In this Top 6 Independent Distributor Report, Electronics Sourcing’s data and software analyst, Thomas Smart, talks quantum computing, supply chain resilience and more.
This year’s report comes in the wake of significant market volatility, resulting in only six independent distributors contributing.
2024’s choppy waters are slowly receding, to be replaced by unprecedented tariffs. At the time of writing, President Trump has imposed retaliatory increases to the reciprocal tariffs of host nations, further raising the stakes. Market confidence is low and reluctance to invest points towards recession.
The US holds the mantel of being the largest import market at 3.17 trillion USD in 2023. If the US continues down this isolationist path, pressure will mount on export nations to seek business elsewhere or suffer a knock to GDP. Ultimately a de-escalation of retaliatory tariffs is critical for global market confidence.
Preparing for a quantum future
First on the list of potential sales drivers for 2025 is quantum computing. Component distributors will naturally play an important role in the future of quantum computing. Quantum chips represent leading edge technology but still require an array of traditional parts to function as a system. Researchers and developers rely on distributors for small order sizes, development tools and fast delivery. While some highly specialized quantum parts, such as cryogenic cooling are currently sourced from smaller, specialised companies, distribution is an obvious channel as volume increases.
From kits to custom cables, distributors are here to help. Likewise, thanks to distributors’ global reach, they have the capacity and capability of helping more people, in more places, access quantum technology.
Second on the potential sales drivers list is AI. Third and fourth places go to EVs and energy/power infrastructure, driven by the push towards net zero and environmental legislation. Datacentres round out the top five.
The rapid development of new tech encourages distributors to remain agile and explore new technologies and emerging markets. Those hitting the ground running are set to secure the next frontier of electronic component distribution.
Bolstering resilience
During these turbulent times, the resilience of electronic component supply chains holds a unique and vital significance. Products from smartphones and laptops, to medical devices and EVs, form the backbone of modern society. However, the concentrated nature of their production and distribution makes these supply chains susceptible to disruptions. The global semiconductor shortage, triggered by the pandemic, demonstrated how fragile these critical supply chains can become.
The task of bolstering resilience goes beyond individual business interests and directly impacts global competitiveness, innovation and economic growth.
