DISTRIBUTION
The changing face of distribution for passives
Electronic component distributors who held their nerve and planned for the future in the face of supply chain turmoil are set to as business returns to normal
Dave Jones, senior manager for passives, Farnell A
fter a turbulent period resulting from the impact of Covid on global supply chains, the market for passive electronic components is experiencing a welcome return to relative stability. The situation in 2021 and 2022, when continuing demand from across industry was thwarted by stock shortages, looks to be in the past. A supply surplus has seen distributors’ shelves replenished and lead times for orders back to pre-pandemic levels of between 10 and 16 weeks.
As ever with the electronics sector, some short-term uncertainty remains, but looking ahead the prospects are positive. Mordor Intelligence’s latest report on the current state of the market for passive components puts its will grow at a rate of more than 6 percent to reach just over $62 billion by 2029. The swing from a situation where demand massively outstripped supply to one where stock is readily available is typical of the balancing act that distributors are used to negotiating. The need to be prepared for issue, even if the events of recent years have brought it into sharper focus.
In fact, smart distributors have used their experience in recent years to ensure that they are better positioned to plan and stock everything they need to satisfy customer demand.
Suppliers have been doing the same. As Simon Leuz, team lead distribution EMEA at Wurth Elektronik explains, “Customers and service providers still have substantial stock in their warehouses. Nevertheless, Würth Elektronik has been investing in its supply chain and stock to enable growth. A strong supply chain, good availability and great partnerships the market picks up again. We are seeing this as a challenge as well as an opportunity. We expect the second half of 2024 to be brighter and better.”
Markets are warming up
While their role may not grab the same headlines as cutting-edge chips that passives nevertheless underpin virtually every new technology that is experiencing strong growth. That ranges for Internet of Things uses in industry through robotics and automation to 5G communications and electric vehicles. One advantage the market for passives enjoys is that it is consistent and relatively predictable, growing steadily but with no obvious surge in demand for a particular Continued enthusiasm across a wide range of sectors and new applications means the focus continues to be on versatile products that can be used in a range of different ways.
Innovation to meet customer needs Nevertheless, this is not a static market. Increasing complexity of electronic products, particularly in the consumer and automotive sectors, is fuelling the need for more sophisticated components. The post- pandemic years have seen a resurgence in new product development by suppliers, with a
10 DECEMBER/JANUARY 2025 | ELECTRONICS FOR ENGINEERS
steady stream becoming available alongside established lines.
The general trend across electronics continues to be making products that are smaller, lighter, faster, more reliable, more are evolving to support those priorities surging demand. ReportLinker, forecasting prospects for the electronic components market between 2023 and 2028, predicts strong annual growth of 8.79 percent in the combined market for active and passive components during that period.
Minimising impacts on prices The process of adapting to a pandemic that is hopefully now in the rear-view mirror has made industry more robust and better positioned to address ongoing challenges. These are likely to be driven more by geo- political and environmental factors than market forces. Murata Manufacturing had to deal with the impact on its operations by the earthquake and tsunami that hit Japan’s western coastline on New Years’ Day 2024.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54
