Manufacturing Operations Management Software Market Size, Share & Trends Analysis Report By Component (Software, Services), By Deployment (On-premise, Cloud), By Enterprise Size, By Application, By End-use, By Region, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The global manufacturing operations management software market size was estimated at USD 16.26 billion in 2023 and is expected to grow at a CAGR of 13.8% from 2024 to 2030. The market growth can be attributed to the rising demand for tracking and monitoring manufacturing operations in real-time networks and the growing demand for Industry 4.0 is offering exponential growth opportunities for all business sizes across the globe. During COVID-19, when the whole traditional manufacturing operations management (MOM) systems became ineffective, technology played a big role in streamlining the whole process of manufacturing operations by integrating real-time data along with superior technological tools such as advanced analytics, machine learning, AI, cloud technologies, and others. Thus, it promotes automation and digitization of processes, manufacturing operations, and increases organizational efficiency.

Industry 4.0 focuses on automation, machine learning, real-time data, and the interconnectivity of networks. The 4.0 technology is transforming manufacturing capabilities by integrating digital technologies along with data, helping organizations in creating connected enterprise networks to bring intelligent outcomes in the physical world. For instance, in October 2023, AVEVA expanded its collaboration with Microsoft to strengthen data integration platforms AVEVA Connect and Microsoft Fabric, aiming to incorporate artificial intelligence in key industries. The partnership aims to combine Microsoft’s cloud solutions and AVEVA’s industry expertise to gather and organize data for AI applications and green software initiatives.

Governments across the world are launching industry 4.0 initiatives to promote technological advancements in the industrial manufacturing processes. For instance, the European Union and the German government launched strategic initiatives named Industry 4.0 to support digital technologies and promote R&D activities in SMEs and traditional manufacturing industries. Thus, the growing government initiative toward smart manufacturing operations processes and Industry 4.0 is likely to accelerate MOM software’s market growth.

The growing implementation of advanced technological solutions across the manufacturing processes helps organizations in improving production efficiency, streamline processes, and increase time-to-market. Organizations are making strategic decisions for expanding their capabilities of offering robust manufacturing operations management software to customers. For instance, in September 2021, Rockwell Automation, Inc. acquired Plex Systems, a leading cloud-based smart manufacturing platform. Plex Systems helps organizations to track, connect, analyze, and automate operations across the supply chain it offers advanced manufacturing execution systems and supply chain management capabilities to the organizations. The acquisition aims to strengthen Rockwell Automation’s existing strategies by bringing connected enterprises to life and navigating faster time to value its customers relying on cloud offerings.

Manufacturing operations management software promotes ease of operations using data, advanced tools, and human intelligence, driving meaningful insights and supporting decision-making in organizations. Keeping this critical data confidential is becoming a challenge for organizations as growing technological and human interactions are also causing threats in terms of rising data theft, cyber-attacks, and privacy concerns can become a restraining factor in the market. Organizations across the world are involved in launching advanced solutions with the latest technologies to minimize the risk of growing data safety concerns. For instance, in 2021, AVEVA announced the offering of its first SaaS solution with leading PI System operations. AVEVA’s Data Hub is a secure cloud-based hub for managing, combining, and sharing operations information securely within and outside the organizations to gain meaningful insights and strengthen operating performance.

Market Concentration & Characteristics

One of the main growth opportunities in the manufacturing operations management software industry is the increasing demand for efficient and streamlined production processes across various industries. The software enhances productivity by offering real-time data analysis, optimized workflow management, and improved supply chain coordination. This results in reduced operational costs and higher quality outputs. As industries such as automotive, electronics, and pharmaceuticals strive for operational efficiency and adaptability, the adoption of such software is accelerating.

The market exhibits a high degree of innovation, driven by key players engaging in strategic partnerships, collaborations, and product launches. Companies such as ABB Group, Emerson Electric Co., Siemens AG, and Honeywell International, Inc. are leading the market with major strategies focused on partnerships and product launches. Innovators such as Aspen Technology, Inc., Aegis Industrial Software Corporation, Plex Systems, Inc., and others are contributing to market innovation.

