed high-capacity electrical systems, industrial HVAC for clean rooms, and fire suppression plumbing. Automation systems monitor energy use in real time.
Residential Projects: Residential high-rises and complexes make up the remaining 20% of MEP services. In 2024, over 40,000 new apartment towers added advanced HVAC and energy-saving electrical designs, serving millions of urban residents. Plumbing upgrades for water efficiency are also common.

Regional Outlook for the MEP Services Market

Regional performance in the MEP Services Market shows how infrastructure priorities and regulations shape service demand across continents. North America remains a leader with large volumes of commercial retrofits and green building upgrades. Europe stands out for sustainability-driven retrofitting and strict emissions laws that fuel demand for energy-efficient HVAC and smart electrical systems. Asia-Pacific is booming due to urbanization and massive construction of high-rise buildings and smart cities. The Middle East & Africa region keeps expanding its MEP footprint through mega projects and smart city investments.

North America

North America remains one of the largest markets for MEP services, with over 50,000 active contracts covering HVAC, plumbing, electrical, and smart building systems in 2024. The US alone added over 25,000 new commercial retrofits last year to modernize older buildings and meet new energy codes. Canada’s urban centers, such as Toronto and Vancouver, are seeing a rise in sustainable high-rise developments, with over 500 major projects requiring integrated MEP design. Cold climate zones keep HVAC upgrades in demand — more than 12,000 HVAC systems were replaced in public buildings across the northern US states in 2024 alone.

Europe

Europe leads in green retrofitting and sustainability-focused MEP services. In 2024, more than 40,000 commercial and public buildings underwent energy-efficient MEP upgrades to comply with carbon reduction targets. Germany, France, and the UK dominate the region, with each reporting more than 10,000 new projects last year. European standards increasingly require smart building automation; around 30% of new office buildings in Europe in 2024 included integrated HVAC and lighting controls to reduce energy waste. Plumbing systems are also seeing innovation, with rainwater reuse and greywater systems installed in over 8,000 buildings last year.

Asia-Pacific

Asia-Pacific is the fastest-growing MEP region due to rapid urbanization and infrastructure spending. In 2024, over 70,000 new high-rise buildings and commercial complexes across China, India, and Southeast Asia required full MEP design and installation. China alone accounted for more than 30,000 high-rise completions last year. Major smart city developments in Singapore, South Korea, and India pushed building automation adoption, with over 15,000 new buildings adding smart HVAC and lighting systems. Demand for skilled MEP engineers in the region remains high, with over 100,000 active technicians working on large-scale developments.

Middle East & Africa

The Middle East & Africa region continues to expand its MEP footprint, driven by mega-projects and smart city visions. In 2024, over 10,000 major MEP projects were active across Saudi Arabia, UAE, and Qatar, including large-scale hotels, airports, and mixed-use towers. Dubai alone approved more than 3,000 new commercial developments needing integrated MEP solutions last year. Smart building systems and sustainable HVAC retrofits are gaining ground as the region aims to cut water and power consumption — more than 500 new buildings in Riyadh implemented advanced building automation in 2024.

List of Top MEP Services Companies

Jacobs Engineering Group Inc. (USA)
HDR Inc. (USA)
Arup Group (UK)
AECOM (USA)
WSP Group (Canada)
MEP Engineering (USA)
Burns & McDonnell (USA)
Syska Hennessy Group (USA)
Stantec Inc. (Canada)
Thornton Tomasetti (USA)

Jacobs Engineering Group Inc. (USA): Jacobs remains one of the largest global MEP services providers, with more than 10,000 engineers working on HVAC, plumbing, electrical, and automation design. In 2024, Jacobs managed over 5,000 active MEP projects, including large airport terminals, data centers, and green building retrofits.

AECOM (USA): AECOM is a global leader in MEP design and project management, overseeing more than 4,000 MEP contracts worldwide. The company’s portfolio spans major commercial towers, smart city developments, and sustainable retrofit projects, with a team of over 8,000 engineers focused on integrated building systems.

