Trends in 2020 and 2021: Predicted Acquisition Targets for Major Industries

The acquisition landscape is in a constant state of flux, driven by the evolving demands and technological advancements in various sectors. In the coming years, particularly 2020 and 2021, several industry players are expected to shift their focus, leading to significant changes in acquisition targets. This article explores these trends and highlights the potential targets in the automotive, energy, and aerospace sectors.

A Closer Look at the Automative Industry in 2020

As the global automotive industry prepares to embrace a transformative shift towards electric and autonomous vehicles, traditional automotive manufacturers are under tremendous pressure to adapt. In 2020, the focus is likely to be on internal combustion engine (ICE) auto makers. The operational inefficiencies and environmental concerns associated with ICE vehicles are compelling these companies to seek out acquisitions that will help them transition to more sustainable and efficient technologies.

By acquiring tech-driven companies specializing in electric vehicle (EV) components or software, ICE auto makers can accelerate their progress in this new landscape. Additionally, partnerships with companies that have experience in autonomous driving technologies can provide a competitive edge in the rapidly evolving market. These acquisitions will not only help these companies remain relevant but also position them to lead the transition towards a greener future.

Energy Sector Revamps for 2021

The energy sector is expected to see a significant shift with the increasing demand for alternative energy sources and the growing concerns regarding petroleum-based fuels. By 2021, the petroleum industry is likely to be one of the key areas of focus for acquisitions. Companies in this sector are looking to diversify their portfolios to include renewable energy sources such as solar, wind, and hydrogen. Aggressive mergers and acquisitions (MAs) in the renewable energy sector will not only help these traditional players transition but also position them to capture new markets and accelerate their growth.

Furthermore, space enterprises are on the radar but not SpaceX specifically. SpaceX, which has been a leader in the commercialization of space technology, is not expected to be a primary acquisition target. Instead, the focus will be on other space enterprises looking to expand their operations and capabilities. Acquiring these space enterprises could provide a competitive edge in developing advanced propulsion systems, satellite technologies, and other space-related innovations.

The Role of Boeing's Aerospace Division

Boeing, a prominent player in the aerospace industry, is facing significant challenges. With the ongoing production issues and changes in the global aviation market, it is likely that Boeing will seek to sell off its space division. This strategic move could potentially open up new opportunities for other aerospace companies eager to enter the space market. By acquiring Boeing's space division, these companies could gain valuable expertise and resources, positioning themselves as key players in the growing space sector.

The decision to sell off the space division is expected to be driven by a combination of factors including changes in business strategy, increasing costs, and the need to refocus on core aerospace activities. This shift will not only help Boeing streamline its operations but also provide a valuable asset to other players in the space industry.

Conclusion

As the world continues its journey towards a more sustainable and technologically advanced future, the acquisition landscape is likely to remain dynamic. The automotive, energy, and aerospace industries are prime examples of sectors that will see significant changes in 2020 and 2021. Companies that are proactive in identifying and acquiring the right targets can secure their place in this evolving market.

By following these trends and remaining agile, businesses can navigate the complex and fast-changing landscape of these industries, ensuring their long-term success and growth. Stay tuned for further updates and insights as the acquisition landscape continues to evolve.