Mechanical Services Market

Mechanical Services Market Outlook (2022 to 2032)

The global mechanical services market is estimated to progress at a CAGR of 4.7% from 2022 to 2032. The market is expected to reach a size of US$ 14.9 billion by the end of 2032, up from its current valuation of US$ 9.4 billion.

North America accounts for close to one-third share of the global mechanical services market. According to Fact.MR, a market research and competitive intelligence provider, the global mechanical services market exhibited a CAGR of 3.4% during the historic period (2017 to 2021).

Every construction project, no matter how big or tiny, needs a variety of mechanical parts that are essential to the engineering of the entire area. To develop the calculations and plans related to the creation and construction of such components, it is crucial to engage in mechanical inspection and consultancy & advisory services with the mechanical service provider.

Various types of mechanical systems can be conceptualized and planned with the aid of mechanical consulting and advisory services. These services are widely employed in the production of components of motor vehicles, cooling & heating systems, industrial equipment, robotics, and medical devices, as well as aircraft and their components.

Additionally, the adoption of advanced technologies such as 3D design and virtual project planning is expected to drive the demand for mechanical services in various industry verticals.

After the initial shock of COVID, there has been a rapid increase in the construction of industrial buildings, manufacturing plants, and others, which is positively impacting the growth potential of the mechanical services market.

During the mid-term, China, India, and other countries with tremendous development in various industry verticals will fuel market growth.

Worldwide increase in infrastructure is expected over the decade. Besides growing population and urbanization, the production of automotive, aircraft, and building products will increase. Also, advanced technologies such as artificial intelligence, machine learning, 3D modelling, and others will result in the high-speed development of the market.

Major companies offering mechanical services are WSP, Sterling and Wilson Pvt Ltd, PSI Repair Services, McGill Associates, L&H Industrial, Heavy Equipment Mechanical, GoCodes, Exline, Inc., Company Wrench, Choice Maintenance, Caterpillar Inc., Atom MEP Engineers PVT LTD, Astro Machine Works, AEMS Engineers, and MEP Engineering.

Report Attributes	Details
Mechanical Services Market Size (2021A)	US$ 9 Billion
Estimated Market Value (2022E)	US$ 9.4 Billion
Forecasted Market Value (2032F)	US$ 14.9 Billion
Global Market Growth Rate (2022 to 2032)	~4.7% CAGR
North America Market Share (2021)	~31%
East Asia Market Growth Rate (2022 to 2032)	~5.5% CAGR
United States Market Growth Rate (2022 to 2032)	~4.2% CAGR
Key Companies Profiled	WSP; Sterling and Wilson Pvt Ltd; PSI Repair Services; McGill Associates; L&H Industrial; Heavy Equipment Mechanical; GoCodes; Exline, Inc.; Company Wrench; Choice Maintenance; Caterpillar Inc.; Atom MEP Engineers PVT LTD; Astro Machine Works; AEMS Engineers; MEP Engineering

Key Factors Affecting Market Growth

“Rampant Infrastructure Development Driving Machinery Demand”

With a substantial rise in infrastructure development worldwide, demand for various machinery is projected to rise in parallel. Various heavy machinery such as graders, dozers, loaders, elevators, and others are utilized in significant numbers. Deterioration of machinery is experienced, which is expected to drive the demand for mechanical services where these systems are inspected, and repair & maintenance of the machinery is performed.

Also, infrastructure (buildings, sites, and facilities) are installed with various types of machinery specific to industry verticals such as HVAC, elevators, and others, which will drive up the demand for consultancy & advisory, installation, and repair & maintenance services.

“Growing Innovation in Mechanical Services”

The adoption of advanced technologies and growing innovation in mechanical services are expected to drive market growth. 3D modelling and virtual project planning have been utilized while designing, installing, and engineering machinery, focusing on different industry verticals. Also, the integration of IoT and IIoT for better networking and connection of heavy equipment, sensors, and others to the internet has enhanced inspection and repair & maintenance services.

Additionally, there has been a significant reduction in the linked prices, time requirements, and project prototyping costs with the integration of advanced solutions. As a result, virtual project planning has become quite popular in the sector and is anticipated to be one of the major developments that will help market participants earn higher profit margins.

