ID: MRFR/ICT/9040-CR | April 2021 | Region: Global | 146 pages
A manufacturing execution system (MES) is an information system that monitors, connects, and controls complex data flows and manufacturing systems on the factory floor. A manufacturing execution system's primary objective is to ensure the effective implementation of the manufacturing operations and enhance the production output. For instance, AVEVA Group PLC offers manufacturing execution systems for the hybrid and batch manufacturing processes. It helps in maximizing the quality, profitability, and compliance of manufacturing operations. Manufacturing execution system has been used in manufacturing processes in several ways to increase productivity, reduce labor cost, and streamline production processes. The US and Japan were the initial leaders in this area, and soon it gained popularity in other countries as well. Europe also showed significant pace in terms of the development and adoption of manufacturing execution system solutions.
MES systems have been evolving, and their capabilities are broadening; this helps manage the internal quality and supply chain. In addition to its core functions, an MES helps manufacturers overcome the challenge of regulatory compliance set by the Food and Drug Administration (FDA) for regulated industries such as food and beverage, pharmaceuticals, medical device class, and biotechnology.
In 2019, the global modern manufacturing execution system market generated a revenue of USD 13,364 million; it is expected to reach a value of USD 46,607million by 2027 growing at a CAGR of 16.1%. Presently, the low deployment cost, increasing industrial automation, the adoption of factory automation technologies, and the importance of regulatory compliance are the driving factors for this market. Globally, as more and more manufacturing companies adopt the latest automation technologies to improve their operational processes, it will create market opportunities for manufacturing execution system providers. However, high investments and costs involved in the maintenance and upgrade of manufacturing execution systems act as restraining factors for the market.
The global modern manufacturing execution system market is segmented based oncomponent, deployment, discrete industry, andregion. Based on component, the modern manufacturing execution system market has been segmented intosoftware and services. Based on deployment, the modern manufacturing execution system market has been segmented into on-premise, on cloud, and hybrid.Based on discrete industry, the modern manufacturing execution system market has been divided into Automotive, Aerospace & Defense, Medical,FMCG,Electronics,Others.
Geographically, the modern manufacturing execution system market has been segmented into North America,Asia-Pacific,Europe, and the rest of the world.
The modern manufacturing execution system (MES) market has been categorized into four regions—North America, Europe, Asia-Pacific, and the rest of the world. The rest of the world segment has been further divided into the Middle East & Africa and South America. North America led the modern manufacturing execution market in 2019, whereas Asia-Pacific is expected to be the fastest-growing region in the modern manufacturing execution market during the forecast period. Europe followed North America in the modern manufacturing execution market in terms of market share in 2019.
North America held the largest market share of 32.0% in 2019, with a market value of USD 4,271.4 million; it is expected to register a CAGR of 16.2% during the forecast period. The Asia-Pacific region was the second-largest market in 2019, valued at USD 3,779.1 million; it is projected to exhibit a CAGR of 14.5%. However, Europe is projected to register the highest CAGR of 19.5% during the forecast period 2018–2027.
Key Companies Profiled
The key players of the global modern manufacturing execution system market include Siemens AG (Germany), ABB LTD (Switzerland),Emerson Electric CO. (US), General Electric Company (US), Applied Materials Inc (US), SAP SE (Germany),Werum IT Solutions Gmbh (Germany), Rockwell Automation Inc (US), Dassault Systemes (France),Honeywell Internationational Inc (US), and Tebis Technische Informationssyteme AG (US).
In July 2020, Rockwell Automation’s Pharma Suite provided value-based applications to adhere to regulatory compliance guidelines, achieve operational excellence, increase the supply chain's effectiveness, and meet sustainability goals.
In March 2020, Werum IT Solutions opened an Irish subsidiary to better serve the large and growing number of customers with PAS-X installations in Ireland and the UK.
In March 2020, Dassault Systèmes announced a collaboration with Geico Taikisha, a global leader in the planning and construction of turnkey automotive car painting systems, on a joint initiative to improve the production flexibility of automotive manufacturers in an era of increasing mass customization.
In January 2020, Werum IT Solutions announced the launch of K.ME-IN, a biometric authentication solution in partnership with Nymi for Werum’s PAS-X Manufacturing Execution System (MES)
In May 2018, Emerson released a software application that reduces the time taken to release therapies and medication to patients by minimizing the time required for reviewing product quality. The new application is delivered as a part of Emerson’s Syncade manufacturing execution system (MES), thus, allowing quality and manufacturing personnel to safely release batches and reduce the transit time from the inventory to the market.
Impact of Covid-19
National governments of key economies that are supported by the manufacturing and service sectors have legislated nationwide lockdowns during the ongoing COVID-19 pandemic. Citizens are practicing social distancing to counter the increasing number of infections. During this crisis, manufacturing operations are being performed at minimal efficiency due to legislative policies aimed at keeping employees safe and combating the spread of infections. The advent of the COVID-19 pandemic resulted in a sudden lack of productivity and a sharp decline in the global manufacturing industry growth rate. However, as businesses and employees are getting accustomed to the COVID-19 way of operations, procurement of supporting technologies is increasing, which in turn is hinting at a recovery in the growth rate.
COVID-19 has introduced significant humanitarian challenges globally, and these challenges are forcing the world to address new types of collaborations. As businesses restructure and reboot operational processes as per the new COVID-19 guidelines, an opportunity to strategize digitalized and resilient operations is emerging. Early progress suggests that manufacturing businesses can begin their ‘Industry 4.0’ journey with small-scale implementations and later scale quickly, provided they commit industry 4.0 transformations that are in line with business environments and strategic goals. These businesses will execute digitalization using triple transformative approaches.