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Mechanical and Electrical Contracting Market has Grown by 20% Since 2014

Mechanical and Electrical Contracting Market has Grown by 20% Since 2014
Written by Amy

According to the latest mechanical and electrical (M&E) contracting market report from AMA Research, the market has seen growth of 20% since 2014. The market entered a period of sustained growth in 2013 driven by a buoyant new build market.

This growth continued up to 2017, but the market stagnated in 2018 at around £19.5m, as public sector output, apart from infrastructure, declined, especially in healthcare and education, and output in the commercial office sector also fell as a result of weak business confidence.

Uncertainty over the outcome of the Brexit process and its impact on the UK economy is a major factor negatively impacting market growth, especially in the commercial non-residential sector, whilst the public sector also faces constraints in public spending and uncertainty over the sources of funding for capital projects since the termination of PFI.

Factors supporting market growth include the introduction of new technologies and products, particularly in the area of energy efficiency and reducing carbon emissions, driven by changing legislation and greater awareness of the issue.  There has been a rapid expansion in the range of LED lighting and increasingly sophisticated building control systems for heating, lighting, and energy management.

Other factors stimulating growth are the continued strength in data centre construction and greater levels of outsourcing of M&E services, either singly or as part of wider multi-service FM contracts.

The future prospects for M&E contracting in the UK is heavily dependent on the performance of the non-residential construction industry.  The outlook for non-residential construction output is for stable growth per annum to 2023. As a result it is estimated that the M&E contracting market will achieve modest annual growth over the next five years.

For more information or to purchase this report please visit or call us on 01242 235724.

The information was taken from the Mechanical and Electrical Contractors Market Report – UK 2019-2023 by AMA Research, which is available to purchase now at or by calling 01242 235724.

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