2022
9
UK Mechanical and Electrical Engineering Market Report 2022
2022-11-22T03:04:30+00:00
OX1102589
1495
157800
[{"name":"Engineering","url":"https:\/\/store.mintel.com\/industries\/business-industrial\/engineering"}]
Report
en_GB
“The mechanical and electrical engineering sector suffered strongly at the outset of the pandemic, but then recovered strongly. While 2021 still reflected pent-up demand from the COVID-19 interruption, 2022 has…

UK Mechanical and Electrical Engineering Market Report 2022

£ 1,495 (Excl.Tax)

Description

The UK Mechanical and Electrical Engineering Market Report 2022 identifies the influence of end-use sectors on mechanical and electrical engineering UK, the influence of environmental concerns on mechanical engineering UK, and the impact of Brexit, the pandemic, and inflation on the UK mechanical and electrical engineering market. This report covers the mechanical and electrical engineering market size, market forecast, market segmentation and industry trends for the UK Mechanical and Electrical Engineering Market.

Mechanical and Electrical Engineering UK: Current Market Landscape

The growth of mechanical and electrical engineering UK after H1 2020 has been prolific, leading to supply issues for both materials and labour, which have been furthered by Brexit. However, the market buoyancy, already evident in H2 2020 and throughout 2021, following the pandemic disruption, has continued. The rise in the cost of living, mounting inflation, and an increasing likelihood of recession, however, have caused conditions and performance to progressively deteriorate.

While growth has continued into 2022, it weakened as the year progressed, and inflation and interest rate rises have increasingly combined to reduce the wider economic development and activity in key end-use sectors, thus also affecting the UK market for mechanical engineering.

Mechanical and Electrical Engineering Market Share and Key Industry Trends

According to our M&E contractors market report, continued pressure of inflation and increased interest rates will impact consumer demand stunting economic development generally and M&E demand within commercial and industrial sectors. Public spending will also be restricted.

The M&E sector is strongly exposed to the construction market, which is a notorious exaggerator of both economic growth and decline. Both new construction and the improvement aspect of RMI activity are exposed to the high inflation-based downturn.

  • 85% of homes rely on gas central heating.
  • 99% of installers have not been trained to set up condensing gas boilers as they were designed to operate.
  • 17% growth in demand for electrical contracting has been registered in 2021.
  • 35% growth has been registered in civil engineering construction.

Research and Markets: UK Mechanical and Electrical Engineering – Future Trends

Our UK market research in mechanical and electrical engineering predicts that once economic pressures ease, a renewed focus on environmental issues will boost demand. Technology will play an increasing role, with data centre investment continuing, but a stronger move towards building management systems and smart buildings.

Environmental initiatives will continue to be at the top of corporate strategy within the UK market for mechanical engineering. This is in part facilitated by technological improvements though the short-term emphasis is clearly on cost containment. Nonetheless, the drive for greater productivity and technological solutions will again drive UK mechanical and electrical engineering market growth. Data centre development, both new and refurbishment, will continue to be a strong demand driver within mechanical and electrical engineering UK.

Read on to discover more details or take a look at all of our UK Engineering Market Research.

Quickly Understand

  • How has the M&E market recovered from the disruption of COVID-19?
  • The difficult economic conditions mechanical engineering UK is now facing before it may return to growth.
  • Why are different end-use markets facing such varied conditions following the pandemic and during the period of high inflation? – How does this impact their prospects?
  • How the different end-use sector trends will impact the relationship between electrical and mechanical contracting.
  • How do the combined forces of environmental initiatives and technology will facilitate growth?

Covered in this Report

Products: Heating and hot water installations, domestic water services (infrastructure and storage systems), ventilating and air conditioning, acoustic control, electrical and lighting systems, emergency lighting, public health services (water treatment), cooling towers, plumbing and drainage systems, control systems and building management systems, lighting protection, uninterruptible power supplies, fire engineering (alarms, hose reel and sprinkler systems), access control, lifts, energy supply and management, security systems.

Brands: NG Bailey, TClarke, Crown House Technologies/Laing O’Rourke Holdings, Enerveo, Skanska Ashleigh Weather foil, SPIE.

Expert Analysis from a Specialist in the Field

This report, written by Terry Leggett, a leading analyst in the B2B sector, delivers in-depth commentary and analysis to highlight current trends in the UK Market for Mechanical Engineering 2022, and adds expert context to the numbers.

The mechanical and electrical engineering sector suffered strongly at the outset of the pandemic, but then recovered strongly. While 2021 still reflected pent-up demand from the COVID-19 interruption, 2022 has also witnessed strong demand. The strength of that demand has weakened as the year has progressed with the worsening economic conditions and market contraction is increasingly likely before the fundamental drivers of technology and climate change return to being the dominant force.

Terry Leggett - Senior Analyst
Terry Leggett
Senior B2B Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for mechanical and electrical engineering
      • Figure 1: Mechanical and electrical engineering outlook, 2022-27
    • The market
    • Market size and forecast
      • Figure 2: Market size for mechanical and electrical engineering, 2016-26
    • Market segmentation
      • Figure 3: Segmentation of M&E contracting, by type of work, 2016-27
    • Market drivers
      • Figure 4: Construction output in Great Britain, 2016-27
    • Companies and brands
    • Different focus of attention
    • Mechanical engineering
      • Figure 5: Development of companies in the plumbing, heating and air conditioning installation sector, 2017-22
    • Electrical engineering
      • Figure 6: Development of companies in the electrical installation sector, 2017-22
  3. Issues and Insights

    • Has the cost-of-living issue changed environmental objectives?
    • Data centre growth, hyper-scale, edge computing and the metaverse
  4. Market Size and Performance

    • Strong bounce-back from pandemic
      • Figure 7: Market size for mechanical and electrical engineering, 2016-22
  5. Market Forecast

    • Market disruption returns
      • Figure 8: Mechanical and electrical engineering outlook, 2022-27
    • Difficult period prior to growth
      • Figure 9: Market forecast for mechanical and electrical engineering, 2022-27
    • Forecast methodology
  6. Market Segmentation – Overview

    • Both sectors strongly impacted by global issues
      • Figure 10: Segmentation of M&E contracting, by type of work, 2016-27
    • End-use market
      • Figure 11: Segmentation of M&E contracting, by type of demand, 2016-27
  7. Market Segmentation – Electrical Contracting

    • Disrupted markets
      • Figure 12: Segmentation of the electrical contracting market, by type of work, 2016-27
    • New construction activity
      • Figure 13: Segmentation of the electrical contracting market for new construction projects, 2022 (£ million)
    • RMI demand
      • Figure 14: Segmentation of electrical contracting R&M activity, 2022 (£ billion)
    • Infrastructure
  8. Market Segmentation – Mechanical Contracting

    • External influences
      • Figure 15: Segmentation of the mechanical contracting market, by type of work, 2016-26
    • New construction
      • Figure 16: Segmentation of the mechanical contracting market for new construction projects, 2022 (£ million)
    • RMI demand
      • Figure 17: Segmentation of mechanical contracting from R&M activity, 2022 (£ million)
    • Infrastructure
  9. Market Drivers

    • The economic drivers
    • Inflation is the key concern for consumers and brands…
    • …and despite government support, energy prices are still a major concern…
    • …and will weigh down the post-COVID recovery
    • Consumer spending power will be curbed
    • The conflict in Ukraine is hurting the UK economy in a number of ways
    • Unemployment is at a near 50-year low
    • Consumers’ financial wellbeing has fallen from the highs of 2021…
      • Figure 18: Household financial wellbeing index, 2016-22
    • …and most people are feeling the effects of price rises
    • The mini-budget/fiscal event of 23 September
    • General construction
      • Figure 19: Construction output in Great Britain, 2016-27
    • New housebuilding
      • Figure 20: Segmentation of housebuilding expenditure, by sector, 2016-27
    • Commercial new construction
      • Figure 21: Long-term development of commercial construction, 1970-2021
      • Figure 22: Segmentation of commercial construction market, 2016-21 (£ million)
      • Figure 23: Commercial construction output, 2016-27
    • Industrial new construction
      • Figure 24: Long-term development of industrial construction, 1970-2021
      • Figure 25: Industrial construction output, 2016-27
    • Public non-residential new construction
      • Figure 26: Long-term development of public non-residential construction, 1970-2021
      • Figure 27: Segmentation of public non-residential construction, 2016-21 (£ million)
      • Figure 28: Public non-residential construction output, 2016-27
    • Repair, maintenance and improvement activity
    • Public housing
      • Figure 29: Public housing RMI output, 2016-27
    • Private housing
      • Figure 30: Private housing RMI output, 2016-27
    • Private industrial and commercial
      • Figure 31: Private industrial and commercial RMI output, 2016-27
    • Public non-residential
      • Figure 32: Public non-residential RMI output, 2016-27
  10. Industry Structure

    • General
    • Mechanical engineering
      • Figure 33: Development of companies in the plumbing, heating and air conditioning installation sector, 2017-22
      • Figure 34: Structure of the plumbing, heating and air conditioning installation sector, 2022 (number of outlets)
    • Electrical engineering
      • Figure 35: Development of companies in the electrical installation sector, 2017-22
      • Figure 36: Structure of the electrical installation sector, 2022 (number of outlets)
  11. Company Profiles

    • NG Bailey
    • Activity
    • Performance
      • Figure 37: Financial development of NG Bailey, 2018-22 (£ 000)
      • Figure 38: Financial performance of NG Bailey Group, 2018-22 (£ million)
    • Strategy
    • TClarke
    • Activity
    • Performance
      • Figure 39: Financial performance of TClarke, 2017-21 (£ million)
      • Figure 40: Revenue segmentation of TClarke, 2020-21
      • Figure 41: Revenue segmentation of TClarke, H1 2021 and 2022
    • Strategy
    • Crown House Technologies/Laing O’Rourke Holdings
    • Activity
    • Performance
      • Figure 42: Financial performance of Crown House Technologies, 2017-21 (£ 000)
    • Strategy
    • Enerveo (formerly SSE Contracting)
    • Activity
    • Performance
      • Figure 43: Financial performance of Enerveo, 2017-21 (£ million)
    • Strategy
    • Skanska Ashleigh Weather foil
    • Activity
    • Performance
      • Figure 44: Financial performance of Skanska Rashleigh Weatherfoil, 2016-20 (£ million)
    • Strategy
    • SPIE
    • Activity
    • Performance
      • Figure 45: Financial performance of SPIE, 2017-21 (£ 000)
    • Strategy
  12. Appendix – Data Sources, Abbreviations and Supporting Information

  13. Appendix – Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 46: Forecast market for mechanical and electrical engineering, 2022-27 (£ billion)
    • Market drivers and assumptions

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

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Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

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*databooks not available with UK B2B Industry reports.

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