According to our latest market study on "Manufacturing Execution System Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Component, Deployment, and Industry Type," the market is projected to reach US$ 24,286.32 million by 2028 from US$ 11,880.90 million in 2021; it is expected to grow at a CAGR of 10.8% from 2021 to 2028.

The manufacturing execution system (MES) is a crucial component in coordinating manufacturing operations, logistics, equipment automation, and sales and planning. By synchronizing various functions, the MES provides a comprehensive view to help businesses enhance their performance and comply with regulations. Healthcare and pharmaceutical manufacturers face unique challenges related to shorter time-to-market (TTM) for products and increased regulatory complexities associated with product approval. Therefore, these manufacturers require innovative solutions to tackle these issues in a timely and efficient manner. The MES assists them in achieving regulatory compliance, including meeting Good Manufacturing Practice (GMP) requirements and complying with Food and Drug Administration (FDA) mandates for electronic records and electronic signatures. The systems also enable manufacturers to document both automated and manual procedures throughout the production process, resulting in more accurate batch records. Consequently, the growing demand for manufacturing execution systems to ensure compliance with strict regulations is driving the growth of the manufacturing execution system market.

Impact of COVID-19 Pandemic on Manufacturing Execution System Market

Governments worldwide imposed strict restrictions on vehicles and human movement due to the tremendous spread of the COVID-19 pandemic. This led to the COVID-19 pandemic's adverse effects on economies, including countless manufacturing and production industries in various countries. The production of commodities, goods, and services was reduced due to lockdown impositions.

In 2020, the global manufacturing execution system (MES) solutions demand was affected adversely by the COVID-19 pandemic. The temporary closure of several manufacturing industries due to lockdowns led to reduced demand for MES solutions globally. The World Manufacturing Production Statistics by the United Nations Industrial Development Organization (UNIDO) showed that global manufacturing output decreased by 11.2% during the second quarter (April-June) in 2020 compared to the same quarter in 2019. China was expected to record a greater drop (1.6%) than industrialized economies in the US and Europe, where value-added in 2020 plummeted by 15% and 14.3%, respectively. Therefore, the manufacturing execution system market was adversely affected by the COVID-19 pandemic, as MES solutions are directly proportional to manufacturing activities.

The relaxation of lockdown restrictions has resulted in the resumption of manufacturing operations, with improved supply chains, which has further boosted the adoption of manufacturing execution systems (MES). The increasing applications of MES in manufacturing industries and the growing utilization of high-tech products based on artificial intelligence (AI) in these industries are the primary factors driving the growth of the manufacturing execution system market.

Key Findings of Study:

The manufacturing execution system market, based on component is bifurcated into software and services. In 2021, the software segment led the market and accounted for a larger market share. Based on deployment, the manufacturing execution system market is be segmented into cloud and on-premise. In 2021, the on-premise segment accounted for a larger market share. Based on industry type, the market is segmented into process industry and discrete industry. In 2021, the discrete industry segment led the market and accounted for the largest market share. Geographically, the manufacturing execution system market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2021, North America accounted for a significant share in the global manufacturing execution system industry.

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