European Components Distribution (DMASS) Experiences Continued Slowdown in First Quarter 2025
Q1 Key facts:
- European Components Distribution declines by -14.3% to 3.92 billion Euro.
- Semiconductors decline 19,64% to 2.37 billion Euro.
- - Interconnect, Passive & Electromechanical decline to 1.55 billion Euro (-4.63%).
- - Outlook 2025: a wilde ride ahead & hopes for 2025 depend on macro-economic factors.
Key quote:
Hermann Reiter, Chairman DMASS Europe:
" 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 — optimizing 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 materialize. 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."
Note to editors: DMASS Europe represents ~85% of European components DTAM.
Berlin, May 7, 2025 – "The corrections in the European components markets persisted through the first quarter of 2025. The distribution industry, having thrived in the past, is now facing disproportionate declines. According to DMASS Europe e.V., the European components distribution market contracted by 14.3%, with consolidated sales reaching €3.92 billion.
Once again, IP&E (Interconnect, Passive and Electromechanical) components demonstrated relative resilience, declining by only 4.63% to €1.55 billion. In contrast, Semiconductors continued their steep downward trend, plunging by 19.59% to €2.37 billion."
Hermann Reiter, chairman of DMASS:
“The Great Business Realignment? Q1 Results Show Mature Economies Losing Pace; Smaller Markets Gain Ground as Germany, Italy, Austria & Turkey Face Sharper Q1 Losses.
The first quarter of 2025 saw a decline compared to the still strong first quarter of 2024, continuing the trend.
However, Europe is witnessing mixed signals. The GDP in the Eurozone increased by 0.4%, suggesting a slight recovery. Despite this, uncertainty remains elevated due to geopolitical tensions and new tariffs impacting the markets. Overall, the economic situation remains challenging, but there are indications of stability and long-term adaptation.
In this turbulent economic climate, robust distribution networks are more critical than ever.
Semiconductors (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. See table below.
Interconnect, Passive and Electromechanical Components (Q1):
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 Euro.
Only Austria & 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.
(see tables).
All Components consolidated by Region (Q1):
Chairman Hermann 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.”
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.
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DMASS Europe e.V.
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DMASS Statistics:
