Europe Manufacturing Execution System Market Overview, Growth, Trends, Analysis, Research Report (2021-2031)

The Europe manufacturing execution system market size is projected to reach US$ 10.45 billion by 2031 from US$ 4.85 billion in 2024. The market is expected to register a CAGR of 11.7% during 2025–2031. The adoption of digital twin technology is likely to bring new trends into the market in the coming years.  

Europe Manufacturing Execution System Market Analysis

A manufacturing execution system (MES) monitors, tracks, documents, and manages the manufacturing process, from raw materials to finished products. This software plays a key role in handling work orders, checking product quality, monitoring machine performance, and collecting data throughout the production process. It acts as a link between ERP and process control systems, giving decision-makers the information they need to make the plant floor more efficient.

Europe Manufacturing Execution System Market Overview

An MES software is used to manage, monitor, and coordinate the real-time physical processes and personnel involved in the conversion of raw materials into intermediate and/or completed commodities. It provides actionable data that assists manufacturing decision-makers in understanding how to optimize plant floor operating conditions to increase production output. MES software serves as a bridge between PLM, ERP systems (IT), and machines (OT). This software layer improves the efficiency and quality of the production process, resulting in greater productivity and profitability.

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Europe Manufacturing Execution System Market: Strategic Insights

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Europe Manufacturing Execution System Market Drivers and Opportunities

Manufacturing Industries Embrace Digital Transformation

In Europe, manufacturing sectors are embracing digital transformation to enhance productivity, optimize operational efficiency, lower costs, and increase market share through innovation in products and processes. In the automotive industry, electric and hybrid vehicles are driving a fundamental shift. In the consumer-packaged goods (CPG) sector, companies are facing stricter regulatory compliance requirements. Meanwhile, the aerospace industry is focusing on enhancing productivity and performance amid a challenging business landscape. Smart manufacturing solutions are becoming crucial in navigating these evolving dynamics. These solutions optimize key capabilities, enabling seamless digital integration from configuration to order through dispatch, enhancing production visibility, improving scheduling, ensuring traceability, providing advanced analytics, and promoting energy efficiency and waste reduction. Due to these advantages, manufacturing companies and governments are investing in digital transformation. A few instances are given below.

• In February 2025, the EU launched the InvestAI fund for mobilizing €200 billion (US$ 208.4 billion) into artificial intelligence, revolutionizing the European automotive manufacturing sector. This initiative seeks to foster automation, digitalization, and the development of next-generation production systems through AI-driven gigafactories and smart factory technologies.
• In December 2024, Smart manufacturing startup Quindi secured €525,000 (US$ 567,750.5) in Seed funding. Established in 2022, Quindi has created the first Production Copilot, an advanced AI solution that consolidates data from machinery, orders, and personnel to enhance production workflows.
• According to the AG Solution Group, industrial companies allocate US$ 1.1 trillion annually to digital transformation initiatives; however, two-thirds of these organizations are still in the early phases of their digital adoption process.

As manufacturers advance their digital transformation initiatives, the demand for manufacturing execution systems (MES) is projected to rise. MES solutions equip companies with the capabilities to integrate emerging technologies, optimize operational workflows, and enhance overall productivity. MES has proven effective across sectors, including process industries, high-tech, and general manufacturing. With a large installed base and increasing reliability and maturity, MES is becoming a key enabler for developing smart manufacturing facilities, optimizing operations, and driving market expansion. Thus, the expansion of digital transformation across manufacturing industries is driving the growth of the Europe manufacturing execution system (MES) market. 

Integration With Artificial Intelligence

As Europe continues to position itself as a global leader in artificial intelligence (AI) development, advancements in AI infrastructure are expected to have far-reaching implications for industries such as manufacturing. In March 2025, the EuroHPC Joint Undertaking (EuroHPC JU) selected six new sites in Austria, Bulgaria, France, Germany, Poland, and Slovenia to host AI Factories, set to launch in 2026. France and Germany will establish AI Factories alongside Europe’s first exascale supercomputers, Alice Recoque and JUPITER. Austria, Bulgaria, Poland, and Slovenia will deploy AI-optimized systems. The German AI Factory in Julich will feature an experimental platform for developing and testing AI models. These six new AI Factories join seven others, forming a network to support AI startups, SMEs, and researchers with access to HPC resources, training, and expertise. The increasing integration of AI into manufacturing systems is transforming how production is managed, optimized, and scaled. Companies such as Apprentice.io are leveraging AI to enhance manufacturing operations. At the Pharma MES event in Berlin in September 2024, Apprentice.io unveiled new AI capabilities within its cloud platform aimed at optimizing manufacturing workflows, expediting batch releases, and ensuring compliance with Good Manufacturing Practices (GMP). Their solutions provide manufacturers with the tools necessary to enhance efficiency and reduce operational costs. Aizon, an AI SaaS provider focused on revolutionizing pharmaceutical manufacturing, introduced Aizon Execute, an innovative Electronic Batch Record (eBR) software in collaboration with Euroapi, a global leader in API manufacturing. The development of this software responds to the soaring need for data-driven, paperless manufacturing solutions. It addresses user needs by simplifying the transition to digital systems while streamlining operations.

