Manufacturing Execution Systems Market by Offering (Software, Services), Deployment (On-premises, On-demand, Hybrid), Process Industry (Oil & Gas, Pharmaceuticals & Life Sciences), Discrete Industry (Automotive, Aerospace) - Global Forecast to 2029
[242 Pages Report] The global manufacturing execution systems market size is estimated to be valued at USD 14.9 billion in 2024 and is anticipated to reach USD 23.0 billion by 2029, at a CAGR of 9.2% during the forecast period. The market growth is ascribed to emerging trends in manufacturing execution systems, Increasing implementation of industrial automation in process and discrete industries, increasing demand for operational efficiency, increasing demand for high operational efficiency, and increasing complexity of manufacturing processes.
Manufacturing Execution Systems Market Forecast to 2029
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Manufacturing Execution Systems Market Trends
Driver: Increasing complexity of manufacturing processes
The increasing complexity of manufacturing processes is a key driver behind the adoption of Manufacturing Execution Systems (MES). This complexity reflects the intricacies of modern production, marked by advanced technologies, interconnected systems, and a growing demand for diverse and customized products. The integration of technologies like automation, robotics, and the Internet of Things (IoT) generates substantial data, requiring sophisticated systems such as MES for effective management and deriving actionable insights.
MES serves as a vital link in connecting manufacturing systems, facilitating smooth communication between different components, production stages, and overarching systems like enterprise resource planning (ERP) and supply chain management. It addresses challenges related to customized and complex products, multi-site operations, stringent regulatory requirements, and dynamic supply chains by offering real-time insights, coordination capabilities, and compliance tools. MES manages data overload, supports real-time decision-making, and mitigates operational risks, making it an indispensable tool for navigating and optimizing the intricate landscape of modern manufacturing processes.
Restraint: The complexity of integration of MES with pre-existing organizational systems
The Manufacturing Execution System (MES) revolves around the intricate obstacles faced while aligning MES with the pre-existing organizational systems. This complexity is rooted in the diverse landscape of systems, such as Enterprise Resource Planning (ERP) and legacy manufacturing systems, each presenting unique challenges related to data formats, communication protocols, and overall architecture. The need for customization further complicates the integration process, demanding a nuanced understanding of both MES and the specific operational requirements of the organization. Challenges extend to data compatibility issues, interoperability hurdles, and the imperative for effective coordination between different vendors. Additionally, prolonged integration timeframes can impact project deadlines, delaying the realization of MES benefits. User training, adaptation efforts, and data migration challenges contribute to the overall intricacy of overcoming this resistance.
Opportunity: Implementation of MES in the pharmaceuticals & life sciences industry
The pharmaceuticals & life sciences industry is subjected to increased competition, regulatory compliance, cost pressures, and patient safety standards. Manufacturers in pharmaceutical, medical devices, and life sciences sectors need to maintain a large amount of data. The manufacturing execution system software supports manufacturers to comply with the requirements of the FDA, providing centralized and real-time data for ensuring regulatory compliance. The software also ensures efficient and faster production, which will encourage companies to deploy this solution. Some companies in the pharmaceuticals & life sciences sector have already started implementing this software to support the timely execution of the production cycle.
Challenge: Data security concerns in the manufacturing industry
MES systems, which are responsible for managing crucial information related to production processes and quality control, face risks such as cyberattacks, unauthorized access, and data manipulation due to the growing connectivity of manufacturing systems. These vulnerabilities could result in breaches, intellectual property theft, production disruption, and compromised product quality. Maintaining data integrity, accuracy, and confidentiality is pivotal, especially in industries subject to stringent regulatory standards like GDPR. Addressing supply chain risks is essential, given the data exchange involved in MES, necessitating robust cybersecurity measures across the entire supply chain. Encryption, data resilience, and employee training are key elements in addressing these concerns, along with continuous monitoring and auditing to identify and mitigate potential security vulnerabilities.
To tackle these challenges, organizations must adopt a comprehensive approach that includes technology solutions, clear security policies, employee training, and continuous monitoring. Regular audits of MES systems, coupled with backup strategies and disaster recovery plans, help ensure a proactive response to potential security incidents. As MES systems play a pivotal role in modern manufacturing, prioritizing the security of the handled data becomes imperative to maintain the overall integrity and resilience of operations in the face of evolving cyber threats.
Market Ecosystem
The services segment accounted for the largest share of the manufacturing execution systems market in 2023.
The manufacturing execution systems have been segmented into offerings, software, and services. The services segment accounted for a larger share of the manufacturing execution systems market in 2023. Implementation involves defining the system scope, configuring workflows, integrating with other enterprise software, and migrating data. Software upgrades include assessing compatibility, conducting backups, rigorous testing, and user training to leverage new features. Training programs cover user and administrator education, emphasizing continuous learning as the MES system evolves. Maintenance services include routine checks, bug fixes, and optimization, ensuring system reliability and user support. These services collectively contribute to the seamless deployment, ongoing efficiency, and adaptability of MES within manufacturing operations.
On- premises deployment is to hold the largest market share during the forecast period.
