Manufacturing Industries Embrace Digital Transformation to Fuel Manufacturing Execution System (MES) Market Growth During Forecast Period
According to our latest study, "Manufacturing Execution System (MES) Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – By Component, Deployment, Organization Size, License Type, Sales Channel, End User, and Geography," the market was valued at US$ 16.66 billion in 2024 and is expected to reach US$ 36.13 billion by 2031; it is estimated to register a CAGR of 11.8% during 2024–2031. The report includes growth prospects owing to the current manufacturing execution system (MES) market trends and their foreseeable impact during the forecast period.
Globally, manufacturing sectors are embracing digital transformation to enhance productivity, optimize operational efficiency, lower costs, and increase market share through innovation in both products and processes. The manufacturing industry is undergoing a profound transformation across various sectors. In the automotive industry, electric and hybrid vehicles are driving a fundamental shift. In the consumer packaged goods (CPG) sector, companies are facing stricter regulatory compliance requirements. Meanwhile, the aerospace industry is focusing on enhancing productivity and performance amid a challenging business landscape. Smart manufacturing solutions are becoming crucial in navigating these evolving dynamics. These solutions aim to optimize key capabilities, enabling seamless digital integration from configuration to order through dispatch, enhancing production visibility, improving scheduling, ensuring traceability, providing advanced analytics, and promoting energy efficiency and waste reduction. Due to this, various manufacturing companies are investing in digital transformation. A few instances are given below.
Manufacturing Execution System (MES) Market Analysis — by Geography
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), Services Type (Professional Services and Managed Services), Deployment (Cloud and On-Premise), Organization Size (Large Enterprises and SMEs), License Type (Subscription-Based and Licensed), Sales Channel (Direct Sales and Channel Partners), End User (Discrete Industry and Process Industry), and Geography
Manufacturing Execution System Market Size and CAGR by 2031
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Source: The Insight Partners Analysis
- According to the AG Solution Group, industrial companies allocate US$ 1.1 trillion annually to digital transformation initiatives; however, two-thirds of these organizations are still in the early phases of their digital adoption process.
- In June 2024, Zebra Technologies conducted a 2024 Manufacturing Vision Study. The study indicates that 61% of manufacturers anticipate AI will be a key driver of growth by 2029, a significant increase from 41% in 2024.
- In February 2025, Apple planned to invest over US$ 500 billion in the US over the next four years, focusing on advancing AI and silicon engineering. This includes opening an AI-driven manufacturing facility, expanding its Advanced Manufacturing Fund, and enhancing research and development (R&D) and training initiatives.
As manufacturers advance their digital transformation initiatives, the demand for manufacturing execution systems (MES) is projected to rise significantly. MES solutions equip companies with the capabilities to integrate emerging technologies, optimize operational workflows, and enhance overall productivity. MES has proven highly effective across various sectors, including process industries, high-tech, and general manufacturing. With a large installed base and increasing reliability and maturity, MES is becoming a key enabler for developing smart manufacturing facilities, optimizing operations, and driving market expansion. Thus, the growth of digital transformation across manufacturing industries is driving the manufacturing execution system (MES) market growth.
SAP SE; ABB Ltd; Dassault Systemes SE; Schneider Electric SE; Emerson Electric Co; General Electric Co; Honeywell International Inc; Rockwell Automation Inc; Siemens AG; Siemens AG; PSI Software SE; EAZYWORKS INC.; Eyelit Technologies; Glorysoft (Shanghai) Co.; Ltd; Oracle Corp; Applied Materials Inc; Autodesk Inc; International Business Machines Corp; IFS AB; FA software (Shanghai) Co.; Ltd; 42Q; INFOR; SEDAPTA SRL; KORBER AG; and ECI SOFTWARE SOLUTIONS are among the key players profiled in the manufacturing execution system (MES) market report. Several other major players were also studied and analyzed in the market study to get a holistic view of the market and its ecosystem.
The report includes the manufacturing execution system (MES) market forecast by component, deployment, organization size, license type, sales channel, and end user. Based on component, the market is segmented into software and service. The service segment is further segmented into professional services and managed services. In terms of revenue, the software segment held the largest manufacturing execution system (MES) market share and is expected to register the highest CAGR during the forecast period.
The scope of the manufacturing execution system (MES) market report focuses on North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). North America dominated the market in 2023, followed by Europe and APAC.
The market in Asia Pacific is segmented into Australia, China, Japan, India, South Korea, and the Rest of APAC. In terms of revenue, China held the largest manufacturing execution system (MES) market share in APAC. China's manufacturing sector dominates the global market. As China continues to emphasize automation, digitalization, and high-quality production, the demand for MES is growing rapidly. MES enables real-time monitoring, enhanced efficiency, and greater precision, supporting China's shift toward smart manufacturing. This growth is fueling investments in MES technologies across industries such as automotive, electronics, and consumer goods, further expanding the Chinese MES market. For example, the Guangzhou Automobile Group (GAC Group), which is among China's top 10 automakers, used Rockwell Automation's MES. GAC Group had implemented the Rockwell Software FactoryTalk ProductionCentre MES system for plant-wide production management and manufacturing process quality control. In October 2023, Asia Symbol Group, one of the biggest wood pulp producers in China, expanded its pulp and paper business into tissue manufacturing; it selected long-term strategic partner ABB to deliver the ABB Ability MES and system integration at three of its tissue mills in China.
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