Manufacturing Operations Management Software Market by Component (Software and Services), Deployment (On-premise and Cloud) Enterprise Size (Large Enterprise and Small & Medium Enterprise), Application (Advanced Planning & Scheduling, Manufacturing Execution Systems (MES), Labor Management, Inventory Management, Quality Management, Laboratory Management, and Others), End-use (Aerospace & Defense, Automotive, Pharmaceuticals & Medical Equipment, Chemicals, Food & Beverages, Consumer Goods, and Others), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032

Manufacturing Operations Management Software Overview

Manufacturing operations management (MOM) software entails the creation, implementation, and upkeep of software solutions intended to simplify and improve several manufacturing operations processes. With greater coordination and communication across various departments inside a manufacturing plant, MOM software attempts to increase the effectiveness, productivity, and overall performance of manufacturing processes. Applications including production scheduling, inventory management, quality control, process monitoring, workforce management, and data analytics are all included in the MOM software industry. These software solutions enable businesses to respond swiftly to shifting market demands and enhance overall operational agility by giving real-time insights into manufacturing operations.

Global Manufacturing Operations Management Software Market Analysis

The global manufacturing operations management software market size was $15.6 billion in 2022 and is predicted to grow at a CAGR of 13.3%, by generating a revenue of $54.2 billion by 2032.

COVID-19 Impact on Global Manufacturing Operations Management Software Market

The COVID-19 pandemic had a considerable effect on the manufacturing operations management software market. The maintenance of effective operations presented manufacturers with hitherto unheard-of obstacles due to broad lockdowns, disruptions in the supply chain, and mobility limitations. The pandemic, however, also hastened the introduction of digital technology, such as MOM software, as manufacturers looked for ways to optimize their production processes remotely and guarantee business continuity. There was a decline in demand for MOM software solutions during the early stages of the pandemic as many manufacturing plants were forced to temporarily cease operations or scale back. Some businesses were compelled to delay or forgo their technological expenditures due to uncertainty and financial restrictions, which influenced the market's expansion.

However, as the pandemic persisted, manufacturers saw the value of adaptable and flexible operations, which led to a rise in the adoption of MOM software. Through the use of real-time monitoring, predictive analytics, and automation capabilities provided by these technologies, businesses were able to increase production efficiency, streamline inventory control, and improve supply chain visibility.

Growing Adoption of Automation & Digitalization in the Manufacturing Sector to Drive the Market Growth

 Businesses are now investing in MOM software because of the growing adoption of automation and digitalization in the manufacturing sector in order to streamline their operations and increase efficiency. Manufacturing companies make data-driven choices and streamline their processes with the help of MOM software, which provides real-time data monitoring, production scheduling, and resource management. The increasing importance placed on attaining operational excellence and lowering production costs is driving the demand for MOM software.The need for MOM software has also been fueled by the necessity to comply with strict rules and the complexity of manufacturing processes. Through the whole production lifecycle, it helps businesses maintain quality standards, traceability, and adherence to regulatory requirements, assuring product safety and compliance. Additionally, the need for improved visibility and communication among multiple stakeholders as well as the growing complexity of supply chains have increased demand for MOM software. Moreover, there is a growing need for sophisticated software solutions that can optimize and streamline operations due to the growing adoption of automation and Industry 4.0 technologies in industrial processes.

High Costs to Restrain the Market Growth 

The initial cost of deployment and integration is the major factor limiting the growth of the manufacturing operations management software market. It can cost a lot of money to adopt and integrate MOM software into current production processes, especially for small and medium-sized businesses. The adoption of such solutions may be hampered by this cost consideration, particularly in price-sensitive markets. The global market may also face difficulties due to the availability of substitute products and technologies, such as enterprise resource planning (ERP) systems with manufacturing modules. Manufacturers may choose all-inclusive solutions that address all facets of their business, which could restrain the expansion of independent MOM software providers.

Advancements in Technology to Drive Excellent Opportunities

Technology has made great strides in the manufacturing operations management software sector, revolutionizing how manufacturing processes are monitored and optimized. Industry 4.0 technologies like the Internet of Things (IoT), big data analytics, and cloud computing are being integrated more and more, and this is changing the market for MOM software solutions. The adoption of IoT gadgets and sensors by industrial facilities is one of the main forces behind technical development in this industry. By enabling real-time data collecting and monitoring, these smart devices give manufacturers useful insights into their manufacturing processes. Manufacturers may closely monitor machine performance with IoT-enabled MOM software, spot inefficiencies, and foresee maintenance requirements, increasing operational efficiency overall and decreasing downtime. Furthermore, using big data analytics in MOM software has created new opportunities for making decisions based on data. Large amounts of data created during the production cycle may now be analyzed by manufacturers to spot trends, patterns, and potential bottlenecks. This data-driven strategy enables firms to improve product quality, schedule production more efficiently, and make better decisions. The widespread use of cloud-based solutions is a significant technological development in the manufacturing operations management software market.

Global Manufacturing Operations Management Software Market Share, by Component, 2022

The software sub-segment accounted for the highest market share in 2022. This is mainly because various capabilities like production planning, scheduling, quality management, inventory tracking, and maintenance are all included in MOM software’s mission to optimize and streamline the entire manufacturing process. The need for cutting-edge MOM software solutions has substantially increased as enterprises implement digitalization and automation to boost productivity and cut operating expenses. Manufacturers are looking for flexible, expandable software platforms that can easily interface with their current systems and support data-driven decision-making. Besides, real-time monitoring of production processes is made possible by MOM software, ensuring improved visibility into plant operations and assisting in the rapid detection of bottlenecks or inefficiencies. Moreover, the development of cutting-edge features like predictive maintenance, artificial intelligence, machine learning algorithms, and cloud-based solutions is another way that the software sub-segment propels innovation in the manufacturing operations management industry.

