Manufacturing Execution System Market Research Report and Outlook by 2028

In 2021, the global market for manufacturing execution systems (MES) was valued at approximately US$ 11,880.90 million and is anticipated to grow to around US$ 24,286.32 million by 2028, reflecting a compound annual growth rate (CAGR) of 10.8% during the period from 2021 to 2028.

Manufacturing execution systems play a pivotal role in managing and coordinating various elements of manufacturing processes, such as logistics, equipment automation, and sales planning. By integrating these functions, MES provides organizations with a holistic perspective that enhances operational efficiency and ensures compliance with regulatory standards. In particular, manufacturers in the healthcare and pharmaceutical sectors encounter considerable challenges, including the need for quicker time-to-market and the complexities of navigating regulatory requirements for product approvals. Consequently, these sectors demand innovative solutions to effectively address these challenges. MES is instrumental in facilitating compliance with regulations, including adherence to Good Manufacturing Practice (GMP) standards and the Food and Drug Administration (FDA) requirements concerning electronic records and signatures. Furthermore, MES allows manufacturers to accurately document both automated and manual processes throughout production, thereby improving the reliability of batch records. This has led to a rising demand for MES, especially in industries that are subject to stringent regulatory oversight. The adoption of cloud-based MES solutions is gaining traction in various sectors, driven by the rise of cloud computing, digital transformation initiatives, the Industrial Internet of Things (IIoT), and more integrated strategies to utilize connected data, including advanced analytics platforms. The transition to cloud MES and other cloud-centric manufacturing applications is associated with the benefits of scalable infrastructure, which optimizes data utilization, facilitates rapid integration, and aligns with developments in the cloud market, IoT platforms, and other technologies relevant to smart manufacturing.

Key players in the global manufacturing execution system market include 42Q, AVEVA Group plc, Dassault Syst?mes SE, EAZYWORKS INC., Emerson Electric Co., General Electric Company, Honeywell International Inc., Oracle Corporation, SAP SE, and Rockwell Automation, Inc. Additionally, a number of other significant market participants were examined to provide a comprehensive understanding of the MES market and its ecosystem.

IMPACT OF COVID-19 PANDEMIC ON MANUFACTURING EXECUTION SYSTEM MARKET

The COVID-19 pandemic has profoundly affected economies and various sectors globally, prompting governments to implement stringent travel and movement restrictions. Consequently, the production and manufacturing of goods and services experienced a downturn due to widespread lockdowns and business closures.

The MES market was not immune to the repercussions of the pandemic, facing disruptions in supply chains across numerous industries. According to the World Manufacturing Production Statistics from the United Nations Industrial Development Organization, Europe experienced the most severe manufacturing decline in the second quarter of 2020, with a drop of 19.3%. Many manufacturing firms temporarily halted operations or scaled back production, leading to significant losses in global trade. These challenges have impeded the growth of the manufacturing execution system market in Europe throughout 2020.

The size of the Manufacturing Execution System market has been assessed through both primary and secondary research methodologies. Secondary research involved utilizing both internal and external sources to collect qualitative and quantitative data regarding the market. This approach aims to deliver a comprehensive overview and forecast of the MES market across all segments. Additionally, numerous primary interviews were conducted with industry stakeholders to validate the findings and obtain deeper analytical insights. Participants in these interviews included industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers. External consultants, including valuation experts, research analysts, and key opinion leaders specializing in the MES market, also contributed to this process.