Manufacturing Execution System Market Size and Share
Market Overview
| Study Period | 2020 - 2030 |
|---|---|
| Market Size (2025) | USD 17.19 Billion |
| Market Size (2030) | USD 27.98 Billion |
| Growth Rate (2025 - 2030) | 10.23% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Manufacturing Execution System Market Analysis by Mordor Intelligence
The manufacturing execution system market size stands at USD 17.19 billion in 2025 and is projected to reach USD 27.98 billion by 2030, expanding at a 10.23% CAGR. Robust momentum stems from Industry 4.0 programmes, persistent demand for real-time production visibility and the convergence of operational technology with enterprise software. Compliance mandates in pharmaceuticals and food, tighter automotive quality regimes and rapid adoption of cloud-native architectures are amplifying purchase urgency. Large enterprises continue to anchor overall spending, yet small and medium manufacturers are closing the capability gap through Software-as-a-Service and low-code options. Vendors are differentiating through composable platforms, edge–cloud hybrids and embedded cyber-security measures that harden plants against rising threat vectors.
Key Report Takeaways
- By offering, services commanded 51% of the manufacturing execution system market share in 2024; software-led services are forecast to compound at an 11.4% CAGR through 2030.
- By deployment mode, cloud captured 14.8% of the manufacturing execution system market size growth rate and is the fastest-expanding model through 2030.
- By end-user industry, automotive led with 24.3% revenue share in 2024, whereas life sciences is projected to grow at a 12.1% CAGR to 2030.
- By enterprise size, large organisations held 62% of the manufacturing execution system market share in 2024, while SMEs are advancing at a 10.6% CAGR through 2030.
- By process type, discrete manufacturing accounted for 48% of the manufacturing execution system market size in 2024 and hybrid processes are rising at a 12.9% CAGR through 2030.
- North America retained 34% of global revenue in 2024; Asia Pacific is expected to be the fastest-growing geography at an 11.3% CAGR to 2030.
Global Manufacturing Execution System Market Trends and Insights
Drivers Impact Analysis
| Driver | ( ~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Industry 4.0 and smart-factory roll-outs | +2.8% | Germany, China, United States | Medium term (2-4 years) |
| Real-time production visibility | +2.1% | North America, EU, APAC | Short term (≤ 2 years) |
| Compliance-driven digital traceability | +1.9% | Regulated global markets | Long term (≥ 4 years) |
| Low-code/composable MES for SMEs | +1.6% | APAC core, MEA spill-over | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Industry 4.0 and smart-factory roll-outs
Global OEMs are operationalising cyber-physical environments that require orchestration engines capable of synchronising machines, workforce and supply data in one digital thread. Advanced manufacturing execution platforms are embedding machine-learning models to predict asset failure, optimise changeovers and contextualise digital-twin simulations. In China, the formal launch of a dedicated MES sub-association is standardising reference architectures and talent pipelines.[1]Tongji University, “热烈祝贺中国机电一体化技术应用协会制造执行系统分会成立,” cdhk.tongji.edu.cnAutomotive majors such as Ford have already centralised plant data under unified dashboards to accelerate enterprise-wide decision cycles.
Need for real-time production visibility
Manufacturers faced with volatile supply chains are discarding batch-based reporting frameworks in favour of second-by-second metrics that flag deviations before quality drifts accumulate. Edge nodes integrated with manufacturing execution software are processing data locally, cutting latency to millisecond levels and allowing supervisors to intervene instantly. Pharma producers now rely on continuous process verification to release product lots faster while staying within strict FDA validation norms.[2]Rockwell Automation, “OT Cybersecurity in 2025: 6 Trends to Watch,” rockwellautomation.com
Compliance-driven digital traceability (pharma & F&B)
Regulators are mandating electronic batch records and granulated trace-and-track regimes. The FDA’s new food traceability rule obliges manufacturers to exchange critical tracking events electronically, pushing adoption of audit-ready MES databases. In life sciences, cGMP guidelines are evolving toward data-integrity-first postures, accelerating investment in execution platforms that automate 21 CFR Part 11 audit trails.
Low-code/composable MES enables SME pilots
Smaller plants are piloting modular workflows that lower upfront investment. Open and API-driven toolkits such as KITT4SME layer lightweight AI agents onto existing assets, easing adoption hurdles. Platform vendors such as Mendix are allowing domain experts to spin up extensions without deep coding skills, shrinking development cycles to weeks.
