Electronics Market Continues To Offer Mixed Signals
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 Declines Continue But At A Slower Pace
Electronic component pricing fell again in October by 3.6% on average, following a monthly decline in September of 4.1%, demonstrating pricing declines are continuing but at a slower rate. October’s readout of electronics pricing declines marks a 4th consecutive month of drops and, for the year, represents the 7th month of pricing pressure. Ultimately, electronic pricing remains compelling for procurement teams.
The biggest drivers in this pricing readout are Resistors (down a significant 10.5% Month-to-Month following a previous decline of 10.8% Month-to-Month), Capacitors (down 2.7% Month-to-Month) and Processors (down 1.9% Month-to-Month following a previous decline of 2.1% Month-to-Month).
In terms of commodities pushing against this trend, we saw prices rise for RF/MW components (up 10.6% Month-to-Month), Power components (up 9.2% Month-to-Month following a previous increase of 4.1% Month-to-Month), and Power Supply components (up 7.5% Month-to-Month), among others.
Electronic Component Lead Times Increased This Month
In October, we saw average overall lead times for electronic components tracked increase by 1.2%. This is quite a reversal from the 4.2% drop that we saw in September. However, it is worth mentioning that lead time decreases have been slowing since August.
The increase in lead times was driven by Processors (up 4.6% Month-to-Month) and Circuit Protection (up 4.1% Month-to-Month). Those commodities pushing back on October’s trend included RF/MW components (down 7.4% Month-to-Month) and Clock / Timer components (down 4.8% Month-to-Month).
October’s readout represents the first time that we’ve reported a rise in lead times throughout 2023.
Electronic Component Availability Remains High But Continues To Moderate
In October, electronic component availability continued to moderate with 80% of all tracked electronic components available, down from 81% in September. Those components leading the way from an availability perspective in October included Sensors (92% Available), RF/M components (91% Available), and Relay & I/O Modules (91% Available).
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