In April 2024, AVEVA Group Limited and Databricks, Inc. unveiled a strategic alliance aimed at improving industrial software. This initiative focuses on enhancing the integration between AVEVA Connect and the Databricks Data Intelligence Platform. It provides users with the tools necessary to fully leverage their data and AI investments. This collaboration facilitates effortless and secure data exchange, empowering clients across numerous industries to discover fresh value sources and achieve greater flexibility in their industrial operations, all while maintaining strict security and governance standards.

Regulations play a significant role in shaping the manufacturing operations management software market. The need for compliance with strict government regulations, particularly in sectors such as healthcare, drives market growth by ensuring adherence to quality standards and operational efficiency. These regulations push manufacturers to adopt digital solutions to meet compliance requirements, leading to increased demand for such software.

The level of product substitutes in the market is relatively low due to the specialized nature of these software solutions tailored to optimize manufacturing processes. Manufacturing operations management software plays a crucial role in streamlining operations, integrating processes such as planning, scheduling, inventory management, and quality control, making it a unique and essential tool for manufacturing efficiency.

Component Insights

Based on components, the software segment dominated the market with the largest share of 71.6% in 2023. This can be attributed to the fact that with a simplified decision-making process by enabling one single view of the whole process, the software removes the need to switch applications for gathering data. The software is more reliable and offers higher security, fast decision-making, reduces operational costs, and improves efficiency by managing all information on a single platform along with all necessary applications. All these factors are increasing the demand for the segment over the forecast period.  

The services segment is anticipated to grow at the fastest CAGR of 15.0% during the forecast period. Software as a Service (SaaS) offers easier and simplified distribution of applications to customers over the Internet. It offers greater flexibility in terms of usage and costs of applications as the user only needs to pay for the availed applications. The deployment and installation of SaaS are easier and take less time compared to the traditional deployment of software. These benefits of services will supplement the growth of the segment during the forecast period.

End-use Insights

The aerospace and defense segment dominated the market with the largest share in 2023. The aerospace and defense industry is involved in building cutting-edge platforms and systems with high-end performance goals. The advanced MOM software helps the aerospace and defense industry in the continuous planning and execution of processes by integrating technical support, costs, and schedules in a fully planned and systematic manner and it is feasible for both commercial and government manufacturers of all sizes. Thus, these factors are expected to supplement the growth of the segment during the forecast period.

The automotive segment is anticipated to grow at a significant CAGR of 15.5% over the forecast period. Organizations are involved in building smart automotive manufacturing facilities by connecting people, technology, systems, and machines. For instance, in August 2022, Siemens made a strategic partnership with Nissan for installing a new production line for manufacturing an all-electric car segment named Nissan Ariya. The company was already using the digital software portfolio offered by Siemens. Thus, the growing demand for digitization and automation of manufacturing and production lines across the automotive industry is expected to drive the segment growth during the forecast period.

Deployment Insights

Based on deployment, the on-premise segment dominated the market with the largest share in 2023. On-premise software offers greater security and data protection as the software is installed on the customer’s premises. It also provides greater control over the applications and allows access to application and data even when the internet disrupts. With regular updates and management of on-premise software, the safety and privacy of data are managed, and it saves organizations from potential threats.

The cloud segment is anticipated to grow at the fastest CAGR of 15.2% during the forecast period as cloud-based manufacturing operations management software offers greater flexibility to organizations. It does not require any installations on users’ premises and these high-end applications can be avail based on a subscription model. It offers greater scalability, cost-effectiveness, and ease of access to the customers as these licenses can be extended based on the user’s requirements.

Enterprise Size Insights

Based on enterprise size, the large enterprise segment dominated the market with the largest share in 2023. Manufacturing operations management solutions have greater significance for large enterprises. The software offers supply chain management, quality control, production management, unified operations management, etc., and helps in increasing efficiency and ease of operations for large enterprises. It provides end-to-end tracking and monitoring of real-time data, analysis, and implementation of gathered results in large enterprises for taking timely actions and potential decision making.

The small & medium enterprises segment is expected to grow at the highest CAGR of 16.0% over the forecast period. The growth can be attributed to the rising implementation of MOM software in small & medium enterprises. The software helps small & medium enterprises in achieving growth and expanding capabilities with digitization and automation of manufacturing processes, streamlining operations, reducing lead time, meeting production deadlines, ensuring quality, and optimizing manufacturing capacity. The above benefits are strengthening the demand for MOM software in small & medium enterprises.

