High market consolidation causes acquisitions in C.A.S.E. functions
As major car OEMs compete fiercely for market shares, the automotive market is defined by high consolidation. One measure to survive in this market environment is the use of acquisitions to further develop strategically important functions, often described as C.A.S.E. – connected cars, autonomous vehicles, shared mobility services, and electrification.
Strong rise of automotive M&A activity in 2018–2021
White & Case data shows that in the automotive industry (including suppliers), both the number of M&A deals and deal volumes have increased strongly in the time from 2018 to 2021 (1,525 deals with a volume of USD 341 bn) in comparison to 2014 to 2017 (1,398 deals with a volume of USD 214 bn). An especially strong increase in acquisition activity was reached in 2021 with 469 deals with a volume of USD 146 bn (+20% and +135% in comparison to 2018, previously the year with the highest number of M&A deals). Moreover, GlobalData informs that the automotive industry saw the highest growth in deal value in 2021 compared to all other industries.
Insights about acquired targets and rationales for acquisitions
Due to the high and still rising importance of acquisitions in the automotive industry, the KnowledgeAgent Automotive Team has gathered selected 2018–2021 acquisitions of major car OEMs per region, providing insights about acquired targets and rationales for the completed acquisitions.
2018–2021 acquisitions of major car OEMs were found to focus on other OEMs, key parts suppliers/developers (e.g., batteries and semiconductors), autonomous driving players, and software mobility companies.
The KnowledgeAgent Automotive Team has compiled the results in a research report which can be downloaded here.
Do you have questions regarding the report or would you like to get to know the KnowledgeAgent Automotive Team? Don’t hesitate to contact us!