Modern Manufacturing Execution System (MES) companies offer software solutions to monitor and manage manufacturing processes in real time. These systems help manufacturers improve productivity, quality control, and traceability. Leading MES companies include Siemens, Rockwell Automation, and Dassault Systèmes.
Competitive Landscape of Modern Manufacturing Execution System Market
The modern Manufacturing Execution System (MES) market is experiencing significant growth, driven by the increasing need for real-time visibility and industrial automation. This dynamic landscape boasts a mix of local, regional, and global players vying for market share.
Key Players and Strategies:
Strategies adopted by key players include:
Factors for Market Share Analysis:
New and Emerging Companies:
Several new and emerging companies are entering the MES market, offering innovative solutions and niche functionalities. These companies are challenging the established players by focusing on specific areas such as:
Current Company Investment Trends:
Latest Company Updates:
July 2023-
A top leader in MES or manufacturing execution systems for worldwide, multi-site operations, Critical Manufacturing has expanded into Mexico and reinforced its commitment for offering innovative discrete solutions & driving digital transformation all over the manufacturing landscape of Latin America. Recognizing the increasing trend of organizations establishing production facilities within Mexico for serving American manufacturing systems, the company acknowledges the significance of expanding their operations to suffice this need. The commitment of the company to offer localized support & expertise will allow manufacturers in accelerating their digital transformation journeys and attain operational excellence.
May 2023-
L&T Technology Services, a popular pure-play engineering services organization, lately announced its partnership with Critical Manufacturing, a provider of future-ready, innovative manufacturing execution systems (MES). This strategic alliance sees the companies working initially with multi-national engineering group, Danfoss for implementing an all-inclusive digital framework which harnesses advanced technologies and also next-gen capabilities. LTTS works with the plant operators across the globe for optimizing efficiency, improving productivity, and simplifying operations and at the same time ensuring compliance with the global sustainability standards.
The Critical Manufacturing MES has been made from ground-up for embracing industry 4.0 technology and offer an all-inclusive pathway towards smart manufacturing of the complex and sophisticated products. This strategic alliance firstly sees the organizations working with the multi-national engineering group called Danfoss with an aim for implementing an all-inclusive digital framework. This digital framework will harness next generation capabilities as well as cutting edge technologies. The platform will aid in standardizing operations and also processes for improving business process outcomes, risk management, and compliance.
Modern Manufacturing Execution System Market Size was valued at USD 11.2 Billion in 2022. The Modern Manufacturing Execution System market industry is projected to grow from USD 13.1 Billion in 2023 to USD 34.5 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 14.83% during the forecast period (2023 - 2030). Increasing focus towards hyperautomation, government focus on digital transformation, and integration of new technologies drive the market growth.
Government focus on digital transformation is propelling this market growth
In today’s era, citizens expect more connected and personalized experiences with government initiatives and plans. This surge in citizen thought processes has compelled many governments or organizations such as WHO, UNESCO, IMF, and others worldwide to work over this structure. Also, with the advent of COVID, governments have implemented automated messages daily to reach billions of people about safety and vaccination processes. In addition, the government has automated processes for the helpline and provides medical facilities on time to the citizens who need them.
Figure 1: Digital Transformation market growth
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Some of the references to increasing digital transformation can also be seen in the below examples:
Government of India initiatives towards AADHAAR (citizen identification program), e-health, Digital payments (BHIM), e-education (SWAYAM), digital farming, direct benefit transfer (DBT), self-manufacturing units in semiconductors and electronics and digitization of cyber and overall law process structuring due to COVID where all records are saved now digitally are the driving factor of digital transformation in India.
Furthermore, the Singapore government is also taking digital transformation initiatives by creating platforms to access more than 3,000 government datasets to citizens and launching 110 interactive smartphone applications to create awareness of government plans and initiatives.
Government inclination towards creating new digitized policies and adopting technologies proliferate the demand for digital transformation, especially in developing nations, is one of the key factors expected to fuel the growth of digital transformation in the coming years.
