Yearbook of World Electronics Data - Volume 1 2026 - West Europe

In providing the forecasts for the current study, which were made at the beginning of August, we have:

• An escalation of the US and Israeli war on Iran could leading to higher energy prices, further supply chain disruptions and lower investment and consumer spending on the back of weaker growth in the European and global economies.
• The huge investments in AI and data centres is leading to severe supply constraints for memory chips and dramatically increasing prices. The current memory crunch is expected to continue into 2027 and potentially 2028.
• With higher memory costs pushing the cost of smartphones, PCs and other consumer electronics equipment higher it is expected that demand will weaken over the course of 2026 and into 2027. Manufacturers are also expected to focus on premium brand products.
• AI demand and raw material shortages are also impacting the supply of PCBs leading to higher prices and the potential of allocation.
• With the availability of other materials and electronic components also tightening and prices escalating the ability to source materials could push production into 2027.
• The current shortage of materials and components could lead to a spike in revenues as costs are passed through and lead to similar market conditions to 2022 and 2023.
• Consumer spending will remain subdued due to the combination of higher inflation and on-going geopolitical uncertainty.
• AI and data centre consumption will be a key driver of growth in the overall computer market in the period to 2028.
• Defence will be a major contributor to growth over the period to 2029 as government’s significantly increase spending.

Despite the potential headwinds we expect growth in the European electronics industry to strengthen over the course of 2026 and gain momentum in 2027 and 2028 with growth expected to ease in the final year of the forecast. However, the shortage of components and materials could see production and deliveries pushed into 2027.   

In Euro’s the production of electronic equipment in Western Europe increased by an estimated 2.2% in 2025 to Euro 134.3 billion, and compared to the prior year’s increase of 0.3% in the prior year, growth in the communications segment – primarily radar and navigation/defence – computing and industrial offsetting a fall in  consumer output.

Based on current indicators we are forecasting that growth in electronic equipment output in Western Europe will increase by 4.5% in 2026, 4.6% in 2027 and 2028 before easing to 4.1% in 2029.

In 2025, the production of electronic components in Western Europe amounted to Euro 51.3 billion, 27.6% of overall electronics production. After declining by  2.2% in 2023 and a further 1.8% in 2024 electronic component output resumed growth in 2025 with growth of 3.9% with this set to accelerate to 12.4% in 2026. Growth in 2026 will be supported by increase demand across several end markets and rising prices. In 2025, active components accounted for 62.7%, passive 31.1% and other 6.3% while Germany accounted for the largest share of production at 34.1%, followed by Ireland 14.9%, France 14.6%, Italy 11.2% and the UK 5.6%.

The latest edition of Reed Electronics Research's annual survey provides an in-depth outlook for the West European electronics industry through to 2029. Published since 1973 the   Volume 1 of the Yearbook of World Electronics Data provides:

• A single source solution allowing you to track the electronics industry in 16 countries in Western Europe

• 13 major product groups

• Market and production forecasts

• Summaries provided in Euros & US dollars

• The option to receive the Excel and Word electronically allows you to manipulate the data quickly and easily: produce your own subsets or summaries of the data, create your own forecasts or cut and paste the data into your own in-house reports and presentations.

• Market Data and Forecasts 2023-2029

• Production Data 2023-2026