The global market for goods in the electrical and digital industry reached an impressive value of 5.847 trillion euros in 2023. After moderate growth of 4% in 2023 and expected stagnation in 2024 (+1%), the ZVEI is forecasting a slight recovery with growth of 3% in 2025. Despite these short-term difficulties, the long-term potential of the industry remains considerable. The global market for electrical and digital technology is expected to grow to 6.08 trillion euros by 2025, with Germany playing a significant role as the fifth-largest market worldwide.
Regional differences characterize the picture:
- Asia remains the largest continental market with a market share of 61%.
- China, despite a slowdown, retains its position as the largest country market.
- The European market shows a volatile development with an expected decline in 2024, followed by a possible upswing in 2025.
- The German electrical market, the fifth largest in the world, expects growth of 2% in 2025 after a decline in 2024.
2024 was a challenging year for the German electrical industry. Production fell by 2% on a price-adjusted basis, while turnover declined by 1.3% to 223 billion euros. However, moderate growth of 2% is expected for 2025.
1. Security of supply and supply chains
The industry continues to struggle with supply bottlenecks, particularly for semiconductors. Leading semiconductor manufacturers are warning of new bottlenecks due to tactical purchasing behavior on the part of customers. Older generations of semiconductors, which are frequently used in the automotive industry, are particularly affected. Logic chips (40nm nodes and older), analog chips and MEMS (Micro-Electro-Mechanical Systems) are the segments in which the longest shortages are expected, and the reason for these specific bottlenecks lies in the discrepancy between supply and demand: while chip demand rose by 17% per year from 2020 to 2022, production capacity only grew by 6% annually over the same period. Additional production capacity is being built up primarily for newer chip generations, which is hardly providing any relief for the older semiconductors that are still in high demand, and the consequences of a further supply crisis would be dramatic - the German automotive industry lost 99 billion euros between 2021 and 2023 due to component shortages. Currently, the average delivery delay for semiconductor components is around 5 months, which is a slight improvement on the 6.5 months two years ago, but still represents a significant challenge for the industry.
2. Digitalization and Industry 4.0
Advancing digitalization requires massive investment in new technologies and the conversion of production processes. At the same time, it offers enormous opportunities for efficiency gains and new business models.
3. Shortage of skilled workers
The acute shortage of qualified specialists is slowing down the industry's growth and innovative strength. According to the ZVEI, 100,000 additional electrical engineers will be needed in Germany alone over the next ten years.
4. Sustainability and energy efficiency
Rising energy costs and stricter environmental regulations are forcing the industry to develop more sustainable and energy-efficient solutions. This affects both production and the products themselves.
5. Regulatory requirements and cyber security
As networking increases, so do the requirements for cyber security. The new EU Cyber Resilience Act (CRA) presents companies with additional regulatory challenges.
Despite the challenges, there are promising opportunities for the electronics industry:
Energy transition and climate protection
The transformation towards renewable energies and e-mobility is creating strong demand for innovative electrical engineering solutions.
Digitalization and AI
Advancing digitalization in all sectors of the economy is driving demand for electronic components and systems.
Industry 4.0
The networking and automation of industrial processes is opening up new markets for intelligent sensors, control systems and IoT solutions.
Healthcare technologies
The growing healthcare sector increasingly requires high-quality electronic components for diagnostics and therapy.
New materials and manufacturing technologies
Advances in materials science and additive manufacturing processes are enabling innovative products and more efficient production processes.
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Our solution approach: component logistics as a service
In the face of these complex challenges, we at btv technologies offer innovative solutions that help companies in the electronics industry to remain competitive and take advantage of new opportunities. We have developed a comprehensive concept of “component logistics as a service”, which comprises the following core elements:
tak model for security of supply and global supply chain management
Our innovative tak model directly addresses the issue of security of supply and supply chain optimization. It offers 100% security of supply for electronic components and optimizes global supply chains primarily through our location in Germany. This helps companies to minimize geopolitical risks and increase supply security in times of supply bottlenecks and trade conflicts.
Value Added Services
To address the shortage of skilled workers and help companies focus on their core competencies, we offer comprehensive value-added services at our sites in Unna (Germany) and Timisoara (Romania). These range from programming and packaging to the finishing of components and relieve our customers of time-consuming preparation processes. One particularly innovative aspect of these services is our btv seel®, a pioneering solution for the secure programming of IoT microchips. The process uses advanced encryption technologies and volatile data storage to ensure the highest security standards and support CRA compliance. In addition, we offer comprehensive testing services to ensure component quality and reliability.
Standard-compliant long-term storage
In view of the challenges posed by the availability of components, we offer standard-compliant solutions based on DIN EN IEC 62435, which enable components to be stored safely for years and support companies in the long-term planning and safeguarding of their production.
With this holistic approach of “component logistics as a service”, we address the key challenges of the industry and support companies in remaining competitive in a market environment characterized by technological change, regulatory changes and global uncertainties.
The tak model (transparent, agile, cost-efficient) from btv technologies is an innovative full-service supply chain solution that differs fundamentally from conventional approaches:
- Complete transparency: we consolidate and track requirements from all stakeholders, from OEMs to sub-suppliers, enabling optimal resource allocation.
- Margin independence: Unlike traditional distributors, we work without our own margin on components, making us a neutral and trustworthy partner for manufacturers and customers.
- Proactive inventory management: Our replenishment algorithm calculates forecast quantities based on actual consumption and customer forecasts, allowing us to identify and avoid bottlenecks at an early stage.
- Fair cost structure: We charge our services per packaging unit instead of value-based, which enables fairer and more transparent pricing.
- Comprehensive risk management: We take on the storage, insurance and financing of the components, thus relieving our customers of these risks.
- Flexibility and scalability: The model can be adapted to different customer structures, from individual manufacturers to complex supply networks.
Thanks to this unique combination of features, the tak model offers unprecedented security of supply and efficiency in electronics procurement.
