Robotics Report - An update on the M&A market?
Economic uncertainty is not good for deal making, so it is hardly a surprise that — after reaching record highs and peak values in recent years — M&A activity has declined significantly during the pandemic. With respect to the robotics industry, the market was already beginning to cool in 2019, but this year it’s become positively frosty as the number of M&A transactions has fallen sharply.
Although robots are used widely by many industries today, the robotics industry is still largely dependent on the automotive industry, its largest market by far. The auto sector, however, is engaged in a major transition from combustion engines to electric drives and is caught up in the trade conflict between the USA and China. This has caused it to lose its footing, and the fallout has shaken the industrial robots sector, which is experiencing its first downturn following six years of peak values. With COVID-19 exacerbating the situation, recovery will probably take some time.
These are interesting times we’re living in, and everyone has become more risk averse. Along with the apparent dangers, however, there are also quite a few opportunities, and forward-looking market players can gain traction and position themselves for the future with a well-chosen acquisition or merger.
So while there may be some rough sledding ahead, long term the robotics industry will remain a growth market and is likely to emerge from the current crisis a good bit sooner than many other industries.
For the full version of the Robotics Report and more information on market trends in this industry click the link below!