Global Manufacturing Execution System (MES) Market Size, Share, and COVID-19 Impact Analysis, By Component (Software & Services), By Deployment (On-premise, Cloud-based), By Organization Size (Small and Medium Enterprises, Large Enterprises), By Vertical (Food & Beverage, Pharmaceutical & Life Sciences, Oil & Gas, Automotive, Electronics & Semiconductor & Others) and by Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa) Analysis and Forecast 2022-2030

KEY MARKET INSIGHTS

The global Manufacturing Execution System (MES) Market was valued at USD 11.8 Bn in 2021. The market is projected to grow USD 24.2 Bn in 2030, at a CAGR of 10.8%. A manufacturing execution system is an IT system that enables production floor experts and management with options for upgrading and optimizing the manufacturing process. MES provides a method for changing the current shop floor conditions to increase output while lowering costs. The intermediary layer between both the ERP system and the process control system is provided by MES. The overall purpose of MES is to ensure that manufacturing procedures are carried out efficiently in order to increase output. This is accomplished by tracking and collecting real-time and accurate data across the whole production lifetime.

The demand for large scale production and a highly integrated supply chain to meet the growing population, increased usage of industrial automation in process and discrete sectors, and increasing IT and OT convergence in various manufacturing industries are all propelling the industry forward. An MES integrates real-time information from robots, machine monitors, and employees to keep track of all manufacturing information. All material inventory, production orders, and job instructions are managed automatically by a MES. Materials are entered into the MES once it arrives. Floor managers can view the work order's current status in real time to track progress and ensure that production runs smoothly.

COVID-19 ANALYSIS

The COVID-19 epidemic has had a negative impact on the market for manufacturing execution system (mes) market. COVID-19 has had a significant impact on the global economy and all industries around the world. Previously, most businesses had to halt all manufacturing operations, but the lockdown has already been lifted in many regions of the world. In order to find a reliable treatment for COVID-19, numerous therapeutic regimens have been tried. WHO does not currently recommend the approaches being employed by the authorities. The utilisation of factory execution systems has decreased as a result of the COVID-19-triggered lockout in 2020. The services given in the manufacturing execution system market account for the majority of the money produced. COVID-19 has a tremendous impact on the manufacturing execution system industry since services are directly proportionate to manufacturing activity. As a result, the year-on-year growth rate for 2020 is lower than for 2019.

LATEST TREND

Surging Adoption of Industry 4.0 and IIoT in Manufacturing

With the increasing use of Industry 4.0 and the Industrial Internet of Things (IIoT) in manufacturing, the agility and interoperability of Manufacturing Execution Systems (MES) has become even more critical to managing the added complexity and future-proofing enterprises.

DRIVING FACTORS

Increasing Shift for Digital Transformation Favoring Growth in MES

Manufacturing execution systems (MES) are major enablers of digital manufacturing revolution. With the pandemic, the necessity for global data and knowledge to make faster data-driven choices and better manufacturing performance became critical. For automated and manual operations, MES monitors and enforces every component of the work steps, including equipment, materials, and data collecting. MES implements regulations and procedures to ensure that people and equipment are performing as expected. Standardization allows for consistent performance and quality in industrial operations.

Rising Demand for Implementation in Different Industries

The growth of the manufacturing execution system (MES) market is attributed due to rising product demand for industrial control system implementation, rising upgradation of existing infrastructure with advanced systems, and increasing infrastructural development activities, particularly in developing economies. Rising number of manufacturing units is leading to the increasing demand of MES software.

RESTRAINTS

Limited Awareness of MES Solutions Among SMEs

The transition from an existing production environment to a manufacturing execution system entails several stages that, when properly understood, allow small and medium-sized businesses to deploy manufacturing execution systems at a low cost. The adoption of advanced factory execution systems currently necessitates an appropriate software platform for the system, its connection with ERP, and data that must be exchanged between internal software and MES software to aid decision-making. Advanced MES solutions are prohibitively expensive for small and medium-sized businesses to implement. They are also unaware of the advantages of modern MES solutions. These reasons are now limiting the market's growth.

SEGMENTATION

The global manufacturing execution system (mes) market is segmented by Component (Software & Services), By Deployment (On-premise, Cloud-based), By Organization Size (Small and Medium Enterprises, Large Enterprises), By Vertical (Food & Beverage, Pharmaceutical & Life Sciences, Oil & Gas, Automotive, Electronics & Semiconductor & Others) and Region. Based on the component, the market is categorized into software & services. Based on deployment, the market is categorized into on-premise & cloud-based. Based on organization size, the market is categorized into small and medium enterprises & large enterprises. Based on Vertical, the market is categorized into food & beverage, pharmaceutical & life sciences, oil & gas, automotive, electronics & semiconductor & others. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.

