Manufacturing Execution Systems Market Trends

Growth Drivers 

• Growing demand for medicines worldwide: As more public and private organizations invest in rigorous R&D, the need for efficient production management is rising. Particularly, the significant surge in biologics in medical emergencies, such as COVID-19, is pushing biopharma producers to adopt technologically advanced devices from the manufacturing execution systems market. For instance, till 2021, during the COVID-19 pandemic, 32 vaccines gained emergency use authorizations, which were further produced in a total of 11.0 billion doses (IFPMA). Additionally, the contribution of government bodies in improving public access to required medication is also propelling demand in this sector.

• Rapid integration of tech-based and AI-powered solutions: The growing need for connected and automated factory operations has remarkably inspired leaders in the market to introduce artificial intelligence (AI) and cloud-based infrastructure. For instance, in April 2024, SAP SE launched new AI-powered features, such as AI-driven insights, AI copilot Joule, AI-based asset operator, and real-time traffic data & machine-learning-trained models, in its existing pipeline of supply chain solutions. This addition helps companies transform their productivity with enhanced efficiency and precision. Such innovations and their effectiveness are inspiring manufacturers to invest more in this field.

Challenges 

• Hurdles in upgradation and maintenance: Despite the aim to reduce production expenses, the high initial cost of implementing these commodities may slow down wide adoption in the market. Associated devices and tools require frequent customization and supportive infrastructure, which often causes budget overflow, particularly for small-sized enterprises (SMEs). Besides, the setup and maintenance expenditures are also high and time-consuming as they involve complex technology and need skilled employees. This, as a result, makes it difficult for SMEs to adopt manufacturing execution systems (MES) as they grow hesitation from financial exhaustion.