Manufacturing Operations Management Software Market

Market Overview

The global manufacturing operations management software market size was valued at USD 10,189.64 million in 2022. It is estimated to reach USD 22,130.8 million by 2031, growing at a CAGR of 9% during the forecast period (2023–2031). The advent of Industry 4.0 and robotic process automation (RPA) implementation stimulates market growth.

Manufacturing operations management (MOM) is a set of processes that provides a holistic solution for complete visibility into manufacturing processes. The use of MOM software helps industries improve the performance of manufacturing operations. MOM is a successive system to the Manufacturing Execution System (MES). With MES and MOM systems integration, MOM software can consolidate production processes to improve advanced planning and scheduling, quality management, R&D management, manufacturing execution systems, and other functionalities.

Market Dynamics

Global Manufacturing Operations Management Software Market Drivers:

Advent of Industry 4.0

Amid an industrial transformation associated with production facilities, the digitization of manufacturing has increased over the past few years. This has led to the advent of Industry 4.0 evolution, which has compelled manufacturers to opt for digitalized solutions for optimized manufacturing processes in their facilities. This is a significant factor expected to drive the growth of the market. The dawn of advanced manufacturing techniques that collaborated with information technology, data mining methodologies, and analytics drove the Industrial 4.0 revolution across the globe. This revolution has garnered the leading manufacturers to coalesce information technology and operational technologies to create revenue growth opportunities in innovative ways.

Implementation of Robotic Process Automation (RPA)

Human-robot collaboration is bringing future-proof advancements in intelligent factories. The emergence of technologies is easing the integration between legacy systems and robotic machinery. Moreover, AI algorithms promise massive leaps in quality and productivity, helping industries anticipate growing market demands or changes. Robotic process automation (RPA) is widely used to streamline an industry's operations and helps to plug gaps in legacy systems to bring system modernization. This, in turn, is expected to drive the market's growth in the coming years.

In addition, industrial automation has staggered the rapid growth of industries with benefits such as high productivity, high quality, high information accuracy, and others. Industries that operate beyond software leverage industrial automation by using control systems, such as robots, and collaborate with information technologies to handle different machinery processes. This, in turn, is expected to drive the market's growth during the forecast period as RPA delivers automation to monolithic legacy systems and moves toward a more extensive microservices software delivery model.

Global Manufacturing Operations Management Software Market Restraint:

High Initial Investment

Manufacturers operating businesses across the globe are realizing that operational inefficiencies are creating a burden for their industries to cope with a rise in consumer demands. Moreover, MES systems are considered a foundational enabler to the intelligent manufacturing strategy, but with several investments required, it was probably not positioned to garner maximum benefit. MES or MOM systems are often deployed and justified based on eliminating paper-based processes in production benefits, restraining the growth of smart manufacturing. Furthermore, small- and medium-scale industries need help to gain sponsors for production due to the inefficiencies in investing in R&D, which is expected to hinder the market's growth.

Global Manufacturing Operations Management Software Market Opportunities:

Increased Adoption of Data Acquisition and Supervisory Control

The emergence of IoT and edge computing has increased industrial applications by adding new capabilities to supervisory control and data acquisition (SCADA) platforms. These technologies strengthen industrial communications and help improve a production plant's efficiency and performance while reducing downtime, thereby providing growth opportunities for market expansion. With a continuously growing volume of machine and process data, scalable SCADA systems are expected to adhere to standards such as the Open Platform Communications Unified Architecture (OPC UA), which helps manufacturing and platform-independent industrial communications. Though SCADA systems are evolving to keep up with adoption in an IIoT era, these systems play an essential role in manufacturing automation processes.

Numerous SCADA platform providers tend to garner a large base of protocol interfaces rather than rely on third-party gateways with Unified Architecture (OPC UA or OPC DA). Moreover, the emergence of small and medium enterprises or Web-compatible SCADA platforms coupled with the proliferation of augmented reality (AR) technology that collaborates process equipment with SCADA automation data is expected to gain high traction in the coming years.

Regional Analysis

North America Dominates the Global Market

The global manufacturing operations management software market is bifurcated based on region into North America, Europe, Asia-Pacific, and LAMEA.

North America is the most significant global manufacturing operations management software market shareholder and is estimated to grow at a CAGR of 7.8% over the forecast period. This location is dominant since various prominent players are operating from here due to the increasing demand to revolutionize the digital data ecosystem among enterprises in the area. Contemporary manufacturing in the United States is transitioning towards automated mechanized production. Moreover, the proliferation of sophisticated technology innovations in manufacturing enhances the efficiency of intricate global supply chains, intensifying worldwide competitiveness among firms. As a result of this change, multinational corporations have been motivated to make substantial investments in logistical networks and manufacturing facilities in the United States and North America.

