London, UK The UK's electronic component market is predicted to grow 3% next year following a contraction this year of 8% according to the Association of Franchised Distributor of Electronic Components (AFDEC). Distribution sales to the industrial sector will also grow 3% following a fall of 6% this year. Both markets are predicted to grow 5% in 2005.
In its 18th annual forecast, AFDEC reports that the distributors share of the overall component market has risen to 25% from around 18% in the mid 1990s. Gary Kibblewhite, AFDEC's chairman, said, “With the distribution markets falling each year since 2000, the contractions and rationalisation experienced in the sector have been substantial. The small level of growth forecast for 2004, therefore, should provide some relief for the industry.”
Kibblewhite pointed out that while sales in 2003 are going to be much as anticipated, the slow rise in average daily sales expected in mid 2003 failed to materialise and are now forecast for early in 2004 and continue to increase slowly through 2004 and 2005.
In 2004 AFDEC forecasts that the total UK market for electronic components will be £4393million while the distribution sector will handle £1095million. AFDEC members share of this market is now 84% with about 90% of this being in the semiconductor market. EBV is the only major distributor that does not supply sales figures to AFDEC.