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Manufacturing Execution System Providers in Healthcare Market – The rising realm amongst stakeholders in pursuit to Connect, Monitor and Control the Complex Manufacturing Process

Every year, the healthcare industry generates a massive amount of data. In fact, the healthcare data currently constitutes around 30% share of the global data volume. Further, it is estimated that, by 2025, the data generated via the healthcare sector will rise at a compound annual growth rate of 36%.

However, it is important to consider that the constant management of such enormous volumes of data is a quite tedious process and challenging process. Specifically, management and handling of huge datasets in the healthcare industry often requires a large workforce of specialized personnel.

According to the American Hospital Association, by 2026, there is likely to be a shortage of 3.2 million healthcare workers. The continuously growing data, coupled to the projected deficit of healthcare workers, would inadvertently generate pressure on healthcare manufacturers to adopt novel tools / technologies that can improve management efficiency and better utilize the available, expensive resources. Moreover, increasing complexity of healthcare manufacturing operations, along with growing stringency and frequent changes in regulatory requirements has created a dire need for adoption of automated solutions, such as manufacturing execution system (MES).

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In recent years, several healthcare stakeholders have actively undertaken initiatives to incorporate a manufacturing execution system into their production lines, with an aim to connect, monitor and control the complex manufacturing process. In addition, players are integrating advanced technologies, including internet of thing (IoT) and artificial intelligence (AI), in order to collect and analyze large volume of data from various sources, as well as to produce value in the form of insights, predictions and actions.

According to industry experts, MES has the potential to reduce 10%-30% of the overall production cost depending on the type of industry. It has further been observed that companies are increasingly adopting cloud-based manufacturing execution system, to overcome the challenges associated with growing complexity of processes and global expansion of businesses. Specifically, cloud-based MES integrates real-time information of different production floors and promotes collaboration. Driven by the ongoing innovation in the industry, as well as the rise in demand for automated solutions, the manufacturing execution system providers market for the healthcare sector is likely to witness positive growth over the coming years.

Presently, more than 75 companies across the globe claim to offer Manufacturing Execution System for the healthcare sector in order to monitor, track and control the production process

During our research we were able to identify 76 players, that are actively engaged in providing manufacturing execution system in healthcare sector globally. Majority (XX) of the players engaged in this domain were established during the period 1951-2022.

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To cope up with the current and future market demand, manufacturing Execution System providers are actively collaborating with various stakeholders across the Globe

During our research, we came across several partnerships and collaborations that have been inked between various stakeholders engaged in providing manufacturing execution system. Out of all the partnerships, technology integration agreement has emerged as the most popular (XX%) type of partnership signed by players engaged in providing manufacturing execution system.

The industry has also witnessed seven instances of acquisitions in the given time period. This trend reflects the fact that companies are continuously striving to expand their existing service offerings. It is worth highlighting that the stakeholders in this industry are increasingly establishing long term strategic collaborations to better align their service offerings with the current market demand.

It was observed that the majority of the deals (both local and international) were inked by players based in the Europe. Further, in most (~24%) of the intercontinental agreements, the service provider was observed to be based in Europe, while its collaborator was headquartered in North America.

There is a dire need for integrating advanced tools and technologies with manufacturing execution system in order to enhance its effectiveness

Value creation framework includes an insight for implementation of several advanced tools and technologies at different production steps, such as performance analysis, data storage, document control and process tracking which can assist providers to address unmet needs associated in this domain. In addition, it provides a detailed analysis on ease of implementation, associated risk and value creation in integrating such tools / technologies, based on the trends highlighted in published literature and patents.

The value creation framework includes four key tools and technologies that can assist MES providers to enhance their portfolio, based on several relevant parameters. These are as follows:

·         Artificial Intelligence 

·         Cloud Computing

        Internet of Things (IoT )

·         Machine Learning