Europe is expected to demonstrate a CAGR of 9.3% during the projected period. An untapped possibility for digitalization exists, which is expected to enhance the global market's growth significantly. The convergence of digital technology, additive manufacturing, novel materials, and advanced robotics is reducing the barriers to integration between industry and services. The European government is actively supporting this transformation by facilitating the use of new applications and software tools in various industries. The increasing demand from end-users has led the European sector to adopt developing technology to meet the automated manufacturing requirement. Consequently, there is a notable surge in digital transformation endeavors in this area, which is anticipated to propel market expansion.

The market growth in Asia-Pacific is likely driven by the increasing demand for technology-based services and the expansion of industrial facilities in the region. Asia-Pacific countries are projected to increase the use of MOM software tools in the manufacturing sector due to substantial growth in the implementation of digitalization in industries within this area. Moreover, the market's expansion is propelled by the widespread use of e-commerce, the rising popularity of intelligent technologies, and government initiatives like smart factories in developing nations such as China and India.

In LAMEA, the market's expansion is likely driven by the increasing adoption of 4.0 industrial revolution tactics by industries operating in LAMEA countries. Furthermore, the market's expansion is anticipated to be propelled by the government's increased efforts in implementing supportive digital transformation initiatives in this region. In September 2017, the UAE Government initiated the UAE Strategy for the Fourth Industrial Revolution (4IR). The strategy was implemented to bolster the UAE's standing as a formidable global center and enhance its economic impact by embracing cutting-edge innovation and emerging technology.

Segmental Analysis

The global manufacturing operations management software market is bifurcated into component, functionality, enterprise size, and industry vertical.

Based on components, the global manufacturing operations management software market is bifurcated into software and services.

The software segment dominates the global market and will likely exhibit a CAGR of 8% over the forecast period. The market is experiencing growth in the software segment due to the implementation of digitalization in manufacturing production areas. This aims to optimize production performance and enhance flexibility, efficiency, and time-to-market. As Industry 4.0 increased, the software segment has gained traction over the past few years, owing to its ability to control machinery and manual operations. The growth in demand to garner power from management technology significantly results in the adoption of software and platforms. This adoption is due to its ability to provide operational insights and decision-making points.

Based on functionality, the global manufacturing operations management software market is bifurcated into inventory management, labor management, manufacturing execution system (MES), process and production intelligence, quality process management, and others.

The manufacturing execution system (MES) segment holds a significant share of the global market and is predicted to exhibit a CAGR of 7.9% over the forecast period. Owing to the rise in the need for unified manufacturing solutions. With a broad scope of operations software capability that scales manufacturing operations, increases efficiency, and controls execution systems, the operations management software drives manufacturers to invest in software platforms that keep up with the competition. MES systems help manufacturing operations manage all production operations, such as manufacturing indicators, traceability, quality, planning, and scheduling. The growth of MOM and MES integrated platforms is expected to propel in the coming years, which is expected to drive the market's growth.

The global manufacturing operations management software market is segmented into small and medium enterprises and large enterprises based on enterprise size.

The small and medium enterprises segment dominates the global market and is predicted to exhibit a CAGR of 8.5% during the forecast period. The proliferation of lean manufacturing among SMEs to eliminate almost all waste from production processes is a significant factor in driving the growth of the global market. Moreover, favorable government initiatives such as Make in India, Atal Innovation Mission, National Skill Development Mission, and restructurings such as GST are a few positive boosters for the growth of the operations management software in SMEs. SMEs thrive to sustain themselves due to their proximity to fulfilling customized customers' demands, openness toward technology adoption, and risk-taking approach.

Even with this, many SMEs are vulnerable to significant challenges faced by operational risk, which may result in potential revenue loss due to insufficient internal processes, people, systems, or external events. This factor has propelled the demand for manufacturing operations management software in SMEs at a significant rate, which in turn is expected to drive the growth of the global market.

Based on industry vertical, the global manufacturing operations management software market is divided into automotive, chemical, healthcare, food and beverages, consumer goods, aerospace and defense, and others.

The healthcare segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 8.8% over the forecast period. The rise in R&D activities for developing multi-platform applications has witnessed significant demand in recent years. This has driven the demand for automation services compatible with cross-platform applications. MES and MOM software have propelled adoption at a high rate due to their compatibility with legacy or SCADA systems. Though automation creates an efficient workflow, aligning stringent government regulations that follow good automated manufacturing practice (GAMP5) guidelines (ISPE) for engineering and validating medical devices is highly in demand for data integrity and quality issues. Thus, the MOM software gained high momentum in 2018 and is expected to continue this trend in the coming years.

Recent Developments

• June 2023- Oracle, a corporate software provider, announced the release of Oracle Manufacturing Cloud, a new MOM software platform. Oracle production Cloud is intended to assist firms in improving their production processes and supply chain management.
• May 2023- Dassault Systèmes, a 3D design and manufacturing software developer, announced the release of 3DEXPERIENCE Manufacturing, a new MOM software platform. 3DEXPERIENCE production is intended to assist manufacturers in optimizing their product design, production, and quality assurance processes.