Skip to main content

Q4/2023 - European Components Distribution (DMASS) Expects Slowdown after Record 2023

Q4 Key facts:

  • European Components Distribution declines by -17.3% to 4.45 billion Euro.
  • Semiconductors finish at 3.1 billion Euro (-18,5%).
  • Interconnect, Passive & Electromechanical decline by 14.3% to 1.35 billion Euro.
  • Outlook 2024: expected market contraction after record 2023.

Key quote:

Hermann Reiter, Chairman DMASS Europe: “With an expected consolidation in revenue head, the focus must be on helping our customers to develop new markets and accelerate innovation opportunities. Electronics will remain the driving force of economical and societal transformation.”

Note to editors:

  • DMASS Europe e.V. replaced DMASS Ltd. as reporting association.
  • DMASS Europe represents ~85% of European components DTAM.

Berlin, February 5, 2024 – According to DMASS Europe e.V., European components distribution market declined in Q4, ending a long period of growth. Distributors and manufacturers organized in DMASS reported consolidated sales of 4.45 billion Euro in Q4/2023 (-17.3% compared to Q4/22). Semiconductors dropped to 3.1 billion Euro (-18.5%), IP&E (Interconnect, Passive and Electromechanical) components declined by 14.3% to 1.35 billion Euro. For the total year 2023, DMASS reported consolidated sales of 21 billion Euro (+0.2%), beating former record 2022 by a narrow margin. All of the 2023 growth came from semiconductors (+4%), while IP&E dropped by 7.7%.

Hermann Reiter, chairman of DMASS: “The expected slowdown was softened by a very good first half of 2023, resulting in another record year. Admittedly, distribution revenues were driven by orders and sales brought forward from 2024, inflating 2023 results significantly. The consequence is that we are now facing a market contraction which bring the business back in line with long-term growth averages. Our hope for 2024 resides with an overall market upside through the hype around artificial intelligence that could pull the entire market along. Our expectations are that for Europe in general and components distribution and their customers in particular this effect will occur at best towards the end of 2024.”

Semiconductors (Q4):

Semiconductor distribution sales in Europe shrank by 18.5% to 3.1 billion Euro. Regionally, no country remained positive, with major differences between regions.


Product-wise, the only major product group surprising with significant growth were Microprocessors (+17.6%. All the rest declined between low single-digits and over 40%. Annually, winners were Programmable Logic, MOS Micro and Power, disappointing were commodities in Small Signal, Sensors, Opto, Memory and Standard Logic.


Interconnect, Passive and Electromechanical Components (Q4):

In IP&E, the slowdown continued in Q4. The IP&E distribution market declined by 14.3% to 1.35 billion Euro in Q4. Decline in all 3 product groups remained in the lower single digits. Country- and region-wise, quarterly development was all over the place, with only two countries remaining positive (Turkey and Romania), while all others declined between 5 and 25%. On an annual basis, the regional situation is nearly the same, at a product level, Passives suffered more than the other two product groups. (see tables).



Chairman Hermann Reiter concludes: “As clearly as the trend may point downwards now and as much as this was visible and to be expected for quite some time, we must be careful with predictions. Why? The challenges and opportunities in this market have become less predictable than in the past and the dynamics today are influenced by political as well as technological factors that are by nature disruptive, possibly in both directions. Unpredictability notwithstanding, we are convinced that distribution will remain the stabilizing and balancing