An initially downbeat but longer term cheerful forecast for the global microcontroller (MCU) market has been issued by IC Insights. After reaching record-high sales in the last two years, the MCU market slid 13% lower in the first half of 2019 because of overall weakness in electronic systems, a slowdown in automobile sales, and no letup in the trade war between the U.S. and China.
Finally the European distribution market is showing the signs of wear and tear. The second quarter of 2019 finally showed the long-expected slowdown of the components distribution market in Europe, largely in line with the overall market trends.
The first signs of a slowdown in the German component distribution market are becoming apparent following two stellar years of growth says FBDi, the German component distribution association.
Well it’s not all doom and gloom. According to DMASS* European semiconductor distribution sales grew by 8.4% to 2.5bn Euro, an all-time record in the first quarter of 2019.
The UK and Ireland distribution market’s run of twelve consecutive periods of ‘quarter-on-same-quarter-the-previous-year’ growth’ has been abruptly halted by an unexpected decline in Billings in April ‘19.
UK and Ireland component distribution body afdec has slashed its market prediction for 2019 from an initial 8% to a more likely 1% to 3%. In Q1 sales drooped 1.3% compared to Q1 2018.
Unusually high sales growth of almost 10% in the last quarter of 2018 meant the German electronic component distribution market finished on a high note.
After a very positive, double-digit 2017, the European semiconductor distribution industry posted solid growth throughout 2018. In the 4th quarter of 2018, semiconductor distribution sales according to DMASS, grew by 14.2% to 2.3bn Euro.
Disregarding a potential buffeting from Brexit and tariff wars, industry association ecsn-AFDEC is forecasting the UK and Ireland distribution market will grow 5.9% to £1.47bn in 2019, representing 44% of the Components Total Available Market (TAM) of £3.28bn.
The German component distribution market reported solid but sluggish growth for the third quarter of 2018. According to the distribution companies registered with the Fachverband Bauelemente Distribution (FBDi), sales during the period July to September 2018 grew by 4.7% to reach 980m euros.