he factory machinery industry in 2024 is characterized by several key trends and dynamics that are shaping transaction activities and market growth.
- Rise in Large Deals and M&A Activity: The first half of 2024 has seen a significant uptick in large transformative deals within the industrial manufacturing sector. This resurgence is driven by improved executive confidence and profitability growth, despite the subdued deal volume observed in late 2023 and early 2024. The anticipation of easing monetary policies and clearer policy direction post-elections is expected to further fuel deal activities towards the end of 2024 and into 2025. A notable trend is the concentration of deals within domestic borders, reflecting ongoing concerns about supply chain risks due to geopolitical uncertainties
- Technological Advancements and Automation: The industrial machinery market is experiencing substantial growth driven by the increasing demand for automated and advanced machinery. Automation technologies, including AI, IoT, and machine learning, are becoming integral in manufacturing processes to enhance efficiency, precision, and productivity. The market for automated machinery is projected to nearly double by 2032, highlighting the shift towards full automation as companies strive for higher competitiveness and operational efficiency
- Demand for Customized and Flexible Machinery: There is a growing demand for machinery that can adapt to produce different products, driven by consumer preferences for customized products. This trend is leading manufacturers to invest in flexible and adaptive machinery that can handle varying production requirements. Additionally, advancements in industrial robots and collaborative robots (cobots) are enhancing production efficiency and worker safety, allowing human workers to focus on more creative tasks
- Growth in Construction Equipment: The construction segment remains a dominant force in the industrial machinery market, accounting for a significant share due to ongoing infrastructure development and urbanization projects globally. This segment is expected to continue growing, fueled by investments in residential, commercial, and industrial infrastructure, especially in emerging economies
- Importance of Data and AI in Manufacturing: The digitization of production and the integration of AI and data analytics in manufacturing processes are transforming the industry. Factories are leveraging data from systems like SCADA, MES, and ERP to improve business models and technological processes, predict and prevent anomalies, and optimize production efficiency. The increasing use of AI in manufacturing is enabling real-time monitoring, data-driven maintenance, and more accurate production decisions ).
These trends indicate a dynamic and evolving industrial machinery market, with significant opportunities for growth and investment driven by technological advancements and changing market demands.