Application Insights

Based on application, the quality management segment dominated the market with the largest share in 2023. Efficient quality management solutions offer greater quality products, reduce wastage, and increase customer satisfaction. The software supports advanced planning, monitoring, and control processes and quality within the organizations. It ensures continuous improvement, offers operational excellence and increases organizational efficiency.

The manufacturing execution system (MES) segment is anticipated to grow at a significant CAGR of 15.4% over the forecast period. The manufacturing execution system streamlines the production processes and track the entire product life cycle from raw material to finished goods. It evaluates the process and ensures the optimum utilization of applied resources. It standardizes processes and activities and offers higher product quality, increases profits, and reduces waste thus increasing the overall efficiency within the organization.

Regional Insights

North America held the major share of 32.7% of the global manufacturing operations management software market in 2023 owing to the presence of key manufacturers in the region offering advanced planning & scheduling, manufacturing execution systems, labor management, inventory management, quality management, performance analysis, manufacturing intelligence, etc. North America has a high potential in programming and software solutions, attributable to automation and advancements in manufacturing operations across the region. Thus, it is positively leading the manufacturing operations management software market growth in the region.

U.S. Manufacturing Operations Management Software Market Trends

The manufacturing operations management software market in the U.S. is expected to grow significantly at a CAGR of 10.8% from 2024 to 2030. The proliferation of Industry 4.0 and the increasing adoption of technologies such as AI, ML, IoT, cloud computing, and AR in MOM systems are major growth drivers. The need for optimized production processes, improved compliance management, and the integration of end-to-end automation software to enhance inventory communications, procurement, and order processing are further fueling market expansion. Digitalization is also propelling the growth of the market in the automotive, healthcare, and food & beverage sectors which are particularly benefiting from MOM software due to their focus on quality standards, inventory management, and traceability.

Asia Pacific Manufacturing Operations Management Software Market Trends

The manufacturing operations management software market in Asia Pacific is anticipated to grow with the fastest CAGR of 15.8% due to the rapid growth of the industrial sector in the region. The lower cost of operations, availability of resources, and the rising government support for establishing smart manufacturing facilities and industry 4.0 initiative is increasing the demand for manufacturing operations management software. For instance, Smart Udyog Bharat 4.0 under the Department of Heavy Industry & Public Enterprises is an initiative taken by the Indian government to promote digitization and automation in the manufacturing industry to create and facilitate an advanced technological ecosystem for Indian manufacturing units by the year 2025.

China manufacturing operations management software market is expected to grow at a significant CAGR of 14.1% from 2024 to 2030. One of the key drivers of the market is the Chinese government's strategic focus on industrial modernization through initiatives such as Made in China 2025 and the Internet Plus strategy. These programs aim to transform China from a manufacturing giant of low-cost goods to a leader in advanced manufacturing and innovation. The policies encourage the adoption of smart manufacturing technologies, including MOM software, to enhance production efficiency, quality, and competitiveness on a global scale.

The manufacturing operations management software market in India is expected to grow at a significant CAGR of 19.3% from 2024 to 2030. The rapid industrialization and economic development in India have created a strong demand for more efficient manufacturing processes. Indian manufacturers are increasingly seeking to optimize their operations to stay competitive in a global market. MOM software provides critical tools for managing production schedules, ensuring quality control, and maintaining supply chain efficiency, all of which are essential for enhancing productivity and reducing costs.

Japan manufacturing operations management software market is expected to grow at a CAGR of 12.8% from 2024 to 2030. The growth is attributed toJapan's aging population and shrinking workforce that made labor shortages a pressing issue for many manufacturing companies. MOM software helps address this challenge by automating routine tasks, improving labor productivity, and enabling more efficient workforce management. By leveraging these solutions, manufacturers can mitigate the impact of labor constraints and ensure continuous, high-quality production even with a reduced human workforce.

