Struggle continues for German distribution

The German electronic component distribution industry is facing ongoing challenges, with sales dropping by 8% in the second quarter and orders decreasing by 9%. According to the FBDi industry group, the forecast for 2025 is expected to mirror 2024 figures at €3.5 billion.

Despite the uncertain outlook, Andreas Falke, the managing director of the German Association of Electronic Component Distributors (FBDi), remains cautiously optimistic. While bookings are currently low, the initial momentum from new projects offers hope for growth in emerging sectors.

The FBDi is hopeful that the market has reached its lowest point, although the German market has experienced a significant 35% decline. Falke emphasizes the challenges posed by geopolitical tensions and trade disruptions, which are exerting immense pressure on the economy and industry.

Members of the FBDi generated sales of €748 million in Germany, marking a substantial decline of over 16% compared to the same quarter in the previous year. Year-to-date figures for 2025 reveal a 21% decrease in sales compared to the previous year, totaling €1,562 million.

Within the industry, semiconductors suffered the most significant losses, plummeting by 20.3% to €444 million in the second quarter. Passives and connectors also experienced a decline of 8%, reaching €267 million, while power supplies saw sales of €28 million – a 7.6% decrease compared to the same period last year.

As the global supply chain for electronic components becomes increasingly fragmented, Falke highlights the importance of measures such as nearshoring, diversified supplier structures, and digital transparency for resilience. Despite industrial stagnation in Europe, particularly in the automotive sector, opportunities for innovation and growth are presented by megatrends like quantum computing, the Internet of Things (IoT), and artificial intelligence (AI).