Manufacturing Execution Systems Market - By Offering (Software, Services), By Deployment Mode (On-premises, Cloud, Hybrid), By Application (Production Management, Quality Management, Inventory Management, Maintenance Management, Performance Analysis), By End-use Industry, Forecast, 2024 - 2032

Manufacturing Execution Systems Market Size

Manufacturing Execution Systems Market size was valued at over USD 13.5 billion in 2023 and is estimated to register a CAGR of over 9.5% between 2024 and 2032. Increasing initiatives toward smart manufacturing and Industry 4.0 are significant growth factors driving the market expansion.
 

Industry 4.0 initiatives emphasize the integration of advanced technologies, such as the Internet of Things (IoT), Artificial Intelligence (AI), Machine Learning (ML), and robotics, into manufacturing processes. MES solutions are evolving to seamlessly integrate with these technologies, offering manufacturers the ability to automate operations, enhance process control, and improve product quality through advanced analytics & intelligent decision-making.
 

Major players are also developing manufacturing execution systems to support the industry 4.0 adoption. For instance, in May 2022, Critical Manufacturing launched version nine (V9) of its Manufacturing Execution System (MES). The new version supports continually changing market landscapes with more flexible deployment architectures, faster revision handling, powerful data management tools, and robust security.
 

Critical Manufacturing MES V9 enables MES deployment in the cloud, on-premises, or across hybrid infrastructures in a matter of minutes using containers & DevOps Center technology. It includes a Connect IoT module that speeds up the integration of equipment and devices into the platform as well as an IoT data platform for fully scalable, real-time data processing.
 

The complexity of manufacturing operations generates vast amounts of data that must be collected, analyzed, and acted upon in real-time. MES systems enable real-time data management, offering visibility into every aspect of the production process. This capability allows manufacturers to monitor operations closely, identify issues early, and make informed decisions quickly, reducing downtime & improving productivity.
 

Implementing an MES solution involves a significant upfront cost. The costs include licensing or purchasing software, necessary hardware upgrades to support the new system, system integration to ensure MES works seamlessly with existing IT infrastructure, and potential customizations to meet specific operational needs. Moreover, there are ongoing costs related to maintenance, updates, and training. For Small and Medium-sized Enterprises (SMEs), these costs can be prohibitive, limiting their ability to adopt MES technology despite understanding its potential benefits for operational efficiency and competitiveness.
 

Manufacturing Execution Systems Market Trends

The demand for mobile access to MES functionalities is growing, allowing managers and operators to monitor & control production processes remotely. Mobile applications for MES facilitate real-time decision-making and provide greater visibility into operations, regardless of location. Manufacturers are increasingly leveraging advanced data analytics and visualization tools in MES platforms to gain deeper insights into their operations. These tools can identify patterns, predict outcomes, and suggest optimizations, leading to improved efficiency, reduced downtime & higher product quality.
 

As MES solutions become more interconnected with other enterprise systems and external networks, cybersecurity is becoming a critical concern. MES providers are enhancing their solutions with advanced security features to protect against cyber threats, ensuring the integrity and confidentiality of manufacturing data. To improve accessibility & ease of use, MES providers are focusing on developing user-friendly interfaces and offering mobile access to MES functionalities. This enables real-time monitoring and management of manufacturing operations from anywhere, thereby enhancing flexibility and decision-making.
 

Manufacturing Execution Systems Market Analysis

Based on offering, the market is divided into software and services. The software segment dominated the global market with a share of over 50% in 2023.
 

• Many manufacturing companies are undergoing digital transformation initiatives to improve efficiency, agility, and competitiveness. MES software plays a crucial role in these initiatives by providing the digital backbone for integrating and optimizing manufacturing processes. The push toward Industry 4.0 and smart manufacturing further accelerates the demand for MES software as companies seek to leverage data analytics, IoT, AI, and machine learning in their production environments.
   
• Manufacturers increasingly need real-time visibility and control over their production processes to respond quickly to market changes and customer demands. MES software enables manufacturers to monitor production activities in real-time, identify bottlenecks, and make informed decisions to improve operational efficiency & productivity.
   
• As global competition intensifies, maintaining high-quality standards and compliance with industry regulations becomes more critical. MES software helps manufacturers enforce process discipline, manage quality control, and ensure compliance with standards such as ISO, FDA, and others. This is particularly relevant in highly regulated industries such as pharmaceuticals, food & beverage, and aerospace.

