Manufacturing Execution Systems for Process Industries

The Manufacturing Execution Systems (MES) for Process Industries Market Research Study delivers current market analysis plus a five year market and technology forecast. The study is available in multiple editions including worldwide, all regions, and most major countries.

Manufacturing Execution Systems (MES) Market Growth

Overall global growth for MES solutions began slowing in some process manufacturing markets during 2019, and the pandemic enhanced the effect for some industries during 2020.  In 2019 the slowdown was due to the global economic slowdown, the US-China tariff conflicts, geopolitical issues, and deferred investments and resulted in stalling growth in various industries.  

MES software integrates the data and intelligence from information systems (ERP/Business), automation systems, product design, supply chain, industrial IoT and other data sources.  

The global oil & gas industry benefited in 2019 from the stabilization of global crude oil prices.  With this stabilization, many previously stalled or cancelled projects in upstream oil and gas began coming back online.  

Investments from the chemical industry benefitted from National Oil companies’ push to diversify beyond exploration and production activities as well as growing investments in digitalization initiatives during 2019.  

Overcapacity and a push towards renewable energies to reduce green-house gas emissions in India and China hindered demand for new capacity projects in the fossil fuels electric power generation industry during 2019.  

Impact of COVID-19

Manufacturing Execution Systems Market TrendsDespite the overall negative effect on global growth, COVID-19 is proving to be a market accelerator for remote operations and the digital transformation in 2020. The COVID-19 pandemic greatly accelerated the need for solutions that support the new normal, as social distancing, remote operations, and other issues have completely upended plants and factories.  To avoid similar disruptions in the future, end users are increasingly looking to deploy MES solutions on-premise, in the Cloud, and on the edge to be able to access operations, view and analyze data, and optimize production remotely, with minimum personnel on site.  In general, those manufacturers with the extended digital capabilities needed to support remote monitoring and operations have fared better than others.  

In most plants, MES is critical for connecting, collecting, interoperating, monitoring, and executing production data and activities to support digital transformation. Digitalization was increasing before the COVID-19 pandemic, but ARC expects to see COVID-19 as an accelerator here.   

ARC Advisory Group research indicates that MES solutions provide capabilities that help enable manufacturers to customize products, manage process complexity and innovation, and meet consumer demand.  MES solutions help improve plant and operational execution and performance; support collaboration; and support data integration for new Industrial IoT-connected smart sensors, predictive, prescriptive analytics, artificial intelligence, machine learning, and robotics.

Manufacturing and operations may never go back to the way things were prior to the pandemic; although ARC expects an uptick in consumer demand once a vaccine has been deployed throughout the world.  The COVID-19 effect ranged from positive to negative depending upon the markets or industries, but no company or industry was immune to COVID-19.  

In some process industries, most notably food & beverage, pharmaceutical & biotech, water & wastewater, and some specialty chemicals (e.g., disinfectants, etc.), the negative effects were muted.  Companies that had already begun their digital transformation were able to establish a remote working environment, which reduced their dependency on having an on-site workforce.  These companies were also able to shift production quickly and were better equipped to maintain their status quo.

In the pulp and paper industry, there was a supply chain modification where consumer products were in higher demand than commercial products (e.g., toilet paper and paper towels).  Similarly, ARC witnessed a shift in the food & beverage industry, from high-end restaurant foods to consumer foods and different distribution channels.  Some companies were able to modify product lines and packaging to meet these changing demands.  

On the whole, chemical companies did not do as well due to the lower demand for petrochemicals, although the high demand for disinfectants stabilized the negative effects somewhat.  For other industries where there was a more substantial drop in demand for the products, the outcome for MES investments will be even more disruptive.  

ARC anticipates the oil & gas industry to be impacted the most by COVID-19 during 2020.  ARC is anticipating oil and gas industry investments to decline significantly during 2020 due to geopolitical issues as well as a decrease in demand, resulting from COVID-19 (e.g., working from home).  Storage tanks were full but the demand and prices for gas dropped substantially, making it difficult for companies to continue their investments and projects in 2020 where layoffs and bankruptcies became the norm throughout the industry.  

Manufacturing Execution Systems Market Strategic Issues

In addition to providing a five-year market forecast, the MES for the Process Industry t Research provides detailed quantitative current market data and addresses key strategic issues as follows.

Strategic Issue for Users: Simplified Intuitive User Experience

Intuitive, simplified, and flexible software is more important than ever and being built on modern low code/no code platforms. The ability for remote workers to access manufacturing intelligence easily and securely has emerged as another key characteristic.  The software must be easy to deploy, integrate, simple to use, intuitive, and collaborative. The technology must be able to connect to the data easily and have flexible yet interoperable and modular applications that adapt easily to manufacturing changes. And many manufacturers are starting to incorporate AI with auto- and autonomous functionality. The software should be scalable and adapt quickly to new innovative technologies and applications as they emerge.  Because user experience is so important, ARC is also seeing an interest in digital twins, simulation, augmented reality, virtual reality, and improved digital dashboards.  Augmented reality is being embedded in MES to enforce workflow and operational insights.  Specialized, easy-to-design dashboards and adaptable mobile capabilities with human-factor engineered  dashboards for process interaction and collaboration can have a huge impact on worker insights and manufacturing efficiencies.   

