Manufacturing Execution System Market Size, Forecast by 2028

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Technology, Media and Telecommunications Manufacturing Execution System Market
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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 | No. of Pages: 188 | Category: Technology, Media and Telecommunications | Status: Published

[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.

Strategic Insights

Report Coverage - Manufacturing Execution System Market
Report CoverageDetails
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
No. of Pages188
No. of Tables97
No. of Charts & Figures90
Historical data availableYes
Segments coveredComponent, Deployment, and Industry Type
Regional scopeNorth America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country scopeUS, Canada, Mexico, UK, Germany, Russia, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Report coverageRevenue forecast, company ranking, competitive landscape, growth factors, and trends
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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.

Lucrative Regions for Manufacturing Execution System Market

Lucrative Regions for Manufacturing Execution System Market

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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.

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.
  • Save and reduce time carrying out entry-level research by identifying the growth, size, leading players and segments in the global Manufacturing Execution System Market.
  • Highlights key business priorities in order to assist companies to realign their business strategies.
  • The key findings and recommendations highlight crucial progressive industry trends in the global manufacturing execution system market, thereby allowing players across the value chain to develop effective long-term strategies.
  • Develop/modify business expansion plans by using substantial growth offering developed and emerging markets.
  • Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those hindering it.
  • Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing and distribution.
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