Manufacturing Execution System Software Statistics 2024

In the fast-paced and intricate world of manufacturing, staying ahead of technological advancements is paramount for maintaining competitive advantage. Manufacturing Execution System (MES) software, projected for a significant evolution in 2024, forms the backbone of this sector by enhancing productivity, ensuring compliance, and optimizing the seamless workflow from order to delivery. Understanding the statistical landscape of MES software adoption and performance is crucial for grasping the broader business environment and identifying emerging trends that could redefine manufacturing operations.

Key stakeholders, including manufacturing executives, operations managers, IT professionals, and industry analysts, will find this data indispensable. These statistics not only illuminate the current state and the anticipated trajectory of MES software, but they also reveal how various facets of the industry are pivoting toward more integrated and intelligent systems. As stakeholders analyze this information, they can better align their strategies to leverage MES capabilities, driving innovation, reducing downtime, and increasing overall efficiency in their operations.

As the manufacturing sector continues to evolve rapidly, informed decision-making grounded in up-to-date statistics becomes increasingly imperative. This article aims to equip industry professionals with the critical insights needed to navigate the complexities of MES software advancements in 2024. By leveraging this data, stakeholders can craft strategies that not only respond to the current state of the industry but also anticipate and prepare for future transformations.

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Top Manufacturing Execution System Software Statistics 2024

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Functions And Standards

• The 11 functions of the Manufacturing Execution System (MES) are defined by ISA95. ^[?]
• DIN EN 62264, based on IEC 62264 of the ISA, emphasizes the continuous transfer of information between manufacturing and enterprise systems. ^[7]
• The ANSI/ISA-95 standard merged the MESA-11 model with the Purdue Reference Model, creating a functional hierarchy. ^[21]
• Activities in Level 3 of the ANSI/ISA-95 standard are divided over four main operations: production, quality, logistics, and maintenance. ^[21]
• Middleware enterprise application integration (EAI) systems are often used to exchange transaction messages between MES and Level 4 systems. ^[21]
• A common data definition, B2MML, has been defined within the ISA-95 standard to link MES systems to Level 4 systems. ^[21]

Industry Growth And Market Trends

• The global manufacturing execution system (MES) market was valued at US$ 11.78 billion in 2020. ^[12]
• It is estimated to expand at a CAGR of 9.4% from 2021 to 2031. ^[12]
• The global manufacturing execution system (MES) market is expected to reach US$ 31.17 billion by 2031. ^[12]
• The manufacturing execution systems (MES) market is projected to grow at a CAGR of 13.0% and is expected to accumulate a market value of US$ 11.6 billion over the forecast period. ^[20]
• The MES market in the United Kingdom is expected to rise with a CAGR of 12.8% and gain a market value of US$ 2.1 billion by the end of the forecast period. ^[20]
• The Chinese government has been actively promoting the development of advanced manufacturing technologies and Industry 4.0 initiatives. ^[20]

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Case Studies And Practical Implementations

• HarbisonWalker International, with facilities scattered across three continents, improved forecast accuracy, reduced worker overtime, and fine-tuned inventory levels by consolidating data onto a single cloud ERP system. ^[2]
• Western Digital standardized data and workflows on a new cloud-based system with preconfigured reporting, granting business leaders access to analytical data within about 20 minutes. ^[2]
• Predictive maintenance typically reduces machine downtime by 30 to 50 percent and increases machine life by 20 to 40 percent. ^[3]
• One manufacturer increased earnings by 55 percent by applying changes indicated by advanced analytics and data modeling. ^[3]
• By using condition monitoring and predictive maintenance in conjunction with process controls and automated material tracking, a company expects to improve total production by 30 percent without a substantial increase in operating costs. ^[3]

Digital Transformation And Industry 4.0

• 83% of manufacturers believe that smart factory solutions will transform the way products are made in five years. ^[5]
• The potential benefits of smart factories include gains in asset efficiency, labor productivity, product quality, and substantial cost reduction. ^[5]
• Industry 4.0 continues the push towards automation, employing technologies such as IIoT (industrial internet of things), big data, machine learning, artificial intelligence (AI), and advanced analytics. ^[8]
• The adoption of AI in day-to-day manufacturing operations is especially high in Europe, with 80% and 79% of manufacturers using AI in Italy and Germany, respectively. ^[8]
• The industrial internet of things (IIoT) is a major component of Industry 4.0, with projections that close to half of all large industrial enterprises would have implemented digital twins at some scale by the end of 2021. ^[8]

