Modern Manufacturing Execution System Market Research Report—Global Forecast till 2030

Modern Manufacturing Execution System Market Research Report: Information By Component (Software, Services), By Deployment (Cloud, On-premises, Hybrid), By Discrete Industry (Electronics, Automotive, Medical, FMCG, Aerospace & Defense, Others) and Region (North America, Asia-Pacific, Europe, Rest of the world)—Forecast Till 2030

ID: MRFR/ICT/0588-CR | February 2020 | Region: Global | 110 Pages         

Modern Manufacturing Execution System Market

The Modern Manufacturing Execution System Industry is evaluated to grow USD 97,310.2 million at a cagr of 20.5% during the forecast period 2022-2030

Segmentation

By Component Warehouse Management Product Lifecycle Management (PLM))
By Service Consulting & Development Training & Support Integration Service
By Deployment Cloud On-Premise
By Discrete Industry Electronics Automotive Medical FMCG Aerospace & Defense

Key Players

  • ABB LTD (Switzerland)
  • Tebis Technische Informations syteme AG (US)
  • AG (Germany)
  • Werum IT Solutions Gmbh (Germany)
  • Dassault Systems (France)
  • Rockwell Automation Inc. (US)
  • Honeywell International Inc. (US)
  • Emerson Electric CO. (US)
  • General Electric Company (US)
  • Siemens AG (Germany)

Drivers

  • The rising technological advancements in both the OT (operational technology) and IT (information technology) are the major drivers of the modern manufacturing execution system industry.
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Modern Manufacturing Execution System Market Overview


The global modern manufacturing execution system market is expected to witness substantial growth during the forecast period, primarily due to increasing demand for industrial automation. As per MRFR, the global modern manufacturing execution system market has been growing at a significant rate from the past few years and is expected to reach USD 97,310.2 million by 2030, at a CAGR of 20.5% during the forecast period, 2022–2030.


The global modern manufacturing execution systems market has been segmented into component, deployment, discrete industry, and region. Based on component, the global modern manufacturing execution market is segmented into software and services. Based on software, the market is further segmented into enterprise resource planning, warehouse management, product lifecycle management and others. Based on services, the market is further segmented into consulting & development, training & support, integration and others. Based on deployment, the global modern manufacturing execution systems is segmented into cloud, on-premises, and hybrid. Based on discrete industry the global modern manufacturing execution systems is segmented into electronics, automotive, medical, FMCG, aerospace & defense, and others. Based on region, the global modern manufacturing execution systems is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America.


Covid-19 Analysis


Since the advent of the COVID-19 pandemic, many countries across the globe have faced many socio-economic challenges on different levels. The economic perspective suggests that the global economy will witness a contraction of 5% by the end of 2020, with the best forecast scenario suggesting a contraction of approximately 5.4% by the end of the next year. This estimate is around 6.5% lesser than the original pre-COVID predictions. Major adversities incurred by the global manufacturing industry during the ongoing COVID-19 pandemic include supply chain disruptions, a sharp decline in procurement and demand, restricted scheduling and maintenance of production capacities, low cash flow and liquidity, and the consequent delays in New Product Introductions (NPIs).


As per IMF’s analysis on Purchasing Managers Index (PM Index or PMI), which is a diffusion index that summarizes economy-related activity in the manufacturing industry, the global manufacturing industry witnessed contraction by 2.7 PMI, with 0.5 PMI contracted in the U.S., 2.6 PMI contracted in EU and an increase of 1.2 PMI in China. The manufacturing industry is one of the key pillars of the global economy, and it contributed 16% to the global GDP in 2018.


However, increasing investments of end-users in manufacturing technologies and the sturdy support provided by the implementation of smart factory functionalities, digitalization, and Industrial Internet of Things (IIoT) indicate that the current contractions are just short-term impacts. The long-term scenario suggests that such progressive initiatives by end users will have an extremely positive impact on the growth of the global manufacturing industry during the forecast period.


