Manufacturing Operations Management Software Market to Reach US$38.3 Bn by 2031 Driven by Industrial Automation and Smart Manufacturing

✅Rising at a CAGR of 12.6%, Market Growth Accelerated by Digitization and Real-Time Process Optimization

According to the latest study by Persistence Market Research, the manufacturing operations management (MOM) software market is projected to grow significantly from US$15.9 billion in 2024 to US$38.3 billion by 2031, registering a robust CAGR of 12.6% during the forecast period. This growth is primarily driven by the rising adoption of smart manufacturing practices, increasing demand for real-time data analysis, and the need to improve production efficiency and quality assurance across industries.

Manufacturing operations management software has become a critical component of Industry 4.0 strategies, enabling manufacturers to integrate and streamline production processes, quality management, compliance tracking, and resource planning into a unified digital platform. The software is extensively used across discrete and process manufacturing sectors to increase operational visibility, enhance decision-making, and reduce production costs. With rising competition and tightening regulations, manufacturers are increasingly shifting towards digital tools to gain a competitive edge and achieve operational excellence.

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The market's leading segment is production management, which encompasses scheduling, execution, and monitoring of manufacturing processes. It holds the largest share due to its direct impact on throughput, uptime, and productivity. From a regional perspective, North America leads the market owing to its advanced manufacturing base, early technology adoption, and growing demand for industrial automation. The United States, in particular, is investing heavily in smart factories, AI integration, and IoT-connected production systems, driving strong demand for MOM solutions.

✅Key Market Insights

➤ The increasing adoption of IIoT (Industrial Internet of Things) and smart factory initiatives is significantly fueling MOM software deployment.
➤ Cloud-based MOM solutions are gaining popularity for their scalability, lower upfront costs, and remote access capabilities.
➤ Integration of AI and machine learning is enabling predictive analytics and intelligent process automation.
➤ Regulatory compliance and quality management modules are becoming essential for industries such as pharmaceuticals and aerospace.
➤ The growing shift toward digital twins and real-time simulation tools is redefining how manufacturers monitor and optimize operations.

✅What is the role of MOM software in smart manufacturing?

MOM software plays a crucial role in smart manufacturing by enabling seamless coordination of production, quality, and inventory operations across the plant floor. It provides real-time insights into manufacturing performance, automates workflows, and ensures traceability and compliance. With integration capabilities across ERP, SCADA, and MES systems, MOM software enhances efficiency, reduces downtime, and supports data-driven decision-making. As industries embrace Industry 4.0, MOM becomes essential for implementing smart factories, managing digital twins, and responding quickly to supply chain disruptions and changing customer demands.

✅Market Dynamics

Drivers:
The primary driver for the MOM software market is the growing need for operational efficiency and the ability to respond to dynamic market conditions. The integration of smart sensors, robotics, and AI technologies into manufacturing plants has increased the complexity of operations, necessitating centralized management platforms. Additionally, the push for compliance with international quality and safety standards has prompted manufacturers to invest in MOM systems to maintain records, ensure traceability, and automate documentation.

Market Restraining Factor:
Despite its benefits, the high initial cost of implementation and complexity in integrating MOM software with legacy systems remain key restraints. Small and medium-sized enterprises (SMEs), in particular, face challenges related to budget constraints and limited IT infrastructure, which may hinder adoption.

Key Market Opportunity:
An important opportunity lies in the development of modular, cloud-based MOM solutions that can cater to small and mid-sized manufacturers. With increasing digital awareness and demand for agile operations, vendors can capture untapped markets by offering cost-effective, scalable solutions that deliver ROI quickly. There's also immense potential in emerging economies as they modernize their manufacturing sectors.

✅Market Segmentation

The manufacturing operations management software market is segmented based on component, deployment type, enterprise size, and end-use industry. By component, the market includes software and services, with the software segment accounting for the largest revenue share. Within software, production management, quality management, inventory management, and performance analytics are key modules. Production management continues to dominate due to its critical role in optimizing workflows, machine utilization, and resource scheduling.

