Modern MES Market to reach US$46.37bn by 2027
New findings reported by Market Research Future (MRFR) predicts that the modern Manufacturing Execution Systems (MES) market will reach US$46.37bn by 2027 with a CAGR of 15.41% between 2019 and 2027.
10 prominent players highlighted by the report in the global modern MES market include General Electric Company, ABB Ltd., SAP SE, Emerson Electric Co., Werum IT Solutions GmbH, Applied Materials, Inc., Siemens AG, Rockwell Automation, Inc., Dassault Systèmes, and Honeywell International Inc.
“Modern manufacturing execution systems are integrated with ERP and lifecycle management applications, among others, to provide visibility, coordination, and control over manufacturing processes,” reported MRFR.
The core role of an MES is to increase the process capability and productivity of the manufacturing process, “the increasing manufacturing sector and the strong need to optimise manufacturing processes have increased the usage of manufacturing execution systems,” added MRFR.
As a result, rapid industrialisation has driven growth for the modern MES market and is said to continue to do so for the forecasted period. Other factors expected to fuel the MES market growth include the increased use of the internet of things (IoT), the growing adoption of MES in the power, food and beverage, water and wastewater treatment industries, as well as the need to monitor real-time data, increase data visibility and control of off-site development operations.
“IoT technology helps manufacturers create, streamline and collapse system architecture in a cost-effective, responsive and efficient manner. This technology also allows interaction and communication between industrial devices to provide the industry with optimum efficiency and flexibility. The proliferation of the industrial (IIoT) Internet of Things is anticipated to augment the installation of MES in the future,” commented MRFR.
IMF: Variants Can Still Hurt Manufacturing Recovery
After a year of on-and-off manufacturing in the US, UK, and the eurozone, demand for goods surged early last week. Factories set growth records in April and May, suppliers started to recover, and US crude hit its highest price point since pre-COVID. As vaccination efforts immunise much of the US and UK populations, manufacturers are now able to fully ramp up their supply chains. In fact, GDP growth could approach double-digits by 2022.
Now, the ISM productivity measure has surpassed the 50-point mark that separates industry expansion from contraction. Since U.S. president Biden passed his US$1.9tn stimulus package and the UK purchasing managers index (PMI) increased to 65.6, both sides of the Atlantic are facing a much-welcomed manufacturing recovery.
Lingering Concerns Over COVID
Even as Spain, France, Italy, and Germany race to catch up, and mining companies pushed the FTSE 100 index of list shares to a monthly high of 7,129, some say that UK and US markets still suffer from a lack of confidence in raw material supplies. Yes, the Dow Jones has made up its 19,173-point crash of March 2020, and MSCI’s global stock index is at an all-time high.
Yet manufacturers around the world realise that these wins will be short-lived until pandemic supply chain bottlenecks are solved. If we keep the status quo, consumers will pay the price. In April, inflation in Germany reached 2.4%, and across the EU’s 19 member countries, overall prices have increased at an unusual pace. Some ask: Is this true recovery?
IMF: Current Boom Could Falter
Even as Elon Musk tweeted about chip shortages forcing Tesla to raise its prices, UK mining demand skyrocketed; housing markets lifted; and the pound sterling gained value. The International Monetary Fund (IMF), however, cautioned that manufacturing recovery won’t last long if COVID mutates into forms our vaccinations can’t touch. Kristalina Georgieva, Washington’s IMF director, noted that fewer than 1% of African citizens have been vaccinated: “Worldwide access to vaccines offers the best hope for stopping the coronavirus pandemic, saving lives, and securing a broad-based economic recovery”.
Across the globe, manufacturing companies are keeping a watchful eye on new developments in the spread of COVID. Though US FDA officials don’t think we’ll have to “start at square one” with new vaccines, the March 2021 World Economic Outlook states that “high uncertainty” surrounds the projected 6% global growth. Continued manufacturing success will in large part depend on “the path of the pandemic, the effectiveness of policy support, and the evolution of financial conditions”.
Mathias Cormann, secretary-general of the Organisation for Economic Co-Operation and Development (OECD) concurred—without global immunisation, the estimated economic boom expected by 2025 could go kaput. “We need to...pursue an all-out effort to reach the entire world population”, Australia’s finance minister added. US$50bn to end COVID across the world, they imply, is a small investment to restart our economies.