This growth of digital transformation will enhance the pathway for modern MES systems through the forecast period.
Based on application type, the Modern Manufacturing Execution System market segmentation includes FMCG, Medical, Automotive, Electronics, Aerospace & Defense, among others. The FMCG application type dominates the market. This segment is also expected to show revenue growth at a CAGR of 15.10% throughout the forecast period. Fast-moving consumer goods are non-durable items that are inexpensive and sell quickly. Milk, gum, fruit and vegetables, toilet paper, soda, beer, and over-the-counter medications like aspirin are a few examples of FMCGs. Businesses in the retail industry typically sell goods that cover a variety of product types, pricing, and profit margins. Fast-moving consumer goods, commonly called CPGs, are products that sell quickly and inexpensively. Although simple to dismiss, FMCGs are nonetheless crucial to retail operations.
In December 2023, the Model Digital Factory Demonstration facility was opened by the National Manufacturing Institute of Scotland in 2019 due to cooperation with the enterprise technology firm Infor. Supply chain concerns, unstable economic conditions, and a shortage of experienced people, a predicted downturn in the manufacturing sector is anticipated to be lessened by the opening of the new MDFD facility.
Figure 2: Modern Manufacturing Execution System Market, by Application Type, 2022 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Aerospace & Defense segment is the second-largest application category for the Modern Manufacturing Execution System market. This category is estimated to show revenue growth at a CAGR of 13.12% in the upcoming years. In the aerospace and defense sectors, where businesses such as Boeing and Airbus have been producing components using 3D printing for more than two years, with Airbus most recently fabricating 1,000 pieces to meet A350 delivery targets. Moreover, the U.S aerospace and defense firms have long been producing substantial cash reserves. Additionally, top aerospace and defense contractors have funds available in the tens of billions of dollars.
Due to an existing infrastructure, it is projected that the adoption of such systems will be somewhat sluggish. As a result, system providers need to determine which sectors could adopt industrial execution systems relatively quickly and easily. However, the high cost of manufacturing execution system deployment hinders this market's growth. Even though, there are prospects in the sector, such the rising use of MES in industrial IoT.
February 2023: - The cloud-based manufacturing execution systems with GE Digital lower total cost of ownership by up to 30% while also requiring less maintenance and enhancing security. Newly improved cloud-based MES software offers composable, inexpensive OEE, production, and quality management for manufacturers of any size.
February 2023 - Visteon announced net sales of $3,756 Billion, driven by the introduction of new products, favorable pricing, and an increase in customer automobile manufacturers. Additionally, the ramp-up of freshly launched items, favorable pricing, and an increase in client vehicle manufacturing all contributed to the growth of their sale.
Based on product type, the Modern Manufacturing Execution System market segmentation includes Software and Services. The software segment accounted for the largest market share and is also anticipated to hold the top place throughout the forecast period. Moreover, this category is also estimated to show revenue growth at a CAGR of 15.04% in the upcoming years. Additionally, due to the increased demand for real-time visibility and industrial automation, the market for modern manufacturing execution system software has seen substantial expansion throughout the forecast period.
For instance, an innovative user certification training program for SPD Pro and its Production Management System was introduced by in sequence in July 2023. With the help of this new curriculum from in sequence University Software, clients of the company can better comprehend their use of in-sequence products. This could result in improved proficiency, efficiency, and cost savings.
The second-highest component is anticipated to be the services section. Also, the market is growing as a result of increased R&D spending on the creation of automation technologies and services due to the significant presence of prominent players and established development centers.
Based on deployment type, the Modern Manufacturing Execution System market segmentation includes on-premises, cloud, and hybrid. The on-premises segment is anticipated to grow revenue at a CAGR of 13.04% over the forecast period. Whether the apps are kept on-premises, in the cloud, or on the edge, software and applications enable remote workers to speed up the production of operational data-driven choices and are scalable to handle massive volumes of data.