Europe Manufacturing Operations Management Software Market Trends

The manufacturing operations management software market in Europe is expected to grow at a CAGR of 13.0% from 2024 to 2030, driven by the European Union's stringent regulatory framework and high product quality and safety standards, which require manufacturers to adopt sophisticated software solutions to ensure compliance. MOM software helps manufacturers maintain detailed records, track production processes, and ensure all products meet regulatory requirements. This is particularly important in the pharmaceuticals, automotive, and aerospace industries, where precision and regulation adherence are crucial.

The UK manufacturing operations management software market is expected to grow at a CAGR of 14.0% from 2024 to 2030 driven by the increasing adoption of Industry 4.0 principles across the region. Manufacturers are increasingly integrating advanced technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), and machine learning into their production processes. These technologies enable real-time data analysis and predictive maintenance, which enhance efficiency and reduce downtime. MOM software plays a critical role in this digital transformation by providing the necessary tools for seamless integration and management of these advanced technologies within manufacturing operations.

The manufacturing operations management software market in Germany is expected to grow at a significant CAGR of 15.5% from 2024 to 2030. The market is experiencing significant growth due to the country's strong emphasis on advanced manufacturing. This includes the adoption of Industry 4.0 technologies, which integrate cyber-physical systems, the Internet of Things (IoT), and cloud computing to create smart factories. Germany's robust industrial sector, known for its high-quality production and innovation, is driving the demand for MOM software to enhance efficiency, streamline operations, and maintain a competitive edge in the global market.

In addition, government initiatives and investments in digital infrastructure and smart manufacturing are further propelling this growth, as companies seek to optimize production processes and improve overall productivity.According to the International Trade Administration, by 2025, 84% of German manufacturers aim to invest USD 10.52 billion annually in smart manufacturing technologies. As of June 2023, 75% of German companies have implemented digital technologies, and 15 billion employees work in advanced manufacturing industries.

France manufacturing operations management software market is growing significantly due to several key factors, including the rapid adoption of Industry 4.0 technologies and the increasing need for digital transformation in manufacturing processes. A significant driver is the rise of Additive Manufacturing (AM), which demands sophisticated software solutions to manage complex workflows, enhance production efficiency, and ensure quality control. The French government's support for innovation and smart manufacturing initiatives, coupled with the country's strong industrial base, is also propelling the market. As manufacturers seek to improve operational agility and reduce costs, the integration of advanced software systems becomes essential, further fueling market expansion.

Middle East & Africa Manufacturing Operations Management Software Market Trends

The manufacturing operations management software market in the Middle East & Africa region is expected to grow significantly at a CAGR of 14.8% from 2024 to 2030 due to several factors, including the region's increasing industrialization and the push toward economic diversification away from oil dependence. Governments in the region are investing in smart manufacturing technologies to enhance productivity and global competitiveness, supported by initiatives such as Saudi Arabia's Vision 2030 and the UAE's Fourth Industrial Revolution strategy. Additionally, the adoption of Industry 4.0 technologies, including IoT, AI, and automation, is driving the need for advanced MOM solutions to optimize production processes, reduce operational costs, and improve supply chain efficiency. This trend is further bolstered by the growing presence of international and local software vendors offering tailored solutions for regional manufacturing needs.

The Saudi Arabia manufacturing operations management software market is growing due to Vision 2030 initiative, which aims to diversify the economy away from oil dependence by boosting industrialization and adopting advanced technologies. Government incentives, significant investments in smart infrastructure, and the growing adoption of Industry 4.0 technologies further drive the market's expansion, as businesses strive to remain competitive and align with global manufacturing standards. For instance, in February 2024, Alat, a Saudi Arabia-based technology manufacturer, announced the creation of a joint venture with SoftBank Group, a Japanese multinational investment company to produce industrial robots. These robots are intended for a broad range of manufacturing and assembly tasks, promising to revolutionize the industry. The collaboration involves an investment of up to USD 150 billion to set up a state-of-the-art automated production and engineering center in Riyadh, aimed at catering to both local and international markets.

Key Manufacturing Operations Management Software Company Insights

Some of the key players operating in the market include ABB, Honeywell International Inc., and Schneider Electric.