Restraints Impact Analysis
| Restraint | ( ~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Up-front integration cost with legacy OT/ERP | −2.3% | Mature industrial economies | Short term (≤ 2 years) |
| Cyber-security risks in cloud-connected plants | −1.8% | North America, EU, APAC | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Up-front integration cost with legacy OT/ERP
Plants running proprietary control protocols often find interface engineering both capital-intensive and time-consuming. Nearly 74% of manufacturers still retain ageing hardware that creates data silos and exposes vulnerabilities.[3]Manufacturing Digital, “Why Waiting to Upgrade from Legacy Systems is not an Option,” manufacturingdigital.com Consequently, mid-tier firms frequently stagger roll-outs or negotiate service-based payment models to de-risk cash flow.
Cyber-security risks in cloud-connected plants
Interconnecting shop-floor operations to external clouds enlarges attack surfaces and elevates regulatory scrutiny. Manufacturers must overlay zero-trust architectures while guaranteeing that electronic records stay tamper-proof during transit. Rising complexity is making talent scarcity a bigger hurdle than tooling costs.
Segment Analysis
By Offering: Implementation Services Accelerate Value Realisation
Services generated 51% of 2024 revenue, underscoring that project success hinges on partner expertise rather than software features. The manufacturing execution system market size for service engagements is forecast to expand at 11.4% CAGR as clients outsource change-management, validation and security hardening. Many integrators now wrap remote monitoring and continuous-improvement playbooks into subscription contracts, creating an annuity revenue base. Software, though representing the remaining 49%, is increasingly delivered as multi-tenant SaaS, shifting licence economics toward consumption metrics. As a result, vendors are blending consulting, AI model governance and managed cloud into one commercial wrapper.
Services remain pivotal because regulated industries demand documented installation qualifications and process validations. Leading providers differentiate through accelerators that pre-map FDA, EMA and ISO workflows. These artefacts compress deployment cycles and mitigate compliance risk, especially for life-science sites targeting electronic batch-release paradigms.
By Deployment Mode: Cloud-Native Architectures Redefine Agility
On-premise instances still hold 43.6% of the manufacturing execution system market share in 2024, largely within defence and pharma facilities that require air-gapped environments. However, cloud subscriptions are scaling fastest at a 14.8% CAGR, buoyed by elastic storage, instant scalability and shorter commissioning windows. The manufacturing execution system market size for cloud deployments is poised to widen further as edge-enabled microservices tackle latency-sensitive workloads while routing non-critical analytics to hyperscale data lakes.
Hybrid topologies are also gaining mindshare. Critical Manufacturing’s decision to certify its platform on AWS illustrates a strategy to meet variable compute demands without forfeiting deterministic response on the factory floor.[4]Silicon Semiconductor, “Critical Manufacturing MES available to run on AWS,” siliconsemiconductor.net These architectures let operators balance cybersecurity, cost and performance in line with board-mandated risk appetites
By End-User Industry: Automotive Anchors, Life Sciences Accelerates
Automotive accounted for 24.3% revenue in 2024 after embedding execution platforms into battery assembly and electric-vehicle driveline operations. OEMs use plant-level genealogies to safeguard warranty reserves and comply with evolving sustainability metrics. Conversely, life sciences will log the highest growth at 12.1% CAGR, energised by continuous-manufacturing lines and serialisation mandates. This sub-sector’s appetite for validated electronic records and real-time release elevates MES from optional upgrade to strategic infrastructure.
Other verticals—food & beverage, oil & gas, electronics, chemicals, metals, pulp, aerospace—pursue specialised recipe management, genealogy tracing and uptime optimisation. Each drives incremental demand for sector-tailored templates that shorten configuration timelines. The manufacturing execution system market continues to pivot toward verticalised offerings, with vendors embedding pre-built domain objects so customers can avoid heavy custom coding.
Note: Segment shares of all individual segments available upon report purchase
By Enterprise Size: Democratisation Expands TAM
Large organisations still command 62% of spending, yet SMEs are the breakout story. Manufacturing execution system industry adoption among smaller manufacturers rises 10.6% CAGR thanks to low-code design studios, pay-as-you-grow licences and government co-funding. Macomb County’s USD 300,000 matching-grant programme typifies public-sector incentives that underwrite pilot risk.[5]Macomb County, “Macomb Next in action in Macomb County,” macombgov.org Venture investment also validates the addressable opportunity; Pico MES secured USD 12.35 million to scale its SME-focused suite.
