Market Update: Industrial Automation & IoT Q1 2022
As the manufacturing world expands its focus beyond enhancing foundational Industry 3.0 infrastructures, organizations are prioritizing optimizing operations through Industry 4.0 technologies. Smart Production in terms of Industry 3.0 alludes to applications and machinery tailored to specific, unique production needs. Historically, there has been a distinct split in the use of production data between operation technology (OT) and information technology (IT) sources, but Industry 4.0 offers digital technologies that are fully integrated with production operations. The value of this level of integration is influencing industrial players to implement end-to-end systems that help bridge the OT and IT worlds.
While utilizing modern automation infrastructure to maintain a comprehensive smart production cycle is still key, organizations must update their processes to fully leverage Industry 4.0 technologies. Gartner predicts that in the next five years, at least 50% of large manufacturing companies will function more as a collaborative digital ecosystem than as discrete firms – sharing inputs, assets, and innovations. This new degree of collaboration will allow manufacturers to correct issues faster and more effectively after they arise in the market and make real-time corrections in operations to prevent similar mistakes from happening in the future. This type of visibility has become imperative during the pandemic as supply chain issues have made shipping and order fulfillment delays a greater issue than ever before. Smart infrastructure integrated with technology-enabled production processes will continue developing to support more fully-integrated systems.
7MA has recently completed several M&A transactions for companies with Industrial Automation & IoT products, software platforms, and service offerings and has developed unparalleled deal expertise and knowledge of the industry trends, valuation trends, and most active strategic and financial buyers. Please contact John Cooper, Ben Garber, Sydney Scadden, Conor Smith, or Tyler Ratterree if you would like to learn more about Industrial Automation & IoT.