1.MES Industry Overview

1. MES definition and classification

MES (Manufacturing Execution System), I .e. manufacturing execution system, is a workshop-oriented management information system between the upper planning management system and the bottom industrial control system. It can optimize and manage the whole production process from the order to the completion of the product through information transmission. It can guide, start, respond and record the workshop production activities by using timely and accurate data, and can make rapid response to the changes of production conditions, thereby reducing non-value-added activities and increasing efficiency.

According to the development stage, MES products can be divided into traditional MES, integrated MES and intelligent MES.

Traditional MES products have a long history of development, including single-function MES (dedicated MES) and integrated MES. Dedicated MES is mainly developed for a specific industry or field, with a single function and difficult to integrate with other systems; integrated MES is to integrate multiple dedicated MES together to form a complete system, which can realize information sharing and collaboration across departments or enterprises.

可集成MES从表现形式上看，具有专用MES系统的特点，即I-MES中的部分功能可以作为可重用组件单独销售；同时，它又具有集成MES的特点，即能实现上下两层之间的集成。

Intelligent MES will be knowledge-based, cloud-based, data-based, constraint-based optimization, and have real-time, flexible and configurable functions.

2. MES industry chain analysis: industrial chain supporting more perfect, rich downstream applications

The MES industry chain is a knowledge-linked functional network chain composed of all enterprises and organizations that provide software products or services for the implementation, use and maintenance of MES systems for enterprises, with software products or services as inputs and software products or services as outputs.

Its upstream is computer hardware equipment suppliers and database, middleware, backup management software and other system software suppliers.; midstreamMES软件供应商主要包括外资、内资两类，参与者众多；下游为应用市场，主要包括各类型的制造业企业。

MES上游为软硬件供应商，包括 中科曙光、中国长城、中国软件、普元信息 等企业。

MES suppliers in the middle reaches of the industrial chain are divided into two camps: domestic and foreign investment. Foreign-funded enterprises include Siemens, GE, SAP, Rockwell, etc. Domestic-funded enterprises include Zhejiang Central Control, Shanghai Baoxin, Saiyi Information, Dingjie Information, etc.

The downstream of the industrial chain includes a number of industries, and is currently well penetrated in steel/metallurgy, automotive, petrochemical, computer communications and other industries.

2.MES industry development history: the industry is gradually moving towards standardization, ushering in new development opportunities

Before 1999, China's MES industry was mainly in the introduction stage. In the 1980 s, Baosteel, as a pioneer in reform and opening up, introduced MES management system and became the first enterprise in China to apply MES.

From 2000 to 2010, the Chinese market experienced a transformation from dismantling, research to marketing. With the rapid development of domestic manufacturing industry, the demand for MES is gradually increasing, and domestic and foreign enterprises have entered the market to develop MES products suitable for different industries and fields.

After 2011, the MES market in the petrochemical field has gradually matured and the MES market has continued to spread. With the country's requirements for the transformation and upgrading of the manufacturing industry, MES has begun to penetrate into discrete manufacturing fields, such as automobiles, electronics, and machinery.

After 2015, the MES market ushered in a historic opportunity. The Chinese government proposed the "Made in China 2025" to bring a broader market and inject new vitality into the MES industry. With the advancement of intelligent manufacturing and digital economy, MES has begun to develop in the direction of intelligence, cloud and data.

3.MES industry policy background: focus on promoting intelligent manufacturing

2022 is the year of the 20th National Congress of the Communist Party of China and an important year for the implementation of the "14th Five-Year Plan". The digital development of my country's industry is in full swing, and grasping new opportunities for digital development is an important proposition. The State Council, the Ministry of Industry and Information Technology, and the National Development and Reform Commission have issued a series of policies to support and encourage the development of the MES industry, focusing on promoting intelligent manufacturing.

The "Guiding Opinions on Further Promoting the Construction of a Manufacturing Power" puts forward the overall requirements and main tasks for accelerating the construction of a manufacturing power, and clarifies the goals by 2025 and 2035. Among them, it is proposed to accelerate the demonstration application and engineering construction of intelligent manufacturing, and strengthen the construction of intelligent manufacturing standard system.

The "Guiding Opinions on Promoting the High-quality Development of Industrial Internet Platforms" puts forward the overall requirements and main tasks for accelerating the high-quality development of industrial Internet platforms, and clarifies the goals by 2025 and 2035. Among them, it is proposed to strengthen the industrial Internet platform and manufacturing execution system (MES), enterprise resource planning (ERP), production and operation management (POM) and other system integration applications, and strengthen the industrial Internet platform security system construction.

The "Guiding Opinions on Promoting the High-quality Development of the Digital Economy and Serving the Real Economy" puts forward the overall requirements and main tasks for accelerating the high-quality development of the digital economy and serving the real economy, and clarifies the goals for 2025 and 2035.

