Why manufacturing execution systems are now a strategic imperative

Today

By Terry Smagh, Senior Vice President and General Manager, Asia Pacific and Japan, Infor

The manufacturing execution system (MES) market is experiencing significant growth, reflecting a broader shift towards operational digital transformation across industries. As organisations increasingly recognise the importance of digitising their operations, MES solutions are emerging as a core component of this transformation.

While MES has been around for some time, demand has surged in recent years. The need for greater efficiency, higher productivity, and improved quality control drives this growth. Businesses seek to modernise and standardise their operations to remain competitive, often through implementing digital transformation strategies.

In manufacturing, digital transformation is crucial for improving productivity, increasing efficiency, and reducing costs. MES is pivotal in these initiatives by bridging the gap between the shop floor and digital systems, providing real-time visibility into production processes, and enabling data-driven decision-making.

A key advantage of MES is its ability to integrate with other systems, such as enterprise resource planning (ERP) and supply chain planning (SCP) software. This integration facilitates end-to-end visibility and control over the entire manufacturing process, ensuring a smooth flow of information and efficient coordination across departments.

Furthermore, a growing trend toward "composable ERP" focuses on separating ERP's core functions from specialised applications like MES. This approach allows ERP to concentrate on its strengths while enabling operational users to utilise applications designed specifically for their needs.

In the 2024 Gartner Market Guide for Global Trade Management, Gartner acknowledges MES as a critical enabler of digital transformation in manufacturing, highlighting its role in connecting the shop floor to the broader enterprise and enabling data-driven decision-making. The report also underscores the importance of MES in achieving operational excellence, enhancing quality, and increasing agility.

According to the IDC MarketScape: Worldwide Manufacturing Execution Systems 2024-–2025 Vendor Assessment, manufacturers increasingly invest in MES solutions to gain real-time visibility into production processes, optimise resource allocation, and improve overall equipment effectiveness (OEE). The IDC report also highlights the growing importance of MES in supporting sustainability initiatives and helping manufacturers achieve their environmental, social, and governance (ESG) goals.

In its February 2025 update, Fortune Business Insights reported that the global MES market was valued at US$14.88 billion US in 2024. It is projected to reach US$41.78 billion US by 2032, with a compound annual growth rate (CAGR) of 14.1% during the forecast period.

Several factors are contributing to the significant expansion of the MES market:

Artificial intelligence (AI) and machine learning (ML): MES vendors are increasingly incorporating AI and ML capabilities to enhance operational analytics and provide deeper, data-driven insights.
Cloud-based MES: Cloud MES solutions are gaining traction due to their scalability, accessibility, and cost-effectiveness.
Internet of Things (IoT) and Industry 4.0: The widespread adoption of IoT devices and Industry 4.0 technologies is fuelling demand for MES solutions to manage and analyse the growing production data volume.

The MES market is rapidly evolving, driven by intense competition, technological advancements, and strategic partnerships. Many manufacturers are investing in MES for the first time, shifting away from traditional paper-based systems and spreadsheets to modernise their operations. While emerging technologies are gaining attention, most manufacturers prioritise foundational solutions like MES as the first step in their digital transformation journey.

As manufacturers navigate increasing pressures related to competition, costs, and regulatory requirements, MES has become a crucial tool for success. The projected growth of the MES market underscores its ongoing importance in modern manufacturing. Ultimately, digital transformation is essential. Companies that invest in MES will be better positioned to compete in the ever-evolving manufacturing landscape.

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