“Dearth of Skilled Professionals”

The growth of the market is being constrained by the vast number of graduate engineers who are lacking the skills that clients demand. Only 3% of engineers are skilled in these fields, despite the popularity of modern technologies such as machine learning, artificial intelligence, data engineering, and mobile technology.

Currently, 40% of businesses anticipate that the scarcity of skilled labor would intensify in the next few years. Additionally, COVID-19 had a detrimental effect on the engineering and manufacturing sectors, where, in 2020, there was a skill deficit for around 85% of workers.

Image depicts market share analysis of mechanical services based on service and region. The total addressable market value during 2022 is expected to be US$ 9.4 billion.

Country-wise Insights

United States to Account for Leading Share of Mechanical Service Demand

The United States is a developed economy with a high number of manufacturing facilities & product sites equipped with heavy machinery. Industries such as construction, energy & power, and automotive are well established in the country, which will lead to significant demand for mechanical services.

With regular use, machines tend to face breakdowns and failure, and this drives the demand for mechanical services for the timely inspection and repair & maintenance of machinery.

Additionally, the U.S. government has spent substantially on infrastructure improvement, which has led to increased demand for large machinery and equipment in the country. As such, mechanical service providers in the country are projected to see significant growth over the coming years.

India be Fastest-growing Regional Market in South Asia

India is a developing economy that is investing a lot in infrastructure development. Also, the economy has observed growth in various industry verticals such as construction, automobiles, power & energy, oil & gas, and others. This factor has resulted in the tremendous development of manufacturing plants, facilities, machinery, and equipment.

As such, there is healthy demand for consultancy & advisory services to install the necessary machinery. Also, these machines need timely inspection to avoid breakdowns and repair & maintenance in case of deterioration. Owing to these factors, India’s mechanical services market is expected to be highly lucrative over the coming years.

Category-wise Insights

Construction Industry to Exhibit Leading Share in Market

Increasing urbanization and population growth are leading to more construction of buildings, rail structures, tunnels, bridges, and other infrastructure. This is leading to high demand for heavy machinery, thereby increasing the need for mechanical services as well.

Additionally, planning and consulting regarding the installation of HVAC, elevators, and other machinery is an essential part of construction projects offered by mechanical service providers to ensure the proper set up of various machinery in buildings and infrastructure.

The construction industry currently accounts for 21% share of the global mechanical services market.

Consultancy & Advisory Services to Create Lucrative Growth Opportunities for Market Players

Consultancy & advisory for machine installation is a crucial aspect for almost every end-use industry. It prominently guides clients towards the optimum utility of machinery and equipment. It is an efficient precautionary measure adopted by clients and engineers to reduce the cost incurred in the repair & maintenance and frequent inspection of machinery.

Surging investments in infrastructure in developing economies, more so in BRIC nations, coupled with increasing requirements of installing energy-efficient and reliable machinery, are expected to drive the need for consultancy and advisory services in the market. The development of smart cities is creating a lucrative opportunity for mechanical service providers who are integrating advanced technologies and equipment into their offerings.

Competitive Landscape

The market is highly fragmented with the presence of large and small market players. Aggressive moves are observed to be adopted by market players with the acquisition of small companies.

• In August 2022, PremiStar, a leading commercial & industrial HVAC, building automation, and plumbing service provider, acquired Mechanical Service, Inc., a commercial HVAC contractor in Lowa City, United States.

• In June 2022, mobile vehicle services and technology organization, Wrench (Seattle, WA) acquired the mobile vehicle repair network YourMechanic. The acquisition led to the enhancement of the company’s service offerings to more than 20,000 private and fleet vehicles per month.
• In April 2022, Marsden Holding LLC acquired Signature Mechanical, Inc. through its wholly-owned subsidiary Palen Kimball, L.L.C., which is a commercial mechanical service contractor providing HVAC and other maintenance services.

Fact.MR has provided detailed information about mechanical service providers positioned across regions, revenue growth, and service offering expansion, in the recently published report.

Segmentation of Mechanical Services Industry Research

• By Service :

  • Consultancy & Advisory
  • Installation & Integration
  • Repair & Maintenance
  • Inspection

• By End-use Industry :

  • Aerospace & Defence
  • Construction
  • Energy & Utility
  • Farming
  • Food Industry
  • Forestry & Ground Care
  • Industrial Heavy Machinery
  • Material Handling
  • Mining
  • Transportation
  • Others (Not Covered Elsewhere)

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa