Continued Slump in European Distribution Market

The European components distribution market experienced a significant decline of -26.9% in the second quarter, amounting to €4.09 billion. This downturn is part of an ongoing trend that has been impacting the industry. According to the latest data from DMASS Europe, semiconductors saw a sharp decline of 33.1% to €2.62 billion, while Interconnect, Passive & Electromechanical (IP&E) components also decreased by 12.9% to €1.48 billion. These numbers reflect the challenges faced by the European distribution market.

Despite the current setbacks, there is a glimmer of hope for the industry as DMASS Europe predicts a return to growth in 2025. However, there are concerns about the visibility in the supply chain, which could potentially lead to delays in this recovery. Hermann Reiter, Chairman of DMASS Europe, emphasized the importance of continued support for digital, mobile, and energy transformation initiatives to help stimulate growth in the market.

Reiter expressed cautious optimism about the future, stating, “We sincerely hope that Q2 has been the bottom of the current market consolidation, and that customer confidence will come back soon.” This sentiment underscores the resilience of the industry and the belief that better times may be on the horizon.

The contraction of the European components market persisted in the second quarter of 2024, with the distribution industry bearing the brunt of the impact. Reiter highlighted the challenges faced by the industry, noting that low bookings from the previous year were translating into reduced revenues. Despite these difficulties, there are signs of normalization in certain segments of the market, such as IP&E, which provides some optimism for a potential growth rebound in 2025.

In terms of sales performance, semiconductor distribution in Europe experienced a significant decline of 33.1%, reaching 2.62 billion Euro. Germany, as one of the largest markets, saw an even steeper contraction of 43%. The figures indicate a challenging period for the industry, with various countries and regions grappling with the effects of the market downturn.