Industrial Services

The Industrial Services sector provides essential support to industrial operations across various industries, ensuring operational efficiency, safety, and longevity of assets. It involves maintaining and improving infrastructure, managing complex assets, and offering solutions that enhance productivity and reduce downtime.

The Industrial Services sector's performance is driven by economic growth, technological advancements like Industry 4.0, regulatory changes mandating safety and environmental compliance, and a growing emphasis on sustainability and energy efficiency. The increasing complexity of industrial processes also leads to outsourcing, fueling market growth.

The Industrial Services sector encompasses engineering and consulting, installation and commissioning, and operational improvement and maintenance. It serves industries like manufacturing, oil and gas, construction, and energy. Key companies include ABB, Honeywell International Inc., Rockwell Automation, Schneider Electric, Siemens, General Electric, Emerson Electric Co., W.W. Grainger, Inc., Andritz, John Deere, Caterpillar and EMCOR Industrial Services, Inc.

The global industrial services market is experiencing growth, with projections estimating a CAGR between 4.0% and 8.6% through 2035. While deal volumes in the Industrials and Services sector declined in the first half of 2025, deal values increased. Strategic M&A activity is expected to accelerate, driven by digital transformation, automation, and a focus on operational efficiency and sustainability. The increasing adoption of AI and IoT in predictive maintenance solutions is a key factor fueling the market's growth.

The Industrial Services sector can exhibit cyclicality, influenced by economic cycles, interest rates, and capital investment decisions. Valuation is influenced by factors such as involvement in the asset lifecycle, complexity of services, and target market dynamics. Cyclicality can lead to volatility, but the essential nature of many industrial services provides resilience. The sector offers exposure to economic growth and technological advancements, with some segments providing more defensive characteristics due to recurring revenue models.