The on-premises model enables manufacturers to host applications within the office premises. In this deployment type, the user must bear the cost of purchasing and maintaining the software and infrastructure. It offers hosted services to a limited number of people within a firewall, thereby minimizing security concerns. It also enables users to have direct control over their data and the organization has full control over the MES system, including hardware, software, and security configurations. On-premises deployment is often chosen when organizations prefer to maintain direct control over their IT infrastructure and data, have specific security or compliance requirements, or when need to integrate the MES system tightly with other on-premises systems.
Pharmaceutical & life sciences will grow at the highest CAGR in process industries during the forecast period.
Pharmaceutical & life sciences will grow at the highest CAGR during the forecast period. Manufacturing execution systems help in tracking the procedures to be followed during manufacturing as they comprise all the compliance data required for the safety and quality of products. These systems track each procedure according to compliance requirements and help in enhancing the product value as per the compliances. These systems raise alerts in case of any discrepancies during the manufacturing process and help in correcting them. This leads to fewer human errors and faster work.
Discrete Industries to grow at the highest CAGR during the forecast period.
The MES market, based on discrete industries, has been segmented into automotive, aerospace, medical devices, consumer packaged goods, and other discrete industries. These industries are often characterized by individual or separate production units, wherein the produce is in low volume with very high complexity or high volumes with low complexity. The MES market is driven by the complexity of manufacturing processes in industries like automotive and electronics, where intricate assembly and customization requirements prevail. The demand for quality control, traceability, and compliance in these sectors aligns well with MES capabilities. Discrete manufacturing's increased adoption of Industry 4.0 technologies, flexible production environments, and the need for real-time visibility further contribute to the rapid uptake of MES solutions.
Asia Pacific region to grow at the highest CAGR during the forecast period.
The Asia Pacific region is segmented into China, Japan, South Korea, India, and the Rest of Asia Pacific, representing the fastest-growing and second-largest market for manufacturing execution systems. Both China and India stand out as the world's fastest-growing economies. The rapid pace of urbanization and industrialization in countries like China and India is propelling the expansion of manufacturing industries, thereby generating increased demand for manufacturing execution systems in the region. Automotive, chemicals, and power generation, pharmaceuticals & life sciences industries are the key contributors to the market growth in this region.
Manufacturing Execution Systems Market by Region
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Key Market Players
The major companies in the manufacturing execution systems market are Siemens (Germany), Dassault Systemes (France), SAP (Germany), Rockwell Automation (US), Honeywell International Inc. (US) ABB (Switzerland), Applied Materials, Inc. (US), Emerson Electric Co. (US), General Electric (US), Oracle (US) and others. These companies have used both organic and inorganic growth strategies, such as product launches, acquisitions, and partnerships to strengthen their position in the manufacturing execution systems companies.
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Report Metric |
Details |
Years Considered |
2020–2029 |
Base year considered |
2023 |
Forecast period |
2024–2029 |
Forecast units |
Value (USD million/billion) |
Segments Covered |
Offering, Deployment, Process Industry, Discrete Industry and Region |
Regions covered |
North America, Asia Pacific, Europe, and Rest of the World |
Companies covered |
Siemens (Germany), Dassault Systemes (France), SAP (Germany), Rockwell Automation (US), Honeywell International Inc. (US). A total of 25 players are covered. |
Manufacturing Execution Systems Market Highlights
In this report, the overall manufacturing execution systems market has been segmented based on Offering, Deployment, Process Industry, Discrete Industry and Region.
Segment |
Subsegment |
By Offering |
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By Deployment |
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By Process Industry |
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By Discrete Industry |
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By Region |
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Recent Developments
- In October 2023, Siemens Digital Industries Software and CEA-List, a technological research institute specializing in smart digital systems research, officially entered into a memorandum of understanding. This agreement signifies their joint commitment to collaborative research aimed at advancing and enriching digital twin capabilities through the incorporation of artificial intelligence (AI). The partnership also aims to explore deeper integration of embedded software on virtual and hybrid platforms.
- In June 2023, Emerson Electric Co. entered into a collaborative agreement with Continua Process Systems, a renowned leader in continuous manufacturing process engineering and execution. Continua offers comprehensive software, consulting, and support solutions to empower life science companies in enhancing flexibility, adaptability, and speed-to-market. In this partnership, Emerson will contribute its extensive life sciences software portfolio, complemented by Continua's specialized expertise in continuous manufacturing and process analytical technology (PAT).
- In May 2022, Dassault Systèmes announced a partnership with Comez International, a global leader in crochet warp knitting machinery technology. Comez has implemented Dassault Systèmes’ DELMIA Ortems applications to digitize its manufacturing planning, enhancing measurability, predictability, and the seamless flow of production processes. Through real-time data updates within a collaborative digital environment, Comez now enjoys a comprehensive overview of all production elements, encompassing machine tools, work orders, setup, and working hours.
Frequently Asked Questions(FAQs):
What will be the global manufacturing execution systems market size in 2024?
The manufacturing execution systems market is expected to be valued at USD 14.9 billion in 2024.
