During a recent visit to London, Tim Carroll, Global Head of Digital Business at DigiKey, met with Electronic Specifier and Procurement Pro’s Paige Hookway to discuss the company’s current performance and future direction.
Carroll described the first quarter of 2025 as relatively subdued, with economic and political uncertainty – ranging from newly formed governments to changing tariff conditions – impacting demand. However, by the second quarter, DigiKey had regained momentum through careful adjustments to its pricing, inventory, and marketing strategies.
“The e-commerce side of our business, which serves prototype and design engineers, grew almost 30% year over year in the second half,” Carroll said. “That exceeded even our most ambitious forecasts, and we’re optimistic that this strength will carry into our production-focused operations.”
When asked about sector-specific trends, Carroll confirmed that growth had been consistent across several end markets. AI and data centre customers continued to drive steady component demand, with notable strength in power management, cable, and wireless products – categories in which certain brands saw double-digit gains. Industrial automation was a particular highlight, showing 38% online growth in the second half of the year.
Other areas such as automotive, EVs, and medical technology also posted high double-digit increases. Even platforms once associated primarily with hobbyist use, including Arduino and Raspberry Pi, were now becoming part of more advanced commercial projects and professional design workflows.
Hookway raised the topic of evolving procurement behaviour as the industry settled into a post-pandemic rhythm. Carroll explained that many firms had now reduced their stockpiles and returned to more traditional ordering patterns.
“Some companies are placing smaller, more frequent orders to remain flexible amid tariff uncertainty,” he noted. “That works well for us because our extensive inventory and fast logistics mean customers can rely on timely delivery even when lead times from other suppliers stretch from eight weeks to 16.”
Carroll also shared that DigiKey was on track to reach one million customers by the end of 2025, with 900,000 unique accounts already recorded this year and over 300,000 of those added in the past twelve months. Much of this expansion came from Europe and Asia, where DigiKey had strengthened its presence beyond its core markets in the Americas.
Looking ahead, Carroll said both internal forecasts and industry analysts pointed to a 4–6% global growth rate for 2026. DigiKey planned once again to outperform the market, targeting growth roughly twice that rate.
Carroll closed the discussion by emphasising DigiKey’s digital-first strategy. The company’s investment in AI and analytics continued to refine how it managed pricing, inventory, and customer interaction.
“Our vision is a frictionless digital experience,” Carroll said. “We want engineers and procurement professionals to move seamlessly from research to purchase, with intuitive tools that anticipate their needs and make complex sourcing simple.”
With digital tools underpinning its strategy and new markets contributing to a growing customer base, DigiKey’s outlook for the remainder of 2025 and into 2026 appeared set on a steady upward path.
Watch the full interview below:
