The European market for electronic components grew significantly in the fourth quarter of 2025. According to the industry association DMASS, the distribution volume increased by 9.8% to 3.77 billion euros. Semiconductors grew by 7.7% to 2.30 billion euros, while the interconnect, passive and electromechanical (IP&E) segment grew by 13.3% to 1.47 billion euros.

DMASS also points out that the growth should be seen against the backdrop of a weak comparative quarter in 2024 and that Europe remains vulnerable to geopolitical tensions and disruptions in global supply chains - particularly in the relationship between the USA and China. Although the association expects a positive trend for 2026, it describes the basis for this as fragile.

According to the industry association DMASS, the distribution volume rose by 9.8% to 3.77 billion euros. © DMASS

Hermann Reiter, Chairman of DMASS Europe, said: "After a long period of stagnation, the market is regaining momentum. Despite ongoing uncertainties, the European components market is clearly returning to growth. A strong fourth quarter and an increase of 6.9% in the second half of 2025 mark a decisive turnaround, even if the total annual turnover of 15.2 billion euros is still 3.3% below the 2024 figure. Hopes for further improvement now outweigh concerns."

According to DMASS Europe, it covers around 85% of the European distribution market for electronic components.

Semiconductors: inconsistent development

In the semiconductor segment, Europe recorded sales growth of 7.7% in the final quarter of 2025. While countries such as Turkey (+29.1 %), Germany (+14.4 %), Benelux (+13.3 %) and the UK (+13.3 %) recorded strong growth, revenue fell in Switzerland (-16.9 %), Ireland (-15.8 %), the Iberian Peninsula (-5.8 %) and France (-1.5 %).

At product level, standard logic modules (+61.7%), memory (+34.5%) and sensors and actuators (+21.7%) performed significantly better than the market average. In contrast, DMASS reported declines in programmable logic (-27.9%) and optoelectronics (-6.9%).

IP&E segment sees double-digit growth

The upward trend from the third quarter also continued in the Interconnect, Passive and Electromechanical Systems segment. Growth was particularly strong in Turkey (+32.5%), Eastern Europe (+21.5%) and Benelux (+15.0%). France, Austria and Switzerland only achieved single-digit growth. Germany lagged behind the European average in this segment, although it was one of the stronger markets for semiconductors.

In terms of products, passive components grew by 16.2% and electromechanical components by 12.8%. Power supply units (+4.9 %) and AC/DC converters (+2.2 %) grew only moderately, while batteries and accumulators fell by 13.2 %.

Market shares and outlook

Reiter emphasized that although Europe's growth is stable, it is lagging behind in a global comparison, as investments have focused heavily on AI centers in the USA and Asia in recent years. At the same time, he pointed to the structural strengths of European industry, including long-lasting applications and planning-intensive production models.

DMASS sees the industry continuing to be confronted with fluctuations in raw materials, AI-driven structural change and increasing demand from the aerospace and defense sectors. Government support programs offer opportunities, but need to be implemented more effectively.

Founded in 1989, the DMASS association collects quarterly market data on the distribution of electronic components in Europe and currently has around 40 active members. According to its own information, the organization represents 80 to 85% of the market, depending on the region.