MES has traditionally been provided as an on-premises system, but many companies now offer cloud alternatives. Some providers offer both alternatives, which reduce the disruption caused by the move to the cloud. Older MES solutions have been migrated to the cloud without significantly changing the source code. However, new suppliers typically offer cloud-only MES software, which has the main advantage of being created for the cloud.
Furthermore, track and trace regulations have been adopted to protect patient safety and guarantee product integrity in response to the increasing concern about fake medications entering the supply chain. Manufacturers are now trying to ensure compliance by introducing novel technology and increasing resources to manage the high administrative cost due to the EU Falsified Medical Directive, the US Drug Supply Chain Security Act, and other international legislation.
By Region, this market has been segmented into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific Modern Manufacturing Execution System market accounted for USD 4.0 Billion in 2022 and is expected to exhibit a 17.5% CAGR during the forecast period. Due to countries such as China, Japan, South Korea, and India, there is a significant demand for constructing execution frameworks in the Asia Pacific region. The business of constructing execution frameworks is the one that has been growing the most.
Figure 3: MODERN MANUFACTURING EXECUTION SYSTEM MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Furthermore, due to rapid industrialization and a focus on manufacturing activities in industries such as car, consumer electronics, etc., India and China have the world's fastest-growing industries. China is anticipated to grow fastest due to the overwhelming need for manufacturing facilities there. This is finally anticipated to open up enormous possibilities for MES programming.
The current market for manufacturing execution systems is dominated by players concentrating on providing more industry-specific solutions, indicating the availability of suitable solutions for each unique requirement of a company. The availability of off-the-shelf functionality in MES is also offering lucrative chances for the growth of the manufacturing execution system industry, as it eliminates the need for expensive customized extensions to commercial products.
Major players in the manufacturing execution system market, including ABB Ltd, AVEVA Group plc, Dassault Systèmes, Siemens AG, and Honeywell International Inc., focus on developing innovative MES solutions to provide a comparable or higher level of expertise to the market for MES. To expand their product offerings and market reach, competitors in the manufacturing execution system market are also concentrating on inorganic growth tactics such as strategic partnerships and merger & acquisition operations with tech partners.
Accenture Plc
Andea Solutions Sp. z o.o.
Dassault Systems SE
Emerson Electric Co.
GE Digital
Rockwell Automation, Inc.
SAP AG
Siemens PLM Software, Inc.
Werum IT Solutions GmbH
Yokogawa Electric Corporation.
SAP SE
In February 2023: AVEVA released an updated version of its Manufacturing Execution System (MES) software, designed to support data center deployments. The new version aims to standardize and implement best practices more quickly and at scale, improving operational efficiency and sustainability. It also promotes supply chain resilience and agility by providing unified visibility, reporting, and KPIs across multisite operations.
February 2023: Using the most recent advancements in artificial intelligence, robotics, 3D-vision systems, and connected machines, L&T Technology Services Limited, a top pure-play engineering services provider, has unveiled a new suite of offerings focused on Industry 4.0 technologies for key verticals like transportation, medical devices, and high technology. For customers in North America, the engineering team at LTTS is also creating services and solutions that can be put into practice using transformative technology.
February 2023: In order to bring AI-driven processing technologies and autonomous intelligent machines to market, Xaba, the creators of the first AI-driven robotics and CNC machine controller, announced that a round of seed investment has been concluded. Hazelview Ventures was the investment round's principal investor, and Whiteshell Group Inc. also actively participated. With the funding, two Xaba manufacturing platforms would be developed more efficiently, pilot programs would be started, and the sales, deployment, and customer support teams would also expand.
In November 2022: Dürr Group implemented its own MES/MOM solution for manufacturing processes, developed in collaboration with iTAC. The solution provides real-time production monitoring and control across all Dürr production sites, serving as a best practice reference for the mechanical engineering industry.
On-Premises
Cloud
Hybrid
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
Modern Manufacturing Execution System Market Highlights:
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