According to DMASS Europe e.V., the European electronic components distribution market has yet to show clear signs of recovery.
Persistent global uncertainty continues to weigh heavily on investment decisions – frequently postponed, or in some cases even cancelled. Unpredictable political shifts, compounded by tariffs and macroeconomic headwinds, further cool global market activity. Although Europe could potentially benefit from greater reliability and regulatory clarity compared to other regions, these advantages have yet to translate into tangible positive momentum. Rather than being raised, expectations across the sector are increasingly being scaled back.
Hermann Reiter, Chairman, DMASS Europe said: “While the electronic components supply chain remains global in scope, customer markets are fragmenting rapidly – with AI demand surging in Asia and the US, Europe faces industrial stagnation and must redefine its position to offset a declining automotive sector. As a result, the supply chain leans toward contraction, with design innovation gaining traction over traditional sourcing strategies.”
Semiconductor distribution sales in Europe experienced a significant decline of 14%, amounting to €2,20 billion. Among the major countries, Austria faced again the steepest drop with a decrease of almost 37%, followed by France with a reduction of 20%. Only Iberia performed notably better and realised a slight increase of 2.4%.
At the product side, weakest sales were in Power and Programmable Logic with a minus of over 21%. Sensors & Actuators showed an increase about 6.1% and did much better than average with 14% minus.
In IP&E, the slowdown turned into a slight increase of +1.43% to €1,51 billion.
Only Austria, UK, Germany, & Switzerland could not profit and continued to decline.
Product-wise, Passives (-1.17%) showed a minus while Electromechanical components (+2.38%) and Power Supplies (+6.82%) are back again.
Biggest decline could be seen at Capacitors with Film (-17.8%), Tantal (-11.4%) and Aluminium (-10.5%), while – beside power supplies in general – sensors (+7.6% and circular connectors (+122.7%) showed a good increase.
Reiter concluded: “The European economy in 2025 remains resilient but faces increasing pressure from geopolitical tensions and global trade disruptions. This is particularly evident in the electronic components supply chain, which has become strained due to extended lead times, inventory volatility, and dependence on critical raw materials from Asia. Despite the fragmentation of global trade, the electronic components market remains deeply interconnected. Europe is responding with nearshoring strategies, supply chain diversification, and digital transparency measures. The rising demand for semiconductors, IoT devices, and AI applications continues to drive innovation, presenting growth opportunities even amid uncertainty. To remain competitive, Europe must more actively shape these global dynamics in a rapidly evolving electronics landscape.”
All components consolidated by region (Q2):