Modern Manufacturing Execution System Market Dynamics


The modern manufacturing execution system market is driven the factors such as increasing demand for industrial automation and growing need of real-time visibility in the manufacturing processes. However, this market growth is hampered by the high cost associated with the implementation of manufacturing execution system. Although, the market provides opportunities such as increasing penetration of MES in industrial IoT.


Modern Manufacturing Execution System Market Drivers



  • Increasing demand for industrial automation


Over the past few years, industrial automation has been implemented by several industries owing to its various benefits, including increased productivity, enhanced quality, and improved safety, at affordable prices. Collecting data from an entire factory and its environment to feed optimization algorithms significantly increases the complexity of production tracking systems and enterprise applications. Manufacturing companies have set up smart factories and deployed smart manufacturing equipment for enhanced productivity. Furthermore, companies have adopted the comprehensive manufacturing execution systems (MESs) to schedule, manage, and track each step during production and monitor operations in factories. This system operates in real time reacting to events at the production facility promptly and is interconnected with all machinery in a transversal manner. In industrial automation, it helps to monitor processes to increase uptime, reduce costs, enhance productivity, and create documentation to comply with the regulations. This has led to advancements in manufacturing technology with increasing complexity and precision.


Modern Manufacturing Execution System Market Restraints



  • High initial investment


The implementation of MES is considerably expensive as substantial costs are involved in training employees to handle this sophisticated solution. Some companies charge implementation fees for uploading and preparing work instructions, as they need to convert it to the templates or formats used in the respective software. This procedure is uneconomical and troublesome. Moreover, when different functionalities are combined, it increases the complexity of the solution, thereby increasing the overall cost. Several manufacturers opting for function-specific applications over MESs owing to their high cost. For example, manufacturers only looking for quality modules on an MES are increasingly adopting enterprise quality management systems.


Modern Manufacturing Execution System Market Opportunity



  • Increasing penetration of MES in industrial internet of things (IIOT)


Over the past five years, industrial Internet of things (IIOT) technology has advanced rapidly and has been envisioned as an integral part of the manufacturing industry impacting all the areas from planning till delivery. In the IIOT environment, cross communication and interaction between components have increased owing to the increased amount of data. To reduce the cost of communication and increase the efficiency of these systems, ME systems are used as middleware as they act as a bridge between enterprise resource planning (ERP) software and machine data. They help in streamlining factory floor operations by managing and monitoring the-progression of all the ongoing activities, thereby providing real-time visibility and enabling traceability of both materials and products. As Industry 4.0 and IIOT are increasingly being adopted in manufacturing plants, the agility and interoperability of MES are expected to become upgraded to manage the additional complexities of businesses. Furthermore, the enhanced MES solutions are expected to be interconnected with multiple platforms and equipped with sophisticated functionalities that can handle adverse situations on the shop floor in real time. Thus, MES acts as a bridge between various plant floor systems, thereby providing an integrated ecosystem for the exchange of information in real time, thus enabling better decision making.


Modern Manufacturing Execution System Market Segmentation


The global modern manufacturing execution systems market has been segmented into component, deployment, and discrete industry.


Based on component, the global Modern Manufacturing Execution System Market is segmented into software and services.


Based on deployment, the global Modern Manufacturing Execution System Market is segmented into cloud, on-premises, and hybrid.


Based on discrete industry the global Modern Manufacturing Execution System Market is segmented into electronics, automotive, medical, FMCG, aerospace & defense, and others.


Modern Manufacturing Execution System Market Regional Analysis


Geographically, the global modern manufacturing execution system market has been segmented into North America, Europe, the Middle East & Africa, and South America.


North America is likely to lead the modern manufacturing execution system market. The players present in North America are one of the top players in the world. North America accounted for the largest market share of XX% in 2021, with a market value of USD XXX million; the market is expected to register a CAGR of 22.9% during the forecast period. Europe was the second-largest market in 2021, valued at USD XXX million; the market is projected to exhibit a CAGR of 16.8%. However, the Modern Manufacturing Execution System Market in Asia-Pacific is expected to register the highest CAGR of 23.8%.


