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 manufacturing execution systems market size is estimated to reach USD 23 billion by 2029 from USD 14.9 billion in 2024. It is expected to grow at a CAGR of 9.2% from 2023 to 2029. Implementation of generative artificial intelligence, digital twin, and edge computing are some of the critical trends that are expected to drive the ecosystem of the MES market in the next 5-6 years down the line. In such a scenario, the role of the system integrator starts playing an important role where the system integrator starts integrating MES with different upcoming technologies, i.e., GenAI, Digital Twin, and Edge Computing. Increasing demand for digital manufacturing and complex manufacturing processes are some of the most critical factors that drive the growth of manufacturing execution systems in the market. IoT-enabled MES is another factor that is creating huge demand in the market. The combination of IoT and MES helps manufacturers achieve digital manufacturing, leading to higher efficiency and productivity.
Manufacturing Execution Systems Market Forecast to 2029
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Manufacturing Execution Systems Market Trends
Driver: Increasing complexity of manufacturing processes
One of the main driving forces behind Manufacturing Execution Systems is the increasing complexity of manufacturing processes. This increasing complexity mirrors the complexities of modern manufacture, characterized by advanced technologies and interlinked systems with a rising requirement for different and customized products. At the same time, the integration of automation, robots, and the Internet of Things have also spawned the creation of huge volumes of data that require the implementation of similarly complex systems like MES to manage them and produce actionable insights effectively.
MES integrates manufacturing systems, enabling seamless communication between components, production phases, and overarching systems like enterprise resource planning (ERP) and supply chain management. It handles issues such as customized and sophisticated products, multi-site operations, strict regulatory requirements, and dynamic supply chains by providing real-time insights, coordination capabilities, and compliance solutions. MES handles data overload, allows for real-time decision-making, and reduces operational risks, making it an essential tool for navigating and optimizing the complex environment of modern manufacturing processes.
Restraint: The complexity of integration of MES with pre-existing organizational systems
The Manufacturing Execution System is concerned with the complex challenges of integrating MES with pre-existing organizational systems. This underlines how it provides a broad, comprehensive ecosystem of systems—including ERP and legacy industrial—to be integrated, each presenting special problems regarding data formats, connection protocols, and overall architecture. Customization complicates the integration process by requiring a sophisticated grasp of MES and the organization's operating requirements. Challenges include data compatibility issues, interoperability issues, and the need for good vendor coordination. Furthermore, extended integration timelines can affect project deadlines, delaying the realization of MES benefits. User training, adaption efforts, and data migration problems all add to overcoming this barrier's complexity.
Opportunity: Implementation of MES in the pharmaceuticals & life sciences industry
The pharmaceuticals & life sciences industry faces 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 in complying with the requirements of the FDA, providing centralized and real-time data for ensuring regulatory compliance. The software also ensures efficient and faster production, encouraging companies to deploy this solution. Some pharmaceutical & life sciences companies 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. Data integrity, accuracy, and confidentiality are paramount for industries with tight regulatory standards, like GDPR. Risk mitigation for the supply chain is important in MES due to the data exchanged during this process, so cybersecurity measures need to be stringent throughout the 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.
Technology solutions, security regulations, training, and ongoing monitoring can all be addressed by implementing a holistic strategy. The regular auditing of MES systems lends itself well to backup and disaster recovery strategies, which allow for proactive measures against any suspected security incidents. As modern manufacturing inexorably shifts to MES systems, the security of handled information becomes instrumental to operations' general integrity and resilience against ever-evolving cyber threats.
Manufacturing Execution Systems Market Segmentation
The services segment accounted for the largest share of the manufacturing execution systems market in 2023.
The Manufacturing execution systems are categorized into products, software, and services. The manufacturing execution systems market was controlled mainly by the services category in 2023. Implementation involves defining the system's boundaries, setting up processes, connecting with other business software, and transferring information. Upgrades to software involve checking for compatibility, backup, extensive testing, and user training for exploiting new features. An adequately tailored training program is available for users and administrators; again, this underlies the concept of continuous learning as the MES system evolves. This adds maintenance services for routine checks, bug fixing, and optimization, executed to guarantee reliability in the system and support to users. These services all help in MES's smooth deployment, continued efficiency, and adaptability in 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, minimizing security concerns. It also allows customers to have direct management over their data while the organization has complete control over the MES system, including hardware, software, and security settings. On-premises deployment is frequently selected when organizations want to retain direct control over their IT infrastructure and data, have unique security or compliance needs, or need to connect the MES system with other on-premises systems tightly.
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 track 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 enhance the product value. These systems raise alerts in case of any discrepancies during the manufacturing process and help correct them. This leads to fewer human errors and faster work.
Discrete Industries to grow at the highest CAGR during the forecast period.
Based on discrete industries, the MES market 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 such as automotive and electronics, with intricate assembly and customization requirements. MES's capabilities align well with these sectors' demand for quality control, traceability, and compliance. The fast acceptance of MES solutions is fueled by the growing use of Industry 4.0 technologies, flexible production setups in discrete manufacturing, and the demand for real-time visibility.
Asia Pacific region to grow at the highest CAGR during the forecast period.
China, Japan, South Korea, India, and the Rest of Asia Pacific are divisions within the Asia Pacific region, the second-largest market for manufacturing execution systems and experiencing the fastest growth. China and India are recognized as the globe's top economies with the fastest growth rates. The rapid pace of urbanization and industrialization in countries like China and India is driving the expansion of manufacturing industries, thereby generating increased demand for manufacturing execution systems in the region. Automotive, chemicals, 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 market.
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Report Metric |
Details |
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Years Considered |
2020–2029 |
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Base year considered |
2023 |
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Forecast period |
2024–2029 |
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Forecast units |
Value (USD million/billion) |
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Segments Covered |
Offering, Deployment, Process Industry, Discrete Industry and Region |
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Regions covered |
North America, Asia Pacific, Europe, and Rest of the World |
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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.
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Segment |
Subsegment |
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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, signed a memorandum of understanding. This agreement represents their mutual commitment to doing collaborative research to increase and improve digital twin capabilities using artificial intelligence (AI). The alliance also intends to investigate further integration of embedded software on virtual and hybrid systems.
- In June 2023, Emerson Electric Co. partnered with Continua Process Systems, a front-runner in continuous manufacturing process engineering and execution on a global scale. Continua provides software, consulting, and support solutions for life science organizations looking for flexibility, adaptability, and faster market entry. Continua will bring deep expertise in continuous manufacturing and process analytical technology to Emerson's already extensive life sciences software portfolio.
- In May 2022, Dassault Systèmes collaborated with Comez International, a global leader in crochet warp knitting machine technology. Comez has used Dassault Systèmes' DELMIA Ortems software to digitize manufacturing planning, improving measurability, predictability, and the smooth flow of production processes. Comez now understands all production factors, including machine tools, work orders, set up, and working hours, thanks to real-time data updates in a collaborative digital environment.
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)
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