European distribution market slump continues
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The European components distribution market fell by -26.9% in Q2 to €4.09bn as the downturn continues.
The latest figures from DMASS Europe show that semiconductors declined 33.1% to €2.62bn while Interconnect, Passive & Electromechanical (IP&E) decline 12.9% to €1.48bn as the European distribution market continues to decline.
While it sees a return to growth in 2025 it warns that poor visibility in the supply chain may mean a delay.
“Due to still high inventory levels and macro-economic uncertainties, a return to growth in 2024 for distribution is unlikely. As Europe does not benefit from the AI hype but is highly dependent on industrial and automotive, we hope for the next EU commission to continue to support the digital, mobile and energy transformation laid out in the Fit-for-55 program,” said Hermann Reiter, Chairman DMASS Europe.
“We sincerely hope that Q2 has been the bottom of the current market consolidation, and that customer confidence will come back soon,” he said.
DMASS Europe represents around 85% of the components distribution available market.#.
The contraction of the European components market continued in the second quarter of 2024, and the distribution industry was particularly affected.
“When it came to sales, the second quarter hopefully did not surprise anyone. The low bookings of 2023 are now turning into equally low revenues,” said Reiter. “However, as we can see, parts of the market – IP&E (Interconnect, Passive and Electromechanical) – have started to normalize already, so our confidence that 2025 will see a return to growth is very high. What makes us a bit nervous is the low visibility within the supply chain and the lack of longer-term procurement strategies. We hope that the industry isn’t making the same mistakes as in 2020.”
Semiconductor distribution sales in Europe shrank by 33.1% to 2.62 billion Euro, the lowest sales value since Q4/2021, but still above pre-CoVID times. Germany as the biggest market contracted significantly more at 43% than most bigger countries.
|
Country/Region Semi |
Total k€ |
Change Q2/Q2 |
|
UK |
193.105 |
-25,02% |
|
IRELAND |
24.057 |
-8,95% |
|
GERMANY |
659.284 |
-43,08% |
|
FRANCE |
210.592 |
-23,78% |
|
ITALY |
257.901 |
-33,69% |
|
SWITZERLAND |
94.042 |
-35,94% |
|
NORDIC |
198.135 |
-35,45% |
|
BENELUX |
99.760 |
-30,09% |
|
IBERIA |
124.413 |
-22,95% |
|
AUSTRIA |
64.561 |
-45,71% |
|
RUSSIA |
0 |
-100,00% |
|
EASTERN EUROPE |
505.445 |
-23,58% |
|
ISRAEL |
90.262 |
-42,20% |
|
TURKEY |
60.039 |
-18,73% |
|
OTHER |
35.585 |
2,59% |
|
DMASS Semi Total |
2.617.181 |
-33,07% |
At the product side, almost all sectors were equally weak apart from programmable logic which took a massive dive of -48%.
|
Product Group Semi |
Total k€ |
Change Q2/Q2 |
|
DISCRETE |
136.015 |
-27,68% |
|
POWER |
301.215 |
-33,14% |
|
SENSORS & ACTUATORS |
77.563 |
-24,76% |
|
OPTO |
212.110 |
-20,27% |
|
ANALOG |
700.603 |
-35,92% |
|
MEMORY |
239.039 |
-22,90% |
|
MOS MICRO LOGIC |
579.519 |
-32,91% |
|
PROGRAMMABLE LOGIC |
202.154 |
-48,45% |
|
STANDARD LOGIC |
27.365 |
-36,94% |
|
OTHER LOGIC |
141.598 |
-29,21% |
|
DMASS Semi Total |
2.617.181 |
-33,07% |
In IP&E, the slowdown decelerated from -16.3% in Q1/2024 to -12.9% in Q2/2024, the actual numbers, however, came in lower than Q1.
|
Product Group IP&E |
Total k€ |
Change Q2/Q2 |
|
PASSIVES |
539.971 |
-17,05% |
|
ELECTROMECHANIC |
835.609 |
-8,20% |
|
POWER SUPPLIES |
100.491 |
-21,44% |
|
DMASS IP&E Total |
1.476.071 |
-12,61% |
|
Country/Region IP&E |
Total k€ |
Change Q2/Q2 |
|
UK |
165.076 |
-6,58% |
|
IRELAND |
12.553 |
8,65% |
|
GERMANY |
314.347 |
-22,83% |
|
FRANCE |
152.314 |
-5,60% |
|
ITALY |
158.962 |
-11,37% |
|
SWITZERLAND |
45.030 |
-13,96% |
|
NORDIC |
134.318 |
-7,14% |
|
BENELUX |
74.263 |
-12,79% |
|
IBERIA |
89.483 |
-12,35% |
|
AUSTRIA |
37.836 |
-28,30% |
|
RUSSIA |
0 |
-100,00% |
|
EASTERN EUROPE |
203.404 |
-8,45% |
|
ISRAEL |
30.817 |
-13,26% |
|
TURKEY |
33.251 |
-2,33% |
|
OTHER |
24.416 |
1,98% |
|
DMASS IP&E Total |
1.476.071 |
-12,61% |
“Frankly speaking, as Europe does not benefit from the AI hype but is highly dependent on industrial and automotive, we hope for the next EU commission to continue to support the digital, mobile and energy transformation laid out in the Fit-for-55 programme,” said reiter.
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