Electronics barometer ACSIEL – 4th quarter 2024
Paris, March 28, 2025 – The Acsiel electronics barometer has been aggregating quarterly sales in the electronics sector since 2017 in France.
Two indexes make up this barometer: :
- one indicates sales linked to electronic components (semiconductors, passives, printed circuits, connectors) and consumables (solder pastes, flux, accessories) intended for industry
- the other refers to sales related to electronic test and measurement equipment, electronic card production equipment.
The College Equipment & Services and Test & Acsiel Measurements has just finalized the barometer for the 4th quarter of 2024.
> Electronic components and consumables
Analysis
The Acsiel index of electronic components (semiconductors, passives, printed circuits, connectors) and consumables contracted again in the fourth quarter of 2024, down 3% sequentially and 15% year-on-year.
Semiconductors were the main contributor to this quarterly decline, given their preponderant weight in the index, with a drop in sales (-5%) due primarily to the smart card and automotive sectors. The other components of this composite index benefited from more favorable conditions, with results either virtually stable (connectors) or growing (passives, printed circuits and consumables for the electronics industry).
Excess component inventories will continue to weigh heavily until the end of 2024, and the downturn in the industrial sector has only exacerbated the situation. With hindsight, it has become clear that the post-Covid recovery was marked by a scattering of demand and purchases of components in large, often uncontrolled quantities. Over-inventories were found throughout the value chain, with major customers, distributors and subcontractors. Some electronic component manufacturers report that the situation has improved, with a resumption of orders and customers starting to build up inventories again, while for some other players a return to normal is expected in the course of 2025.
The defense sector is booming, driven by national and European security concerns. Strong growth in demand can be expected over the next few years. This growth may prove complicated to manage in terms of adapting production facilities, processes and human resources. Industry players are ready to meet these challenges, which are at the heart of the sovereignty issue.
Strong competition from SpaceX is weighing on the European space industry.
The evolution of customs duties in the United States is a factor of uncertainty and complexity. Companies with production units in Mexico or China are directly concerned, but we can’t see any impact in Europe for the moment.
> Test and measurement equipment, production machines
Analysis
In Q4 2024, the Acsiel capital goods index for the electronics industry rebounded with growth of 49%. Nevertheless, it remains 5% below its record level of Q4 2023, while still above the previous peak (Q4 2021).
The strong growth at the end of the year was largely due to a recovery from the third-quarter trough. Similarly, the downward trend observed over 2024 is due in particular to the exceptional level of billings in the fourth quarter of 2023. As already pointed out, investment in production facilities is not a linear process, and the sector is accustomed to significant quarterly variations, as illustrated by the very uneven profile of our index.
The automotive sector remains very buoyant for industrial equipment, notably with charging stations and battery testers. Growth is sustained in defense and aeronautics, and these sectors offer favorable prospects for several years to come. Similarly, AI and its data centers will create huge needs for energy management and data circulation.
On the other hand, the telecoms sector in general is no longer buoyant. As far as networks are concerned, the rollout of fiber optic cable is coming to an end, and the sector has essentially gone into maintenance mode. When it comes to mobile communications infrastructure, the impact of 4G has been less than that of 3G, while 5G has not taken up the slack in terms of investment.
Increasing competition from China, with its high-performance products, is a real cause for concern. The difficulty of recruiting, particularly in sales functions to support growth, is also a cause for concern for our manufacturers.