Corrections in the European components markets continued through the first quarter of 2025. The distribution industry, which had previously experienced strong performance, faced disproportionate declines.
According to DMASS Europe e.V., the European components distribution market contracted by 14.3%, with consolidated sales falling to €3.92 billion.
IP&E (Interconnect, Passive and Electromechanical) components once again showed relative resilience, with a decline of only 4.63% to €1.55 billion. In contrast, semiconductors maintained their steep downward trajectory, falling by 19.59% to €2.37 billion.
Hermann Reiter, Chairman DMASS Europe said: “Forecasting has rarely been this challenging. Geopolitical tensions, tariffs, and global supply chain uncertainties have made predictions nearly impossible. Regardless of whether tensions rise or fall, a return to the ‘old normal’ is out of reach. Instead, adaptability becomes key – optimising processes and boosting resilience are essential.
“As external pressures grow, the EU shows signs of strengthening its core. A Deloitte survey highlights unexpected results, with rising investments in the EU, still regarded as the most predictable market. While stronger consolidation from Q2 2024 will improve year-on-year comparisons, true growth remains uncertain and will likely take time to materialise. This year is estimated to close at a similar level to last year, which would still be a remarkable outcome given the -14.3% dip after Q1.
Semiconductor distribution sales in Europe experienced a significant decline of nearly 19.59%, amounting to €2.37 billion. Among the major countries, Austria faced the steepest drop with a decrease of almost 39%, closely followed by Turkey with a reduction of nearly 37%. In contrast, Ireland, Switzerland, Iberia, and the pool of smaller EMEA countries performed notably better.
At the product side, weakest sales were in power and MOS micro logic with a minus of over 25%. Only programmable logic showed a slight increase about 2,63% and did much better than average with nearly 20% minus.
In IP&E, the worst seems to be behind the distribution market. The slowdown continued at a much lower rate, with only -4.63% to €1.55 billion.
Only Austria and Germany showed an over-proportionally steep decline.
Product-wise, passives (-7,62%) showed a bigger minus than electromechanical components (-2,82%) and power supplies (-3,75%). Biggest decline could be seen with capacitors (-12,6%), frequency control devices (-11,1%) and relays (-14,8%), while circular connectors (+12,8%) showed a good increase.
Reiter concluded: “When considering the bigger picture, a nuanced view emerges across different parts of our world. The massive disruptions in global trade are reflected in financial markets and the economy. New structures will emerge that account for these disruptions, with a tendency to value proximity and security more highly than in the past. Our industry, with its enormous innovation potential, will face significant challenges but will also provide many solutions and perspectives in return. The real challenges lie in the transformation of known structures and the need to meet this high pace of change with resilient processes. We will respond to many changes positively with innovations. The old adage remains true: great challenges always bring forth great solutions. The era of administration is over; now comes the time for innovation.”
