European component distribution sales plummeted 30.2% to €3.64 billion in Q3 2024, says DMASS Europe.
Semiconductor sales dived 38% to €2.27 billion, the sector’s lowest revenue value since Q1 2021. IP&E held up better, sliding 12.3% to €1.37 billion.
Hermann Reiter, Chairman of DMASS commented: “2024 continues to be a challenging year. The correction we are experiencing after the recent shortage is no surprise, but the decrease is deeper than expected. The positive news is that IP&E components seem to have the worst behind them and showed a manageable slowdown. Semiconductors, however, are still in a steep decline due to high customer inventories and little dynamic in new business. With low order books, the outlook for 2025 could be better, especially since the major drivers – automotive, Industrial and export – all show weaknesses beyond a cyclical downturn. Nevertheless, we are convinced that long-term, electronic components will play a major role in industry transformation and the distribution industry will be pivotal to realise it.”
By country Germany was the worst performer in semiconductor sales recording a fall of nearly 50%. Italy plunged 40%, France fell 35.5%. Relatively speaking the UK looked best, dropping a mere (!) 25.4%.
| Country/Region Semi | Total k€ | Change Q3/Q3 |
| UK | 182.421 | -25,46% |
| IRELAND | 20.092 | -36,51% |
| GERMANY | 557.264 | -49,36% |
| FRANCE | 154.082 | -35,51% |
| ITALY | 196.713 | -40,28% |
| SWITZERLAND | 90.662 | -36,44% |
| NORDIC | 175.203 | -38,84% |
| BENELUX | 80.005 | -43,17% |
| IBERIA | 124.951 | -24,00% |
| AUSTRIA | 47.713 | -55,34% |
| RUSSIA | 0 | -100,00% |
| EASTERN EUROPE | 448.301 | -26,61% |
| ISRAEL | 113.784 | -20,28% |
| TURKEY | 44.688 | -45,04% |
| OTHER | 33.532 | 4,28% |
| DMASS Semi Total | 2.269.412 | -37,88% |
In IP&E, the worst seems to be behind the distribution market. The slowdown continued at a much lower rate, with only -12.3% to €1.37 billion. Only Germany, Austria and Turkey still showed an over-proportionally steep decline. Product-wise, Passives showed a bigger minus than Electromechanical components and Power Supplies. (see table).
| Product Group IP&E | Total k€ | Change Q3/Q3 |
| PASSIVES | 481.083 | -19,32% |
| ELECTROMECHANIC | 788.428 | -7,16% |
| POWER SUPPLIES | 100.056 | -13,43% |
| DMASS IP&E Total | 1.369.567 | -12,27% |
Hermann Reiter concluded: “COVID 19 caused a major disruption that will still be felt in 2025. However, looking at the bigger picture, our industry’s compound growth rate from 2019 to 2024 was positive and will continue to stabilise over the coming years. What is required to realise the huge innovation potential of our industry is a focus on the real challenges in our economy, the biggest of which are the structural changes in industries and the lack of skilled workforce. Innovation needs innovators and entrepreneurs, young people, who we must encourage to get engaged in technology. Distribution is an excellent career opportunity for people who love versatility, flexibility and fast decision-making.”
