Rising Demand for Cost-Effective MES Solutions Drives Cloud Manufacturing Execution System (MES) Market
According to our latest market study on "Cloud Manufacturing Execution System (MES) Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis — by Component, Deployment, Enterprise Size, Sales Channel, and End User," the market was valued at US$ 10.64 billion in 2024 and is anticipated to reach US$ 24.13 billion by 2031; it is estimated to record a CAGR of 12.5% from 2025 to 2031. The report includes growth prospects in light of current Cloud Manufacturing Execution System (MES) Market trends and driving factors influencing the market growth.
Compared to traditional on-premise MES deployment, cloud-based MES solutions offer cost-effectiveness, which is one of the main factors propelling the market growth. The cloud-based delivery model provides cost-saving benefits that entice manufacturers to shift their MES infrastructure to the cloud. Cloud MES allows manufacturers to avoid the significant upfront capital costs associated with purchasing and deploying on-premise hardware and software. Cloud MES solutions are often available on a subscription basis, allowing manufacturers to obtain the necessary computing resources and software licenses without investing in their IT infrastructure.
Cloud Manufacturing Execution System (MES) Market Analysis – by Geography, 2023
Cloud Manufacturing Execution System (MES) Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component [Software and Services (Professional Services and Managed Services)], Deployment (Public Cloud, Hybrid Cloud and Private Cloud), Enterprise Size (Large Enterprises and SMEs), Sales Channel (Direct Sales and Channel Partners), End User [Discrete Industry (Automotive, Electronics, Semiconductors, Aerospace and Defense, Medical Devices, Consumer Packaged Goods and Others) and Process Industry(Food and Beverages, Pharmaceuticals and Life Sciences, Chemicals, Oil and Gas, Pulp and Paper, Energy and Power, Water and Waste Water Treatment and Others)], and Geography
Cloud Manufacturing Execution System (MES) Market Size 2031
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Source: The Insight Partners Analysis
With a traditional on-premise MES deployment, manufacturers are responsible for the MES software and hardware's ongoing maintenance, updates, and upgrades, which can be costly. With cloud MES, the cloud service provider is responsible for the maintenance and upgradation of the software. The cloud service provider plays a key role in keeping the MES system up to date, secure, and working properly, eliminating the need for manufacturers to devote resources to these activities. According to the report by GE Vernova, compared to on-premises implementations, cloud-based MES helps to lower capital expenditures (CAPEX) and operating expenses (OPEX). Cloud-based MES can help manufacturers cut total cost of ownership (TCO) by up to 30%, minimize maintenance, and improve security. Cloud MES solutions provide higher scalability and flexibility than on-premise systems. Manufacturers can quickly scale up or down their MES capacity to meet changing business needs without investing in extra hardware or software licensing; this enables businesses to align their MES resources with their actual production needs, resulting in more efficient resource usage and cost optimization. Thus, such rising demand for cost-effective MES solutions drives the cloud manufacturing execution system (MES) market growth.
The scope of the cloud manufacturing execution system (MES) market report focuses on North America (US, Canada, and Mexico), Europe (UK, Germany, France, Italy, Russia, and Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America). In Europe, Germany held the largest cloud manufacturing execution system (MES) market share in 2024. Germany's pharmaceutical industry is increasingly adopting cloud MES to enhance production efficiency and ensure regulatory compliance. This integration streamlines manufacturing processes, improves real-time data visibility, and supports quality control measures. For example, in January 2024, Rockwell Automation, Inc., the world's largest company dedicated to industrial automation and digital transformation, announced that as part of an ongoing company-wide digitalization program. Rottendorf Pharma GmbH introduced the FactoryTalk PharmaSuite manufacturing execution system from Rockwell Automation, a comprehensive electronic batch recording solution. In addition, aseptic fill & finish processes involve unit operations such as sterilization, filling, and lyophilization, which all need comprehensive reporting and documentation. Boehringer Ingelheim uses MES software for handling such crucial operations. These developments reflect the industry's commitment to innovation and operational excellence, which is likely to have a significant impact on the cloud manufacturing execution system (MES) market forecast in the next few years.
In North America, the US held the largest cloud manufacturing execution system (MES) market share in 2024. Traditionally, MES solutions have been used in manufacturing plants, necessitating a strong individual IT infrastructure and systems. It significantly increased the overall cost of ownership. The market players are launching solutions to tackle such challenges. For example, in February 2023, AVEVA, a US-based company, announced the release of the AVEVA Manufacturing Execution System 2023 solution. It offers to cut the costs and complexities of multisite manufacturing execution system (MES) solutions. The latest version of AVEVA MES helps standardize and introduce best practices more quickly and at scale; this will improve operational efficiency and sustainability. The new AVEVA MES also promotes increased supply chain resilience and agility. Further, it has unified visibility, reporting, and KPIs across multisite operations. The US market players provide solutions to cater to specific industries. For example, Honeywell International Inc. provides a Manufacturing Excellence Platform for pharmaceutical manufacturing. The platform includes modules for batch digitization, orchestration and execution, real-time context & visualization, digital work instructions, reporting, and real-time and historical analysis. It incorporates proven MES, SCADA, and Historian technologies from Honeywell that enable storage and access to all the data related to production for continuous improvement. It streamlines production execution and paperless batch reporting and supports regulatory compliance with standards such as 21 CFR Part 11. Thus, all the above factors are driving the Cloud Manufacturing Execution System (MES) Market growth in North America.
Apprentice FS Inc; 42Q; SAP SE; ABB Ltd; Schneider Electric SE; Infor; Korber AG; General Electric Co; Rockwell Automation Inc; Siemens AG; PSI Software SE; EAZYWORKS INC.; Eyelit Technologies; Glorysoft (Shanghai) Co., Ltd.; Oracle Corp; Autodesk Inc; International Business Machines Corp; IFS AB; FA software (Shanghai) Co., Ltd; Epicor Software Corp; IBASET INC; ANT Sp. z o.o.; NoMuda Ltd; Symestic GmbH; and Tulip Interfaces, Inc. are among the key players profiled in the Cloud Manufacturing Execution System (MES) Market report. Several other major players were also studied and analyzed in the market report to get a holistic view of the market and its ecosystem. The market analysis provides detailed market insights, which help the key players strategize their growth.
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