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Standing up to the challenge
Global Private Equity
Report 2024
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The machinery industry is sprinting toward a digital future. Customers want equipment that is connected and smart; they also want industry-specific solutions. By 2030, software and integrated solutions for machinery will be a $400 billion market and comprise a much larger share of the industry’s profit pool. Three-quarters of advanced manufacturing executives say that adopting emerging technologies
such as artificial intelligence is a top R&D priority.
No machinery maker has the resources to build digital solutions for every industry. Front-runners are targeting
the sectors in which they lead. The digital shift is also forcing machinery companies to rethink their production strategies. At the same time, they need to make supply chains both more resilient and more sustainable; circular material models
can help. The winners in 2030 already have begun reshaping
their business models for an era of rapid innovation and change ahead.
Welcome to Bain’s fifth M&A global annual report
Our mission: Improve M&A by sharing practices of the best deal makers
Software, services, and new digital solutions will grow
Incorporating emerging technology is a top priority
It’s easy to think of Dickens and A Tale of Two Cities when looking back on 2022.
The first six months resembled 2021: incredible numbers of deals, lots of exits, and substantial funds committed to the chase for the next five years. Then came the Federal Reserve’s rate hike in June. That move—and those that followed globally—signified the end of cheap debt in buyout markets and raised strong concerns about persistent inflation. Recession fears spooked banks from providing leveraged loans, and the dominoes fell from there, toppling year-end totals for deals, exits, and fund-raising.
This “pause” has continued into 2023 and will likely persist until macro factors stabilize. Yet, as we explore in this year’s Global Private Equity Report, opportunity awaits firms
that stay aggressive and focus on creating value from
the inside out.
Faster. Smarter. More connected: Machinery races into the digital future
Machinery & Equipment Report 2024
Closed-loop engineering
AI in manufacturing
Factory of the future
Circularity
Digital solutions
Installed base management
WHAT CUSTOMERS WANT
HOW TO DELIVER
SECTION TITLE 03
Global revenue total, advanced manufacturing and services
Today: $240B–$260B
Industrial Internet of Things–enabled solutions are poised
to expand significantly
2030: More than $400B
Percentage of respondents who ranked priority in top three
Software
Hardware
Shortening time to market
Incorporating novel technologies (e.g., AI)
75%
71%
61%
Dealing with cost pressure
Michael Staebe
Leader of Bain’s Global Machinery & Equipment sector
Services
Software, services, and new digital solutions will grow
Global revenue total, advanced manufacturing and services