Workforce And Talent Management

• A recent survey conducted by the National Association of Manufacturers (NAM) found that almost three-quarters of surveyed manufacturing executives feel that attracting and retaining a quality workforce is their primary business challenge. ^[5]
• 70 percent of manufacturing workers under 25 said they will stick with an employer because of opportunities to grow. ^[10]
• The manufacturing skills shortage in the US could result in 2.1 million unfilled jobs by 2030 and cost the industry $1 trillion in 2030 alone. ^[15]
• Enhanced locational awareness when selecting a new manufacturing location can help businesses balance market access, talent pools, and overall costs. ^[5]
• The industrial metaverse can be employed to offer new, efficient, enhanced, and flexible training methods that can be accessed even from remote locations. ^[5]

Sustainability And Environmental Impact

• Manufacturing industries contribute 24% of the greenhouse gas emissions in the U.S. ^[6]
• More than 20% of the world’s largest public companies have already made commitments to net-zero carbon emissions in the future. ^[8]
• Klöckner & Co, one of the world’s largest producers of steel and metal, has a goal to halve its emissions by 2030. ^[8]
• In April 2021, the Department of Energy announced a program that offered up to $22.5 million for projects that reduce manufacturing emissions and energy use. ^[8]
• By 2025, the company Klöckner & Co says 30% of the Nexigen products will come exclusively from the two most sustainable levels. ^[8]

Cybersecurity

• In IBMs X-Force Threat Intelligence Index, manufacturing was ranked as the industry that suffered the most cyberattacks in 2021. ^[8]
• PwC reports that 49% of manufacturers list cybersecurity risks as one of the biggest challenges their companies will face in the next two years. ^[8]
• According to the X-Force Threat Intelligence Index from IBM, 23% of the attacks against the sector in 2021 came in the form of ransomware. ^[8]
• In March 2022, a ransomware group attacked Denso Corporation, a major manufacturer of automotive parts that supply companies like Toyota, Mercedes-Benz, and Ford. ^[8]

Key Performance Indicators (kpis) And Metrics

• Formula for % first quality: Number of First Quality units/total units produced*100. ^[9]
• Formula: On-time Delivery = (number of Units Delivered On-Time x 100) / number of Units Delivered. ^[18]
• Formula: Labor Cost Percentage = (labor cost / gross sales) x 100. ^[18]
• Formula: Employee Turnover Rate (%) = (Employees who left x 100) / Avg. ^[18]
• Formula: Overtime Rate (Percentage) = (Overtime Hours x 100) / Regular Hours. ^[18]

Emerging Technologies And Innovations

• Searches for “Machine Learning” have risen by 700% over the last decade. ^[8]
• Searches for “Digital Twin” have increased by 143% over the last 5 years. ^[8]
• Searches for “5G” have grown by over 692% in 5 years. ^[8]
• The market for predictive maintenance solutions was valued at $3.8 billion at the end of 2020 and is expected to grow to $13.9 billion by 2026. ^[8]
• The overlap of IIOT, advanced analytics, and automation has set the stage for trends such as predictive maintenance, digital twins, and intelligent automation to take off in 2024. ^[8]

Investment And Economic Impact

• Global spending on digital transformation technologies and services that enable digital transformation will reach $2.3 trillion by 2023. ^[4]
• Digital transformation in the manufacturing market was valued at $263 billion in 2020 and is expected to reach $767 billion by 2026. ^[11]
• The digital transformation market is slated for a 23.6% CAGR between now and 2030, which will put the market at a $3.74 trillion valuation at the end of the decade. ^[13]
• The global digital transformation market was valued at USD 731.13 billion in 2022, with a projected CAGR of 26.7% from 2023 to 2030. ^[14]
• The global digital transformation market for retail reached $143.55 billion in 2020 and is expected to grow at 18.2% CAGR by 2026. ^[17]

