How did capitalism lead to industrialization?

This is an interesting question in that the terms industrialization and capitalism are in reverse order. Here is the explanation.

It was capitalism that fueled industrilization, not the reverse.

During the industrial revolution that occurred in Europe and the USA, the governments' "hands off " policies on the economy led directly to investments in producing capital goods and services.

One note on this however, as it is a vital one in the economic growth in the USA. Capitalism is an economic system whereby private investment and industries are not closely regulated or "owned" by the government.

In the USA, most of the land west of the Mississippi River was owned by the Federal Government. With that in mind we come upon one of the most profitable &powerful busnesses in the USA in the 19th Century.

The railways were the "children" of the Federal Government. The rights of way, land leases or giveaway sales to the railways by the government were socialistic in nature.
The Indstrial Revolution fueled the growth of capitalism with increased work productivity and a boost to the economy.