How Current Trends Are Reshaping M&A in Advanced Industries
Advanced industries M&A value nearly doubled in 2025 on stable deal counts, driven by industrials digitalization, an aerospace rebound, auto supplier consolidation and AI-fuelled semiconductor demand, with more to come in 2026.
Summary
Deal value in advanced industries nearly doubled in 2025 to $393 billion across 679 deals. Industrials value doubled to $182 billion on AI and automation. Aerospace rebounded from $25 billion in 2024 to $42 billion, while auto suppliers consolidate under margin pressure through EV partnerships, software-defined vehicle investment and portfolio pruning. OEMs will be selective acquirers, semiconductor firms invest locally, and private equity dry powder should lift 2026 activity.
Editor's opinion
Three trends are driving advanced industries M&A: EV ecosystem reset and partnerships, software/electronics stack investments for SDVs, and portfolio pruning — alongside aerospace rebound ($42B)
Key concepts
Auto supplier consolidation · Software-defined vehicles · Vertical integration · Geopolitical resilience deals · PE dry powder