Digital Adoption And Implementation Challenges

• According to WalkMe’s State of Digital Adoption 2022-2023 report, 70% of enterprise leaders are unaware of who is responsible for digital adoption strategies in their organization. ^[22]
• 60% of businesses lack a clear strategy to increase the adoption of their digital tools. ^[22]
• Boston Consulting Group states that 70% of digital transformations fall short of their objectives. ^[25]
• 55% of digital transformations exceed their original budgets, and 7% end up costing more than double the initial projection. ^[28]
• 70% of digital transformations fail, most often due to resistance from employees. ^[29]

Future Trends

• By 2025, 70% of organizations will use digital adoption platforms across the entire technology stack to overcome still insufficient application user experiences. ^[4]
• By 2030, analysts expect automation to eliminate 29% of jobs, while contributing 13% to job creation. ^[11]
• By 2025, the number of Internet of Things (IoT) devices worldwide will reach 41.6 billion. ^[16]
• By 2027, worldwide digital transformation spending is expected to reach $3.9 trillion with a five-year CAGR of 16.1%. ^[14]
• By 2028, the global corporate e-learning market size is expected to reach $30 billion, highlighting the importance of continuous digital learning. ^[23]

Advanced Analytics And Artificial Intelligence

• Together, these advanced analytics approaches can deliver EBITDA margin improvements of as much as 4 to 10 percent. ^[3]
• AI (Artificial Intelligence) is expected to contribute $15.7 trillion to the global economy by 2030. ^[16]
• Between 2020 and 2024, global investment in digital transformation will almost double. ^[11]
• Cloud, AI, and the Internet of Things are the top 3 areas companies are scaling up during digital transformation. ^[13]
• Future digital transformation trends for 2024 include Generative AI (GenAI), Risk and Security Management (TRiSM), and industry cloud platforms (ICPs). ^[14]

Adoption Metrics And Strategies

• Digital transformation statistics show that only 35% of businesses have already achieved or are going towards reaching digitalization goals. ^[14]
• 47% of organizations cite a lack of digital skills as a significant obstacle to successful digital transformation. ^[16]
• 55% of start-ups compared to 38% of typical businesses have implemented a digital business strategy. ^[26]
• 34% of organizations have already undertaken a digital transformation. ^[26]
• 85% of business decision-makers believe they have two years to make substantial progress in the area of digital transformation. ^[26]

Regional Insights

• North America led with a 43.2% revenue share in the digital transformation market in 2022. ^[14]
• The United States will own 35.8% of worldwide digital transformation spending in 2023. ^[14]
• The Asia/Pacific region, with countries like Japan and China, will fall shortly behind with 33.5%. ^[14]
• Europe will account for 26.8% of DX spending in 2023. ^[14]

Impact Of Covid-19

• The COVID-19 pandemic has dramatically accelerated consumer and business shifts toward online platforms and digital interactions. ^[14]
• 97% of companies say the COVID-19 pandemic sped up their digital transformation initiatives. ^[17]
• COVID-19 has sped up companies’ DX initiatives by an average of 6 years. ^[13]
• The pandemic has accelerated reshoring, which has generated about 220,000 new jobs in 2022. ^[27]
• In 2023, the U.S. manufacturing industry experienced significant growth spurred by federal initiatives and private sector investment. ^[24]

Cybersecurity Investments

• Cybersecurity risks and supply chain management topped the list of top challenges for manufacturers in 2021. ^[8]
• In collaboration with BlackBerry, Make UK found that 42% of UK manufacturers were victims of a cyberattack in the last 12 months. ^[27]
• More than 50 organizations came together in 2020 to form the Cybersecurity Manufacturing Innovation Institute (CyManII). ^[8]

Key Metrics And Benchmarks

• OEE (Overall Equipment Effectiveness) is used to monitor and improve production processes. ^[9]
• An OEE of 100% means that only good parts are produced (100% quality), at the maximum speed (100% performance), and without interruption (100% availability). ^[19]
• A typical oil rig has more than 80,000 sensors, providing data on everything from process parameters to machinery status. ^[8]
• The average IT department only spends 18% of its budget implementing new technologies and solutions, with 56% spent on maintenance. ^[13]

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