Modern Manufacturing Execution System Market Research Report - Global Forecast till 2027

Global Modern Manufacturing Execution System Market Research Report: By Component (Software (Enterprise Resource Planning (ERP), Warehouse Management, Product Lifecycle Management (PLM)), Service (Consulting & Development, Training & Support, Integration Service)), Deployment (Cloud, On-Premise), Discrete Industry (Electronics, Automotive, Medical, FMCG, Aerospace & Defense) - Forecast till 2027

ID: MRFR/ICT/0588-CR | January 2019 | Region: Global | 152 pages

Modern Manufacturing Execution System Market Analysis


The manufacturing execution system (MES) market is predicted to touch USD 46,376.8 million at a healthy 15.41% CAGR between 2019- 2027, reveals the latest Market Research Future (MRFR) report. The strong modern manufacturing execution system market growth can be accredited to the low installation cost.


COVID-19 Analysis


The novel coronavirus has created its impact on most industries. On the one hand, the healthcare domain experienced positive growth during this crisis, while on the other, the global modern manufacturing execution systems market has been impacted neutrally. Worldwide lockdowns imposed by the governments have led to a temporary halt of manufacturing facilities keeping aside industries that produce essential goods that are hampering the market growth.


Fortunately, the pharmaceuticals market did not fall prey to this outbreak due to the growing need for medications to curb the spread of this deadly disease. The pharmaceutical manufacturers have faced a lot of challenges like compliance with regulatory and safety guidelines and the growing diversification of product portfolio, which is being overcome with the help of MES. Mostly, the companies are focused on reducing operational prices and laying emphasis on diversifying their product range to maximize gains and minimize risks. Indirect labor cost is being reduced with the help of modern manufacturing execution systems in plants through the automated accumulation of data from various sources. Thus, modern manufacturing execution systems play a crucial part in the on-going crisis, as they help to control the production process better and also boost the efficiency of operations.


In most countries, the development of advanced products is likely to bolster market growth after the lockdown. Modern manufacturing execution systems are predicted to assist manufacturing facilities in overcoming the challenges resulting from the pandemic and offering perks like quality management, productivity enhancement, and profit maximization.


Market Dynamics


Drivers


Rising IoT Penetration across Different Industries to Bolster Market Growth


The surging penetration of the internet of things technology across various industries for promoting automation is likely to bolster market growth. IoT technology helps manufacturers in creating, streamlining, and collapsing system architecture in an affordable, responsive, and effective way. This technology also helps interaction and communication between industrial devices to offer industries optimal performance and better flexibility. The proliferation of the industrial (IoT) internet of things is predicted to fuel the installation of MES in the future. IoT is furthermore pushing advances like cloud computing, big data analytics, and industrial mobility.


Other factors adding to the modern manufacturing execution system market revenue include the increasing adoption of MES in power, food and beverage, and water & wastewater treatment industries, need for tracking real-time data, enhancing data visibility, and controlling off-site development operation, increasing use of industrial automation in discrete and process industries, increasing demand in FMCG, demand for manufacturing execution systems software, and burgeoning demand in the automotive and chemical industry. Besides, the growing demand for automation in the oil and gas industry to develop production effectiveness, and increasing technological advances, is also adding to the MES software market growth.


Opportunities


Integration with PLM and ERP to offer Robust Opportunities


The growing integration of MES with solutions such as PLM and ERP is likely to offer robust opportunities to key players. 


Restraints


Complexity of Technology to Act as a Market Restraint


The complexity of technology, long installation period, wide-scale implantation, and rising distortion, are factors that may restrain the growth of the market between the forecast period.


Challenges


High Cost to Act as a Market Challenge


High initial cost coupled with lack of awareness about the benefits of MES system may challenge market players in the future.


Market Segmentation


Modern Manufacturing Execution System Market has been segmented based on Discrete Industry, Deployment, and Component.