REGIONAL INSIGHTS

The global manufacturing execution system (mes) market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa. North America region is expected to dominate the market share of global manufacturing execution system (mes) market owing to the presence of key players such as Siemens, Oracle, Honeywell, Emerson and Rockwell Automation amongst others and technological advancements in the region. Increasing automation and enduring technological advancements in the electrical & electronics (E&E) industry in the region. However, Asia Pacific region is expected to witness highest growth rate during the forecast period of global manufacturing execution system (mes) market owing to the ongoing continual growth and investments in digitalization across industries. The expansion of the IoT market in the regional manufacturing segment is aided by the increase in the number of SMEs and the increased digitalization of manufacturing functions by large organisations such as IBM and General Electric.

INDUSTRY PLAYERS

· Siemens

· ABB

· AVEVA Group plc

· Honeywell International Inc.

· Dassault Systèmes

· Rockwell Automation, Inc.

· SAP SE

· Schneider Electric

· Epicor Software Corporation

· General Electric

· Oracle

· Birlasoft

· Emerson Electric Co.

· Körber AG

· Generix Group

KEY INDUSTRY DEVELOPMENTS:

April 2021- AVEVA has collaborated with Planet Together which will offer robust unique innovations to the AVEVA Manufacturing Execution System about visual planning and management, multi-plant production scheduling, and production schedule enhancement, expanding AVEVA’s investments in Industry 4.0 manufacturing solutions.

October 2019- Rockwell has acquired MESTECH Services to expand its capabilities to profitably grow Information Solutions and Connected Services globally and accelerate Rockwell’s ability to help its customers execute digital transformation initiatives.

April 2019- Emerson has acquired Bioproduction Group (Bio-G) which will help companies bring therapies for cancer, diabetes and other illnesses to patients sooner. 

SEGMENTATION

By Component

Based on component, is categorized into software & services. The software segment is expected to dominate the market share of global manufacturing execution system (mes) market owing to the increasing deployment of solutions among the large enterprises as it is easy to operate and cost effective.

By Deployment

Based on deployment, the market is categorized into on-premise & cloud-based. The cloud-based segment is expected to dominate the market share of global manufacturing execution system (mes) market owing to the rising adoption of cloud solutions among different verticals. Enterprises with current infrastructure are moving toward cloud computing services adoption and are willing to take a hybrid approach to gain the benefits of both on-premises and cloud services. Small businesses are increasingly turning to cloud computing services because of the numerous advantages they offer, including no upfront infrastructure expenditures and computer services that are available on demand.  

By Organization Size

Based on organization size, the market is categorized into small and medium enterprises & large enterprises. The small and medium enterprises are expected to dominate the market share of global manufacturing execution system (mes) market owing to becoming more adaptable in incorporating new technology with their existing systems. This makes it possible to implement MES.

By Vertical

Based on vertical, the market is categorized into food & beverage & pharmaceutical & life sciences, oil & gas, automotive, electronics & semiconductor & others. The pharmaceutical & life sciences segment is expected to dominate the market share of global manufacturing execution system (mes) market owing to shifting trends in the pharmaceutical sector and alter their processes to satisfy changing needs. Manufacturing Execution Systems (MES) allow the pharmaceutical industry to drastically reduce manufacturing costs while also improving regulatory compliance. Life sciences organisations are looking for solutions that will help them standardise their manufacturing processes across several locations in different areas. Manufacturing execution systems use electronic approval to help manufacturers unify their workflow and reduce lead times. They also assist with data management, which is then used for regulatory compliance.

SEGMENTATION:

By Component

• Software
• Services

By Deployment

• On-premise
• Cloud-based

By Organization Size

• Small and Medium Enterprises
• Large Enterprises

By Vertical

• Food & Beverage
• Pharmaceutical & Life Sciences
• Oil & Gas
• Automotive
• Electronics & Semiconductor
• Others

By Region

• North America- U.S., Mexico, Canada
• Europe- UK, France, Germany, Italy
• Asia-Pacific- China, Japan, India
• Latin America- Brazil, Argentina, Colombia
• The Middle East and Africa- United Arab Emirates, Saudi Arabia