The report below gives a good overview of the Fall 2024 M&A activity in the Industrials Industry Sector. The global industrial sector is experiencing a notable shift as economic conditions improve. According to the latest OECD Interim Economic Outlook, the global economy is showing resilience with a projected growth rate of 3.2% for 2024 and 2025. Rising inflationary pressures, which characterized previous years, are now receding, with G20 headline inflation anticipated to drop to 5.4% in 2024 and further to 3.3% in 2025, reflecting a broader trend toward economic stabilization. According to the Bureau of Labor Statistics (BLS), the U.S. economy added 254,000 jobs in September 2024, exceeding expectations for 142,500. European stocks also advanced amid expectations of further ECB rate cuts, supported by declining inflation that reached a three-year low of 2.2% in August. The global industrial production for Q3 2024 indicated a moderate growth rate, driven by robust performance in the automotive and machinery sectors. The semiconductor industry is showing signs of recovery as it approaches the second half of 2024, with varied growth rates across different segments such as AI applications, consumer devices, and industrial products, including automobiles. Despite a year-on-year revenue increase of 44% for the top 10 chip producers in 2024, growth is expected to slow to 24% by Q1 2025. AI graphics processors and ASICs are experiencing the fastest growth at 82%, albeit expected to moderate to 31% by 2025. In the consumer electronics market, smartphone shipments are projected to rebound by 10.4% in 2024, driven by pent-up demand and new AI-enabled product releases, while personal computer shipments are also expected to enter a new upgrade cycle. However, connected devices are facing market saturation, with consistent declines in global shipments of streaming media devices and video game consoles, leading to a cautious outlook for these segments. With the increased reliance on digital solutions, there is a growing awareness about the importance of cybersecurity within industrial services. Companies are now more inclined to invest in robust cybersecurity measures to protect their digital assets and data from potential threats.
Posted by Patrick Powell.