Manufacturing Execution Systems Market Forecasts to 2030 - Global Analysis By Offering, Deployment Type, Enterprise Size, Product Function, Application, End User and By Geography

According to Stratistics MRC, the Global Manufacturing Execution Systems Market is accounted for $14.4 billion in 2023 and is expected to reach $29.9 billion by 2030 growing at a CAGR of 11% during the forecast period. A manufacturing execution system is typically defined as an IT-enabled framework that offers solutions for improving and afterwards further developing the assembling method for creation floor designers and chiefs. The key companions of the framework manage the intricate assembly of frameworks on screens on the factory floor. The purpose of producing is to assure the efficient completion of the assembly duties and increase creation yield.

According to U.S. Energy Information Administration, U.S. crude oil extraction will average 11.7 million barrels per day in 2022 and 12.4 million barrels per day in 2023, exceeding the record high achieved in 2019.

Market Dynamics:

Driver:

• Adoption of digitisation to improve production.

• By integrating digital technologies such as IoT devices, data analytics, and cloud computing, MES enables real-time monitoring, analysis, and optimization of manufacturing operations. Digitization allows seamless communication between different stages of the production process, streamlining workflows and reducing errors. Manufacturers can access valuable insights, track performance metrics, and make data-driven decisions to improve overall production quality and productivity. Furthermore, digitization enhances collaboration among teams, supply chain partners, and machines, facilitating agile responses to changing demands and market conditions.

Restraint:

• Lack of awareness regarding benefits of MES solutions among SMEs.

• Many SMEs may not fully understand how MES can streamline their manufacturing processes, improve efficiency, and drive cost savings. As a result, they might be hesitant to invest in these solutions or may continue to rely on traditional manual methods. To address this issue, vendors and industry players need to focus on educating SMEs about the advantages of MES, showcasing successful case studies, and offering tailored solutions that align with their specific needs and budgets. Building awareness about the transformative potential of MES can help unlock new opportunities for growth and productivity in the manufacturing sector.

Opportunity:

• Growing scope in raising energy efficiency and sustainable production.

• Many major companies and SMEs are implementing manufacturing execution systems because they improve production processes. Production efficiency is aided by these systems' capacity to boost output, cut costs, boost quality, enabling real-time data collecting and monitoring of products. This aspect is anticipated to promote the use of these systems in order to boost revenues. The use of manufacturing execution systems also results in decreases in the amount of waste and energy used throughout the production process. For instance, putting a MES solution on a shop floor eliminates the need for paperwork and physical storage space while not requiring extra IT resources.

Threat:

• Significant capital investments and upgradation & maintenance costs.

• Implementing an MES system involves substantial initial expenses, including software licenses, hardware installations, and integration with existing manufacturing infrastructure. Moreover, as technology rapidly evolves, regular upgrades are necessary to stay current and take advantage of the latest features and functionalities. Additionally, MES systems require continuous maintenance and technical support, which can lead to additional expenses over time. These financial barriers can deter some manufacturers, especially small and medium-sized enterprises, from adopting MES solutions, hindering their ability to leverage the full potential of advanced manufacturing technologies and optimize their production processes.

COVID-19 Impact::

• Due to the COVID-19 outbreak, market growth for factory execution systems slowed in 2020. The pandemic caused a number of manufacturing facilities to close and output to be suspended in a number of different industries worldwide. Various end-user industry activities, including those in the oil and gas, power generation, and automotive sectors, among others, saw significant transformation during the post-pandemic phase. The manufacturing execution systems market will expand in 2022 as compared to 2020 and 2021 thanks to the various operations and guidelines that have been established for COVID-19 for smoother operations.

• The services segment is expected to be the largest during the forecast period

• The services segment is expected to have a lucrative growth. These services encompass a range of offerings, including consulting, system design, installation, customization, and training. MES vendors and providers collaborate closely with their clients to understand their unique manufacturing processes and requirements, tailoring the solutions accordingly. They also offer ongoing technical support, maintenance, and updates to keep the MES systems running smoothly and up-to-date. Additionally, services may extend to data analytics, performance monitoring, and continuous improvement initiatives to help manufacturers maximize the value of their MES investments, enhance operational efficiency, and achieve their production goals.

• The hybrid segment is expected to have the highest CAGR during the forecast period

• The hybrid segment is anticipated to witness the fastest CAGR growth during the forecast period. In the Manufacturing Execution Systems (MES) market, hybrid solutions are a combination of on-premises and cloud-based MES offerings. This approach aims to provide the benefits of both deployment models while catering to diverse customer needs. The hybrid MES architecture allows critical data and sensitive operations to remain on-site, ensuring data security, compliance, and minimized latency. This hybrid approach offers greater flexibility, cost efficiency, and seamless integration with existing systems, making it an attractive option for manufacturers looking to modernize their operations while retaining some level of control and security over their data and processes.

Region with largest share:

During the forecast period, it is expected that the North American Manufacturing Execution Systems market will continue to hold a majority of the market share. The region's manufacturing sector, spanning industries such as automotive, aerospace, electronics, and pharmaceuticals, drives the demand for MES solutions to optimize production processes and improve efficiency. North American manufacturers increasingly seek advanced MES systems to enable real-time data visibility, process automation, and data-driven decision-making.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, due to its thriving industrial sector and increasing adoption of advanced manufacturing technologies. The region's diverse manufacturing industries, including automotive, electronics, and consumer goods, drive the demand for MES solutions to optimize production processes, enhance quality control, and meet rising customer demands. As countries like China, India, Japan, and South Korea embrace Industry 4.0 and smart manufacturing initiatives, there is a growing focus on digital transformation, driving the demand for MES technologies.

Key players in the market:

Some of the key players in Manufacturing Execution Systems market include: Aptean, Inc, Epicor Software Corporation, Applied Materials Inc., Honeywell International Inc., SAP SE, ABB Ltd., Dassault Systems S.A., Emerson Electric Co., Accenture PLC, Aspen Technology, Inc, General Electric Company, AVEVA Group PLC, Siemens AG, Rockwell Automation and Oracle Corporation.

Key Developments:

• In January 2023, SymphonyAI Industrial launched its artificial intelligence (AI) integrated MOM 360 manufacturing operations control solution, which includes integrated factory execution systems (MES) features, enterprise-level administration, and AI-based process improvement.

• In October 2022, Aptean, announced the acquisition of Merlin Business Software Ltd., a provider of enterprise business solutions tailored to wholesalers and distributors, including those serving the industrial supply, building supply, and food and beverage industries.

• In September 2022, SKF, a Swedish bearing and seal manufacturing company, and ABB, a leading global technology company signed a Memorandum of Understanding (MoU) to examine the possibility of a collaboration in the area of manufacturing process automation..

Offerings Covered:

• Software
• Services

Deployment Types Covered:

• On-Premises
• On-Demand
• Hybrid

Enterprise Sizes Covered:

• Small & Medium Sized Enterprises
• Large Enterprises

Product Functions Covered:

• Document Control
• Inventory Management
• Production Performance Analysis
• Other Product Functions

Applications Covered:

• Food & Beverage
• Oil & Gas
• Pharmaceutical
• Water & Wastewater Management
• Chemicals
• Pulp & Paper
• Electronics & Semiconductor
• Other Applications

End Users Covered:

• Automotive
• Aerospace
• Medical devices
• Consumer Packaged Goods
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances