Rapid urbanisation driving MEP services market: Report
The value of real estate projects that touched $100 billion in 2010 is expected to touch $265 billion in 2020. According to the analysis, if the total construction projects valued at $265 billion are factored in then at least 25% of the construction value can be attributed to MEP works. This represents a potential opportunity of $67 billion in the next 10 years.
“Current MEP projects are not only large in size but are also complex. Complexity arises due to revisions or amendments in building codes that call for mandatory installation of certain products and systems. Apart from standard services like plumbing and heating, ventilation, air conditioning and refrigeration (HVAC&R), the Indian construction industry is undergoing a sea change with respect to the installation and usage of extra-low voltage/low voltage systems, keeping in mind the design and safety aspects of the electrical equipment,” said Sasidhar Chidanamarri, industry manager, environment & building technologies practice, Frost & Sullivan.
Increasing penetration of green buildings is also creating a requirement for high quality MEP work because of the complexity of designing a green building. Presence of unorganised participants make the market cost competitive. This along with low awareness about integrated MEP offerings, shortage of competent manpower serves as challenges for the growth of this sector. At the same time, absence of codes and standards for MEP works in India allows easy entry for the participants, but it creates an environment where quality is often neglected for sub-standard work.
The study finds that with the advent of convergence of technologies, such as pre-casting, building automation, energy management, etc., MEP players will be dealing with a whole new competitive environment and may have to partner with companies from different industry verticals as never before.