Component-based Service Segment to Lead the Market


By component, the global modern manufacturing execution system market is segmented into service and component. The service segment is further segmented into integration service, training and support, and consulting and development. The software segment is further segmented into product lifecycle management (PLM), warehouse management, and enterprise resource planning (ERP). Of these, the service segment will lead the market over the forecast period. Improved efficiency and the ability to reduce time and wastage are adding to the growth of the segment.


Deployment-based On-premise Segment to Dominate the Market


By deployment, the global manufacturing execution system market is segmented into a hybrid, on-premise, and cloud. Of these, the on-premise segment will dominate the market over the forecast period. On-premise modern manufacturing execution system solutions are widely used in different sectors like water and wastewater, chemicals, energy and power, pulp and paper, food and beverages, pharmaceutical and life sciences, and oil and gas, which are adding to the growth of the segment. MES helps to manage systems on the premises, thus reducing cost and time. It also offers control over the data as well as improves the security level. 


Discrete Industry-based Automotive Segment to Spearhead the Market


By discrete industry, the global manufacturing execution system market is segmented into aerospace and defense, FMCG, medical, automotive, electronics, and others. Of these, the automotive segment will spearhead the market over the forecast period.


Regional Analysis


North America to Lead the Market


By region, the global modern manufacturing execution systems market covers the opportunities and recent trends across Europe, North America, the Asia Pacific (APAC), and the Rest of the World (RoW). Of these, North America will lead the market over the forecast period. It is likely to grow at a 15.3% CAGR over the forecast period. Growing demand in different industries such as power, food and beverage, and water & wastewater treatment industries, initiatives undertaken by the government to adopt Industry 4.0, and growing technological advances to manufacture industry and machinery tools are adding to the global modern manufacturing execution systems market growth in the region. Additional factors adding to the modern manufacturing execution system market size include accessibility of several manufacturing industries, rising start-up culture, the growing use of MES in discrete and process industries, and the presence of leading players manufacturing MES solutions.


Europe to Hold Second-Largest Share


In Europe, the global modern manufacturing execution systems market is predicted to hold the second-largest share over the forecast period. It is predicted to grow at a 14.1% CAGR over the forecast period. The presence of several top manufacturing industries such as military vehicles, shipbuilding, machinery and equipment, automotive, aerospace, and others, EU being the largest car producer, presence of many premium automotive manufacturers, the presence of 300 manufacturing facilities and vehicle assemble located in 21 countries, and the presence of robust manufacturing sector that is spread across industries are adding to the global modern manufacturing execution systems market in the region. Additional factors adding to the modern manufacturing execution system market share include the rapid adoption of industrial automation and IoT and key players investing heavily in R&D activities. 


Competitive Landscape


The modern manufacturing execution system market is fragmented, with an increase in mergers and acquisitions, consolidated in the MES have been seen in the last few years. The players that are operating in the market are focused highly on product development to provide their customers with enhanced services and solutions.


Modern Manufacturing Execution System Market Key Players



  • Tebis Technische Informationssysteme AG (Germany)

  • Honeywell International Inc. (US)

  • Dassault Systèmes (France)

  • Rockwell Automation Inc. (US)

  • Siemens AG (Germany)

  • Applied Materials Inc. (US)

  • Werum IT Solutions GmbH (Germany)

  • Emerson Electric Co. (US)

  • SAP SE (Germany)

  • ABB Ltd (Switzerland)

  • General Electric Company (US)


Recent Developments



  • December 2020- ATS (AT Systematization Bhd) will soon begin the production of gloves, thus making it the foremost amid new glove players for bringing its production in the market. The manufacturing center will be made ready for the future for the Industrial 4.0 ecosystem and equipped with MES to offer production monitoring & control in real-time, monitoring and output control, and record retention to abide by standard regulations.



Frequently Asked Questions (FAQ) :


The APAC modern manufacturing execution system market is anticipated to record a substantial market valuation of USD 46.3 billion over the review period.

The global modern manufacturing execution system market is projected to register a moderate 15.41% CAGR in the forecast period.

Technological advancements, rapid urbanization are increasing the adoption of LTE technology for public safety.

the high maintenance cost is likely to hamper the growth of the public safety LTE market over the review period.

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.