After a slow start to 2021 the European components distribution market is now seeing a double-digit rally both in semiconductors and IP&E (Interconnect, Passive and Electromechanical) components.
Q3 distribution revenue in semiconductors, as reported by DMASS members, grew by 31.8% to €2.46bn, while distribution sales of IP&E were ahead by 44.7% to reach €1.13bn. Combined, DMASS members reported 35.6% growth to €3.6bn for the period.
According to Herman Reiter, the newly appointed chairman of DMASS, “The shortage of components across the board still defines the current market situation. While we seem to enjoy a healthy growth at the moment, the pressure is on all market participants to find solutions and avoid further disruptions. When the situation will change is not clear, but we hope that 2022 will bring some relief. It is apparent that the shortage leaves its impact in the overall economic outlook across European industries.”
Looking at semiconductor distribution in Q3 in more detail, major countries and regions showed significant variations. Germany grew by 25% to €672mn and Eastern Europe by 28.7% to €430mn. Italy reported a staggering 54% increase to €219mn, while the Nordic saw an increase of 44.8% to €203mn, the UK a 40% increase to €167mn and France by 36.4% to €152mn.
At a product and product group level, Analog and MOS Micro as the major product groups trailed the overall market growth, while Discrete, Power, Sensors, Opto and Memories grew (way above average).
Analog products grew by 24.4% to €689mn, MOS Micro by 25.8% to €484mn, Power by 38% to €291mn, Memories by 54.4% to €241mn, Opto by 34.6% to €237mn, Discretes by 57.4% to €149mn, Programmable Logic by 35.1% to €145mn and Other Logic by 11.7% to €122mn.
Semiconductor Sensors grew by 39.6% to €72mn and Standard Logic by 35.8% to €34mn.
Turning to the Interconnect, Passive and Electromechanical components distribution market, sales grew by 44.7% to €1.13bn in Q3, and the regional split was comparable to the Semiconductor market, with Germany and Eastern Europe being the biggest regional markets, followed by the Italy, the UK, France and Nordic.
Commenting Chairman Hermann Reiter said, “It is amazing how in times of shortage, many product areas show similar high growth rates while in normal times the spread is quite huge. It is also rare to see IPE products outgrow the semiconductor side by such an extent.
"For 2021, we are optimistic to come close or exceed the 20% mark for year on year growth of all components; 2022 may tell a different story. We would hope that by mid-2022 we will see some relief on the supply side and the supply chain. Long-term, for the first time since the 80s, our industry sees huge geopolitical inflection marks, where availability and access to technology may drive the development rather than the actual end market demand.”
