Published: Mar, 2017
The global manufacturing execution system (MES) market is characterized by a consolidated landscape in which the top four players account for almost half the market share. They are Schneider Electric S.E., Siemens AG, Emersion Electric Co., and Rockwell Automation, Inc. Although they hold near identical shares in the market, Siemens AG, among them, leads with a marginally higher share of 16.0% in 2014. The dominant four companies along with other prominent players in market are making efforts to provide integrated MES with ERP and PLM solutions to entice more customers.
Savvy companies in the global market for manufacturing execution system (MES) are also trying to outsmart each other by offering next generation MES services coupled with big data analysis and cloud computing features. A noticeable trend in the market is the long term contract between buyers and MES providers. This translates as high switching costs for buyers and strong bargaining power of suppliers.
A report by Transparency Market Research forecasts the global market for manufacturing execution system (MES) to acquire a value of US$19.365 bn by 2023 by rising at a robust CAGR of 11.1% from 2015 to 2023. The market was worth US$7.860 mn in 2014.
Saturated North America Market to Cede Territory to Asia Pacific
Depending upon the process industry, the global market for manufacturing execution system (MES) can be divided into food and beverages, oil and gas, chemical, pulp and paper, energy and power, pharmaceutical, water and wastewater treatment, textiles, and steel and aluminum. Of these, the oil and gas segment holds a leading position owing to the rising demand for automation in oil and gas industries for enhancing efficient production. Going forward, however, it is slated to cede some of its share to the pharmaceutical segment, which is forecasted to acquire 21.9% in the market in 2023.
From a geographical standpoint, North America dominates the global market for manufacturing execution system (MES). Asia Pacific is another key region that is predicted to exhibit stellar growth in the years to come to gain a dominant position in the market by likely accounting for 32.4% share in it. This is because the mature North America market, that has gained on the back of a strong demand for cutting-edge manufacturing execution system (MES) with advanced capabilities, offers little avenues for growth any further.
Industrial Automation at the Forefront of Driving Demand
With bettering economic conditions worldwide, industries are compelled to finds means to enhance productiveness of manufacturing methods. This has warranted automation in industries to speed up processes minus human errors marring traditional paper-based record keeping systems. This, in turn, has generated demand for software-based solutions such as manufacturing execution systems. Additionally, MES helps to unite information systems on the shop floor with business. As per the lead analyst of the report, “Demand for industrial automation, better visibility of the shop floor, and need for real-time control and adjustments to operations is driving demand for manufacturing execution systems.”
High Upfront Investment Crimps Demand
Crimping growth in the global market for manufacturing equipment systems (MES) is the steep upfront capital and the complex installation procedure. “Installation of MES requires incorporation of expensive hardware and software which adds to the total expenditure. In addition, rising complexities in manufacturing industries is further driving the need for application-specific MES. This, in turn is, leading to rise in complexities of implementation of MES, further restraining the growth in the market,” elaborates the lead analyst.
This review is based on the findings of a TMR report titled “Manufacturing Execution System (MES) Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2015 - 2023.”
Global Manufacturing Execution System (MES) Market, by Process Industry
- Oil and Gas
- Food and Beverages
- Pulp and Paper
- Energy and Power
- Water and Wastewater Treatment
Global Manufacturing Execution System (MES) Market, by Discrete Industry
- Aerospace and Defense
- Electronics and Electrical
- Medical Devices
Global Manufacturing Execution System (MES) Market, by Geography
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia-Pacific
- Rest of the World (RoW)
- Latin America
- Middle East
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