ARC says Batch Management Software market may be recovering

April 11, 2010
ARC Advisory Group
News

Summary

April 11, 2010 - Increased focus on performance and quality along with increased regulations on the safety of food and drug are driving the growth of the batch management software market. The economic downturn has impacted the market growth but there are increasing signs of recovery, starting this year, according to a new ARC Advisory Group study. “Major suppliers are now paying increasing attention to this market. Many of them are now offering integrated software architecture based on the models and terminology specified in the standards,” according to Asish Ghosh, VP of Manufacturing Advisory Services, the principal author of ARC’s “Batch Management Software Worldwide Outlook” study. Market Growth Is Led by Quality and Performance NeedsThe primary growth areas for batch management software are quality management, production performance, and integration with business systems. There is now an increased focus on operational excellence programs especially in specialty chemicals, polymers, and pharmaceutical industries. This is being driven by initiatives around cost reduction, global competition, and increasing regulatory demands. Manufacturers in mature economies are modernizing their plants and are replacing custom batch solutions with off-the-shelf solutions. Additionally, manufacturers are optimizing the use of their equipment by consolidating production while attempting to maintain product flexibility. In emerging economies, there is continued growth in consumer goods, such as food, beverage, and personal care. The demand for quality and variety are also increasing rapidly. That is leading to a greater acceptance of batch software by manufacturers in those economies. Increasing Need for Standardized SolutionsThere will be increased requirements for fast implementations and stan-dardized solutions that can be rolled out across many facilities globally. That would require intuitive applications with embedded workflow and expertise that are more user friendly to less experienced personnel. There will be increased demand for solutions that provide greater visibility into the manufacturing operations. Rising Asian Demand for Pharmaceuticals and Consumer Goods The Europe, Middle East, and Africa (EMEA) region is the largest market for batch management software. The second largest market is North America, but its position is being increasingly challenged by the fast growing Asian market. With the rise in the Asian economies, the demand for pharmaceuticals, consumer goods, packaged foods, and beverages is increasing. India and other Asian countries are getting into generic drug manufacturing in a big way. These industry sectors that still depend largely on manual operations are switching to automated systems for improving productivity and product quality. About ARC: Founded in 1986, ARC Advisory Group is the leading research and advisory firm for industry. Our coverage of technology from business systems to product and asset lifecycle management, supply chain management, operations management, and automation systems makes us the go-to firm for business and IT executives around the world. For the complex business issues facing organizations today, our analysts have the industry knowledge and first-hand experience to help our clients find the best answers. Learn More

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