Manufacturing Execution System Market Report by Share and Growth 2028

Manufacturing Execution System Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Component (Software and Services), Deployment (Cloud and On-Premise), and Industry Type (Process Industry and Discrete Industry)

Publication Month : Feb 2022

  • Report Code : TIPRE00006449
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • No. of Pages : 188
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[Research Report] The manufacturing execution system market was valued at US$ 11,880.90 million in 2021 and is projected to reach US$ 24,286.32 million by 2028; it is expected to grow at a CAGR of 10.8% from 2021 to 2028.

The enterprises recognize manufacturing competency as a critical factor to stay competitive in the market, resulting in the high adoption of manufacturing execution system (MES) solutions at a greater priority. Further, some enterprises consider product quality as an essential factor in the manufacturing systems strategy, thereby looking for the advantages of integrating quality compared to keeping quality as a different system and process. Thus, the factors mentioned above are boosting the adoption of MES.

In the present scenario, the players in the manufacturing execution system market are focused on offering more industry-specific solutions, which signifies the availability of ideal solutions as per an enterprise's specific needs. Further, it eliminates the requirement for costly tailored extensions to commercial products, and the availability of off-the-shelf functionality in MES is creating profitable opportunities for the growth of the manufacturing execution system market.

The advent of industry 4.0, which enables manufacturing at low-cost, better quality, and faster processing, has further created an unclear scenario among enterprises regarding the concept. Further, customers demand customized products at competitive prices, which stimulates manufacturing companies to adopt industry 4.0. Various technologies are gaining traction among manufacturers, such as the internet of things (IoT), cloud storage, mobile computing, advanced analytics, robotics, and machine learning. All these technologies require a system that can efficiently connect and coordinate.

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Manufacturing Execution System Market: Strategic Insights

manufacturing-execution-system-market
Market Size Value inUS$ 11,880.90 Million in 2021
Market Size Value byUS$ 24,286.32 Million by 2028
Growth rateCAGR of 10.8% from 2021 to 2028
Forecast Period2021-2028
Base Year2021
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IMPACT OF COVID-19 PANDEMIC ON MANUFACTURING EXECUTION SYSTEM MARKET

The tremendous spread of SARS-CoV-2 has urged governments worldwide to impose strict restrictions on vehicles and human movement. Due to travel restrictions, mass lockdowns, and business shutdowns, the COVID-19 pandemic has affected economies and countless manufacturing and production industries in various countries. The lockdown imposition has reduced the production of commodities, goods, and services.

In 2020, manufacturing industries were severely affected due to a drastic decrease in product demand, falling prices, and storage shortages. A swift decline in manufacturing revenues due to virtually nonexistent manufacturing demand and slow production capabilities has limited the expenditure on installation or upgrading of existing manufacturing execution system solutions across the industries. Moreover, periodic maintenance and discontinuation of operation among existing manufacturing plants have hampered the demand for the MES solutions. Thus, the COVID-19 pandemic has adversely affected the manufacturing execution system market.

In 2021, the manufacturing industry started recovering from the significant labor and supply chain challenges that triggered the adoption of manufacturing execution system solutions. In 2022, MES solutions will have a higher demand due to the continued progress of process and discrete industries.

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Market Insights – Manufacturing Execution System Market
Growing Implementation of Technology and Automation in Manufacturing Sector Drives Market Growth

The end-to-end industrial and manufacturing environment is becoming intelligent, smart, and connected in the current business settings. New forms of discrete and process manufacturing of sensors, connected objects, and smart machines have emerged and changed the ecosystem on how exchanges and collaborations occur between people, machines, data, and technologies. . The modern digitalized plants supporting smart manufacturing rely heavily on collecting, sorting, and analyzing data and information, and extracting business values from them.

The increasing adoption of Industry 4.0 has further underlined the need for an advanced MES. Industry 4.0 creates an interoperability platform between operations and information technology, enabling various equipment, products, and materials to communicate through embedded electronics. The MES manages and monitors work progress in a manufacturing facility and delivers a robust base to build the industry 4.0 application. Therefore, the growing usage of technology and automation in the manufacturing sector and the worldwide wide-scale adoption of industry 4.0 are driving the manufacturing execution system market growth.

Component-Based Insights

Based on component, the manufacturing execution system market is segmented into software and services. The software segment led the overall manufacturing execution system market in 2020. It is expected to continue its dominance over the forecast period.

Deployment-Based Insights

Based on deployment type, the manufacturing execution system market is segmented into on-premises and cloud. The on-premises segment accounted for a larger market share in 2020. On-premises deployment benefits the manufacturers deploying manufacturing execution systems by preserving all their processes and current internal systems, such as authentication and access privileges.

Industry Type -Based Insights

Based on industry type, the manufacturing execution system market is segmented into process industry and discrete industry. The process industry is subsegemnted into food & beverages, oil & gas, pulp & paper, chemical, energy & power, pharmaceutical,  life sciences, and others. The discrete industry is subsegmented into automotive, aerospace & defense, consumer packaged goods, medical devices, electronics & semiconductors, and others. In the global manufacturing execution system market, the discrete industry segment accounted for a larger market share in 2020.

Players operating in the Manufacturing Execution System market are mainly focused on the development of advanced and efficient products.

