Global Manufacturing Execution Systems (MES) Market to Reach $20.4 Billion by 2024

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 integration of various applications employed for the purchasing, shipping and receiving, inventory control, maintenance and scheduling activities. MES is all about management of operations on the shop floor and strives to connect the administration to the shop-floor operations to have an effective control over them. Even without a 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 execution of the plan outlined by manufacturing resource planning (MRP) system.

Amid the COVID-19 crisis, Global Manufacturing Execution Systems (MES) market is projected to reach US$20.4 Billion by 2024, registering a compounded annual growth rate (CAGR) of 13.9% over the analysis period. The United States represents the largest regional market for Manufacturing Execution Systems (MES), accounting for an estimated 33.1% share of the global total. The market is projected to reach US$7.7 Billion by the close of the analysis period. China is expected to spearhead growth and emerge as the fastest growing regional market with a CAGR of 17.5% over the analysis period. The market is expected to witness remarkable growth as industries continue to compete on a global basis and struggle to reduce cost, maximize their productivity, improve efficiency and maintain a competitive edge. In an increasingly globalized economy, manufacturing enterprises are leveraging the benefits of IT solutions, such as MES systems to stand apart in the highly competitive environment and improve profit margins.

MES can be viewed as a key strategy at the manufacturing level enabled by information technology for analyzing, scheduling and organizing manufacturing systems and related components. Adoption of MES can assist manufacturing customers in optimizing their strategies for taking better decisions. MES provides real-time data and information with respect to various aspects of production process, enabling key decision makers of the manufacturing enterprise to gain an insight into existing conditions at the plant floor for efficient decision-making and precise information exchange across the enterprise. With manufacturing firms globalizing their manufacturing footprint, MES is proving as a valuable tool by providing enhanced plant visibility and streamlining multi-plant operations. Even small and medium-scale businesses, which hitherto remained averse to MES adoption due to high costs involved, are turning to MES solutions due to availability of cost-effective MES solutions from MES software vendors. The small-and medium-sized businesses (SMBs) have therefore become a primary target for the vendors to tap. Growing popularity of MES solutions can also be judged from the fact that majority of manufacturers are now using some form of MES, including fully integrated system, manual or computer point solution. Integrated MES, in particular is gaining increased acceptance among end-users owing to its capabilities to integrate real-time data with various other information devices such as distributed control systems (DCS) as well as production planning systems (such as ERP).