Market to reach value of $22.4b by 2013
?A report by growth partnership advisors Frost and Sullivan has concluded the regional mechanical, engineering and plumbing (MEP) industry will be worth $22.44 billion by 2013, double its value in 2008.
The report predicts a compound annual growth rate (CAGR) of 10.8% during the period, due to infrastructure, tourism related developments and the Qatar 2022 world cup, which are spurring the recovery of the construction sector.
“As the construction industry throughout the Gulf perks up, driven by new projects such as those resulting from Qatar’s win for the 2022 Fifa World Cup, new airports and touristic developments, demand for MEP products and services is bound to increase – it is a logical development,” said Ahmed Pauwels, CEO of Epoc Messe Frankfurt, organisers of the Hardware and Tools Middle East exhibition.
The report, “Strategic Analysis of the Machinery, electrical and plumbing services market in the Middle East”, also listed investment in commercial and residential projects and highlighted the significance of the MEP markets in Qatar, Saudi Arabia and the UAE.
According to the data in the report, the MEP sector is led by electrical services, which account for a 43.2% market share.
Mechanical services account for 37.6% of the market, with plumbing representing 19.2%.