Industrial

Germany is the world's third largest producer of machinery. Mechanical and plant engineering is thus considered the leading export and innovation sector. The industry, which is strongly characterised by small and medium-sized enterprises, manufactures complex products for the entire economy and utilises technologically sophisticated preliminary products.

LAST UPDATE

01/10/2021

TYPE

Executive Summary

CONTRIBUTORS

Christian Saxenhammer

Current Developments

The innovation engine of the German economy

In recent years, the mechanical and plant engineering industry has devoted itself to digital challenges. The introduction of digital production processes offers promising prospects for industrial companies in the context of the Smart Factory and Industry 4.0.

Growth Rates

2020

-10.9%

2021

+3.4%

2022

+3.8%

Trends

Digital twins

Digital twins are the digital representation of physical objects and systems that can be used to optimise and link processes, improve production, and minimise failure rates.

Transactions

Our Sector Transactions

0

Highlight Transaction

RSA Cutting Systems GmbH x FMC Beteiligungs KG

Number of M&A transactions - DACH region, 2021 (as of August)

189

Significant Transactions

Leonardo S.p.A. X Hensoldt AG (2021)

BorgWarner Inc. X Akasol AG (2021)

Future Trends

The topic of Industry 4.0 has a significant influence on the structure and development of mechanical and plant engineering. The need for software expertise is continuously increasing - software-based services open up new, innovative business models. Materials of the future also enable completely new approaches to products and production processes. Materials and material combinations such as laser crystals or customisable plastics are being developed ever faster in the laboratories and brought to market.

Our View

Mechanical and plant engineering reflects the entire range of performance capabilities of German industry and is one of the most innovative industrial sectors. The development of Industry 4.0 opens up optimisation potential along the entire value chain. In the future, new markets will emerge and turnover will be decisively determined by digitalisation, climate protection and the mobility revolution, among other things.

People & Voices

Saxenhammer has in-depth technical and industry knowledge and can draw on a broad network of industry experts with many years of transaction experience.

"German mechanical and plant engineering is characterised by the hidden champions of the SME sector. From an investor's point of view, the demand for those companies that have specialised knowledge in a niche is continuously increasing, especially in Germany."

Christian Saxenhammer

Managing Partner

Sector Update

Saxenhammer professionals regularly release content on current affairs and market trends to stimulate thought and discussion. We share exciting analyses, real-time market insights, and company news with the world.