Among them, it is proposed to strengthen the deep integration of digital technology and manufacturing industry, promote the transformation and upgrading of digital, networked and intelligent manufacturing industry, and strengthen the construction of digital technology standard system.

4.Analysis on the Development Status of MES Industry

1. China's MES market size continues to grow

The scale of China's MES market is growing rapidly. Among them, the market share of the process field and discrete field is basically flat, but with the promotion of national de-capacity and supply-side structural adjustment, the process field will maintain a relatively stable low-speed growth, and with the gradual increase in the proportion of electrical applications MES, the process field continues to grow rapidly.

Currently DomesticMES has a short history of development, unlike ERP, CAD and other more mature industrial software, MES penetration is not high. According to Shangpu Consulting Group, China's MES market will reach 12.8 billion billion yuan in 2021, up 16.36 percent year-on-year. In 2022, the size of China's MES market will reach 14.9 billion billion yuan, up 16.41 percent year-on-year;, ChinaMES market size will reach 17.4 billion billion yuan, up 16.78 year on year.

2. Data collection is the primary requirement of MES users

According to Champ ConsultingAgainst ChinaMES product user survey data show that the current data collection, process and tide management, production analysis and reporting, production Kanban, material management, quality management module application rate is high, more than 80%. On the whole, enterprises in the production process, materials and quality management application coverage is better. Data collection, production analysis and reporting, and production kanban application ratios have increased significantly. Among them, data collection has become the most widely used functional module, with the application ratio rising from 75% to 94%, the application ratio of production analysis and reports rising sharply from 36% to nearly 89%, and the application ratio of production kanban rising from 28% to 88%.

According to Shangpu Consulting, this reflects the growing demand for real-time, accurate and comprehensive production data, as well as the increasing emphasis on data visualization and analysis. Data acquisition is the basis and premise of MES system, and it is also the key link to realize intelligent manufacturing. In the future, with the development and application of industrial Internet platform and big data technology, data collection will be more intelligent, automated and refined.

3. Cooperative development and secondary development model welcomed by the market

Judging from the mode of users applying MES products, from 2014 to 2022, the user application mode has changed obviously: first, the independent development mode has been greatly reduced, from 38% in 2014 to 16% in 2021, and users have reduced new investment resources to independently develop MES software; Secondly, the proportion of secondary development after cooperative development and purchase of software has increased significantly, the proportion of cooperative development in 2022 is 38%, and the proportion of secondary development after purchasing software is 24%, which shows that more and more enterprises actively participate in the process of software development and improve the success rate of projects. Finally, the proportion of direct purchase of commercialized software basically fluctuates slightly, and will remain at about 25% in 2022, reflecting the slow development of commercialization of MES products, due to significant differences in different industries, it is difficult to form a MES system that can be used in different industries.

According to Shangpu Consulting, this reflects the increasing personalized demand for MES systems and the increasing emphasis on the flexibility and configurability of MES systems. Cooperative development and secondary development models can better meet the customization needs of enterprises, while also reducing costs and risks. In the future, with the intelligent, cloud and data development of MES system, cooperative development and secondary development mode will be more common and convenient.

4. The eastern regional market is relatively active.

From the regional distribution of winning events in the industry, the number of events in the eastern region, central region, western region and northeast region in China's MES industrial control software winning events from 2021 to 2022 is gradually decreasing, with the eastern region accounting for 43%, the largest scale.

Shangpu Consulting believes that this reflects that the eastern region is relatively ahead of other regions in terms of manufacturing development level, informatization investment level, and market demand scale. The eastern region has more leading manufacturing enterprises and high-tech enterprises, which have high demand and cognition for MES system, and also have strong financial and technical support. In the future, with the country's attention and support for regional coordinated development, the MES market in the Midwest and Northeast will also grow.

5. The field of engineering construction has become a hot downstream field in recent years.

From 2021 to 2022, there were 161 winning bids in the "engineering construction" industry, accounting for 25.20 per cent, followed by "communications electronics" with 121 winning bids and "machinery and equipment" with 101 winning bids, accounting for 18.94 per cent and 15.81 per cent, respectively.

Champ Consulting believes that this reflects that the engineering and construction field has become a popular downstream application field for MES systems in recent years. The field of engineering construction involves many sub-industries, such as housing construction, municipal engineering, water conservancy engineering, transportation, etc., with the characteristics of long project cycle, many participants, complex management and so on. MES system can effectively monitor, schedule, optimize and trace the construction process of the project, improve the quality and efficiency of the project, and reduce the cost and risk. In the future, with the continuous investment and promotion of infrastructure construction, the MES market in the field of engineering construction will maintain a high growth momentum.

