Manufacturing Execution System (MES) Market: Snapshot

The manufacturing process involves multiple operations, industries are implementing various planning systems such as enterprise resource planning (ERP) or equivalent to decide what products are to be manufactured. After completion of the planning stage, manufacturers determine resources that are currently available in stock for execution of the manufacturing plan. The primary function of MES software includes integration of data or inputs from the planning system and information from plant floors to execute the production plan accordingly. MES software application primarily provides manufacturers with schedule, planning, tracking, analyzing and control of the manufacturing operations. The market for manufacturing execution system is forecast to grow to US$ 18,067.9 Mn by 2025, recording a CAGR of 11.2% for the period 2017 to 2025.

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Improved economic conditions globally have put pressure on manufacturing industries to increase effectiveness of production processes. This in turn is leading to increasing demand for automation within industries, aimed at optimizing production techniques and ensuring product quality. The global MES market is anticipated to grow significantly during the forecast period, attributed to demand for improving productivity and executing complex production processes efficiently. In addition, need for regulatory compliances in highly regulated industries such as food and beverages and pharmaceuticals is driving the demand for automation, which in turn is boosting the growth of the MES market across the globe. Moreover, demand for paperless operations from manufacturing industries in developing countries such as China, India and Brazil is further expected to drive the growth of MES market during the forecast period.

However, requirement of high initial investment for installation of manufacturing execution systems is a major restraint to the growth of global MES market. Moreover, complexities in installation of manufacturing execution systems is also inhibiting the growth of the market.

A key trend boosting market growth, is the popularity of cloud-based MES deployments in discrete industries. Cloud-based MES-as-a-service is likely to be the next logical step in the evolution of automation technology in process industries. Such technological advancements have led to integration of MES with ERP and product lifecycle management (PLM) solutions. Moreover, growing popularity of open source MES, which provides an alternative to expensive in-house design and reduces upfront development costs. Thus, with rising MES-as-a-service, PLM+MES+ERP systems and open source MES solutions are expected to provide ample of growth opportunities for the market

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Manufacturing execution system market is segmented on the basis of process industry, discrete industry and components. Based on process industry, the market is further segmented into oil & gas, chemical, food & beverages, pulp & paper, pharmaceutical, energy & power and water & wastewater treatment. Based on discrete industry, the market is segmented into automotive, aerospace & defense, electronics & electrical, medical devices, metal & mining and FMCG. On the basis of components, the market is segmented into software and services. Software segment is further bifurcated into cloud and on-premise. Whereas, services segment is bifurcated into consulting, integration and maintenance services.

Advancements in industrial internet of things (IIoT) is offering new opportunities for key players operating in the global MES market. IoT is facilitating advancements in industrial mobility, cloud computing and big data analytics. This in turn is leading to emergence of next-generation MES solutions enabled with real time data analysis.

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Attracted by this fast expanding market and underlying technological advancements, leading to integration of MES with ERP and product lifecycle management (PLM) solutions, many players are driven to develop comprehensive suite of solutions and services for manufacturing industry. There is a rush of companies across industries to strengthen their foothold in the manufacturing execution system market. For instance, in 2017, Atos SE launched a comprehensive suite of solutions, built for SAP HANA’ which enables manufacturers to dramatically improve production uptime and efficiency, while lowering maintenance costs. However, existing software providers are rapidly increasing their distribution network in order to reach most distant customers. Moreover, existing software providers are rapidly increasing their distribution network in order to reach most distant customers. Some of the key players profiled in the MES market report include ABB Ltd., Honeywell International Inc., General Electric Company, Schneider Electric S.E., Dassault Systems SA, Emerson Electric Co., General Electric Co., IQMS, SAP SE, HCL Technologies Limited, Yokogawa Electric Corporation, Atos SE, Prolink Solutions, Sage Automation, OpMetrik and Siemens AG among others.

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