  • In November 2021, AVEVA launched the Vision AI Assistant 2021, an image classification-based analytics tool. The AI solution is currently integrated into AVEVA Insight and System Platform and Operations Management Interface. The extension is expected to strengthen its position as a market leader in innovation.
  • In February 2022, Dassault Systemes formed a strategic alliance with Inria, France's National Institute for Research in Digital Science and Technology, for European digital sovereignty.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Component, Deployment, and Industry Type

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, UAE, UK, US

Frequently Asked Questions


Which primary factor is driving the manufacturing execution system market?

The end-to-end industrial and manufacturing environment is becoming intelligent, smart, and connected in the current business settings. New forms of discrete and process manufacturing of sensors, connected objects, and smart machines, have emerged and changed the ecosystem on how exchanges and collaborations occur between people, machines, data, and technologies. The modern digitalized plants supporting smart manufacturing rely heavily on collecting, sorting, and analyzing data and information, and extracting business values from them. The manufacturing execution system (MES) helps them gain a sustainable competitive advantage by assisting in the alteration of the production process in real time, based on changes in the markets they serve. It also encourages users to prepare a proactive strategic plan of the maintenance processes that ultimately reduce downtime. An efficient MES solution benefits by reducing waste and overages, optimizing inventory, lowering manufacturing cycle time, improving customer service, and decreasing setup costs.
The increasing adoption of Industry 4.0 has further underlined the need for an advanced MES. Industry 4.0 creates an interoperability platform between operations and information technology, enabling various equipment, products, and materials to communicate through embedded electronics. The MES manages and monitors work progress in a manufacturing facility. It delivers a robust base to build the Industry 4.0 application. Therefore, the growing usage of technology and automation in the manufacturing sector, and the wide-scale adoption of Industry 4.0 worldwide are driving the manufacturing execution system market growth.

Which region is leading the manufacturing execution system market in 2020?

Geographically, North America held the largest market share in 2020. The dominance of the North American market is attributed to the rise in demand for MES in industries such as food & beverages, water & wastewater treatment, and power & utility. Another critical factor is the presence of technologically advanced industries in countries such as the US and Canada. Increased adoption of Industry 4.0 and rise in advancements in manufacturing and machinery tools are propelling the MES market growth. Furthermore, the willingness to invest in advanced technologies by the manufacturing industries in these countries adds to the market's growth.

Which segment by component led the manufacturing execution system market in 2020?

The manufacturing execution system market based on the component is segmented into software and services. The software segment led the overall market in the year 2020. It is expected to continue its dominance over the forecast period. Manufacturing execution system is designed and built for manufacturing operations. Most manufacturing companies use a planning process, such as manufacturing resource planning or enterprise resource planning, to determine which products are to be manufactured. The manufacturing execution systems reduces work-in-process inventory, reduces manufacturing cycle time, improves product quality, reduces eliminates data entry time, and many others. Such factors drive the global manufacturing execution system market.

Which are the five key companies in the global manufacturing execution system market?

42Q; AVEVA Group plc; Dassault Systèmes SE; EAZYWORKS INC.; and Emerson Electric Co. are the five key players in the global Manufacturing Execution System market. These companies have shown consistent growth in revenue and larger volumes of sales. Additionally, the well-established top five players are offering a comprehensive product portfolio and have a prominent presence in terms of share in the global market.

At what CAGR is the manufacturing execution system market expected to grow during the forecast period?

The market is estimated to register a CAGR of 10.8% during the forecast period. The advent of industry 4.0, which enables manufacturing at low-cost, better quality, and faster processing, has further created an unclear scenario among enterprises regarding the concept. Customers demand customized products at competitive prices, which stimulates manufacturing companies to adopt industry 4.0. Various technologies are gaining traction among manufacturers, such as the internet of things (IoT), cloud storage, mobile computing, advanced analytics, robotics, and machine learning. All these technologies require a system that can efficiently connect and coordinate these technologies. The industry 4.0 compatible MES is thus attracting various manufacturers to implement technologies in their processes. Replacing traditional MEs with the new generation MES has been noticed in 2–3 years.

Which segment by deployment is expected to grow at the fastest CAGR during the forecast period?

By deployment, the cloud segment is expected to grow at the fastest CAGR during the forecast period. The need for having an integrated system is increasing every day for manufacturing operations. On-premise manufacturing execution systems do not make the cut for modern manufacturing any longer; therefore, companies gravitate more toward the adoption of cloud deployment of MES. The cloud-based systems have the capability to connect and operate accordingly. The use of cloud-based MES has made the production process easier.
Several organizations are leveraging cloud services, which is creating a demand for MES across businesses. The companies willing to shift from on-premises solutions to cloud-based solutions might face several challenges in terms of security threats. Hence, it is important to build a solution that ensures proper security and cautious documentation. Furthermore, the cloud deployment has a greater demand as they enable businesses to connect with more clients, customers, partners, and other businesses across various locations, with minimum effort.

The List of Companies - Manufacturing Execution System Market

  1. 42Q
  2. AVEVA Group plc
  3. Dassault Systemes SE
  4. EAZYWORKS INC.
  5. Emerson Electric Co.
  6. General Electric Company
  7. Honeywell International Inc.
  8. Oracle Corporation
  9. SAP SE
  10. Rockwell Automation, Inc.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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