Prefabricated installation, a pivotal study in the realm of contemporary construction practices, delves into the utilization of prefabrication within mechanical, electrical, and plumbing (MEP) systems. Despite its ascending prominence, the domain grapples with ambiguities in application pathways, uncertain developmental trajectories, and the absence of a holistic technical paradigm. This research endeavors to bridge these gaps by conducting a thorough and multidimensional investigation into the current landscape of prefabricated MEP installation initiatives. This study meticulously dissects the paradigm from five critical vantage points: historical evolution, standards and regulations, life cycle analysis, technological applications, and corporate implementation strategies. At present, there is still a lack of standards and specifications specifically for the field of assembled MEP installation. The analysis reveals a trend towards intelligent and sustainable installation practices in prefabricated MEP projects. The research predominantly focuses on the design, production, and installation stages. Notably, building information modeling (BIM) emerges as the most prominent technology, followed by the Internet of Things (IoT) and 3D laser scanning, with extended reality (XR) technologies gaining traction. Large, state-owned construction firms are spearheading innovative applications in this realm. In summary, this paper provides an overview and outlook for the development direction and the application of cutting-edge technologies in prefabricated MEP installation projects, with the aim of supporting the industry’s advancement.