In 2024, the EMEA distribution sector as a whole experienced a staggering loss of more than €5.6 billion compared to 2023. The semiconductor sector was the most affected by this decline, with a reduction of €4.7 billion, representing the majority of the losses.

This imbalance in the decline across different technologies highlights the consequences of an unmatched inventory flood. DMASS, which encompasses the semiconductor and IP&E segments, experienced an overall decline of more than 26% in 2024 compared to 2023, equivalent to a quarter of sales to customers and the market.
The IP&E segment saw a year-over-year decline of 13.5%, with a 12.3% drop in the fourth quarter of 2024 compared to the fourth quarter of 2023. However, the semiconductor business faced a more severe downturn, with a 31.9% decrease compared to 2023 and a 30.3% decline in the fourth quarter of 2024 compared to the same period of the previous year.
Among the countries most affected in the fourth quarter were Austria (-41%) and Germany (-36%), followed by Sweden (-37%), Turkey (-30%), and Benelux (-29%). The smallest decline was recorded in Norway, the Baltic States, Spain, and the rest of Europe (below 10%), while Ireland managed to grow (+3%).

Semiconductors (4th quarter):

Semiconductor distribution sales in Europe fell by almost 30% to €2.16 billion, the lowest sales value since the first quarter of 2021. The worst performer among the major countries was Germany, with a drop of almost 42%.

Regarding products, the weakest sales were recorded in MOS Micro and standard logic, with a drop of over 40%. Only optoelectronics and programmable logic appeared to perform significantly better than average, with "only" 14% and 5% lower sales, respectively. See the table below.

Interconnection, passive and electromechanical components (fourth quarter):

In IP&E, we see a further steady decline in the distribution market of -12.3% to €1.23 billion. Germany, Austria, and Benelux continue to show a disproportionately sharp decline. Interestingly, Israel grew by 16.2% in the fourth quarter.

Regarding products, passive components continue to show a greater decline than electromechanical components and power supplies. The largest decrease is observed in film capacitors, with a 26.1% drop, while sensors show a 13% increase. (see tables)

President Hermann Reiter concluded:
“Despite these challenging times, we firmly believe that 2025 will bring moderate growth rates, allowing us to recover from the recent quarters of decline in our industry. A strong Europe will be essential to driving growth for our industry and our customers.”
Hermann Reiter, President of DMASS Europe: “In 2024, the distribution sector in EMEA faced significant challenges, with losses of €5.6 billion (-26.2%) compared to 2023. The semiconductor sector was particularly hard hit, with a reduction of €4.7 billion (-31.9%). Despite these setbacks, we firmly believe in the resilience and potential of a united Europe. By fostering collaboration and innovation, we can turn these challenges into opportunities for growth and prosperity.”