Global Manufacturing Operations Management Software Market Share, by Deployment, 2022

The on-premise sub-segment accounted for the highest market share in 2022. Despite the growing popularity of cloud-based solutions, the on-premise sub-segment still plays a significant role in the global industry. On-premise MOM solutions are software installations that are hosted and controlled within the infrastructure of the manufacturing site. Due to certain requirements and considerations, several manufacturers have preferred this technique. The extensive amount of control and flexibility that on-premise MOM software offers is one of its main benefits. Manufacturing companies frequently have distinctive workflows and procedures that must be customized to meet their unique requirements. They can optimize their operations and increase efficiency by having the software installed locally, which allows them to customize and fine-tune the system. Besides, on-premise MOM solutions guarantee uninterrupted operations and lower the risk of downtime.

Global Manufacturing Operations Management Software Market Share, by Enterprise Size, 2022

The large enterprise sub-segment accounted for the highest market share in 2022. Large organizations have distinct and particular needs when it comes to managing their manufacturing processes effectively due to their enormous manufacturing activities, complicated supply chains, and significant output volumes. By offering cutting-edge capabilities for scheduling, executing, and monitoring diverse manufacturing tasks, MOM software solutions meet these objectives. Increased operational visibility and control is one of the main benefits that large businesses obtain from implementing MOM software. Large businesses may spot inefficiencies, improve workflows, and make data-driven decisions to boost productivity and profitability by having a thorough understanding of their operations. Large businesses can also streamline and integrate a variety of systems and technologies within their production ecosystems with the help of MOM software. This integration promotes collaboration and resource optimization on a larger scale by improving coordination between various departments and production facilities.

Global Manufacturing Operations Management Software Market Share, by Application, 2022

The quality management sub-segment accounted for the highest market share in 2022.  Quality management is a crucial sub-segment of the MOM software industry that focuses on assuring product quality, lowering faults, and fulfilling regulatory criteria. There is a lot of demand for manufacturers to consistently and effectively deliver high-quality items. Through the provision of tools for real-time monitoring of production processes, data collecting, and analysis, the quality management section of MOM software solves these issues. Manufacturers get visibility into their production lines by integrating quality management into the MOM software, enabling them to quickly identify and address problems. Manufacturers can identify trends, potential flaws, and quality standard deviations owing to the software’s data analytics features, which encourage proactive problem-solving. Additionally, the MOM software's quality management system makes it easier to adhere to regional and global quality standards and regulations.

Global Manufacturing Operations Management Software Market Share, by End Use, 2022

The aerospace & defense sub-segment accounted for the highest market share in 2022. Aerospace & defense businesses need sophisticated and effective software solutions to properly manage their intricate manufacturing processes because it is one of the most demanding industries. Manufacturers in the aerospace & defense sector have particular difficulties, such as the demand for close integration between the design, engineering, and production processes and adherence to stringent regulatory standards. Through real-time visibility into production workflows, improved decision-making, and increased efficiency, MOM software meets these particular needs. Additionally, aerospace & defense businesses frequently work in high-mix, low-volume production environments where each item may be customized or made to order. In these situations, MOM software is essential for collaborating with numerous suppliers and subcontractors, controlling the supply chain, and orchestrating assembly operations. Additionally, aerospace & Defense industries are increasingly implementing IoT (Internet of Things) and data analytics technology as the sector embraces digital transformation and smart manufacturing.

Global Manufacturing Operations Management Software Market Share, by Region, 2022

The North America manufacturing operations management software market generated the highest revenue in 2022.  This is mainly because the North America region has established itself as a significant centre for manufacturing businesses across numerous industries because of its cutting-edge industrial infrastructure, technological prowess, and a strong emphasis on innovation. To streamline and improve production processes, there is a great demand for advanced software solutions. As Industry 4.0 and the Internet of Things (IoT) gained traction, North American manufacturers jumped at the chance to implement MOM software to boost productivity, efficiency, and quality in their processes. The region's emphasis on regulatory compliance and quality standards has also made it necessary to use reliable MOM software systems to guarantee compliance with numerous industry rules and global standards. This has increased demand for cutting-edge MOM software capabilities including quality control, traceability, and real-time reporting. The market's expansion has also been aided by the significant presence of leading software companies in North America. Both established and emerging software companies have made significant investments in creating and providing cutting-edge MOM solutions to meet the unique requirements of manufacturing.

Competitive Scenario in the Global Manufacturing Operations Management Software Market

Product development and partnership are the common strategies followed by major market players. For instance, in January 2020, Critical Manufacturing S.A. partnered with HCL Technologies to provide Industry 4.0 services to its MES clients. Clients of Critical Manufacturing who work in the semiconductor, high-tech, and medical device manufacturing sectors will receive the services.

Some of the leading manufacturing operations management software market players are ABB Ltd., AVEVA Group plc, Dassault Systèmes, Epicor Software Corporation, GE DIGITAL, Honeywell International Inc, Rockwell Automation, Inc., SAP SE, Schneider Electric, and Siemens AG.