How Distributors Are Navigating Growth, Risks and Opportunities in 2025

The electronic components distribution industry in 2025 is set to experience both growth and challenges. Key sectors like AI, 5G, automotive and industrial automation present significant opportunities, while risks such as supply chain disruptions and economic uncertainty require careful navigation. In this Q&A, NewPower’s leadership shares their outlook on market trends, risks and growth strategies for the year ahead.

How bullish or bearish are you for business in 2025, and why?

Carleton Dufoe, Chief Executive Officer

The electronic components distribution space in 2025 presents significant opportunities, especially in sectors like AI, 5G/10G, automotive, industrial automation, oil & gas and aerospace & defense. These industries are driving technological innovation, creating demand for high-quality components. 

However, economic uncertainty, geopolitical risks and ongoing supply chain volatility temper the optimism. While the outlook is promising, a moderately bullish stance is recommended. Success in 2025 will require strategic partnerships, supply chain diversification and staying ahead of technological trends to mitigate risks and seize opportunities.

What is the most significant risk you are facing in 2025?

Matt Fonstein, Chief Trading Officer

Supply chain disruptions remain the most significant challenge in 2025. Geopolitical tensions, natural disasters and cybersecurity threats are all areas of concern. At NewPower Worldwide, we address these risks by providing robust supply chain solutions tailored to our customers’ needs.

Our global presence and diverse offerings allow us to deliver customized solutions like excess mitigation and cost-saving strategies, ensuring our customers maintain control of their supply chains. By strategically partnering with clients and offering measurable value, NewPower helps its customers remain focused on their goals, no matter the market conditions.

What are your expectations for North American revenue growth in CY2025?

Jon Henry, Vice President, Strategic Accounts 

Revenue growth in North America is expected to be moderately optimistic in calendar year 2025, with a projected growth rate of 5% to 7% year-over-year. Key drivers include government initiatives like the CHIPS Act, which supports domestic semiconductor production.

This will boost demand across industries such as AI, oil & gas, automotive, aerospace & defense, and telecommunications. Additionally, the ongoing adoption of 5G, IoT, AI and electric vehicles will further propel the need for electronic components, supporting steady market growth in the region. 

What are your expectations for European market revenue growth in CY2025?

Martijn Fonkert, Vice President, Strategic Accounts

In Europe, revenue growth is projected to be moderately positive, with an anticipated year-over-year increase of 3% to 5%. This growth is driven by investment in green technologies such as electric vehicles and renewable energy, alongside the digitalization of industries through AI, IoT and 5G.

Government initiatives like the European Green Deal and the Digital Decade are also expected to fuel demand for electronic components in sectors like automotive, industrial automation, and telecommunications. These trends position Europe for steady growth as it embraces sustainability and digital transformation.

Which end market segments do you think will provide the strongest growth opportunities in 2025 and beyond?

Jeffrey Hong, General Manager, APAC

Looking ahead, the strongest growth opportunities will be in the automotive, aerospace & defense, telecommunications, industrial automation and computing sectors. These industries are being driven by rapid technological advancements, regulatory pushes for sustainability, and increasing global demand for automation and connectivity.

For instance, the automotive market is fueled by the rise of electric vehicles and autonomous technologies, while computing benefits from advancements in high-performance computing and AI. Companies that effectively target these sectors will be well-positioned for success in 2025 and beyond.

Conclusion

As the electronic components distribution industry enters a pivotal year, NewPower Worldwide is prepared to navigate the complexities of 2025. By prioritizing innovation, mitigating risks and delivering customer-focused solutions, the company is well-positioned to capitalize on growth opportunities while addressing potential challenges.

From supporting critical industries like automotive and aerospace to adapting to advancements in AI and 5G, NewPower Worldwide remains dedicated to driving success for its partners.

About NewPower Worldwide

NewPower Worldwide is a leading independent distributor of electronic components and finished goods. Known for its innovative sourcing technology and global reach, NewPower is committed to delivering supply chain excellence and customer satisfaction. Headquartered in Nashua, N.H., NewPower Worldwide continues to set the standard in the electronic components distribution industry. For more information, visit www.newpowerww.com or email [email protected] for immediate assistance.