COVID-19 Impact on the Manufacturing Execution System Market

COVID-19 has severely impacted the global economy and all the industries throughout the globe. Earlier mostly companies had to put a stop to all the manufacturing operations but now the lockdown has been uplifted in many parts of the world. Many remedial regimes have been followed in attempts to come up with a reliable treatment for COVID-19. At present, the approaches being used by the authorities are not prescribed by WHO.

Download PDF Brochure @ 

https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=536

DRIVERS: Convergence of IT and OT

IT/OT convergence is the integration of information technology (IT) systems with operational technology (OT) systems. IT systems are used for data-centric computing, whereas OT systems monitor events, processes, and devices make adjustments in enterprise and industrial operations. IT and OT convergence also define the integration of IT systems, such as Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) applications, with OT systems, such as Manufacturing Execution Systems (MES) and Supervisory Control and Data Acquisition (SCADA). Various organizations unlock several benefits from process automation and business intelligence with IT and OT for ensuring regulatory compliance.

RESTRAINT: Lack of awareness regarding benefits of MES solutions among SMEs

The shifting of an existing manufacturing environment to a manufacturing execution system involves various stages, which, when understood properly, enable small- and medium-sized companies to implement manufacturing execution systems in a cost-effective manner. Presently, the implementation of advanced manufacturing execution systems requires a proper software platform for the system, its integration with ERP, and data which needs to be exchanged within the internal software and MES software, which will help in decision-making. Small- and medium-sized companies are unable to implement advanced MES solutions as they require high investment. Also, they are not quite aware of the benefits of advanced MES solutions. These factors are currently restraining the growth of the market.

OPPORTUNITIES: Integration with solutions such as ERP and PLM

Manufacturing execution systems perform various functions, such as managing products and resources, scheduling, dispatching, collection of data, analyzing the performance, and auditing data. For the smooth functioning of these processes and effective results, manufacturing execution systems are integrated with various solutions, such as ERP, supply chain management (SCM), warehouse management system (WMS), decision support system (DSS), business intelligence, and e-commerce. For example, integration of manufacturing execution systems with ERP WMS enables to maintain orders that come in the warehouse. To feed the data in the system accurately and in a timely manner, an order management system within the MES solution is used. The integration of manufacturing execution systems with PLM would deliver advantages such as improved planning and high productivity by making necessary changes on the engineering floor.

Manufacturing execution systems are also used in cloud-based applications, where they are integrated with a number of systems such as AGV, EMS, and VMS. The ability to be integrated with a large number of systems and solutions assists manufacturing firms to reap the benefits of different solutions in one process and yield better results. It also ensures that the strict regulations related to documentation and traceability of products are managed efficiently.

CHALLENGES: Complex Implementation

The implementation of manufacturing execution systems is complex because every such system is different according to the industry and the processes involved in that industry. Implementation, staging, and shifting to the production floor are the three steps involved in the manufacturing process. Implementation gets affected due to the existing complex hardware infrastructure of production or shop floor. As a result of this, the manufacturing execution system is unable to adapt to the situation and does not perform effectively, as it needs various modifications during installations. The implementation process of a manufacturing execution system requires approximately four years. The complexity of the processes involved in the implementation of manufacturing execution systems with every system of a production floor and the time-consuming process of implementation are the major challenges for the MES market.

Manufacturing execution system market for services to grow at higher CAGR during the forecast period

As the major functioning of manufacturing execution systems is largely dependent on the post-implementation process, the services play a major role in improving efficiency as well as the production process by reducing wastage and production time. The manufacturers of manufacturing execution systems provide services to the users along with the software. These include post-sales services such as installation, training, maintenance, and software upgrades. The major manufacturing execution systems processes are carried out during and after implementation, as implementation process.

For optimizing the output of manufacturing operations, it is imperative to have process selection services in place. All these ancillary services, apart from the main services such as installation, training, maintenance, and software upgrade, are expected to drive the services offering segment amidst the COVID-19 pandemic. However, the growth rate would not be close to the estimation of the pre-COVID-19 market scenario.

Pharmaceutical & life sciences industry to hold the largest market size of manufacturing execution system market during the forecast period

The pharmaceutical & life sciences industry is expected to hold the largest market size of MES market during the forecast period. Life sciences companies look forward to solutions that standardize their manufacturing processes across various sites located in different regions. Manufacturing execution systems help manufacturers standardize their workflow and minimize lead times through electronic approval. They also help in managing data, which is later used for regulatory compliance.

Moreover, the COVID-19 pandemic has been responded to aptly by pharmaceuticals companies worldwide. These companies have faced challenges due to the COVID-19-induced lockdown, such as supply chain disruptions and the need to modify business processes.

APAC to account for the largest share of manufacturing execution system market during the forecast period

The APAC region is expected to hold the largest share of the manufacturing execution system market during the forecast period. The demand for manufacturing execution systems is very high in APAC for implementing the change from manual or legacy systems to automated systems. The MES market in China is expected to grow mainly due to the increasing number of manufacturing units in the country, which is expected to create huge demand for MES software. Another reason for the growth of the MES market in APAC is the increase in the number of manufacturing plants in various sectors such as automotive, textiles, power, and pharmaceuticals where manufacturing execution systems are in high demand.