By deployment, on-premise and cloud-based models are available, with cloud-based MOM gaining rapid traction due to flexibility, lower CAPEX, and easy integration with modern tech stacks. In terms of enterprise size, large enterprises dominate the market due to higher IT budgets and complex operational demands. However, SMEs are expected to witness faster adoption, especially with the availability of affordable SaaS-based solutions. Regarding end-use industries, the automotive, electronics, food & beverage, pharmaceuticals, and chemical sectors are major consumers, driven by strict quality standards and the need for traceability and automation.

✅Regional Insights

Geographically, North America leads the MOM software market, driven by high technology penetration, established manufacturing infrastructure, and strong presence of key solution providers. The U.S. government's initiatives to boost domestic manufacturing through smart technologies have further accelerated the adoption of MOM platforms.

Europe follows closely, supported by automotive and aerospace industries embracing digital transformation and smart factory frameworks. Germany, France, and the U.K. are major contributors due to their focus on sustainable, high-efficiency manufacturing. Asia Pacific is the fastest-growing region, with countries like China, Japan, and India investing in industrial automation, Industry 4.0 adoption, and local production expansion. Growing government support for digital infrastructure and skilled workforce development is further propelling regional demand. Latin America and the Middle East & Africa are gradually catching up, with increasing interest in digitized production systems to enhance competitiveness and reduce reliance on imports.

✅Competitive Landscape

The manufacturing operations management software market is competitive and fragmented, with global and regional players focusing on innovation, integration capabilities, and strategic partnerships. Companies are enhancing their product portfolios with AI, machine learning, and analytics-driven modules to offer comprehensive, real-time insights and control.

✅Company Insights

✦ Siemens AG
✦ ABB Ltd.
✦ Rockwell Automation Inc.
✦ Schneider Electric SE
✦ Honeywell International Inc.
✦ Dassault Systèmes
✦ Emerson Electric Co.
✦ GE Digital
✦ SAP SE
✦ Plex Systems (a Rockwell Automation company)
✦ iBASEt
✦ Critical Manufacturing
✦ Aegis Industrial Software Corporation

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✅Key Industry Developments

Leading players are making strategic moves through mergers, acquisitions, and partnerships to expand their capabilities and global footprint. For instance, Rockwell Automation's acquisition of Plex Systems marked a significant step towards enhancing its cloud-native smart manufacturing portfolio. Similarly, Siemens has expanded its MOM offerings by integrating MindSphere, its industrial IoT platform, with its existing digital manufacturing suite, creating a seamless cloud-enabled operational ecosystem.

Another notable trend is the increasing integration of MOM software with industrial AI platforms to enable predictive analytics and adaptive process optimization. Schneider Electric, for instance, is investing heavily in developing AI-powered MOM solutions that can offer dynamic production scheduling based on real-time supply chain inputs. Such developments are transforming manufacturing into a more responsive and intelligent process.

✅Innovation and Future Trends

The MOM software market is poised for transformation through the integration of digital twins, blockchain, and cybersecurity solutions. Digital twin technology allows manufacturers to simulate production environments and test scenarios without disrupting actual operations. This not only optimizes efficiency but also reduces downtime and enables proactive maintenance. Blockchain is gaining attention in supply chain-integrated MOM systems for ensuring traceability, authentication, and secure data exchange across decentralized networks.

In the future, hyperautomation and AI-driven decision intelligence will play a central role in evolving MOM solutions. These innovations will enable end-to-end process automation, real-time decision-making, and self-healing production systems. Vendors are also focusing on low-code/no-code platforms to empower factory managers and non-technical staff to configure and deploy MOM applications without deep IT knowledge. With the convergence of edge computing and cloud analytics, MOM systems will become more agile, intelligent, and scalable-laying the groundwork for autonomous manufacturing ecosystems.

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