European components distribution slowdown continues in 2nd quarter

The European electronic components distribution market has yet to show clear signs of recovery. Persistent global uncertainty continues to weigh heavily on investment decisions — frequently postponed, or in some cases even cancelled. Unpredictable political shifts, compounded by tariffs and macroeconomic headwinds, further cool global market activity, DMASS Europe said in a media release.

Although Europe could potentially benefit from greater reliability and regulatory clarity compared to other regions, these advantages have yet to translate into tangible positive momentum. Rather than being raised, expectations across the sector are increasingly being scaled back, according to DMASS Europe, an industry body that collates detailed electronic components distribution market data.

Semiconductor distribution sales in Europe experienced a significant decline of 14%, amounting to €2.20 billion. Among the major countries, Austria faced again the steepest drop with a decrease of almost 37%, followed by France with a reduction of 20%. Only Iberia performed notably better and realized a slight increase of 2.4%.

At the product side, weakest sales were in Power and Programmable Logic with a minus of over 21%. Sensors & Actuators showed a increase about 6.1% and did much better than average with 14% minus. See table below.

In IP&E, the slowdown turned into a slight increase of +1.43% to 1.51 billion euro.

Only Austria, the UK, Germany and Switzerland could not profit and continued to decline.

Product-wise, Passives (-1.17%) showed a minus while electromechanical components (+2.38%) and Power Supplies (+6.82%) are back again. (see table below).

Biggest decline could be seen at Capacitors with Film (-17.8%), Tantal (-11.4%) and Aluminium (-10.5%), while — beside power supplies in general — sensors (+7.6% and circular connectors (+122.7%) showed a good increase. 

All Components consolidated by Region (Q2):

“The European economy in 2025 remains resilient but faces increasing pressure from geopolitical tensions and global trade disruptions. This is particularly evident in the electronic components supply chain, which has become strained due to extended lead times, inventory volatility, and dependence on critical raw materials from Asia,” said DMASS Chairman Hermann Reiter. “Despite the fragmentation of global trade, the electronic components market remains deeply interconnected. Europe is responding with nearshoring strategies, supply chain diversification, and digital transparency measures.” 

The rising demand for semiconductors, IoT devices and AI applications continues to drive innovation, presenting growth opportunities even amid uncertainty, he added.

“To remain competitive, Europe must more actively shape these global dynamics in a rapidly evolving electronics landscape,” Reiter said.