Composable architecture allows SMEs to bolt on modules—quality, maintenance, OEE—without rewriting core business logic. The approach reduces downtime during cut-over and aligns software costs with measured productivity gains, strengthening ROI narratives for budget-constrained boards.
Geography Analysis
North America retained 34% of the manufacturing execution system market in 2024. Deep automation penetration, a dense ecosystem of Tier-1 vendors and sizeable capex allocations in automotive, food and energy underpin its primacy. Federal programmes that channel over USD 12 billion into domestic energy-supply chains are catalysing plant modernisation, mobilising private co-investment and creating nearly 50,000 jobs.[6]U.S. Department of Energy, “MESC Fiscal Year 2024 Annual Report,” energy.gov Canadian and Mexican suppliers are following suit to preserve supply-chain synchronisation with United States OEMs.
Asia Pacific is the principal growth engine, advancing at an 11.3% CAGR. China’s “Made in China 2025” blueprint prioritises smart-manufacturing capabilities, including dedicated MES standards committees. India is deploying tax credits and production-linked incentives to court medical-device, electronics and renewable-energy investors, thereby pulling execution-software adoption into greenfield facilities. ASEAN economies, showcased at Intelligent Manufacturing Kuala Lumpur 2024, are emphasising AI-driven quality management and ESG reporting to lift regional competitiveness.
Europe maintains steady demand as automotive and life-science clusters double-down on traceability, worker-safety and carbon-footprint governance. German plants champion OPC UA interoperability while French aerospace assemblers integrate execution layers with PLM backbones. Cloud sovereignty mandates are shaping procurement criteria, nudging vendors to deploy regional data-centres and edge-kept encryption keys. Southern European and CEE markets remain nascent but are leveraging EU recovery funds to leapfrog directly into cloud-first deployments.
Competitive Landscape
The manufacturing execution system market exhibits medium concentration. Global suites from Siemens, Rockwell Automation, SAP, ABB and Honeywell anchor multi-plant deals, integrating MES with broader manufacturing operations management portfolios. Their strategies revolve around composable microservices, unified data fabrics and AI toolchains that deliver self-optimising lines. Mid-tier specialists counter with sector-specific implementations and faster time-to-value.
Strategic plays are increasingly cloud-oriented. Critical Manufacturing’s AWS-native deployment signals vendor willingness to offload infrastructure management and concentrate on application innovation. GE Vernova’s cloud MES cuts total cost of ownership by 30% and embeds no-code configurators to broaden user personas. Edge-enabled analytics safeguard deterministic response times, echoing market preference for hybrid models that marry local resilience with cloud scalability.
White-space opportunities lie in SME and emerging-market segments where pricing, implementation and regulatory alignment differ markedly from Fortune 500 use cases. Investors and corporate venture arms are funnelling capital toward low-code and composable stacks that sidestep legacy integration headaches. Partnerships that blend digital-twin visualisation with MES records, such as the Critical Manufacturing–Twinzo arrangement, deliver immersive decision environments and may reshape competitive benchmarks.
Manufacturing Execution System Industry Leaders
-
Siemens AG
-
Rockwell Automation Inc.
-
SAP SE
-
ABB Ltd.
-
Honeywell International Inc.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- June 2025: Critical Manufacturing released its MES on AWS, enabling elastic scaling and AI-driven optimisation strategies.
- May 2025: GE Vernova introduced a cloud-based MES that lowers total cost of ownership by 30% and supports no-code customisation.
- April 2025: Critical Manufacturing partnered with Twinzo to link MES data with 3D digital twins for enhanced situational awareness.
- March 2025: Rockwell Automation’s ninth State of Smart Manufacturing report highlighted 94% of firms plan to maintain or grow headcount alongside MES adoption.
- February 2025: Tulip debuted a composable MES tailored to life-science manufacturers, emphasising adaptability and validated workflows.
Research Methodology Framework and Report Scope
Market Definitions and Key Coverage
Our study defines the global manufacturing execution systems (MES) market as the total yearly software and allied service revenues earned from standalone platforms that bridge enterprise resource planning and shop-floor automation, recording, guiding, and optimizing every production step across discrete, process, and hybrid plants worldwide. According to Mordor Intelligence, this market is expected to generate USD 17.19 billion in 2025.
We exclude embedded production-management modules bundled solely inside programmable logic controllers or CNC tools without a separate MES license.
