Discover the manufacturing sectors attracting buyers for acquisitions. Find out why Aerospace & Defense is a popular sector in M&A activity.
Top 7 Manufacturing Sectors Buyers Are Targeting for Acquisition
Although Accelerated Manufacturing Brokers, Inc. only represents Sellers in lower-middle-market M&A transactions, buyers constantly reach out to us because of our specialization in manufacturing. They provide us with lists of the manufacturing sectors they are actively seeking to acquire.
Over the last 30 years, we’ve found that these buyer acquisition targets can be very predictive of M&A activity over the following 12 to 24 months.
As we enter the fourth quarter of 2024 and look ahead to 2025, here are the top seven manufacturing sectors buyers are seeking for acquisition, along with some insight into why these sectors are attracting so much attention.
1. Aerospace & Defense
The massive number of inquiries we receive for this sector may partly reflect the number of deals we’ve sold within it.
Aerospace and defense-related M&A transactions kept us busy all summer, with three closings in Q3 and another expected in Q4.
The global aerospace and defense market is expected to advance at a CAGR of 6.15% through 2030.
With continued demand, long-term contracts and highly specialized capabilities, it’s easy to understand why buyers remain focused on this sector.
2. Additive Manufacturing / 3-D Printing
Additive manufacturing continues to attract buyer interest because of its projected growth and expanding applications across multiple industries.
The global additive manufacturing market was valued at $15 billion in 2022 and is projected to reach approximately $110 billion by 2033, representing a compound annual growth rate of 19.9% between 2023 and 2033.
Meanwhile, the U.S. additive manufacturing market, valued at $7 billion in 2023, is forecasted to expand at an impressive CAGR of 18.7% from 2024 to 2030 and reach more than $22 billion.
3. Infrastructure-Related Manufacturing & Repair
Infrastructure-related manufacturing presents a significant opportunity for U.S. manufacturers.
Between now and 2033, the American Society of Civil Engineers estimates that nearly $7.4 trillion is needed across 11 infrastructure areas:
- Highways
- Bridges
- Rail
- Transit
- Drinking water
- Stormwater
- Wastewater
- Electricity
- Airports
- Seaports
- Inland waterways
That level of investment creates tremendous opportunity for manufacturers with capabilities serving these areas.
4. Electronic Printed Circuit Boards
The global printed circuit board market was approximately $87 billion in 2023 and is expected to reach $152 billion by 2033, expanding at a CAGR of 5.8% from 2024 to 2033.
Demand is being driven by growth in several important sectors, including:
- Advancements in industrial automation
- Autonomous driving and road-safety technologies requiring advanced PCBs
- Smart devices and wearables
- Increased demand for portable electronics
- Advanced aerospace and defense-related products
With electronics becoming more integrated into nearly every industry, PCB manufacturers continue to attract acquisition interest.
5. Metal Coatings & Finishing
Metal coatings and finishing remain important across a wide variety of manufacturing sectors.
The global metal coatings market is expected to grow to approximately $23 billion by 2030, exhibiting a CAGR of 3.5%.
Because coatings and finishing are essential to performance, corrosion resistance, appearance and product life, companies with strong capabilities in this space continue to be attractive acquisition targets.
6. Plastic & Metal Extrusions
The plastic and metal extrusion markets continue to benefit from demand across construction, automotive, consumer goods and other major industries.
Extruded Plastics
The extruded plastics market was valued at approximately $240 billion in 2023 and is projected to grow to more than $455 billion by 2032, representing a CAGR of 6.40%.
Metal Extrusions
The global metal extrusion market is expected to reach a valuation of more than $146 billion by 2030, with a projected CAGR of approximately 6%.
The broad range of industries that rely on extrusion makes this an especially attractive sector for buyers looking for durable demand.
7. Structural Steel Fabrication
Structural steel fabrication is another sector benefiting from continued construction and infrastructure investment.
The industry was valued at more than $105 billion in 2022 and is expected to grow to over $170 billion by 2031.
That growth is being driven largely by construction activity and infrastructure repair, both of which continue to create demand for capable structural steel fabricators.
What These Buyer Trends Mean for Manufacturing Business Owners
These are the top seven manufacturing sectors being sought for acquisition as we enter the fourth quarter of 2024 and look ahead to 2025.
Although we update our most-wanted list each quarter, these are certainly not the only sectors the Accelerated team focuses on.
We’ve been serving the manufacturing community for more than 30 years across a wide variety of sectors.
If you’d like to understand the current market for your type of manufacturing company, we can help.
Request a no-pressure, no-obligation consultation HERE.