Temperature Check: Aerospace M&A

As a sector comprised of a few giant conglomerates and several small companies and start-ups, expect consolidation in aerospace to accelerate as these smaller firms recognize the need to scale up to stay competitive. Given the number of eVTOL (electric vertical take-off and landing) companies recently going public, we anticipate continued interest and activity around this segment—don’t be surprised if 2024 brings some consolidation as the technology winners become more apparent. Speaking of technology, expect the commercial drone sector to expand rapidly, as regulations around them become more clear, and companies roll out better software to support increased drone utilization in commercial applications.

Activity level: Warming up