Q3 Key facts:

• European Components Distribution declines by -30.2% to 3.64 billion Euro..
• Semiconductors went down by 38% to 2.27 billion Euro.
• Interconnect, Passive & Electromechanical (IP&E) decline to 1.37 billion Euro (-12.3%).
• Outlook 2024: market correction ongoing, hopes for 2025 depend on macro-economic factors.

Key quote:

Hermann Reiter, Chairman DMASS Europe: “2024 continues to be a challenging year. The correction we are experiencing after the recent shortage is no surprise, but the decline is deeper than expected. Our expectations for 2025 are moderate as key industries such as Automotive and Industrial electronics remain under pressure. While we have confidence in the long-term success of our industry, we would love to have more mid-term visibility into end markets.”

Note to editors: DMASS Europe represents ~85% of European components DTAM.

Berlin, October 31, 2024 – The corrections in the European components markets continued during the summer quarter. The distribution industry falls victim to its previous success and declines over-proportionally. According to DMASS Europe e.V., the European components distribution market contracted by 30.2% in the third quarter 2024, with consolidated sales of 3.64 billion Euro. Again, IP&E (Interconnect, Passive and Electromechanical) components did far better and declined by “only” 12.3% to 1.37 billion Euro, while Semiconductors took another dive of 38% to 2.27 billion Euro, the lowest revenue value since Q1/2021.

Hermann Reiter, chairman of DMASS: “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 realize it.”

Semiconductors (Q3):

 Semiconductor distribution sales in Europe shrank by almost 38% to 2.27 billion Euro, the lowest sales value since Q1/2021. Worst among the big countries was Germany with a minus of nearly 50%. Notably better were only the UK and Iberia.

 

At the product side, weakest sales were in Programmable Logic, MOS Micro and Other Logic (ASSPs) with a minus of over 40%. Only Optoelectronics seemed to do much better than average with “only” 20% minus.

See table below.

 

 Interconnect, Passive and Electromechanical Components (Q3):

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 Euro. 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 tables).

 

 

 

Chairman 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 stabilize over the coming years. What is required to realize 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.”

 

About DMASS:

DMASS Europe e.V., (until end of 2022 DMASS Ltd.) a European non-profit organisation, is the only industry body that collates detailed electronic components distribution market data on a quarterly basis by country and product groups such as Microcontrollers, Flash Memories, Analog components, Passives, Electromechanical products and many more.

DMASS was founded in 1989 and provides its members with a reliable statistical tool to evaluate their relative mass-market performance. The organisation consists of 40 active members in 2023 and represents between 80% and 85% of the total European distribution market, depending on the regions. To continuously increase its European market coverage, DMASS welcomes new membership applications from distributors and electronic components manufacturers.

 

Membership contact:

Press Contact: Georg Steinberger This email address is being protected from spambots. You need JavaScript enabled to view it. Phone: +49-151-40338672

DMASS Europe e.V. Andreas Falke (GF) Ludwigkirchplatz 8 10719 Berlin This email address is being protected from spambots. You need JavaScript enabled to view it. +49 1748 702 753 www.dmass.com

 

 

 

 

 

DMASS Statistics:

 

Manufacturer Members	Distributor Members
Amphenol	Anglia
ams OSRAM	Arrow
Analog Devices	Avnet EMEA
Diodes Zetex	Codico
Infineon	Digi-Key
ISSI	Distrelec
Kemet	EBV Elektronik
KIOXIA Europe	Eurotronics
Littelfuse	Farnell
Macronix	Future
Micron	Mouser
Murata	RS Components
Nexperia	Rutronik
NXP	TTI
onsemi	WPG EMEA
Panasonic
Phoenix Contact
Recom
Renesas Electronics Europe
Rohm Semiconductor
Samtec
STMicroelectronics
TDK
TDK Lambda
TE Connectivity
Toshiba Electronics Europe
Vishay Semiconductor
Western Digital Corporation
Winbond