The Manufacturing Execution Systems Market was valued at USD 11.56 billion in 2020 and is expected to reach USD 27.3 billion by 2026, at a CAGR of 15.4% over the forecast period (2021-2026). The increasing shift towards production orders, process steps, and instructions and documentation with information pulled directly from ERP and other enterprise business systems is driving the adoption of manufacturing execution systems.
- With the growing adoption of Industry 4.0 and the Industrial Internet of Things (IIoT) in plants, the agility and interoperability of Manufacturing Execution System (MES) has become even more strategic to manage the additional complexity and future-proof businesses.
- Moreover, Industry 4.0 is transitioning industries, from having legacy systems to smart components and smart machines, to facilitate digital factories, and later, to an ecosystem of connected plants and enterprises. Industry 4.0 has persuaded OEMs to adopt IoT across their operations. Anticipating the increased adoption of IoT and digital transformation across industries, the European Commission estimated that the value of IoT in Europe itself is expected to exceed EUR 1 trillion in 2020.
- According to a survey conducted by Jabil (a prominent manufacturing services company based in the United States) in 2018, around 94% of manufacturing companies reported that they were making investments in areas, such as IoT, intelligent digital supply chains, additive manufacturing, and automation, etc. According to Capgemini, potential-use cases’ implementation across IoT in the manufacturing sector includes production asset maintenance, manufacturing intelligence, and product quality optimization.
- But in recent years, driven by labor shortages, and enabled by more automated machining systems, Manufacturing Execution Systems (MESs) have been picked up by multiple wood manufacturing firms. Examples range from the smaller businesses such as Muskoka Cabinets in Ottawa; or garage cabinetry firm Monkey Bar Storage Systems, in Rexburg, Idaho; to mammoth-sized firms like American Woodmark, among hundreds of others.
Key Market Trends
Pharmaceutical and Life Sciences Industry to Hold Significant Share
- With the continuously evolving trends in the pharmaceutical industry, manufacturers are experiencing increased pressure to keep pace and modify their operations to meet changing needs. Manufacturing Execution Systems (MES) enable the pharmaceutical industry to reduce production costs and improve compliance with regulatory requirements significantly.
- MES has been successfully implemented within the pharmaceutical & life sciences industry since the Food and Drug Administration (FDA) decreed the final 21 Part 11 regulations on 21 March 1997. These have provided criteria for the acceptance by the FDA, under certain circumstances, of electronic signatures, electronic records, and handwritten signatures executed to electronic records as equivalent to paper records and handwritten signatures executed on paper.
- Moreover, the growing concern towards counterfeit drugs entering the supply chain has resulted in the adoption of global track and trace regulations to protect patient safety and ensure product integrity. The EU Falsified Medicine Directive (EUFMD), the US Drug Supply Chain Act (DSCSA), and other global regulations mean that manufacturers are now trying to ensure compliance and add innovative technologies and increase the resources to manage the additional administrative burden. The use of barcodes and serialisation numbers, as well as the incorporation of RFID tags inside the packaging equipment, are all measures that are being taken to improve the quality of traceability and tracking.
North America to Hold Major Share
- North America is expected to continue to hold the significant share of the MES market over the forecast period, majorly due to the presence of several significant MES vendors, such as Honeywell (United States), and Oracle Corporation (United States), Emerson (United States), and Rockwell Automation (United States) among others which drive innovation. Hence, there is intense competition among the players.
- Moreover, North America’s strong financial position enables it to invest heavily in advanced solutions and technologies that have provided a competitive edge in the market. Also, the region is viewing several partnerships by market players, which is helping them combine their solutions and offerings to increase their market presence.
- The ongoing continuous expansions and investments toward digitization across the industries in the region are one of the potential opportunities for the market. Growth in the number of SMEs and the increasing digitization in the manufacturing functions by large organizations, such as IBM and General Electric, are aiding the growth of the IoT market in the regional manufacturing segment. SMEs are becoming increasingly flexible to incorporate new technologies with their existing systems, whereas large manufacturers have substantial budgets for digitization. This is enabling the adoption of EMS.
The MES market is highly fragmented. Leading MES vendors continue to enhance and extend core capabilities, as well as expand the breadth of their application footprints, adding MOM capability as well as additional hosting and licensing options. Enterprise vendors are leveraging their application breadth and platform expertise to make MES part of a digital thread.
- October 2019 - Rockwell acquired MESTECH Services, a Through this expansion, the company aims to expand its capabilities to profitably grow Information Solutions and Connected Services globally and accelerate Rockwell’s ability to help its customers execute digital transformation initiatives
- April 2019 - Emerson acquired Bioproduction Group (Bio-G), Through this acquisition Bio-G’s scheduling and modeling systems combined with Emerson’s extensive life sciences technology and expertise portfolio will help companies bring therapies for cancer, diabetes and other illnesses to patients sooner.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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1.2 Scope of the Study
4.2 Market Drivers
4.2.1 Adoption of Digitisation to Improve Production
4.2.2 Introduction of Cloud Technology to Consolidate Information
4.3 Market Restraints
4.3.1 High Investment and Running Costs Involved in Implementation and Upgrade of Manufacturing Execution Systems for Small-Scale Production
4.3.2 Lack of Awareness Regarding Benefits of MES Solutions Among SMEs
4.4 Industry Attractiveness - Porter's Five Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5.2 By Deployment
5.3 By End-user Industry
5.3.1 Food & Beverage
5.3.2 Oil & Gas
5.3.3 Pharmaceutical & Lifesciences
5.3.5 Electronics & Semiconductor
5.3.6 Other End-user Industries
5.4.1 North America
5.4.4 Rest of World
6.1.1 Siemens AG
6.1.2 Rockwell Automation
6.1.3 SAP SE
6.1.4 ABB Ltd.
6.1.5 Dassault Systemes S.A.
6.1.6 Honeywell International Inc.
6.1.7 AVEVA Group PLC
6.1.8 Applied Materials Inc.
6.1.9 Oracle Corporation
6.1.10 General Electric Company
6.1.11 Emerson Electric Co.
6.1.12 Epicor Software Corporation
A selection of companies mentioned in this report includes:
- Siemens AG
- Rockwell Automation
- SAP SE
- ABB Ltd.
- Dassault Systemes S.A.
- Honeywell International Inc.
- AVEVA Group PLC
- Applied Materials Inc.
- Oracle Corporation
- General Electric Company
- Emerson Electric Co.
- Epicor Software Corporation