As the AI infrastructure across Europe continues to evolve, the integration of AI into MES solutions will accelerate. The combined strength of AI Factories, such as those being established in France, Germany, and beyond, will drive a wave of digital transformation in manufacturing, fostering innovation and enhancing operational efficiency across the Europe manufacturing execution system (MES) market. The ability to harness AI for real-time data analysis, predictive maintenance, and enhanced decision-making will be crucial for manufacturers seeking to remain competitive in the evolving industrial landscape.

Europe Manufacturing Execution System Market Report Segmentation Analysis

Key segments that contributed to the derivation of the Europe Manufacturing Execution System market analysis are component, deployment, organization size, and end user.

• On the basis of component, the Europe manufacturing execution system market is segmented into software and services. The software segment held the largest share in the Europe manufacturing execution system market in 2024.  
• By deployment, the Europe manufacturing execution system market is segmented into cloud, on-premise, and hybrid. The cloud segment held the largest share in the Europe manufacturing execution system market in 2024.
• In terms of organization size, the Europe manufacturing execution system market is segmented into large enterprises and SMEs. The large enterprises segment held the largest share in the Europe manufacturing execution system market in 2024.
• As per the end user, the Europe manufacturing execution system is segmented into discrete industries and process industries. The discrete industry segment held the largest share in the Europe manufacturing execution system market in 2024.

Europe Manufacturing Execution System Market Share Analysis by Geography

The geographic scope of the Europe Manufacturing Execution System market report is mainly divided into Germany, the UK, France, Italy, Spain, Netherlands, Turkey, Switzerland, Poland, Belgium, Austria, Denmark, Romania, Czech Republic, Portugal, Hungary, Slovakia, and the Rest of Europe.

The UK held a significant market share in 2024. As businesses strive for digital maturity, incorporating a modern MES with no-code process design, digital work instructions, electronic production records, and review by exception is becoming a critical component of that effort. In December 2023, MasterControl, a leading provider of quality management and next-generation MES software in the UK, announced a major milestone with more than 150 customers adopting Manufacturing Excellence, its modern MES, demonstrating significant momentum with product sales and customer adoption. In April 2023, Yunex Traffic implemented a new MES at its Poole site in the UK, in partnership with Siemens Digital Industries, to improve the company’s manufacturing efficiency and enable it to provide an enhanced service to customers. With the focus of companies to integrate MES to optimize production and streamline operations, the demand for MES solutions in the UK is expected to grow, particularly within manufacturing sectors seeking increased operational performance and customer satisfaction.

Europe Manufacturing Execution System Market Regional Insights

The regional trends and factors influencing the Europe Manufacturing Execution System Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Europe Manufacturing Execution System Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Europe Manufacturing Execution System Market Report Scope

Europe Manufacturing Execution System Market Players Density: Understanding Its Impact on Business Dynamics

The Europe Manufacturing Execution System Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Europe Manufacturing Execution System Market are:

1. MPDV Mikrolab GmbH
2. SISE
3. Wittmann Group
4. ENGEL AUSTRIA GmbH
5. Delta Electronics Inc
6. Epicor Software Corp

Disclaimer: The companies listed above are not ranked in any particular order.

Europe Manufacturing Execution System Market News and Recent Developments

The Europe Manufacturing Execution System market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the Europe Manufacturing Execution System market are listed below:

• MPDV Mikrolab GmbH expo in Malaysia offered personal live demonstrations with all queries and seminar talks on topics including MES HYDRA X—intelligent Shop Floor execution, machine connectivity, reporting & control, and APS FEDRA—intelligent production scheduling & finite capacity planning with AI. (Source: Mikrolab GmbH, Press Release, March 2024)
• SAP announced its intention to acquire LeanIX, a market leader for enterprise architecture management (EAM). This acquisition is aimed at driving the modernization of IT landscapes and continuous business transformation. Its software-as-a-service solutions enable organizations to visualize, assess, and manage the transition toward their target IT architecture. With the intended acquisition, SAP is building a comprehensive transformation suite to help customers navigate change more easily and permanently improve their business processes. (Source: SAP SE, Press Release, September 2023)

Europe Manufacturing Execution System Market Report Coverage and Deliverables

The "Europe Manufacturing Execution System Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:

• Europe Manufacturing Execution System market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Europe Manufacturing Execution System market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Europe Manufacturing Execution System market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the Europe Manufacturing Execution System market
• Detailed company profiles