GLOBAL: MODERN MANUFACTURING EXECUTION SYSTEM MARKET, BY REGION, 2021 (% SHARE)
MODERN MANUFACTURING EXECUTION SYSTEM MARKET, BY REGION, 2021 (% SHARE)
Source: Industry Expert, Secondary Research, and MRFR Analysis


Modern Manufacturing Execution System Market Competitive Landscape


The market for modern manufacturing execution system software has been witnessing a significant growth over the forecast period owing to growing need of real-time visibility and increasing demand for industrial automation. There exist several local, regional, and global players in the modern manufacturing execution system software market who continuously strive to gain a significant share of the overall market. During the study, MRFR has analyzed some of the major players in the global modern manufacturing execution system software who have contributed to the market growth. These include Rockwell Automation, Dassault Systemes, General Electric Company, SAP SE, Siemens AG, ABB LTD, Emerson Electric Co., General Electric Company, Applied Materials, Inc., Werum IT Solutions GMBH, Honeywell International Inc., Tebis Technische Informationssyteme Ag.


Recent Developments



  • In July 2021, Dassault Systèmes introduced ERP and MES solutions DELMIAworks in India for advanced manufacturing. The company’s single database architecture provides comprehensive interoperability and drill-down capabilities from order, production, inventory, shipping, and more.

  • In July 2021, Rockwell Automation announced the acquisition of Plex system, a cloud-based software company. Rockwell automation acquired it for USD 2.22 Billion, the acquisition helped the company expand its product offering for manufacturing execution systems, and the acquisition aims to help manufacturers accelerate their digital transformation.

  • In June 2021, ABB Ltd signed an agreement with Sappi Limited. With this agreement, ABB Ltd's key focus will be on the digital transformation across Sappi's entire production fleet.


Report Overview


This study estimates revenue growth at global, regional, and country levels and offers an overview of the latest developments in each of the sub-sectors from 2018 to 2030. For this analysis, MRFR segmented the global modern manufacturing execution system market has been segmented based on Component, Deployment, and Discrete Industry.


By Component



  • Software

    • Enterprise Resource Planning

    • Warehouse Management

    • Product Lifecycle Management

    • Others



  • Services

    • Consulting & Development

    • Training & Support

    • Integration

    • Others




By Deployment



  • Cloud

  • On-premises

  • Hybrid


By Discrete Industry



  • Electronics

  • Automotive

  • Medical

  • FMCG

  • Aerospace & Defense

  • Others



Report Scope:

Report Attribute/Metric Details
  Market Size   2021- USD: 18,100.5 million 2030- USD: 97,310.2 million
  CAGR   20.5%
  Base Year   2021
  Forecast Period   2022-2030
  Historical Data   2020
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   • By Component (Software and Services) • By Development (On-Premise, On-Cloud, and Hybrid) • By Discrete Industry (Automotive, Aerospace & Defence, Medical, FMCG, Electronics, and Others)
  Geographies Covered   North America, Europe, Aisa Pacific
  Key Vendors   • Siemens AG • ABB LTD • Emerson Electric CO. • General Electric Company • Applied Materials Inc • SAP SE • Werum IT Solutions • Rockwell Automation Inc • Dassault Systemes • Honeywell Internationational Inc • Tebis Technische Informationssyteme AG
  Key Market Opportunities   Increasing penetration of MES in industrial internet of things (IIOT)
  Key Market Drivers   o Increasing demand for industrial automation o Growing need of real-time visibility


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Frequently Asked Questions (FAQ) :

North America regional market is projected to be the major driver of the market.


 

The segments in the market are Component, Deployment, and Discrete Industry.

The major contenders in the global market are Rockwell Automation (US), Dassult Systems (France), General Electric Company (US), SAP SE (Germany), and Siemens AG (Germany).

A few major market players operating in the global modern manufacturing execution system market are SAS Institute, Inc (US), Honeywell International Inc. (US),IBM Corporation (US), Dassault Systèmes (France), SAP SE (Germany), among others.