Market Update: Industrial Automation & IoT Q1 2023
Industrial Manufacturing was one of the first industries to embrace and implement business computing when it was introduced in the 1960s. However, the industry has been one of the slowest with adopting new technologies. Over the last five years, organizations have started embracing smart manufacturing and broader digital transformation, as well as an increase in Information Technology (“IT”) / Operational Technology (“OT”) assessment services to help avoid obsolescence.
The global Industrial IoT Market was valued as at $321.8b in 2022. With an expected CAGR of 23.2% through 2030, its forecasted value is ~$1,703.0b. The rapid industry growth is driven by the sectors lag into digital transformation and a subsequent evolution in industry technology, resulting in a favorably-timed effort to digitally transform during a new age of technology and applications. This is especially evident in the integration of machine learning and artificial intelligence industrial and manufacturing facilities. Until this is fully leveraged by the sector, the hardware sub-segment continues to dominate as a result of efforts to improve equipment and cost efficiencies through data and connectivity.
While no longer at its record high level, the industrial M&A market remains active. This mirrors the overall market, which slowed at the start of a new year due primarily to economic tensions. Predictive analytics, automation, and rapid connectivity efforts are among the more common elements of 2023 industrialization, but in line with 2022 activity cloud computing and the adoption of IPv6 are still at the forefront of the sector. Moreover, machine learning and artificial intelligence are pulling the market into the future as these technologies develop. AI alone is expected to have a 40% CAGR in implementation into through 2026.
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 Tripp Davis, John Cooper, Sydney Scadden, or Steve Buffington if you would like to learn more about Industrial Automation & IoT.