Automotive MES Market – By Type , By Deployment , By Functionality , By Application (Component Manufactures, Assembly, Body in White, Paint Shop & Others), By Customer Type , By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030

Automotive MES Market Overview:

Automotive Manufacturing Execution System (MES) Market size is estimated to reach US$7.3 billion by 2030, growing at a CAGR of 6.4% during the forecast period 2024-2030. Automotive Manufacturing Execution Systems (MES) play a crucial role in the automotive industry by managing and optimizing the manufacturing processes involved in vehicle production. MES in the automotive sector is increasingly integrating with Industry 4.0 technologies like IoT, AI, and data analytics to enhance automation, connectivity, and real-time monitoring across the manufacturing floor. Additionally, the growing demand for cloud-based technologies and integration with ERP and PLM solutions is driving the demand for Automotive MES. 

A notable trend is the emphasis on cybersecurity within MES systems. As automotive manufacturing becomes increasingly digital and interconnected, protecting sensitive production data from cyber threats is paramount. Another trend is the growing emphasis on sustainability within the automotive sector, driving the implementation of MES systems that support energy-efficient manufacturing processes and reduced waste. These advancements are expected to significantly propel the growth of the automotive MES market during the forecast period, providing a competitive edge to manufacturers by optimizing their production workflows and enhancing overall quality control. These factors positively influence the Automotive MES industry outlook during the forecast period.

Market Snapshot: 

Automotive MES Market - Report Coverage:

The “Automotive MES Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Automotive MES Market.
 

 COVID-19 / Ukraine Crisis - Impact Analysis:  

• In the first half of 2020, lockdown measures paralyzed manufacturing facilities and supply chains on the one hand, and consumer demand on the other. The lockdown affected vehicle sales. In the second half of 2020, when lockdowns were lifted or relaxed for some time, the market started to recover. For electric cars, in H2 2020, monthly sales surpassed those between July and December in 2019 in every month in all large markets including China, the European Union, India, Korea, the United Kingdom and the United States, despite second waves of the pandemic.
• The ongoing Ukraine-Russia conflict's impact on the Automotive MES is indirect. The Ukraine-Russia war resulted in a delay in the production of vehicles and eventually, increased inflation, driving up costs. These higher costs can dampen sales and uptake levels thereby also affecting the Automotive MES industry.

Key Takeaways:

• Dominance of Asia-Pacific Region

Geographically, in the Automotive MES market share, the Asia-Pacific region has the highest market share of more than 38% in 2023 owing to the revival of the automotive industry in the region. As per the International Organization of Motor Vehicle Manufacturers (OICA), in India 4.8 million cars were sold in 2023 compared to 4.4 million cars in 2022. Also, the electric vehicles segment is doing well in this region. According to the Global EV outlook 2024 by the International Energy Agency (IEA), in China, the number of new electric car registrations reached 8.1 million in 2023, increasing by 35% relative to 2022. Increasing electric car sales were the main reason for growth in the overall car market. As sales of EVs rise, driven by shifting consumer preferences towards sustainable mobility, the role of MES in manufacturing cells becomes even more critical. Therefore, this region is expected to dominate the Automotive MES market.

• Cloud Segment to Grow the Fastest

In the Automotive MES Market analysis, cloud is the largest segment by deployment and is estimated to grow with a CAGR of 7.2% during the forecast period 2024-2030. Cloud-based MES solutions offer scalability and flexibility thereby allowing automotive manufacturers to adapt quickly to changing market demands and scale their operations up or down as needed without significant infrastructure investments. According to General Electric, by lowering capital expenditures (CAPEX) and operating expenses (OPEX) compared to on-premises deployments, cloud-based MES can help manufacturers to reduce total cost of ownership up to 30%. Moreover, cloud-based MES solutions can provide real-time analytics and insights into manufacturing operations enabling automotive manufacturers to make data-driven decisions quickly and optimize their processes for efficiency and quality.

• Component Manufacturers are the Largest Segment in the Market

According to the Automotive MES Market forecast, the polymer flooding technique held the largest market share of 49% in 2023. MES systems are indispensable in managing the complex production processes involved in component manufacturing. The growth in EV sales is pushing up demand for batteries. As per IEA’s Global EV Outlook 2024, the demand for EV batteries reached more than 750 GWh in 2023, up 40% relative to 2022. Electric cars account for 95% of this growth. As the demand for EVs grows, efficient MES systems will be critical in meeting the high standards required for battery performance and safety. Stellantis, TotalEnergies and Mercedes-Benz raised US$4.7 billion to build four EV gigafactories in the European Union. Together, they plan to raise approximately US$7.5 billion to build the factories for their co-owned battery maker ACC.

• Shift Towards Industry 4.0

The shift towards Industry 4.0 is a major driver for the automotive MES market. Industry 4.0 integrates advanced technologies such as IoT, AI, big data, and robotics into manufacturing processes, leading to smart factories. This transformation enhances real-time monitoring, predictive maintenance, and data-driven decision-making. According to Rockwell Automation’s 2023 State of Smart Manufacturing Report that surveyed 1,353 global manufacturers, 50% of automotive manufacturers are mitigating risk by adopting technology. For automotive manufacturers, MES systems are crucial in this transition, enabling seamless connectivity and automation across production lines. By leveraging MES, companies can achieve higher efficiency, reduced downtime, and improved product quality. 

• Integration with ERP and PLM Solutions

The integration of MES with Enterprise Resource Planning (ERP) and Product Lifecycle Management (PLM) solutions is a key driver for the automotive MES market. This integration allows for seamless data flow across different stages of the production process starting from design and development to manufacturing and distribution. By linking MES with ERP systems manufacturers can streamline operations, enhance inventory management and improve resource planning. Similarly, integration with PLM ensures that product designs are accurately translated into manufacturing processes while maintaining quality and consistency. This approach enables better visibility and control over the entire production lifecycle, leading to increased operational efficiency and reduced time-to-market. 

• High Initial Investment to Impede to Market growth

A major challenge for the automotive MES market is the high initial investment. Implementing MES involves substantial costs related to purchasing software, hardware and the necessary infrastructure. Additionally, the expenses for integrating MES with existing systems, training personnel and ongoing maintenance add to the investment. For many automotive manufacturers, particularly for small and medium-sized organizations, these upfront costs can deter investment in MES solutions. This might also prove to be a barrier for adoption of automotive MES in the market. This financial challenge might prove to be a challenge for the widespread adoption of MES in the automotive industry.
 

Automotive MES Market Share (%) By Region, 2023
 

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Key Market Players: 

Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the Automotive MES Market. The top 10 companies in this industry are listed below:

1. ABB Ltd
2. Rockwell Automation
3. Siemens AG
4. Dassault Systemes
5. General Electric
6. Honeywell
7. SAP
8. Emerson Electric
9. Schneider Electric
10.  Accenture

Scope of Report: 

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