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Frost & Sullivan: Hectic Oil Exploration Activity in Southeast Asia Makes a Case for Manufacturing Execution Systems

-- The economic viability of Southeast Asia encourages MES manufacturers to set up their plants in the region

KUALA LUMPUR, Malaysia, March 6, 2014 /PRNewswire/ -- Asia-Pacific accounts for nearly 2.5 percent of the total global oil & gas (O&G) reserves, making it an O&G hub with exploration expansion in Malaysia, Indonesia, and Thailand. This increase in exploration and export capacity has significantly enhanced the demand for manufacturing execution systems (MES).

New analysis from Frost & Sullivan, Analysis of the Southeast Asian Manufacturing Execution Systems Market, finds that the market earned revenues of US$39.0 million in 2013 and estimates this to reach US$51.6 million in 2017.

The ease with which MES can be integrated into the existing machinery is one of the key reasons for its popularity. Therefore, even, brownfield projects are gradually adopting MES for higher productivity and meeting stringent global standards of quality and reliability.

Apart from the O&G industry, pharmaceuticals as well as pulp and paper have begun to install MES to reduce overhead expenses while increasing profits.

"The high inflow of foreign direct investment (FDI) from the United States and Europe into Singapore, Malaysia and Vietnam has made these countries competitive manufacturers," said Frost & Sullivan Industrial Automation & Process Control Senior Research Analyst Vandhana Venkatesan. "This, along with the rise of the middle class and availability of cheap labor, has made Southeast Asia a lucrative manufacturing destination, in turn, ramping up the demand for MES."

Furthermore, in order to cater to the growing demand from Southeast Asia with reduced lead times, MES manufacturers are also seeking to shift their manufacturing base to this region.

However, MES manufacturers often have to contend with the price sensitivity of their consumers. With the increasing costs of maintenance, small and medium manufacturers tend to prefer simple, in-house analysis methodologies. While indigenous analyses solutions may save costs, they do not provide the highest levels of accuracy required by global consumers.

MES are considered crucial for goal-oriented support of production. They not only link production and enterprise but also other activities in the supply chain, proving a continuous, holistic, and manageable value addition for end users.

"Some of MES' functionalities include quality assurance, support of production scheduling, evaluation of production with focus on product quality, integration with safety systems and management of current and historical stock," noted Venkatesan. "As manufacturers eventually realize the importance of MES in their process, market demand for these systems is expected to soar."

If you are interested in more information on this study, please send an email to Donna Jeremiah, Corporate Communications, at [email protected], with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Analysis of the Southeast Asian Manufacturing Execution Systems Market is part of the Industrial Automation & Process Control ( Growth Partnership Service program. Frost & Sullivan's related studies include: ANZ Manufacturing Execution Systems Market, Southeast Asia and ANZ Automation & Software Solutions Market for the Chemical & Petrochemical Industry, Western European Electric Motors Market, Global Smart Plants Market and Automation Trends in the Power Industry in Southeast Asia. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

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Analysis of the Southeast Asian Manufacturing Execution Systems Market

Donna Jeremiah
Corporate Communications – Asia Pacific
P: +61 (02) 8247 8927
F: +61 (02) 9252 8066
E: [email protected]

Carrie Low
Corporate Communications – Asia Pacific
P: +603 6204 5910
F: +603 6201 7402
E: [email protected]

Melissa Tan
Corporate Communications – Asia Pacific
P: +65 6890 0926
F: +65 6890 0999
E: [email protected]

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