On the back of a strong 2021, a huge order book and ongoing shortages in key components, European components distribution again reported significant growth in its first calendar year quarter.
The UK and Ireland component market is forecast to grow 10% to £1.55 billion in 2022 topping £1.5bn for the first time, says industry component body ecsn.
The German component distribution market grew 25.2 % to 887 million Euros in the third quarter of this year. Although the summer quarter did not bring new sales records, it clearly ended with record orders.
The European components distribution market is revving up for a record year. The slow start into 2021 has been completely replaced by a double-digit rally both in Semiconductors and IP&E (Interconnect, Passive and Electromechanical) components.
Component distributors registered in Germany’s FBDi association recorded a 17.5% increase in sales to 802 million Euros from April to June 2021, as the first consequences of the component shortage became visible in the second quarter of the year.
With one bound the European semiconductor distribution market was free from its COVID blues.
These are unprecedented times for the semiconductor industry. A report from market research company IC Insights predicts sales will top $500 billion in 2021, and that the surge will continue through to 2023 when sales could exceed $600 billion.
The European semiconductor distribution market has made a sluggish start to 2021, despite a significant increase in bookings since last quarter.
Sales in the European and German components distribution market are still down on pre-COVID Q1/20 numbers, but as in Q4/2020, order intake went through the roof in Q1/21.
UK and Ireland distributors have reported strong billings and bookings growth in March 2021. Adam Fletcher, Chairman of the Electronic Components Supply Network (ecsn) welcomed the uptick in Bookings and Billings activity as customers realign their order book in-line with extending manufacturer lead-times.