Based on deployment mode, the manufacturing execution systems market is divided into on-premises, cloud, and hybrid. The cloud segment is expected to register a CAGR of over 10% during the forecast period.
 

• Cloud-based MES solutions offer unparalleled scalability and flexibility, allowing manufacturers to easily adjust their operations based on current needs and market demands. This is particularly valuable for industries that experience fluctuating production volumes or need to rapidly scale up or down. The cloud enables businesses to add or remove resources without the need for significant upfront costs in hardware and infrastructure.
   
• Cloud MES enables better collaboration across different locations and departments by providing real-time access to production data, performance metrics & reports through the Internet. This accessibility supports decision-making processes and improves the agility of manufacturing operations. Remote access capabilities have also become particularly important in the context of increasing remote work and the need for social distancing measures.

Asia Pacific manufacturing execution systems market is expected to grow at a CAGR of over 10% by 2032. Asia Pacific is home to some of the world's fastest-growing economies with countries such as China, India & Southeast Asian nations experiencing rapid industrialization and manufacturing sector growth. This expansion is fueled by both domestic demand and the role of these countries as key players in the global supply chain.
 

The increasing volume and complexity of manufacturing activities necessitate advanced solutions such as MES to enhance production efficiency, quality control, and operational visibility. Many governments in the Asia Pacific region are actively supporting the digital transformation of the manufacturing sector through initiatives and policies that encourage the adoption of Industry 4.0 technologies.
 

For instance, the Government of India is taking initiatives to accelerate the adoption of Industry 4.0 through the National Manufacturing Policy and SAMARTH Udyog Bharat 4.0, which will positively influence the nation’s adoption of factory automation. With considerable investments in India's manufacturing sector, the demand for manufacturing execution systems is expected to increase over the forecast period.
 

Manufacturing Execution Systems Market Share

Siemens AG and SAP SE hold a significant market share of over 20% in the market. Siemens AG holds a significant market share in the Manufacturing Execution Systems (MES) market due to its comprehensive and integrated solutions that cater to complex industrial requirements. Its strong global presence, continuous innovation, and ability to seamlessly integrate MES with automation & PLM systems provide customers with a competitive edge, enhancing operational efficiency and productivity.
 

SAP SE holds a significant market share in the MES market due to its extensive portfolio of integrated solutions that optimize manufacturing processes and enhance operational efficiency. Their expertise in Enterprise Resource Planning (ERP) seamlessly extends to MES, offering a unified view of manufacturing operations and supply chain management, which helps businesses achieve greater productivity & agility. This helps the company to gain a competitive advantage in the market.
 

Manufacturing Execution Systems Market Companies

Major players operating in the manufacturing execution systems industry are:

• Siemens AG
• SAP SE
• Rockwell Automation Inc.
• Dassault Systemes S.A.
• Honeywell International Inc.
• Emerson Electric Co.
• ABB Ltd.
   

Manufacturing Execution Systems Industry News

• In February 2023, AVEVA Group PLC launched a new version of the manufacturing execution system software to support data center deployments. The latest iteration of the AVEVA Manufacturing Execution System (MES) will speed up the standardization and large-scale introduction of best practices, increasing operational sustainability & efficiency. By providing unified visibility, reporting, and KPIs across multi-site operations, the new AVEVA Manufacturing Execution System 2023 also encourages enhanced supply chain resilience and agility.
   
• In June 2022, ABB Ltd. received a contract to provide ABB Ability Manufacturing Execution System (MES) to Asia Symbol Group’s new production line. The expansion gave Asia Symbol better control over planning, scheduling, and ongoing efficiency & waste reduction while also optimizing the company's overall production process across all lines at its Guangdong mill (China).
   

The manufacturing execution systems market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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Market, By Offering, 2018 - 2032

• Software
• Services

Market, By Deployment Mode, 2018 – 2032

• On-premises
• Cloud
• Hybrid

Market, By Application, 2018 – 2032

• Production management
• Quality management
• Inventory management
• Maintenance management
• Performance analysis
• Others

Market, By End-use Industry, 2018 – 2032

• Process industry    
  • Food & beverages
  • Oil & gas
  • Chemicals
  • Paper & pulp
  • Pharmaceuticals 
  • Energy & power
  • Water & wastewater
  • Others 
• Discrete industry
  • Automotive
  • Aerospace
  • Electronics
  • Medical devices
  • Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA