Manufacturing Execution Systems Market

Manufacturing Execution Systems Market Size

The global manufacturing execution systems market was valued at USD 15 billion in 2024 and is estimated to grow at a CAGR of 10.2% to reach USD 39 billion by 2034. The high focus on automated compliance and quality management is a major factor supporting the growth of  MES market. Many industries such as pharmaceuticals, aerospace, food & beverage, automotive, etc. need to adhere to various regulations such as International Society for Pharmaceutical Engineering (ISPE), FDA’s 21 CFR Part 11, ISO 9001, and GMP.

MES solutions assist manufacturers in complying with such regulations by guaranteeing real-time tracking, documentation, and traceability of all production processes. To minimize defects, reduction of recalls, and to increase customer satisfaction, quality management has become a top priority for manufacturers. MES automates the quality control processes such as inspection, tracking deviation, and corrective actions within operational workflows. This enhances compliance while operational efficiency is improved increasing the global demand for MES solutions.  

The increased adoption of industry 4.0 across the globe is boosting the need for manufacturing execution systems (MES) in the international market. As per the definitions given by the American Society of Automation, industry 4.0 pertains to the inter blending of information and communication technology into the industrial production sector. The implementation of intelligent Manufacturing Systems (MES) has proven pivotal for achieving the goals of Industry 4.0 because it integrates cutting edge technologies, automation, and intelligent decision-making into modern manufacturing. MES captures real-time production information from devices, sensors, and machines integrated with the Internet of Things (IoT).

Business processes are automated by MES, hence manual effort and time to complete tasks is minimal, along with operational effort. For these reasons, there is a noticeable increase in the adoption of Industry 4.0 by manufacturers who are using MES to implement automation, data analysis in real time, and AI automation for better operational efficiency.

Manufacturing Execution Systems Market Trends

• As manufacturers pursue cost-effective methods, the adoption of cloud-based MES solutions is accelerating alongside increasing flexibility and scalability. Cloud-based MES facilitates enhanced integration with diverse enterprise systems, remote monitoring, and visibility services. The implementation of smart factories and Industry 4.0 automation, along with the need for increased data accessibility and cybersecurity, drives this agenda forward.
  
• Integrating AI and machine learning with an MES systems enables the automation of operational decision making, allowing for many processes to be refined through predictive analytics. Such an AI MES controller automates the improvement of production efficiency, reduces operational downtimes, enhances quality control, and increases transparency using real-time anomaly detection processes. Manufacturers harnessed these capabilities to meet the requirements of continuous improvement processes while minimizing waste and ensuring compliance throughout industries.
  
• The strong desire to improve quality management and ensure compliance drives adoption of MES system in pharmaceutical industries, aerospace, and food & beverage. Global regulation necessitates robust documentation capabilities, audit trails, and traceability which drives demand for MES. Manufacturers are enabled to adhere to industry standards and avoid risks while ensuring integrity, safety, and product MES operational transparency in regulated environments.
  

Manufacturing Execution Systems Market Analysis

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Based on the offering, the market is segmented into software and services.

• Software segment accounted for USD 7.5 billion in 2023. The software sector has taken the lead in the MES market owing to the growing need for real-time monitoring of production progress, integration with other enterprise systems such as ERP and PLM, and a shift towards a more analytical approach to decision-making. Based on the level of sophistication, AI, IoT, and cloud-enabled advanced operational visibility, workflow optimization, and regulatory compliance are added to the software solutions. Adoption of smart manufacturing and Industry 4.0 is an additional driver for the utilization of scalable, customizable and cloud-based MES solutions to increase efficiency, reduce downtimes, and improve productivity.
  
• The service segment accounted for USD 5.8 billion in 2022. The services segment has also become a principal driver of the adoption of MES systems with appropriate consulting, training, and managed services aimed at meeting the clients' expectations while providing MES customization and maintenance and subsequently guaranteeing its integration into the modern manufacturing environment. Satisfying the system’s performance expectations after deployment, along with increasing complexity of manufacturing processes, is driving the demand for these services. In addition, there has been a focus towards enhancing the operational resiliency of MES through remote monitoring, predictive maintenance, and real-time troubleshooting.
  

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Based on deployment mode, the market is divided into on-premises, cloud, and hybrid.

• On-premises segment is expected to account for 44.5% of the global manufacturing execution systems market in 2024.  Industries such as aerospace and defense need a lot of customization and data confidentiality which makes on-premises MES solutions favorable. These industries use on-premises deployments primarily because of the proprietary data that is involved along with volatile regulatory requirements. Organizations still prefer on-premises MES for its low latency performance and integration with legacy systems. Even though there is a high upfront investment required and infrastructure expenditure, the efficiency gains in real time processing for larger manufacturing companies makes it easier to justify.
  
• Cloud segment is expected to account for 37.5% of the global manufacturing execution systems market in 2023. Advanced analytics along with streamlined multisite operations, and better real time production tracking is encouraging manufacturers to transition to cloud-based MES solutions. These options are gaining traction because they are easier to obtain and more effective. The integration of cloud services also improves collaboration, facilitates new software maintenance, and aids the adoption of smart factory projects. While cloud technology has its shortcomings particularly in cybersecurity, compliance, and integration of the cloud infrastructure - the benefit it offers is attracting many mid-regulated industries to consider adoption.
  

Based on applications, the manufacturing execution systems market is segmented into production management, quality management, inventory management, maintenance management, performance analysis, and others.

• The production management segment dominated the market accounting for USD 5 million in 2024.  MES systems enhance workflows, allocate resources optimally, and guarantee the monitoring of the production process in real time, improving the management of production activities. These systems improve efficiency, shorten cycle times, and reduce bottlenecks with innovative thinking. High production industries such as automotive and electronics depend on MES for enhanced scheduling, workflow automation, and consistent operations across different plants.
  
• The maintenance management segment accounted for USD 1.8 billion in 2023. Maintenance management segment is driven by MES increases asset longevity, reduces downtime, and increases equipment reliability through predictive and preventive maintenance techniques. In the manufacturing sector, MES facilitated maintenance scheduling based on prior machine performance data which helps in avoiding failure. Plant safety, operational efficiency, and equipment uptime are areas tremendously improved with the use of MES for heavy industries and chemical plants.
  

Based on end-Use Industry, the manufacturing execution systems market is segmented into process industry, and discrete industry.

• The manufacturing execution system (MES) uses the Chemical, Pharmaceutical, Oil and Gas, and Food and Beverage industries as an illustration example of the process industry. These industries depend on MES for compliance and quality control as well as real-time monitoring of processes and activities. In this field, MES solutions aid in maintaining the flow of production, ensuring resources are put to optimal use, and providing a greater level of traceability for food safety and environmental protection measures. Advanced MES features enable batch tracking, recipe handling automation, and use of predictive models, which allow a manufacturer to operate more efficiently while reducing waste and ensuring the product quality is consistent over time.
  
• Discrete industry segment will grow at a CAGR of 14.3% during the forecast period. The MES solutions provided by the sector offer real-time monitoring of production flows, automated processes in addition to automated CAD/CAM and PLM processes for production workflow integration. These solutions let the automotives, aerospace, electronics, and industrial equipment manufacturing optimize the scheduling production operations, coordination, and assembly of the products. The growing use of digital twins, smart manufacturing technologies, and additive manufacturing increases flexibility, lowers time-to-market, and enhances the quality of MES in implementation, thereby encouraging its use in additive manufacturing operations fabrication, enhancing discrete manufacturing operations product MES.
  

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• In 2024, the U.S. manufacturing execution systems market accounted for USD 4.7 billion. The fundamental drivers of the U.S.  MES market are the rapid adoption of Industry 4.0, increased funding towards smart manufacturing, and regulatory compliance in different domains like pharmaceuticals, aerospace, and food & beverage services. The growth in the use of manufacturing execution systems is simultaneously powered by the need for immediate supervision at the shop floor, forecasted maintenance, and the use of digital twins. Accompanied by focusing on boosting automation and industrial productivity, along with rising attention given on manufacturing operations security, adds more strength to the MES industry in the U.S.
  
• The Germany manufacturing execution systems market is expected to reach USD 2.4 billion by 2034. Industry automation and precision manufacturing boom in automotive, machinery, and chemical industries, meaning Germany’s MES market automated systems, precision manufacturing, robotics, and AI technologies, coupled with cutting-edge Germany’s AI automation. There is a rigid need for ease to meet in turning Industry 4.0 digitalization’s elaborate initiatives. The German Industry 4.0 also supports the nationalization of advanced robotics, cybernetic systems, and AI analytical systems, increasing the competitiveness and meeting the legal regulations of manufacturing engineering computer integrated machines. The German Smart Factory development programs supported by Germany government served increased flexibility and custom-tailored manufacturing products need, guaranteeing significant investments in automation systems engineering and making Germany a global innovation center. 
  
• The China manufacturing execution systems market is expected to grow at a CAGR of 12.4% during the forecast period. China has one of the major automotive manufacturers bases that is supporting the market expansion. According to the International Trade Administration (ITA), China is the largest automobile market in the world in terms of both yearly sales and manufacturing output. By 2025, it is anticipated that domestic production will account for around 35 million vehicles. Moreover, the presence of large electronics manufacturing ecosystem, as well as shift towards smart home technologies is also contributing to the demand of the manufacturing execution systems.
  
• Japan is expected to account for a share of 17.4% of the manufacturing execution systems market in Asia Pacific. Japan’s focus on sophisticated manufacturing, robotics, and lean production processes is expanding the country’s MES market. Japan’s dominance in real-time monitoring, prediction maintenance, and process optimization concerning the automotive, electronics, and semiconductor industries accelerates the adoption of MES.
  
• South Korea manufacturing execution systems market is expected to grow at a CAGR of 9.7% during the forecast period. The market for MES in South Korea is growing because of the development of smart factories, the automation of semiconductor production, and the general industrialization of the country. The adoption of MES services for analytics, defect avoidance, and maintenance is being spurred by the rapid growth of the electronics industry and automotive industry in the country. The incorporation of AI, funding in the cloud-based MES platforms, and the digitalization of industries done by the governments are also facilitating the growth of the market. This along with the heightened need for effective management of supply chains and productivity, as well as compliance with international manufacturing requirements infuse MES adoption and consequently change South Korea to a superpower in manufacturing innovations. South Korea has become a frontrunner in advanced manufacturing technology.
  

Manufacturing Execution Systems Market Share

The Manufacturing Execution Systems (MES) sphere is fragmented and competitive because numerous international and local participants are developing sophisticated solutions for different industries. All customers preferences as to leading firms revolve around technological integration such as Artificial Intelligence (AI), Internet of Things (IoT), cloud computing, and advanced analytics into existing systems to improve MES operations. AVEVA Group PLC, and Rockwell Automation are some of the frontrunners in this market due to investment in Research and Development (R&D), forming alliances or merger and acquisition activities to consolidate their position. In addition, the competition is growing due to the changing trends of many businesses and users embracing cloud and SaaS MES systems that are affordable and easy to implement by new and small players.

The need for compliance as well as process optimization in automotive, aerospace, electronics, and pharmaceuticals industries fuels competition in the MES marketplace. The market’s established players offer modular and customizable solutions, seamless integration with ERP and IIoT, and sophisticated cybersecurity features. Additionally, the adoption of Industry 4.0 and smart factory concepts have encouraged vendors to create AI-based predictive maintenance and digital twin with real-time data visualization signals. While market participants are broadening their geographical scope and augmenting service portfolios, it is likely that competition will remain strong, which will in turn enhance the pace of innovation in MES solutions.

Manufacturing Execution Systems Market Companies

Top 5 companies operating in the manufacturing execution systems industry are:

• Siemens AG
• SAP SE
• Rockwell Automation Inc.
• Dassault Systèmes S.A.
• AVEVA Group PLC
  
• Siemens AG prioritizes the incorporation of state-of-the-art digitalization and automation facilities into their MES systems. The organization has automated the monitoring of production processes as well as improved their effectiveness by using Artificial Intelligence, the Internet of Things, and cloud computing. Its acquisitions and collaborations bolster the company's portfolio enabling the latter to support smart manufacturing and Industry 4.0 initiatives worldwide.
  
• SAP SE focuses on uninterrupted MES-ERP integration which allows manufacturers to obtain visibility and make data-based decisions. The firm also focuses on cloud-based MES systems, AI systems, and digital twins to improve operational efficiency. Together with other industrial actors, SAP’s globalization enhances the firm’s leadership position.
  
• Rockwell Automation Inc. emphasizes the development of connected enterprise solutions by incorporation industrial automation, analytics, and cybersecurity into its MES services. The strategy of the company consists of mergers, automation through Artificial Intelligence, and cloud computing which guarantees advanced manufacturing flexibility and scalability to respond to changes in industry requirements across various domains.
  

Manufacturing Execution Systems Industry News

• In October 2024, 42Q, a Sanmina division, launched 42Q Connected Manufacturing, a cloud-based Manufacturing Execution System (MES) enhancing real-time data visibility, quality monitoring, and operational efficiency. Offering rapid deployment (4-12 weeks), it integrates seamlessly to optimize supply chain decisions, reduce downtime, and improve product reliability. Already adopted by Fortune 500 firms, it accelerates digital factory transformation.
  
• In April 2024, AVEVA launched a hybrid cloud MES solution at Hannover Messe, enhancing multi-site operational visibility and supply chain agility. Integrated with AI and analytics via the CONNECT platform, it enables real-time data sharing, anomaly detection, and sustainability improvements. The solution eliminates data silos, optimizing manufacturing efficiency and decision-making with advanced cloud-based MES capabilities.
  
• In February 2023, AVEVA launched the Manufacturing Execution System 2023, enhancing multi-site MES deployment with centralized data management. It reduces IT costs, improves operational efficiency, and strengthens supply chain resilience. The system integrates IIoT and edge computing, unifying visibility across plants. New features include worker shift management, security upgrades, and global multi-site support for agile, digitalized manufacturing.
  
• In September 2023, Rockwell Automation announced the successful implementation of Plex MES at BIC’s Tunisia plant, enabling real-time data tracking, automation, and paperless operations. The system improves inventory control, waste reduction, and equipment efficiency, supporting BIC’s Smart Manufacturing Initiative. Expanding globally, Plex MES integrates IoT and operational technologies, driving digital transformation, standardization, and efficiency in BIC’s manufacturing.
  

This manufacturing execution systems market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2021 to 2034, for the following segments:

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Market, By Offering

• Software
• Services

Market, By Deployment Mode

• On-premises
• Cloud
• Hybrid

Market, By Application

• Production management
• Quality management
• Inventory management
• Maintenance management
• Performance analysis
• Others

Market, End-Use Industry

• Process industry
  • Food & beverages
  • Oil & gas
  • Chemicals
  • Paper & pulp
  • Pharmaceuticals
  • Energy & power
  • Water & wastewater
  • Others 
• Discrete industry
  • Automotive
  • Aerospace
  • Electronics
  • Medical devices
  • Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ 
• Latin America
  • Brazil
  • Mexico 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa