Status : Published | Published On : Jan, 2024 | Report Code : VRSME9086 | Industry : Semiconductor & Electronics | Available Format : | Page : 250 |
Industry Overview
The forecasted growth of the Global Manufacturing Execution System Market is expected to drive its value from USD 12.8 billion in 2023 to USD 19.7 billion by 2030, indicating a robust compound annual growth rate (CAGR) of 8.4% from 2025 to 2030.
A Manufacturing Execution System (MES) is an IT-enabled software that manages, monitors, and synchronizes the execution of real-time processes that are required to convert raw materials are converted into intermediate products and finished products. Work orders are synchronized with production planning and enterprise-level systems like ERP and Product Lifecycle Management through these systems The organizations are considering quality to make distinct systems and processes, thus a crucial factor in the manufacturing system strategy leading to the adoption of a manufacturing execution system. Factors driving the growth of the manufacturing execution system market are the requirement for mass production and connected supply chain to handle the rising population, rising adoption of automation in process and discrete industries along with low deployment cost, and mounting IT and OT convergence in different manufacturing industries.
The COVID-19 outbreak has a long-term disruption in various processes and discrete industries. In the process industries, the impact of COVID-19 has varied i.e., it has impacted heavily on aviation, oil & gas, and other materials sectors and has reduced ongoing production volume but limited disruption in industries like food & beverages, pharmaceuticals, power generation, and chemicals.
Market Segmentation
Insight by Component
The global manufacturing execution system market is divided by components into software and services. The services segment is further divided into implementation, software upgrade, training, and maintenance. The fact that the manufacturers offer a large number of services such as opportunity assessment, solution migration and improvement, product appraisal, MES application configuration, business analysis, and multi-level support services helps this segment to grow at a higher CAGR.
Insight by Deployment
According to the different deployment types, the global manufacturing execution system market is split into on-premise, on-demand, and hybrid segments. Out of these three segments, the on-premise deployment segment dominates the market due to its higher adoption and involvement in different industries such as oil & gas, pharmaceuticals & life sciences, chemicals, food & beverages, pulp & paper, and more due to convenience and time and cost saving factors. It also enhances the security aspect and enhances productivity.
Insight by Process Industry
The global manufacturing execution system market is also divided by the process industry into food & beverages, oil & gas, chemicals, pulp & paper, pharmaceutical & life sciences, energy & power, water & wastewater management, and other segments. Out of all these segments, the pharmaceutical segment is expected to contribute the largest market share since the life science companies offer solutions to standardize manufacturing processes across various sites across the globe. Also, the strict government regulations regarding patient safety and product integrity push the need for innovative technologies for compliance, thereby driving its growth further.
Insight by Discrete Industry
The segments of the global manufacturing execution system market based on the discrete industry include automotive, aerospace, medical devices, consumer packaged goods, electronics & semiconductors, textile, solar & photovoltaic cells, printing & publishing, and furniture & wood products segments. Out of all these segments, the automotive industry is expected to contribute a larger share of the market during the forecast period due to higher adoption to reduce the complexities involved in vehicle production.
Report Metric |
Details |
Historical Period |
2018 - 2023 |
Base Year Considered |
2024 |
Forecast Period |
2025 - 2030 |
Market Size in 2023 |
U.S.D. 12.8 Billion |
Revenue Forecast in 2030 |
U.S.D. 19.7 Billion |
Growth Rate |
8.4% |
Segments Covered in the Report |
By Component, By Deployment By Process Industry, and By discrete Industry. |
Report Scope |
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling |
Regions Covered in the Report |
North America, Europe, Asia-Pacific, Middle East, and Rest of the World |
Industry Dynamics
Industry Trends
There is a notable rise in the adoption of Industry 4.0 practices across several industries. In addition, significant growth has been noticed in the adoption of advanced technologies such as AI and IoT in manufacturing by different plants. The growing emphasis on interoperability and agility in handling complex situations strategically is also a key trend noticed in the manufacturing execution system market.
Growth Drivers
The most significant growth drive of the global manufacturing execution system market is the higher adoption in different industries. In addition, the growing demand for automation in the manufacturing industrial sectors with a focus on reducing human errors is also driving the market growth. Rapid industrialization, a shift towards paperless manufacturing, a growing need for real-time visibility, and development in operational technology, and IT are a few other factors influencing the growth of the global manufacturing execution system market.
Challenges
The high cost involved in installation and maintenance hinders the growth of the global manufacturing execution system market. The complications involved in the process and lack of awareness about the benefits of MES, especially among SMEs, are also hindering market growth.
Opportunities
The need for low-cost and convenient solutions that will replace the need for expensive and tailored extensions to commercial products and higher off-shelf functionality in MES, along with better integrating ability of the MES with other solutions like ERP and PLM, offers higher growth opportunities. The growing need for automation, which has resulted in higher infiltration of IoT technology in manufacturing industries, also offers new growth opportunities.
Geographic Overview
North America would dominate the global manufacturing execution system market during the forecast period due to the growing adoption of these systems in the manufacturing process and discrete industries. The presence of a large number of manufacturers of MES solutions in this region, as well as government initiatives, also facilitates its growth.
On the other hand, the APAC market is also expected to grow at a higher CAGR during the projected period due to the growing demand for these systems across industries to move from legacy or manual legacy systems to automated systems. A large number of manufacturing plants in several sectors, such as automotive, textiles, power, and pharmaceuticals, and the significant growth of the Chinese market is driving the demand for MES software, thereby propelling its growth.
Competitive Insight
Due to a large number of big and small competitors, the manufacturing execution system industry is very dynamic. The industry players are focusing on strategies like M&A, partnerships, collaborations, & agreements, product launches, and product expansions to maintain a competitive edge in the market.
Honeywell International Inc. is one of the leading providers of Manufacturing Execution Systems (MES) for the process industries. Honeywell's production management portfolio comprises MES applications for a variety of industries, including refining, petrochemicals, oil and gas, metals, minerals and mining, and pulp, paper, and flat sheet manufacturing. Thus, Honeywell’s Manufacturing Execution System helps plant managers to have access to comprehensive performance data in real-time and capitalize on opportunities quickly and effectively.
ABB's next-generation manufacturing execution system offers continuous orchestration and harmonization for all units involved in the manufacturing process. ABB’s Manufacturing Operating System has a key element manufacturing execution system that provides increased efficiency and productivity of the plant as well as increases the flexibility of the entire production process.
Some of the key players operating in the manufacturing execution system market: are ABB, AVEVA Group plc, Dassault Systèmes, Honeywell International Inc., Rockwell Automation, Inc., Siemens, Emerson Electric Co., Oracle, Schneider Electric, and General Electric.
Recent Developments by Key Players
AVEVA (a global leader of industrial software) has expanded CONNECT, its world-leading industrial intelligence platform with data and visualization services for hybrid Manufacturing Execution System (MES) solutions.
Rockwell Automation, Inc.(the world's largest company dedicated to industrial automation and digital transformation) has implemented the Plex Manufacturing Execution System (MES) at BIC (a world leader in stationery, lighters, and shavers, at its plant in Bizerte, Tunisia) for one year.
The Manufacturing Execution System Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.
Segments Covered in the Report
Region Covered in the Report
Source: VynZ Research
Manufacturing Execution System Market