Published: Oct, 2016
Established players currently hold a strong presence in the global manufacturing execution system (MES) market. In an attempt to outdo competitions, the leading vendors operating in the market are providing next-generation MES solutions with cloud computing features and big data analysis, states Transparency Market Research (TMR) in a new study. In 2014, ABB Ltd., Rockwell Automation, Inc., Siemens AG, and Schneider Electric S.E. held the leading share of 53% in the global market.
TMR forecasts the global MES market to exhibit a robust CAGR of 11.1% between 2015 and 2023. Expanding at this pace, the market is projected to reach US$19.36 bn by the end of 2023. The market stood at a valuation of US$7.86 bn in 2014. Geographically, North America dominated the global manufacturing execution system market in 2014 with a share of 43% in the overall revenue generated for the market. Based on discrete industry, the automotive segment emerged dominant with a share of 25.3% in terms of revenue in 2014.
Need for Quicker Turnaround and Optimally Using Inventories to Boost Adoption of MES
Manufacturing execution systems are integrated software applications developed to provide manufacturers with the means to plan schedule, track, direct, operate, and analyze their operations. Dealing with material and overhead costs has been a critical concern for manufacturing industries for long. Besides this, the highly competitive environment are compelling manufacturers to enhance their production efficiency in a cost-effective manner. This is expected to lead to high installation of industrial control systems aimed at optimizing processes and providing better visibility.
“The need for quicker turnaround and optimum utilization of available resources is driving automation across manufacturing industries, thus bolstering the MES market,” said a lead TMR analyst. The increasing demand for automating record keeping systems is also aiding the expansion of the MES market.
High Initial Investment Required Upfront Limits Sales of MES
“Despite the overall prospects for the market being promising, the high initial investment required for installing manufacturing execution systems is inhibiting the market’s trajectory,” observed the TMR report’s author. Moreover, installing these systems is a complex procedure. This, combined with the increasing complexities within manufacturing industries, is boosting demand for application-specific MES. The factor further hinders the market’s growth.
MES Installation to Rise with Increasing IoT Penetration across Industries
The penetration of the IoT technology across manufacturing industries to promote automation is fuelling opportunities for the global manufacturing execution system market. IoT can help manufacturers create, streamline, and collapse system architecture in a more effective, responsive, and affordable manner. Furthermore, IoT enables communication and interaction between industrial devices to provide industries with better flexibility and optimal performance. The proliferation of industrial IoT is thus expected to boost MES installation in the near future.
Furthermore, IoT is pushing advancements such as industrial mobility, big data analytics, and cloud computing. This is creating scope for the advent of the next-generation MES enabled real-time data analysis. The growing demand for such advancements is expected to boost opportunities for the market in the near future.
This review is based on information published by TMR in a report, titled “Manufacturing Execution System (MES) Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2023.”
The report segments the global manufacturing execution system (MES) market as:
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
The report provides a cross-sectional analysis of all the above segments with respect to the following regions:
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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