German distribution continues to struggle
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The German electronic component distribution industry is continuing to struggle, with sales falling 8% in the second quarter and orders by 9%.
The figures from the FBDi industry group forecast that 2025 will be similar to 2024 at €3.5bn.
The outlook remains uncertain, with bookings remaining low, although the initial impetus from new projects raises hopes for growth in new areas says Andreas Falke, managing director of the German Association of Electronic Component Distributors (FBDi).
“Europe’s resilience is increasingly being put to the test. Geopolitical tensions and trade disruptions are applying enormous pressure on our economy and industry. While a clearer political stance could lead to further challenges in the short term, it would foster long-term planning, independence and greater solidarity within Europe,”
FBDi members generated sales of €748 million in Germany, a significant decline of over 16% compared to the same quarter of the previous year. Based on year-to-date (YTD) figures for 2025, FBDi members have lost 21% of last year’s sales to date, with sales totaling in €1562 million.
Source: FBDi
Semiconductors suffered the biggest losses, falling by 20.3% compared to the same quarter last year to reach €444 million. The trend was slightly more positive for passives and connectors at €267 million in the second quarter, a loss of 8%. Power supplies saw sales of €28 million – a decline of 7.6% compared to the same quarter last year.
“The globally connected supply chain for electronic components is becoming increasingly fragmented. While regions such as Asia and the USA are experiencing a surge in demand for artificial intelligence, Europe continues to face industrial stagnation, particularly in the automotive sector and its supply chains,“ said Falke.
Measures such as nearshoring with suppliers close by, diversified supplier structures, and digital transparency are now considered key to resilience more than ever before. Megatrends such as quantum computing, the Internet of Things (IoT) and artificial intelligence (AI) present substantial opportunities for innovation and growth, he says, and Europe must take a more active role in shaping these developments.
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