• ABB is a global provider of electrification and automation technologies, offering products, systems, solutions, and services related to industrial automation. With a focus on integrating engineering expertise and software, ABB's solutions enhance power reliability, increase industrial productivity, and improve energy efficiency. The company caters to customers in utilities, industry, transport, and infrastructure sectors worldwide, delivering digitally connected industrial equipment and systems. ABB's presence spans across Asia, the Americas, the Middle East, Africa, and Europe.

• Honeywell International Inc. is a global player in the MOM software market, offering a comprehensive suite of solutions designed to elevate industrial safety and efficiency. Its Operations Management platform enables process manufacturing sites to drive informed decisions and operational compliance through the implementation of safe and profitable operating windows, effective shift reporting and handover, and synchronization of critical limits, shift handovers, and process deviations. Additionally, Honeywell's Production Management solution applies industry-proven analytics and intelligent workflows to supply chain data, enabling optimized production value chain decisions and improvements in margins, losses, inventory, and others.

Some other players operating in the market include AVEVA Group Limited, Epicor Software Corporation and Siemens.

• AVEVA Group Limited is a prominent player in the MOM software market, offering a comprehensive suite of solutions that accelerate efficiency, reliability, and agility in manufacturing operations. Their software portfolio, ranging from Planning and Operations automation to Manufacturing Execution Systems (MES), enables businesses to optimize profitability, standardize operational processes, and enhance safety across the supply chain.

• Epicor Software Corporation is one of the prominent business software companies specializing in enterprise resource planning (ERP), customer relationship management (CRM), supply chain management (SCM), and human capital management (HCM) software tailored for the manufacturing, distribution, retail, and services industries. Epicor's solutions, such as Epicor Kinetic, a global cloud ERP system designed specifically for manufacturers, empower businesses to maximize profitability through real-time business intelligence, collaboration tools, and industry expertise. With a focus on personalization, flexibility, and insights.

Recent Developments

• In March 2024, Rockwell Automation announced its partnership with NVIDIA, a U.S.-based technology company, aiming to accelerate the creation of an advanced industrial framework. This collaboration plans to combine NVIDIA Omniverse Cloud's application programming interfaces (APIs) with Emulate3D, a tool developed by Rockwell Automation. This move aims to offer users enhanced data interoperability, real-time collaboration capabilities, and accurate visualization tools. These features are designed to facilitate the design, construction, and management of large-scale digital replicas of manufacturing systems.

• In September 2023, ABB launched the OptiFact software suite, designed to enhance the efficiency of automated manufacturing environments. This comprehensive platform facilitates data aggregation, organization, and examination across numerous factory devices, such as ABB robots. It focuses on assessing critical metrics like cycle times and the overall efficiency of the equipment. OptiFact aims to streamline troubleshooting and decision-making processes, maximizing production uptime with reduced engineering input and aligning production rates closely with market demands.

• In October 2022, Epicor Software Corporation acquired manufacturing execution system (MES) provider eFlex Systems to enhance its Industry 4.0 capabilities. This acquisition expands Epicor's portfolio of Advanced MES capabilities, offering manufacturers digital work instructions, advanced process control, and real-time visibility to modernize production processes. The eFlex Systems Manufacturing Integrated Platform (MIP) provides real-time global operations management, connecting devices, sensors, and machines to improve productivity and streamline tasks for workers.

Manufacturing Operations Management Software Market Report Scope

Global Manufacturing Operations Management Software Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global manufacturing operations management software market report based on component, deployment, enterprise size, application, end-use, and region:

• Component Outlook (Revenue, USD Billion, 2018 - 2030)

  • Software

  • Services

• Deployment Outlook (Revenue, USD Billion, 2018 - 2030)

  • On-premise

  • Cloud

• Enterprise Size Outlook (Revenue, USD Billion, 2018 - 2030)

  • Large Enterprise

  • Small & Medium Enterprise

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Advanced Planning & Scheduling

  • Manufacturing Execution Systems (MES)

  • Labor Management

  • Inventory Management

  • Quality management

  • Laboratory Management

  • Others

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Aerospace & Defense

  • Automotive

  • Pharmaceuticals & Medical Equipment

  • Chemicals

  • Food & Beverages

  • Consumer Goods

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

  • MEA

    • UAE

    • Saudi Arabia

    • South Africa