German Component Distribution Market in Q2/25

'Don't be afraid to take big steps'

According to FBDi e.V., sales in electronic component distribution fell by just under 8% in the second quarter of 2025, marking a 16.3% decline compared to the same quarter last year. Order intake also dropped by nearly 9% compared to Q1. The outlook remains uncertain.

“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,” said Andreas Falke, managing director of the German Association of Electronic Component Distributors.

 

Berlin, 5 August, 2025 - The second quarter of 2025 again saw a significant decline of over 16% compared to the same quarter of the previous year. FBDi members generated sales of €748 million in Germany. 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.

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 IP&E (interconnect, passive, and electromechanical components) with sales reaching €267 million in the second quarter, a loss of just 8%. Electromechanics performed particularly well with sales of €123 million - a decline of just 4.1% compared to the same quarter last year. Power supplies also performed well, with sales of €28 million - a decline of just 7.6% compared to the same quarter last year.

The FBDi outlook for the second half of 2025 is as follows:

In view of the subdued market environment, the FBDi is cautiously optimistic. Although bookings remain low, the initial impetus from new projects raises hopes for growth in new areas.

Managing Director Andreas Falke states: “The economic situation in Europe during  the second quarter of 2025 is clearly reflected in the distribution landscape. Geopolitical tensions and economic uncertainties are placing considerable strain on internationally operating companies . 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 cahins.”

In this environment, design innovations and technology-driven solutions are proving more important than traditional purchasing strategies. Measures such as nearshoring, diversified supplier structures, and digital transparency are now considered key to resilience more than  ever before. Despite ongoing volatility, megatrends such as quantum computing, the Internet of Things (IoT) and artificial intelligence (AI) present substantial opportunities for innovation and growth. To safeguard  its competitiveness and strengthen its independence, Europe must take a more active role in shaping these developments.