HORIZONS | BDO'S GLOBAL VIEWOF MIDMARKET DEAL ACTIVITY 59
TMT DEAL ACTIVITY PER INDUSTRY SPACE 2020 Q1 2021 Q3
DIGITISATION HIGH ONTHE AGENDA
2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3
TMT deal activity is dominated by technology. Software is the prime driver of M&A deals within technology, representing just under 90% of all mid-market technology deals. BDO surveys of decision-makers across industries point to a collective need for increased digitisation. This is as a core driver for both mid-market software M&A and increased company investments in software upgrades to support business decision-making. This also holds true for the manufacturing industry, which is undergoing several significant shifts. THE GROWTHOF MANUFACTURINGTECHNOLOGY Digitisation in manufacturing is part of Industry 4.0. The term refers to the integration of new technologies throughout every step of the product chain, including robotics, edge computing, Internet of Things, 3D printing, and AI. As for technology in general, software is a key driver of the projected market growth expected across various aspects of Industry 4.0: Ongoing political and trade tensions, for example, between the US and China, the impact of COVID on production and supply chains and staff shortages have highlighted the advantages of Industry 4.0 across the manufacturing space. During the pandemic, manufacturing companies with advanced digitisation levels and a focus on using data to make decisions have demonstrated greater resilience. Furthermore, said companies are best positioned to succeed in the future. Both conclusions stem from the latest edition of BDO’s survey on digital transformation in the manufacturing industry. The survey also reveals that early Industry 4.0 adopters have begun to achieve breakaway performance.
0 100 200 300 400 500 600 700 800 900
Technology Telecom Digital Media & E-commerce
Data: MergerMarket, Graph: BDO Global
2028 MARKET SIZE PROJECTIONS US$ BILLION SELECT INDUSTRY 4.0 SUBINDUSTRIES
100 150 200 250 300
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%
0 50
Industrial Automation
3D Printing Workflow Management Systems
Product Lifecycle Management
Simulation Software
3D CAD Software
2028 revenue (US$)
CAGR %
Data: Cowen/Grand View Research, Graph: BDO Global
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