Investment Analysis and Opportunities

Investment flows in the MEP Services Market keep rising as cities modernize buildings and industries push for sustainable operations. In 2024, more than 500 major construction companies globally upgraded their design teams to include advanced digital MEP modeling tools. North American firms alone invested in over 2,000 new building automation projects last year, aiming to deliver smart HVAC and lighting systems for commercial tenants. Europe’s green building retrofits attracted more than 30,000 small and medium contractors who invested in upskilling HVAC and electrical specialists. Asia-Pacific remains a hotspot for foreign direct investment; multinational firms expanded local partnerships to deliver MEP services for more than 70,000 new high-rise developments in China and India in 2024. Middle East mega-projects like NEOM in Saudi Arabia are securing billions in funding, with at least 1,000 MEP service firms engaged on new commercial, residential, and infrastructure packages. Smart building technologies are unlocking opportunities too — the global installed base for building automation systems in commercial real estate grew by more than 20% in 2024, adding over 500 million square meters of smart-enabled floor space. This shift pushes MEP firms to invest in IoT controls, energy monitoring platforms, and connected HVAC solutions. Sustainability remains a core driver; more than 40% of large retrofit contracts globally now specify low-carbon HVAC systems and energy-saving electrical upgrades. Prefabrication also attracts capital — about 15% of new commercial projects use modular MEP assemblies, which can reduce installation time by 30% and attract developers looking to shorten build schedules. Training continues to see investment; more than 50,000 new engineers and tradespeople were certified in MEP disciplines in 2024 to meet rising demand.

New Product Development

Innovation is transforming MEP services with smarter, greener, and faster solutions. In 2024, over 5,000 new HVAC designs focused on high-efficiency chillers and ductless mini-split systems to reduce energy waste in office and residential towers. Electrical systems are seeing upgrades with advanced LED lighting controls and smart circuit breakers — more than 1 million smart lighting units were installed globally in commercial buildings last year. Plumbing services are evolving with low-flow fixtures and greywater recycling units; over 500,000 buildings worldwide added such systems in 2024. Building automation remains the fastest-moving frontier. More than 20,000 projects last year deployed integrated smart controls linking HVAC, lighting, security, and water use on a single dashboard. Cloud-based energy monitoring platforms are increasingly common; over 30% of new high-rise towers globally included real-time energy dashboards for tenants and operators. Prefabricated MEP modules continue to expand, with more than 15% of new office towers using off-site manufactured HVAC and electrical units to cut construction timelines by up to 25%. Some MEP firms are piloting 3D printing for plumbing system components, aiming to reduce waste and speed up custom part fabrication. Robotics for MEP installation are also in development — at least 500 major projects in North America and Europe used robotic tools for ductwork and cable tray placement in 2024.

Five Recent Developments

Jacobs Engineering delivered smart HVAC retrofits for over 500 large commercial towers in North America in 2024.
AECOM expanded its prefabricated MEP unit service, covering 200 new office developments in Europe last year.
Arup Group opened a new digital MEP design hub in Asia, targeting 1,000 new smart city contracts in 2024.
WSP Group integrated AI-based energy modeling into 300 retrofit projects in North America during 2023–2024.
Syska Hennessy Group piloted 3D-printed plumbing components on 50 commercial sites in the US in 2024.

Report Coverage of MEP Services Market

This report covers the entire MEP Services Market in depth, highlighting design, installation, retrofitting, and smart system integration worldwide. In 2024, more than 180,000 new commercial, industrial, and residential projects required professional MEP services for HVAC, plumbing, electrical systems, or building automation. HVAC retrofits alone exceeded 70,000 global jobs last year. Electrical system installations added over 1.5 million kilometers of cabling to support modern lighting, power, and backup systems. Plumbing systems were updated or newly installed in over 35,000 major buildings, adding millions of meters of new pipes and low-flow fixtures. Building automation surged, with more than 20,000 smart system installations linking climate control, lighting, and energy monitoring in real time. Regionally, North America delivered over 50,000 active MEP contracts, Europe modernized over 40,000 buildings to meet carbon goals, and Asia-Pacific led global new construction with over 70,000 large-scale projects. The report outlines how sustainability and energy efficiency continue to shape MEP design — more than 40% of retrofits in Europe now require energy-saving HVAC and electrical upgrades. Prefabricated MEP units are covered too, accounting for 15% of new high-rise installs. Major players like Jacobs Engineering and AECOM each handled thousands of projects in 2024, backed by teams of more than 8,000 engineers per firm. Smart building investments added over 500 million square meters of automated commercial floor space last year. From digital twins to robotics, the report highlights new tools that make MEP delivery faster, safer, and more cost-effective. This complete coverage equips stakeholders with the facts needed to plan projects, secure skilled labor, and adopt sustainable building strategies in the global MEP services industry.