Electronics Market: July Sees Improvement in Prices and Availability, but Lead Times Continue to Climb
Lytica is the world’s only provider of electronic component spend analytics and risk intelligence using real customer data. As a result of our unique position in the marketplace, we’ve been able to work with 100+ customers in analyzing over $450 billion in electronics 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 basket of goods used in our analysis is comprised of 15,800 electronic components across more than 30 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 Prices Continue to Decline in July
July marks the sixth consecutive month of price decreases in 2024, but only a small decrease of 0.54% following June’s recording setting decrease of 6.19%. This continues the narrative that pricing trends continue to favor buyers in 2024. The ongoing decline in prices raises questions about the market’s trajectory and indicates a sustained period of buyer advantage.
The biggest drivers in this pricing readout include Semiconductor (down 4.73% Month-to-Month), Transistor (down 3.14% Month-to-Month), and Diode (down 3.09% Month-to-Month).
The commodities pushing upward against this trend include Display Assembly (up 2.40% Month-to-Month), RF/MW (up 2.26% Month-to-Month) and Communication (up 1.08% Month-to-Month).
Lead Times Increase for Third Consecutive Month in July
July marks the third consecutive month of rising lead times in 2024, but with a small average month-to-month increase of 0.74%. This is the third rise since October 2023, and the fourth in the past 18 months. This trend continues to support last month’s report suggesting that increasing or stabilizing lead times are the new norm in 2024.
The biggest drivers in this increase were Connector (up 24.36% Month-to-Month), Semiconductor (up 6.34% Month-to-Month), and Frequency Control (up 5.87% Month-to-Month).
Those commodities pushing back on June’s trend included Power (down 7.25% Month-to-Month), Communication (down 6.04% Month-to-Month), Sensor (down 5.66% Month-to-Month) and Linear (down 4.07% Month-to-Month), among others.
Electronic Component Sees Highest Availability Increase All Year
In July, electronic component availability saw its largest increase in 2024 jumping to 91%, up from 87% in May and June. This marks the highest stock availability recorded in 2024 and will be welcome news for buyers. The overall trend remains positive, as availability in 2024 has consistently stayed above the 87% threshold.
Those components leading the way from an availability perspective in July included Development, General Use Parts, Module and Semiconductor (all at 100% available), Thermal Management at 99% available, and Optomechanical, Power Discrete, and RF/MW, (all at 98% available) among others.
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