Aerospace, Datacenters, and Wellness Lead Sectors | PitchBook Industry PE Outlook

What's New

PitchBook's 2026 Industry PE Outlook provides a sector-by-sector roadmap, highlighting commercial aerospace parts, electrical engineering for datacenters, and health & wellness as top investment targets. Platform LBOs are expected to capture 25%+ of deal activity, signaling a return to scale-building strategies.

Why It Matters

Mature industries are proving fertile ground for PE by combining steady demand drivers like aging aircraft fleets with transformative themes including reshoring and AI infrastructure build-outs. The alpha lies in "picks and shovels" plays—whether the parts keeping planes flying or the cooling systems keeping AI running.

Big Picture Drivers

• Aerospace demand: Aging global fleets and production delays at Boeing/Airbus drive unprecedented demand for aftermarket parts; $438B TAM for commercial aerospace parts

• Datacenter boom: AI revolution requires massive physical infrastructure; $164.6B TAM for electrical engineering driven by grid and datacenter needs

• Consumer pivot: Capital flowing toward health & wellness ($1.3T TAM) and functional beverages, moving away from general apparel

• Reshoring tailwind: Commercial construction for factories emerges as major winner as manufacturing returns to US

• Enterprise software safety: Management suites remain "safest bets" while marketing platforms face commoditization

By The Numbers

• $438B: 2025 TAM estimate for commercial aerospace parts

• $164.6B: 2025 TAM estimate for electrical engineering, driven by grid and datacenter needs

• >25%: Share of PE deal activity expected from platform LBOs in 2026

• $1.3T: 2025 TAM estimate for health & wellness consumer retail

• $8.4B: Smartsheet buyout—largest enterprise management suite deal 2018-2025

Key Trends to Watch

• Overheated sectors: MRO (Maintenance, Repair, Overhaul) in aerospace, roofing in construction, AI imaging and surgical robotics in medtech facing high valuations and crowding

• Medical devices opportunity: "Meaningful pressure on input costs" from tariffs/supply chains, but stabilization could create "strong valuation entry point" ahead of macro stability

• Freight recovery: Investors watching for recovery in trucking and warehousing after difficult stretch

• Solar comeback: Lower valuations and improved technology could make solar an interesting play as deployment is "often faster and cheaper than nuclear, gas, coal, and wind"

The Wrap

For PE investors in 2026, alpha lies in "picks and shovels" plays across aerospace aftermarket, datacenter infrastructure, and health & wellness—sectors combining steady demand with transformative macro themes.

Read Full Report PitchBook 2026 Industry PE Outlook