Strategic Issue for Suppliers: Investing in Technologies for Smart Digital Manufacturing

MES suppliers should have a strategy in place to incorporate emerging digital technologies including smart manufacturing, Industrial IoT, compliance and standards, Big Data, the Cloud, advanced analytics, augmented reality, and mobility and continue to integrate new smarter digital technologies within their MES software.   

Digital technologies and data should integrate with automation systems, smart devices, machines, or other technologies.  Smart manufacturing comprises smart factories, smart logistics, Big Data technologies, machine learning, AI, and smart services.  These technologies make it easier for businesses to gather production information to help streamline processes and anticipate abnormal behavior. The benefits include production optimization, product quality improvements, and reduced energy consumption.  Also models that help monitor equipment in real time for maintenance can reduce unplanned downtime and maintenance costs.   

Strategic Issue for All Market Participants: Economic Decline Due to COVID-19  

After a weak 2019, the coronavirus pandemic took the world by surprise in early 2020, dashing any hopes of a return to any conditions resembling “normal.”  Many process manufacturing industries, such as the oil & gas, metals, and  chemicals have been hit hard by the COVID-19 pandemic while other industries like pharma and biotech fared batter.  As such, ARC anticipates a decline in MES revenues for several of the vertical industries covered in this report during 2020, as the negative effects of the COVID-19 pandemic are expected to be felt through the rest of the year and into the beginning of 2021, with most global economies falling into recession.  ARC expects a gradual market recovery in 2021 with a return to stable growth rates unlikely before 2022 or 2023.  

Formats and Editions Available

This market study may be purchased as an Excel Workbook and/or as a PDF File.  The Workbook has some unique features such as the ability to view data in local currency.  Regional studies include country and industry market data.  Country studies include market trends and industry data.  Studies and formats available are listed below:

MIRA Workbook PDF File
Worldwide (includes regional data) Yes Yes
North America (includes country data) Yes No
Latin America (includes country data) Yes No
Europe, Middle East, Africa (includes country data) Yes No
Asia (includes country data) Yes No
Country Profiles (includes Country Data) No Yes

Countries included in each region.

Table of contents for these studies is shown in the following paragraphs.

Worldwide Research Focus Areas

Strategic Analysis

  • Major Trends
  • Industry Trends
  • Regional Trends
  • Technology Factors
  • Strategies for Success

Competitive Analysis

  • Market Shares of the Leading Suppliers
  • Market Shares by Region
    • North America
    • Europe, Middle East, Africa
    • Asia
    • Latin America
  • Market Shares by Revenue Category
    • Software
    • Services
  • Market Shares by Service Type
    • Maintenance/Support
    • Implementation
    • Software as a Service
  • Market Shares by Functional Category
    • Plan and Schedule
    • Direct and Operate
    • Inform and Visibility
  • Market Shares by Industry
    • Cement & Glass
    • Chemical
    • Electric Power
    • Food & Beverage
    • Metals
    • Mining
    • Oil & Gas
    • Pharmaceutical & Biotech
    • Pulp & Paper
    • Refining
    • Textiles
    • Water & Wastewater
  • Market Shares by Deployment Model
    • Hosted 
    • Cloud
    • On Premise
  • Market Shares by Customer Size
  • Market Shares by Sales Channel

Market Forecasts and Histories

  • Total MES for Process Business
  • Shipments by Region
    • North America
    • Europe, Middle East, Africa
    • Asia
    • Latin America
  • Shipments by Revenue Category
    • Software
    • Services
  • Shipments by Services Type
    • Maintenance/Support
    • Implementation
    • Software as a Service
  • Shipments by Functional Category
    • Plan and Schedule
    • Direct and Operate
    • Inform and Visibility
  • Shipments by Industry
    • Cement & Glass
    • Chemical
    • Electric Power
    • Food & Beverage
    • Metals
    • Mining
    • Oil & Gas
    • Pharmaceutical & Biotech
    • Pulp & Paper
    • Refining
    • Textiles
    • Water & Wastewater
  • Shipments by Deployment Model
    • Hosted 
    • Cloud
    • On Premise
  • Shipments by Sales Channel
  • Shipments by Customer Size

Industry Participants

The research identifies all relevant suppliers serving this market. 

Regional Research Focus Areas

Strategic Analysis

Competitive Analysis

  • Leading Suppliers in Region
  • Industry Shares in Region
  • Country Shares in Region
  • Leading Suppliers by Industry

Market History & Forecast Analysis 

  • Market History & Forecast by Country
  • Market History & Forecast by Industry

Industry Participants

List of countries & currencies included in each region: MIRA-Country

Country Research Focus Areas

Contact us for the countries available for this study.

For More Information

For more information or to purchase the Manufacturing Execution Systems for Process study, please contact us.