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Australia’s MES market booted by metals and mining industry

The Australian manufacturing execution systems (MES) market has been riding a crest with escalating demand from the metals & mining industry due to the influx of foreign direct investment from China and India.

Some of the other prominent end-user industries include oil and gas, chemicals and petrochemicals, and food and beverage.

New analysis from Frost & Sullivan's analysis of the ANZ Manufacturing Execution Systems  Market, finds that  the market earned revenues of $22.8 million in 2013 and estimates this to reach $31.1 million in 2017.

“Manufacturing processes, especially in mining, oil and gas, and chemicals, are  becoming  highly sophisticated, generating large volumes of data every day,” said Frost & Sullivan Industrial Automation & Process Control Senior Research Analyst Vandhana Venkatesan.

“With the emergence of big data concepts and data analytic functions, companies have begun using MES platforms to gather and analyse this data, which is later used to make critical decisions in the manufacturing process.”

Technological  advancements  such  as  web  based  and  mobile  based plant information, which raises the complexity of end-users’ operations, are also likely to expand the market for MES.

While  its  utility  is undisputed, MES’ implementation is challenging. The system  requires  expensive  integration  with IT systems and plants, which deters  several  end users from investing in it. MES vendors could mitigate this challenge to some extent by initiating training for end users, thereby building  customer  loyalty  and  facilitating  better  maintenance  of the systems.

The  MES  market  is also receiving a boost from the rising energy costs in ANZ.  In  a  bid  to  lower  energy consumption, end users are increasingly monitoring their manufacturing processes by installing MES.

Market  participants are making the most of the demand by integrating their systems with energy management solutions. Such integrated systems allow end users  to  conduct  data  analysis and simultaneously keep a close watch on energy consumption.

“MES  manufacturers  can further intensify demand by mapping sustainability of  production  process,  such  as  the  use of alternate energy source and optimum utilisation, on their systems,” noted Venkatesan.

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