ATLANTA -- A new analysis by the National Electronic Distributors Association shows that the concentration of business by electronic distributors in North America is accelerating.
Consolidation has made a dramatic effect on marketshare, according to the trade group. Over the past four years, the top 10 component distributors increased their share of this market by 23.4%, or from 65.4% in 1995 to 80.7% in 1998, NEDA says. The biggest loss of share was shown by those smaller distributors that are not in the top-100 companies. Their share of the pie dropped from 8.8% in 1995 to just 3.6% in 1998.
Those distributors that were ranked 11th through 25 showed a decline in market share from 14.1% in 1995 to just 8.7% last year, NEDA says.
Total worldwide sales by North American distributors grew 9.6% last year to $39.1 billion from $37.2 billion.