APAC industrial deal volumes seen rising 2% in 2026— PwC

India and Southeast Asia are expected to attract manufacturing investment.

Asia-Pacific is the only region expected to record growth in industrials and services deal volumes in 2026, according to PwC’s mid-year mergers and acquisitions outlook.

Deal volumes in the region are estimated to increase by 2% for the year, compared with an expected 7% decline globally.

Industrial manufacturing is also expected to outperform most other subsectors, with global manufacturing deal volumes estimated to rise by 5%. Aerospace and defence is the only other subsector expected to post growth.

PwC said India and Southeast Asia should continue attracting investment as manufacturers diversify production and supply chains beyond China. Japan and South Korea are also expected to see activity involving automation, battery technologies and electronics.

Manufacturing deals are likely to focus on assets supporting artificial intelligence infrastructure, grid resilience and automation. These include robotics, industrial software, sensors and connected systems that can increase productivity and reduce reliance on labour.

The median share of industrial manufacturers with highly automated processes is expected to increase from 18% to 50% by 2030, underscoring automation’s growing importance to investment strategies.

Companies are also localising production and reorganising supply chains to reduce tariff exposure and protect access to key markets. PwC said corporate carve-outs and manufacturing businesses benefiting from localisation in India and Southeast Asia could offer attractive opportunities.

However, cross-border transactions are expected to remain uneven amid geopolitical uncertainty, tariffs and changes in industrial policies.

PwC’s 2026 estimates were extrapolated from announced deals during the first five months of the year and adjusted for reporting delays. The firm said the figures were prepared for year-on-year comparison and should not be considered forecasts.