Global TMI sector report H1 2026: M&A momentum and multiples stay above historic average
The Test, Measurement, and Instrumentation market performed strongly despite general global issues in the sector. Clairfield’s latest TMI report examines the market structure, trading multiples, and transactions shaping the sector today. M&A remains a key growth strategy, as large players look to build market share in niche growth industries and new geographies.
Key takeaways
TMI market overview
The Test, Measurement and Instrumentation market performed strongly despite general global issues in the industrials market. Driven by strong global tailwinds including 5G/6G deployment, EV & electrification, IoT proliferation, AI-augmented platforms, and regulatory compliance, Clairfield’s TMI index outperformed the S&P 500 by 29.3% since 2016. Global TMI market estimated at c.$44bn in 2026, with a forecast CAGR of 5.9% to US$61bn by 2032. M&A remains a key growth strategy, as large players look to build market share in niche growth industries and new geographies.
Recent M&A transactions
Deal volumes were above the historic average for the half-year period, with 111 deals recorded in H1 2026, showing continued momentum in the M&A market. The US regained its position as the leading region for both buyers and sellers, while Europe’s buyer activity fell back in line with historic averages, although alongside the US had the most amount of targets. Total average disclosed TMI deal multiples (EV/ EBITDA) in H1 2026 were in the high teens, slightly lower than recent periodsbut near to the long-term average. Deal multiples in the sub US$100m segment continued to be in the high single digit to early double digit multiple range.
Industry trading multiples
The Clairfield TMI Index has continued its strong upward trajectory through H1 2026, having fully recovered from the brief shockin March 2026 with the US-Iran war, and outperforming the S&P 500 by 5.7% in H1 2026. Selected listed trading peers in the TMI industry show an average H1 2026 EV/EBITDA multiple of 23.5x, significantly above the long-term average of 18.1x, reflecting continued investor confidence in the sector.
“The TMI market is highly fragmented with many specialists filling niches. As such, deal volume is largely focused on the under US$100 million EV range. H1 2026 was no exception, with over 70% of disclosed deals being in the small to midmarket bracket. Still, in these first six months we saw a surge of mega deals with a quarter of disclosed deals being above US$500 million.”
Tom McCarthy, Partner, Clairfield in the UK
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