MES Market Size (2024 - 2029)

The Manufacturing Execution System (MES) market is anticipated to experience significant growth, driven by the increasing adoption of Industry 4.0 and the Industrial Internet of Things (IIoT), which enhance the agility and interoperability of MES in managing complex manufacturing environments. The shift towards more integrated production processes, supported by automated systems, is further propelling the market's expansion. Despite challenges such as the high costs of implementation for small and medium-sized enterprises, the market is benefiting from increased awareness and training initiatives by key players. The post-pandemic recovery in sectors like power generation, oil and gas, and automotive is also contributing to the rising demand for MES solutions, as businesses seek to optimize operations and address labor and distribution challenges.

Market Size of MES Industry

Manufacturing Execution Systems Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 10.10 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Medium

Major Players

MES Market Major Players

*Disclaimer: Major Players sorted in no particular order

Manufacturing Execution System Market Analysis

The MES Market size is expected to grow from USD 14.87 billion in 2023 to USD 24.06 billion by 2028, at a CAGR of 10.10% during the forecast period (2023-2028).

With the growing adoption of Industry 4.0 and the Industrial Internet of Things (IIoT) in plants, the agility and interoperability of the Manufacturing Execution System (MES) have become even more strategic for managing additional complexity and future-proof businesses.

  • The increasing shift towards production orders, process steps, and instructions and documentation, with information being pulled directly from ERP and other enterprise business systems, is driving the adoption of manufacturing execution systems. Furthermore, in recent years, driven by labour shortages and enabled by more automated machining systems, MESs have been picked up by multiple end-use manufacturers to compensate them, which has benefitted market growth and is expected to increase over the forecast period.
  • Increasing development by major players in order to raise awareness and knowledge regarding MES solutions is expected to contribute to market growth. For instance, in July 2022, Insequence announced a novel user certification training program for SPD Pro and its Manufacturing Management System. This new curriculum from Insequence University Software gives power-user level information to Insequence clients to help develop an in-house understanding of Insequence products. This might lead to increased efficiency, competence, and cost savings.
  • The market growth is being constrained by reasons including SMEs' lack of understanding of the advantages of MES. Additionally, it is predicted that slow development would occur throughout the projection period due to high operating and investment expenses associated with deploying and updating industrial execution technologies for small-scale production.
  • Multiple end industry activities, including those in the power generation, oil and gas, and automotive sectors, saw significant transformation during the post-pandemic period. The substantial labor and distribution network issues that led to the development of manufacturing operational system solutions have begun to be resolved in the manufacturing sectors. The growth of the process and discrete sectors is likely to increase demand for MES technologies. The need for manufacturing execution solutions will expand during the projected period due to several COVID-19 operations and recommendations that have been established for easier operations.

Manufacturing Execution System Industry Segmentation

Manufacturing Execution Systems (MESs) are the information systems that connect, monitor, and control complex manufacturing systems and all the relevant data flows on the factory floor. The main goal of an MES is to ensure the effective execution of all manufacturing operations and improve production output. The manufacturing execution systems market is segmented by Software and Service Offerings, On-premise and Cloud deployment, End-user Industry, including Food & Beverage, Pharmaceutical & Lifesciences, Oil & Gas, among others, and Geography (North America, Europe, Asia-Pacific, and Rest of World). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Offering
Software
Service
By Deployment
On-premise
Cloud
By End-user Industry
Food & Beverage
Oil & Gas
Pharmaceutical & Lifesciences
Automotive
Electronics & Semiconductor
Other End-user Industries
Geography
North America
Europe
Asia-Pacific
Rest of World
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MES Market Size Summary

The Manufacturing Execution System (MES) market is poised for significant growth, driven by the increasing adoption of Industry 4.0 and the Industrial Internet of Things (IIoT). These technologies enhance the agility and interoperability of MES, making them crucial for managing complex manufacturing processes and future-proofing businesses. The shift towards integrating production orders and process documentation with enterprise business systems like ERP is a key factor propelling market expansion. Additionally, the need to address labor shortages through automation has led to broader adoption of MES across various manufacturing sectors. Despite these growth drivers, challenges such as limited awareness among small and medium-sized enterprises (SMEs) and high operational costs for implementing MES technologies may constrain market growth.

The MES market is characterized by a fragmented landscape with numerous key players, including Siemens AG, Rockwell Automation, SAP SE, ABB Ltd., and Honeywell International Inc. These companies are continuously enhancing their offerings to integrate MES with digital threads and expand their application footprints. North America is expected to maintain a significant market share, supported by the presence of major MES vendors and the region's advanced industrial development. The region's embrace of cloud manufacturing solutions and digitalization efforts further bolsters market prospects. The pharmaceutical industry, in particular, benefits from MES by improving compliance and reducing production costs, while global regulations drive the adoption of advanced tracking and traceability technologies.

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MES Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Adoption of Digitisation to Improve Production

      2. 1.2.2 Introduction of Cloud Technology to Consolidate Information

    3. 1.3 Market Restraints

      1. 1.3.1 High Investment and Running Costs Involved in Implementation and Upgrade of Manufacturing Execution Systems for Small-Scale Production

      2. 1.3.2 Lack of Awareness Regarding Benefits of MES Solutions Among SMEs

    4. 1.4 Industry Attractiveness - Porter's Five Force Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Offering

      1. 2.1.1 Software

      2. 2.1.2 Service

    2. 2.2 By Deployment

      1. 2.2.1 On-premise

      2. 2.2.2 Cloud

    3. 2.3 By End-user Industry

      1. 2.3.1 Food & Beverage

      2. 2.3.2 Oil & Gas

      3. 2.3.3 Pharmaceutical & Lifesciences

      4. 2.3.4 Automotive

      5. 2.3.5 Electronics & Semiconductor

      6. 2.3.6 Other End-user Industries

    4. 2.4 Geography

      1. 2.4.1 North America

      2. 2.4.2 Europe

      3. 2.4.3 Asia-Pacific

      4. 2.4.4 Rest of World

MES Market Size FAQs

The MES Market is projected to register a CAGR of 10.10% during the forecast period (2024-2029)

Siemens AG, Rockwell Automation, SAP SE, ABB Ltd. and Honeywell International Inc. are the major companies operating in the MES Market.

Manufacturing Execution System Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2024 - 2029)