European components distribution has reached the tail end of a longer than expected growth period and is now experiencing a market contraction, says DMASS Europe.

DMASS says that European components distribution is finally experiencing the expected slowdown of an overheated market.

Topping last year’s record numbers, European component distribution ended the first quarter of 2023 with surprisingly strong sales numbers for both Semiconductors and IP&E (Interconnect, Passive and Electromechanical) components.

Surprisingly strong semiconductor sales and normalising sales in IP&E (Interconnect, Passive and Electromechanical) components carried European components distribution to reported revenues of 5.03 Billion Euro in Q4, 27.8% above last year’s Q4.  

In contrast to the total components market, concerns of easing growth in European electronic components distribution have been put to rest for the moment with a surprisingly strong summer quarter.

European components distribution reported massive growth in Q4/2021 and ended 2021 in total at new record sales levels, according to industry body DMASS.

The European semiconductor distribution market started with a “flat tyre” into 2021, despite a significant increase in bookings since last quarter. According to DMASS, sales in the European Semiconductor Distribution Market fell by 1.6% to €2.17bn. Sequential growth of 15.6% (against Q4/2020) indicates strong turnaround.

The European semiconductor distribution market seems to have seen the worst back in 2020 and a return to growth is highly likely in 2021. With COVID-19 impact easing and a return to strong growth in Asia driving component demand, the demand in Europe is growing too. However, Q4/2020 still resulted in a slight decline.

The summer quarter seemed to show an ease on the COVID-19 and lockdown-related pressure for the European Semiconductor Distribution industry in the third quarter of 2020. According to DMASS, sales in the European Semiconductor Distribution Market fell by 12.1% to €1.85bn, compared to a decrease of 20.7% in Q2.

Slow demand, combined with general economic uncertainties, built a perfect basis for a weak beginning to 2020, only to be aggravated by the global pandemic a.k.a. COVID-19. Consequently, according to DMASS, the European electronic components market didn’t find the spark to get ignited for growth. Nor did distribution.

Healthy mid-single-digit growth has been the order of the day for the European semiconductor distribution industry this year. With product shortages and price increases continuing through the summer, Q3/2018 ended, according to DMASS, with 2.3bn Euro of sales, an increase of 6.3% compared to 2017. The first nine months of 2018 showed exactly the same increase of 6.3%, to 6.91bn Euro of sales.

The European semiconductor distribution industry continued on its solid yet slow growth path through Q2/2018. Despite (or because of) severe allocation issues in many key technologies and products, the market, according to DMASS, only grew by 5.7% in Q2/2018, to €2.32bn.

The European semiconductor industry continues to grow solidly in 2018. According to DMASS, semiconductor sales as reported by the members in Q1/2018 ended at a record 2.28bn Euro, 6.9% over Q1/CY17 and 13% above Q4/CY17. 

The European semiconductor industry ended 2017 on an upbeat note. According to DMASS semiconductor sales as reported its members in Q4/2017 ended with an increase over Q4/2016 of 11.6% at 2.01bn Euro, the highest-ever winter quarter recorded by DMASS. The full year 2017 ended 14.6% higher at 8.5bn Euro, also an all-time record.

The European semiconductor industry shows no signs of slowdown in Q2/2017. According to DMASS, semiconductor sales as reported by the members ended with another record of €2.19bn Euro, an increase of 17.3% over the corresponding quarter last year. For the first six months, DMASS reported over €4.3bn of consolidated semiconductor sales, 14% more than the first half of 2016.** 

There are no signs showing in the European semiconductor industry of slowing down in Q2/2107. According to DMASS semiconductor sales as reported by the members ended with another record of €2.19bn, an increase of 17.3% over the corresponding quarter last year. For the first six months, DMASS reported over €4.3bn of consolidated semiconductor sales, 14% more than the first half of 2016.

In regards to the European semiconductor industry, 2017 began with a dynamic start. According to DMASS, the quarter ended with a staggering €2.13bn, 10.5% higher than the last record quarter, Q1/CY16. Georg Steinberger, Chairman of DMASS: “The signals at last year’s end did not really point to such a dynamic growth. Our outlook for 2017 was actually rather modest, given that there were not too many growth signs in the major regio...

According to DMASS, 2016 started as a dynamic year for the European semiconductor industry, then petered out over summer, but turned back into growth mode with an unusually strong Q4. The quarter ended with €1.79bn in sales, 5.8% higher than Q4/CY15. The full year ended at sales of €7.4bn, which represents an increase of 3.8% over 2015.

Technical reasons caused a slight decline of sales for the European semiconductor industry in Q3/CY16. According to DMASS, the summer quarter ended with €1.81bn in sales, a decline of 0.9%, mainly due to different quarter-end reporting by some members. 

Signs of a seasonal weakness occurred in semiconductor distribution during the Spring quarter. According to DMASS (Distributors’ and Manufacturers’ Association of Semiconductor Specialists), sales in the second quarter grew by 2.15% to €1.86bn in Q2/CY16 over the same quarter last year. Currency effects have eased out in the meantime.