State of the Electronic Components Market: July 2023

State of the Electronic Components Market: July 2023

Procurement Conditions Keep Improving


Lytica is the world’s only provider of electronic component spend analytics and risk intelligence using actual customer data. As a result of our unique position in the marketplace, we’ve been able to work with 100+ customers across industries (including 20% of the Fortune 500) in analyzing over $425 billion in electronic component spend. We’ve curated up-to-date insights on the state of the electronic component market and will be sharing them with you each month. 


Lytica’s component basket of goods used in our analysis is comprised of 15,800 electronic components across 22 categories, consisting of the most popular devices used by our customers. These indices are intended to show trends in the market. Individual component and BoM analysis is offered by Lytica as a service to our customers. 


Electronic Component Pricing Fell In July


Electronic component pricing in 2023 has been somewhat volatile with no significant trend in either direction. However, it appears market conditions as a whole have been improving when looking at availability and lead times as well. Therefore, it isn’t a surprise that we saw more deflationary pricing effects on electronic components in July – with pricing down 2.8% on average. 



The biggest drivers in this pricing trend are Magnetic components (down 10.3% Month-to-Month), Diodes (down 6.2% Month-to-Month), and Transistors (down 4.8% Month-to-Month). There are, however, outliers that buck this trend. For instance, Lytica has seen pricing on Relay & I/O Modules move up 3.1% Month-to-Month.


Ultimately, July was a good month for electronics procurement teams to capitalize on falling electronic component pricing and it’ll be interesting to see if price movement in August propels this trend.


Electronic Component Lead Times Are Also Dropping At A Faster Rate


In June, we saw average overall lead times for electronic components tracked improve by just 1.5%. However, in July, this trend has accelerated, with lead times improving by 5.6% on average. Much of this surge was driven by significant lead time improvements in Memory (down 26.9% Month-to-Month), Programmable Logic (down 23.4% Month-to-Month) and Transistors (down 20.5% Month-to-Month). Additionally, Lytica did not see many commodities pushing against this trend in the month of July. 




July’s readout continues the trend of lead times improving every month in 2023 thus far. 


Electronic Component Availability Inches Even Higher


Much like June, electronic component availability continued to remain high in July. Lytica saw another overall improvement of 2% Month-to-Month, with 81% of all tracked electronic components available. Those components leading the way from an availability perspective in July looked very similar to those in June – and included Power Discrete (100% Available), Magnetic components (97% Available), and Capacitors (96%) 




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Michael Collins
Michael Collins
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