After a period of rapid expansion between 1993 and 1996, the electronic component distribution market has since remained flat or declining in value. Despite the contraction in total market value, it is important to note that volume demand for components throughout the review period has grown steadily. Active components include any item that will modify the operation of an electronic circuit by active software or control commands.
Semiconductors account for the largest proportion of the active component sector.
Passive devices are discrete pieces of hardware, which modify the operation of an electronic circuit by virtue of their physical. Electromagnetic components include such devices as connectors, relays and switches. The strength of Sterling in the past 18 months has been a serious cause for concern for both manufacturers and distributors of electronic components. Export markets are more difficult to penetrate with Sterling at such high levels. Competition in domestic markets is intensified by foreign competitors taking advantage of the relative weakness of their own currencies.