The industrial automation sector is showing an annual growth rate of 9 to 10% and a global market that could double by 2033; in other words, the sector is undergoing an unprecedented transformation.
From the Tech M&A division at Baker Tilly, we have prepared a comprehensive report on the Industrial Automation sector in 2025 to help you anticipate these changes. Here we share 5 key trends from the study that are already shaping the strategy of manufacturers, investors, and industrial buyers.
Artificial intelligence is no longer optional
The use of artificial intelligence in industrial environments has gone from being experimental to becoming operational core. Factories leading the transformation are already applying AI in:
- Predictive maintenance to avoid unplanned downtime
- Automated visual inspection with superior accuracy to humans
- Autonomous process optimisation based on real-time data
This development is particularly significant not only because it saves costs, but also because it enables gains in speed, quality and resilience. Companies that integrate AI will not only operate better, but will also learn faster than their competitors.
Del hardware al software: el salto a plataformas conectadas
Industrial automation is no longer just about sensors and robotic arms; the new frontier lies in connected industrial software, built on cloud and edge computing platforms.
- Cloud : centralised monitoring, multi-level control, optimisation at scale.
- Edge: real-time processing, with minimal latency and maximum autonomy.
In addition, the use of Digital Twins, virtual models that simulate entire production lines reduce implementation costs and facilitate root cause analysis in the event of complex failures.
This is a strategic shift because it integrates the physical world with the digital one. It allows decisions to be made not only faster but also based on predictive models that simulate scenarios before they happen.
OT cybersecurity: the new bottleneck for scaling up
As factories become more digitalized and processes increasingly connected, industrial cybersecurity (OT) has become a critical priority. Threats are no longer just possible — they are frequent:
- Ransomware that paralyses entire lines.
- Attacks targeting PLCs, SCADA and sensors.
- Loss of intellectual property in connected environments.
The report highlights that investment in OT security is growing at the same rate as the rest of the market, with specialised solutions for monitoring industrial traffic, detecting anomalies and isolating compromised equipment in real time.
What does this mean for investors and buyers?
Cybersecurity is now a valuation attribute. Automation platforms with built-in protection are better positioned to scale, secure deals with major clients, and avoid costly disruptions.
Europe leads in revenue, the US in number of companies
Although the United States accounts for the largest number of companies (63% of the global total), it generates only 36% of the sector's revenue. In contrast, Europe generates 75% more revenue with half the number of companies, leading in average company value.
Looking specifically at Spain, the country shows an average annual growth of 5.3% in industrial process automation. In 2024, 5,160 new industrial robots were installed — the second-best figure on record. Sectors such as automotive, metal, food, and electronics are leading the demand.
Why is this data relevant? Because it highlights where the opportunity lies. Spain and Europe combine technological maturity with room for consolidation, making them fertile ground for strategic acquisitions or high-return investments.
If you want to learn more about how to carry out successful M&A transactions, this article will provide you with the 3 keys to successful implementation.
M&A in full swing: 5 types of targets sought by buyers
The report identifies a clear pattern: strategic buyers and investment funds are in an active race to acquire specialized technologies, technical talent, and scalable platforms. What are they looking for?
- Industrial software and computer vision to add layers of digital differentiation.
- Integradores de sistemas para escalar capacidades de ejecución y cobertura geográfica.
- OEM component manufacturers to control margins and build customer loyalty.
- Robotics and motion control to provide end-to-end automation solutions.
- Maintenance services to generate recurring revenue and long-term contracts.
The report details how the sector’s average EV/EBITDA multiple has increased from x13.2 in 2022 to x14.7 in 2024. Demand for quality targets exceeds supply, keeping price pressure high.
This article only mentions a few data points about trends in the industrial automation sector. The Industrial Automation 2025 report offers a detailed analysis by subsegment (processes, factory, logistics…), as well as a classification of buyers by strategy and profile. You will be able to read in depth about valuation data, recent transactions, and consolidation dynamics, and finally, you’ll find a guide to identify attractive targets or build investment platforms.
Whether you’re planning an acquisition, developing your exit strategy, or exploring new industrial verticals, this report is a key tool for making forward-looking decisions.
Informe sectorial del sector Industrial Automation 2025
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