Manufacturing Execution System Market Forecast to 2028 - COVID-19 Impact and Global Analysis, By Component (Software and Services), Deployment (Cloud and On-Premise), and Industry Type (Process Industry and Discrete Industry) and region (Europe, Asia-Pacific, Middle East and Africa and South America).
The global Manufacturing Execution Systems (MES) Market size is projected to reach a CAGR of 9.7% from 2023-2030.
Manufacturing Execution System (MES) is a computerized system used for real-time documentation, control, and management of the entire processes involved in manufacturing industries. MES software encompasses the services in the personnel, machines, and support departments of the manufacturing enterprise and enables the integration of various applications employed for purchasing, shipping and receiving, inventory control, maintenance, and scheduling activities. MES is all about the management of operations on the shop floor and strives to connect the administration to the shop-floor operations to have effective control over them. Even without direct control over any machine, MES tracks and controls almost all the production activities varying from scheduling a small set of critical machines to managing the entire fabrication operation for a manufacturer. MES, a subset of ERP, is instrumental in the execution of the plan outlined by the manufacturing resource planning (MRP) system.
The rising technological advancements in both the OT (operational technology) and it (information technology) are the major drivers of the modern manufacturing execution system industry. The systems used in information technology are mainly used for the efficient collection of data. And the operational technology is used for the real-time monitoring of particular events and making required changes for various industrial purposes. Also, the rising demand for IoT (Internet of Things) is a major factor in its various benefits. There are various modern manufacturing execution system market opportunities that are expected to boost the market. Modern manufacturing execution systems are largely used for gathering and auditing data, dispatching, scheduling, and other tasks. It also requires other available solutions in the market for effective workflows such as warehouse management systems (WMS), supply chain management (SCM), and many more. The combination of such solutions along with the MES has greater opportunities for the market to develop at a rapid speed.
The sudden shift in industries towards digital platforms includes several levels. It can be helpful for medium and large-sized enterprises. However, currently, it is essential for effective and capable software for better performance of the systems. As a result, medium and small-sized enterprises are not capable to use advanced solutions. For that, they need high investments. Also, there is a certain lack of knowledge regarding the benefits of the Modern Manufacturing Execution System Market Trends among users. Thus, these factors can hinder market growth during the forecast period.
The outbreak of the COVID-19 disease had a massive impact on economies around the world. It is because various companies were forced to shut their manufacturing units as a result of the lockdown. This has led to the disruption of the supply and distribution chain of various industries. The revenue which is generated in the market is interlinked with the service. But, due to the disease, the services sector was halted for several months in the initial months of 2020. But it is speculated that after the pandemic will be eradicated, the modern manufacturing execution system market can regain its revenue exponentially in the future.
The rising demand for operational efficiency in the manufacturing sector led to increased efficiency, reduce costs, and improve quality. The manufacturing execution system (MES) provides real-time visibility into the production process, allowing manufacturers to identify bottlenecks and optimize production. Further, there is a need for manufacturing companies to comply with increasingly stringent quality standards to meet customer demands and regulatory requirements. The tools to monitor and control quality throughout the production process are provided by MES. In addition to that, the emergence of the Industrial revolution along with the adoption of digital technologies such as IoT, AI, and big data analytics are going to drive the market of Manufacturing Execution Systems in the coming years.
Asia-Pacific to Dominate the Market