5.Analysis of Competition Pattern of MES Industry

1. Regional competition: Beijing industry supporting better

在企业区域分布上，结合中国MES产业相关上市企业分布情况，产业聚集效应较好的省份是北京市、上海市、广东省等。其中，北京市聚集了相对更多的产业链配套企业，产业竞争力更强。

尚普咨询认为，这反映出北京市在信息技术创新能力、人才资源优势、政策环境支持等方面相对优于其他省份，有利于MES产业的发展和壮大。北京市拥有较多的高校、科研机构和创新平台，能够为MES产业提供技术支持和人才储备；同时，北京市也是国家政策制定和执行的中心，能够为MES产业提供政策引导和扶持。

2. 企业竞争：外资企业占据头部位置，内资企业积极参与竞争

2022年，中国MES供应商市场格局仍然由外资企业主导，国内企业加大投入，争夺市场份额。市场份额最大的是西门子，占据11.5%；其次是SAP，占据8.2%市场份额；上海宝信以7.5%份额排名第三。

2022年，中国MES行业市场集中度整体较低，CR3仅为26.5%，CR5仅为34.8%，表明市场竞争较为激烈，国内企业与外资企业正积极抢占市场，没有形成明显的领导者。

尚普咨询认为，这反映出外资企业在MES领域具有较强的技术优势、品牌影响力、客户资源等，能够满足一些大型企业或跨国企业的需求；而国内企业则在本土化、定制化、服务化等方面具有较强的竞争力，能够满足一些中小型企业或特定行业的需求。未来，随着国内企业的技术创新和市场拓展，中国MES行业市场集中度有望提高。

六、MES行业发展前景及趋势预测

1. 中国MES行业发展趋势：中国MES行业市场集中度有望提高

中国MES行业市场增长良好，受益于我国智能制造及数字经济等重大战略实施，正在迎来新的发展机遇，市场规模仍将快速增长。随着信息技术的高速发展，MES应用范围迅速快大，未来离散型行业将是MES市场开拓的重点。

According to data from the Champ Consulting Group,ChinaMES行业将保持16%左右的增长率，预计到2023年底，中国MES市场规模将达到174亿元。

尚普咨询认为，随着国内外资企业在技术创新、产品优化、服务提升等方面的不断努力，以及用户对于MES系统的需求和认知的不断提高，中国MES行业将呈现出以下发展趋势：

中国MES行业市场集中度有望提高。随着行业规范化和标准化的推进，以及用户对于MES系统的质量和性能的要求提高，一些优秀的供应商将脱颖而出，形成较强的品牌效应和客户黏性。同时，一些小型或弱势的供应商将面临淘汰或并购的压力，导致市场份额进一步集中。

中国MES行业将向智能化、云化、数据化方向发展。随着人工智能、云计算、大数据等新技术的发展和应用，MES系统将具有更强的自主学习、自适应调整、自动优化等功能，实现生产过程的智能化管理。同时，MES系统将借助云平台，实现跨地域、跨企业、跨行业的信息共享和协同，提高资源利用率和协作效率。此外，MES系统将利用大数据技术，对生产数据进行深度挖掘和分析，为生产决策提供更有价值的支持和指导。

中国MES行业将加强与工业互联网平台的融合。随着工业互联网平台的建设和推广，MES系统将成为工业互联网平台的重要组成部分，实现与平台的无缝对接和集成。通过工业互联网平台，MES系统将能够获取更多的生产数据和资源，实现更高层次的优化和管理。同时，MES系统也将为工业互联网平台提供更多的数据和服务，为平台的运行和发展提供支撑。

2. MES行业国际竞争力提升策略

尚普咨询认为，要提升中国MES行业的国际竞争力，需要从以下几个方面着手：

加强技术创新和研发投入。技术是MES行业的核心竞争力，要提升国际竞争力，就要不断加强技术创新和研发投入，掌握核心技术和知识产权，提高产品质量和性能，满足用户的多样化需求。同时，要加强与高校、科研机构、创新平台等的合作，利用外部资源，加速技术转化和应用。

加强标准体系建设和推广。标准是MES行业的基础和保障，要提升国际竞争力，就要加强标准体系建设和推广，形成统一的规范和要求，促进行业规范化和标准化发展。同时，要加强与国际标准组织的沟通和协调，参与国际标准制定和修订，提高国际话语权和影响力。

加强服务能力提升和拓展。服务是MES行业的延伸和增值，要提升国际竞争力，就要加强服务能力提升和拓展，提供全方位、全周期、全覆盖的服务支持，增强用户满意度和忠诚度。同时，要加强与用户的沟通和交流，了解用户需求和反馈，不断优化产品功能和服务内容。

加强市场开拓和合作。市场是MES行业的目标和动力，要提升国际竞争力，就要加强市场开拓和合作，扩大市场份额和覆盖范围，增加市场收入和利润。同时，要加强与国内外同行的合作与交流，形成良性竞争与合作关系，共同推动MES行业的发展与进步。

Conclusion

制造执行系统（MES）是一种面向车间层的管理信息系统，能够对生产过程进行优化管理，提高效率和质量。尚普咨询Right.MES行业的市场规模、竞争格局、发展趋势等进行了分析，并提出了提升国际竞争力的策略建议。