Segmentation Overview
- By Offering
- Software
- Services
- By Deployment Mode
- On-premise
- Cloud
- Edge-based
- By End-user Industry
- Food and Beverage
- Oil and Gas
- Pharmaceutical and Life Sciences
- Automotive
- Electronics and Semiconductor
- Chemicals
- Metals and Mining
- Pulp and Paper
- Aerospace and Defense
- Other Industries
- By Enterprise Size
- Large Enterprises
- Small and Medium Enterprises
- By Process Type
- Discrete Manufacturing
- Process Manufacturing
- Hybrid
- By Geography
- North America
- United States
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Rest of South America
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- South Korea
- India
- Australia and New Zealand
- ASEAN-6
- Rest of Asia-Pacific
- Middle East and Africa
- Middle East
- Saudi Arabia
- UAE
- Turkey
- Rest of Middle East
- Africa
- South Africa
- Nigeria
- Rest of Africa
- Middle East
- North America
Detailed Research Methodology and Data Validation
Primary Research
Structured interviews with MES architects, plant digitalization heads, regional integrators, and trade-body experts across North America, Europe, and Asia Pacific help us verify average selling prices, deployment-mix changes, and short-term upgrade pipelines that secondary sources alone cannot surface.
Desk Research
We begin with open sources such as the US Bureau of Labor Statistics, Eurostat PRODCOM, UN Comtrade (HS 847950), and the International Society of Automation for adoption ratios. Company 10-Ks, investor decks, and trade journals clarify pricing, while paid dashboards, including D&B Hoovers, Dow Jones Factiva, and Questel, supply company financials and patent cues. These materials anchor historical baselines; many additional references were used beyond those named.
Market-Sizing & Forecasting
We launch with a top-down reconstruction that scales national manufacturing value-add by MES penetration rates gathered from our interviews, followed by sampled ASP times active-license roll-ups to cross-check totals. Core variables include new smart-factory capex, average license price, cloud share of fresh installs, automotive output index, and discrete-plant digital maturity scores. A multivariate regression projects each driver through 2030, and scenario analysis captures high and low investment paths when data gaps appear.
Data Validation & Update Cycle
Outputs undergo variance checks against quarterly vendor bookings, capital-goods orders, and customs statistics. A second analyst reviews anomalies before sign-off. Reports refresh annually, with interim updates after material events, and a last review happens just before delivery so clients receive the latest outlook.
Credibility Anchored in the Manufacturing Execution System Reality
Published MES estimates often diverge because each firm chooses different scope elements, pricing assumptions, and refresh cadences.
Key Gap Drivers
1. Several publishers drop service revenues, pushing figures below our view.
2. Others roll forward older exchange rates or static ASPs, inflating totals.
3. Some assume rapid cloud displacement, which our field checks show is still emerging in heavy industries.
Benchmark comparison
| Market Size | Anonymized source | Primary gap driver |
|---|---|---|
| USD 17.19 B (2025) | Mordor Intelligence | - |
| USD 16.18 B (2024) | Global Consultancy A | Excludes integration and support services |
| USD 15.95 B (2025) | Global Consultancy B | Counts only on-premise deployments; uses fixed 2022 FX rates |
| USD 16.57 B (2025) | Industry Publisher C | Applies aggressive cloud uptake curve not yet visible in plant surveys |
By aligning scope tightly to active MES licenses, validating prices directly with buyers, and refreshing numbers each year, Mordor Intelligence provides a balanced, transparent baseline that decision-makers can repeat and trust.
Key Questions Answered in the Report
What is the current value of the manufacturing execution system market?
The market is valued at USD 17.2 billion in 2025 and is forecast to hit USD 28.0 billion by 2030.
Which deployment mode is growing fastest?
Cloud deployments are expanding at a 14.8% CAGR, favoured for rapid implementation and scalable cost structures.
Why are life-science firms accelerating MES investment?
Regulatory pressures for electronic batch records and continuous manufacturing workflows push life-science plants toward advanced MES platforms to secure compliance and real-time release.
How are SMEs justifying MES projects?
Low-code development, SaaS pricing and government grants lower entry barriers, making incremental roll-outs financially viable for SMEs.
What is the primary restraint on MES adoption?
High integration costs with legacy control and ERP systems remain the biggest hurdle, especially in mature industrial markets.
How is cyber-security influencing MES architecture choices?
Manufacturers prefer hybrid edge-cloud models combined with zero-trust frameworks to safeguard production data while leveraging cloud scalability.
Page last updated on:
