Market Update: Industrial Automation & IoT Q4 2022
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 two 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.
Major trends driving 2022 and creating tailwinds into IT/OT optimization for 2023 include the integration of greater remote monitoring, data-driven predictive modeling and simulation, a migration from “on-prem” to cloud-based computing, and a recent surge toward the development of digital twin technologies.
With significant changes in data computing and automation, the industry continues to move towards projection, monitoring, maintenance, and security on the industrial floor. The Industrial Internet of Things (IIoT) market is following these trends at a time when the macro-environment is indicating high levels of future M&A activity, consolidation, and integration in IoT Security and Digital Twin technology markets. Digital Twin technology improves IoT systems like CAD by presenting real-time monitoring and modeling based on the full-cycle of processes involved. With real-time data being transferred via newly adopted cloud systems, each new connection creates an increased risk of compromise and increased need for security. In this way, Digital Twin and IoT Security technology are interconnected through these developments. In fact, the markets show statistical similarity in deal quantities over the last decade, with both markets showing a general increase in VC activity over that same time frame – a common indicator of future deal activity.
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.