Manufacturing Execution System Market Dynamics
Drivers: Increasing demand for massive production and a connected supply chain
The need for a connected supply chain in industrial industries is one of the key drivers of the manufacturing execution system market. Effective data transmission across the business is crucial for enabling effective manufacturing activities. Factories could use IoT systems to track inventory, report on the supply chain, and locate manufactured goods. Another advantage of connected manufacturing solutions is the straightforward data flow throughout the entire supply chain, which makes it easy for businesses to adjust to the changing market conditions.
Restraints: High-cost installation & maintenance
The investment cost of the manufacturing execution system will raise a company's expenses because it includes acquisition, adjustment, consultation, installation, and running costs. The MES's capital expenditures are particularly high because they include a number of services related to this system, whose implementation varies by industry. Costs associated with manufacturing execution systems, primarily implementation and operating expenses, will drive up costs for a business. Manufacturing execution systems can be quite pricey due to the program's complexity and additional costs like custom integration.
Opportunities: Increasing MES investment to improve energy efficiency and sustainable production
Many large corporations and SMEs are adopting manufacturing execution systems since they enhance manufacturing procedures. These technologies' ability to increase output, reduce costs, improve quality, and provide real-time data collection and product tracking help production efficiency. It is anticipated that this aspect will encourage the adoption of these systems to increase revenue. The amount of waste and energy used during the manufacturing process is also reduced due to manufacturing execution systems. For instance, installing an MES system on the shop floor reduces the need for paperwork and physical storage space without adding to the IT workload.
The hybrid category is estimated to be the largest growth in the manufacturing execution system market during the forecast period
The hybrid category dominated the market. It is anticipated that this market will witness considerable growth in demand over the next several years due to the increased importance of tracking real-time information about the various operations in oil & gas fields around the world and the growing deployment of manufacturing execution systems in the oil & gas industry. Additionally, hybrid deployment's capacity to offer additional storage and significantly increase data security lures manufacturers to adopt these solutions globally.
Automotive is estimated to be the largest growing market category during the forecast period
The automotive category is projected to grow the fastest during the forecast period due to the growing consumer purchasing power and popularity of automobiles; people worldwide are compelled to spend more money on comfortable vehicles. The number of vehicles on the road worldwide is increasing quickly, which has led to higher adoption of manufacturing execution systems among automobile manufacturers.
North American segment is estimated to be the largest growing market during the forecast period
North America is the largest manufacturing execution system market and is projected to grow fastest during the forecast period. Key elements expected to propel the market growth in the region include the substantial presence of manufacturers of manufacturing execution systems, including Honeywell International Inc., Oracle Corporation, Emerson, and Rockwell Automation, as well as their sound financial standing, which allows them to invest more in cutting-edge products and technologies. In addition, it is expected that growing consumer awareness of new innovations and the accessibility of these systems in developed nations like the United States and Canada will significantly impact the expansion of the regional market in the years to come.
Key Market Players
The manufacturing execution system market is dominated by a few global players and comprises several regional players. Some key manufacturers operating in the market are ABB LTD, Tebis Technische Informations syteme AG, Werum IT Solutions Gmbh, Dassault Systems, Rockwell Automation Inc., Honeywell International Inc., Emerson Electric CO., General Electric Company, Siemens AG, Andea Solutions, Oracle Group, Siemens AG and Samsung Group of Companies.
- In July 2022, ABB and SKF, a Swedish manufacturer of bearings and seals, had a Memorandum of Understanding (MoU). This Memorandum of Understanding would examine the potential for cooperation in the automation of manufacturing processes. As part of the agreement, SKF and ABB would look for and evaluate ways to improve manufacturing production and assist clients in having more efficient production processes.
- In September 2021, a renowned producer of electrical and electronic equipment, C&S Electric Limited, was acquired by Siemens. This acquisition aimed to concentrate on power generation and distribution, automation and digitalization in the procedure and manufacturing sectors, and intelligent infrastructure for buildings and distributed energy systems.
Global Manufacturing Execution System Market – By Offering
- Food & Beverages
- Oil & Gas
- Pulp & Paper
- Pharmaceuticals & Life Sciences
- Energy & Power
- Water & Wastewater Management
- Medical Devices
- Consumer Packaged Goods
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- South-east Asia
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- GCC Countries
- South Africa
- Rest of Middle East and Africa