Who are the global manufacturing execution systems market winners?
Companies such as Siemens, Dassault Systemes, SAP, Rockwell Automation, and Honeywell International Inc. fall under the winners’ category.
Which region is expected to hold the highest global manufacturing execution systems market share?
North America will dominate the global manufacturing execution systems market in 2024.
What are the major drivers of the manufacturing execution systems market?
Growing need for mass production and connected supply chain to serve the growing population, Growing convergence of IT and OT, and increasing implementation of industrial automation in both process and discrete industries.
What are the major strategies adopted by manufacturing execution systems companies?
The companies have adopted product launches, acquisitions, expansions, and contracts to strengthen their position in the market.
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The study involves four major activities that estimate the size of the manufacturing execution systems market. Exhaustive secondary research was conducted to collect information related to the market. Following this was validating these findings, assumptions, and sizing with the industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the overall size of the manufacturing execution systems market. Subsequently, market breakdown and data triangulation procedures were used to determine the extent of different segments and subsegments of the market.
Secondary Research
Secondary sources in this research study include corporate filings (such as annual reports, investor presentations, and financial statements); trade, business, and professional associations; white papers, certified publications, articles from recognized authors; directories; and databases. The secondary data were collected and analyzed to estimate the overall market size, further validated by primary research. The relevant data is collected from various secondary sources, it is analyzed to extract insights and information relevant to the market research objectives. This analysis has involved summarizing the data, identifying trends, and drawing conclusions based on the available information.
Primary Research
In the primary research process, numerous sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information about this report. The primary sources from the supply side included various industry experts such as Chief X Officers (CXOs), Vice Presidents (VPs), and Directors from business development, marketing, product development/innovation teams, and related key executives from manufacturing execution systems providers, (such as Siemens, Dassault Systemes, SAP, Rockwell Automation, Honeywell International Inc. ABB, Applied Materials, Inc.) research organizations, distributors, professional and managed service providers, industry associations, and key opinion leaders. Approximately 25% of the primary interviews were conducted with the demand side and 75% with the supply side. These data were collected mainly through questionnaires, emails, and telephonic interviews, accounting for 80% of the primary interviews.
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Market Size Estimation
In the market engineering process, both top-down and bottom-up approaches were implemented, along with several data triangulation methods, to estimate and validate the size of the manufacturing execution systems market and other dependent submarkets listed in this report.
- The key players in the industry and markets were identified through extensive secondary research.
- Both the supply chain of the industry and the market size, in terms of value, were determined through primary and secondary research.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
Global Manufacturing Execution Systems Market Bottom-up Approach
Global Manufacturing Execution Systems Market Size: Top-Down Approach
Data Triangulation
After estimating the overall market size, the total market was split into several segments. The market breakdown and data triangulation procedures were employed wherever applicable to complete the overall market engineering process and gauge exact statistics for all segments. The data were triangulated by studying various factors and trends from both the demand and supply sides. The market was also validated using both top-down and bottom-up approaches.
Market Definition
A manufacturing execution system is a computerized control system that integrates with enterprise resource planning (ERP) solutions to manage and monitor work in a manufacturing firm. It can process several tasks by controlling the number of production processes. It helps to maintain all the data related to manufacturing, such as the raw materials that are converted into finished goods and related documentation, and data from robots and employees. The use of manufacturing execution systems helps in improving productivity as well as reducing the production cycle time required for an order to be completed. Manufacturing execution systems help maintain the updated data pertaining to the product life cycle, product quality, order execution and dispatch, resource scheduling, downtime management for overall equipment effectiveness (OEE), and production analysis.
Stakeholders
- Associations and regulatory authorities developing standards related to plant maintenance.
- Government bodies, venture capitalists, and private equity firms
- Automation consultants
- Automation system integrators
- ERP developers
- MES distributors and providers
- Process and discrete industries
- Research organizations and consulting companies
- Technology providers
- Technology investors, standards organizations, forums, alliances, and associations
The main objectives of this study are as follows:
- To describe and forecast the overall manufacturing execution systems market based on deployment, offering, process industry, and discrete industry, in terms of value
- To describe and forecast the market for four key regions: North America, Europe, Asia Pacific, and Rest of the World (RoW), along with their respective countries, in terms of value
- To describe the applications and leveraging entities of manufacturing execution system tools.
- To provide an overview of the recent trends in the market
- To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the market
- To provide a comprehensive overview of the value chain of the manufacturing execution system ecosystem
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and their contributions to the total market
- To analyze opportunities in the market for stakeholders and provide a competitive landscape of the market
- To strategically profile key players and comprehensively analyze their market position in terms of ranking and core competencies
- To analyze competitive developments such as product launches and developments, acquisitions, collaborations, agreements, and partnerships in the manufacturing execution systems market
- To provide an analysis of the recession impact on the growth of the market and its segments
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Country-wise Information:
- Analysis for additional countries (up to five)
Company Information:
- Detailed analysis and profiling of different market players (up to five)
Growth opportunities and latent adjacency in Manufacturing Execution Systems Market
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