Market Update: Industrial Automation & IoT Q4 2021
Advancements in digital technologies are blurring the lines between the physical and digital spheres of global production systems. Coined ‘Industry 4.0’, these advancements in tech have particularly impacted the manufacturing sector, as a connected environment of big data, people, processes, and production systems have evolved, turning manufacturing into a more information-intensive space. Manufacturing decision-makers are expected to take advantage of these tech capabilities to improve efficiency in operations and find practical solutions to respond to demand volatility, supply chain shocks, and build agility and resiliency into their businesses. Market Research Engine projects that due to this momentum in the Industrial IoT market, the industry will grow at a CAGR of 23% percent over the next seven years.
The accelerating momentum of Industry 4.0 adoption is being spurred by factors such as reduced technology costs, improved connectivity, and widespread customization. The unit selling price of technologies such as advanced robotics, IoT, AR/VR, AI, and 3D printing have declined by 50 to 75 percent since their introduction, along with reductions in implementation costs. Connectivity of production assets has become more streamlined as 40 percent of equipment is now connected with IoT technology. Mass customization is becoming more commonplace, providing flexibility to choose from a wider range of tooling options. This ease of implementation and integration and improved costs are influencing leading manufacturers to view the adoption of digital technologies as a way to significantly reduce their unit costs in the immediate future.
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 Leroy Davis, Sydney Scadden, Conor Smith, or Tyler Ratterree if you would like to learn more about Industrial Automation & IoT.