Electronic Part & Equipment Wholesaling in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: September 2024
NAICS 42369Revenue
$513.7bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
256k
Businesses
11,389
Wages
$XX.Xbn
Electronic Part & Equipment Wholesaling in the US industry analysis
Electronic equipment and parts wholesalers distribute various electronics, including communications equipment, computer software, semiconductors and other electronic components, alongside repair and maintenance services. Wholesalers have benefited from a surge in demand as notable technological advancements have encouraged more end market purchases. The rising prominence of e-commerce has also driven demand from retailers, enhancing the need for new devices and equipment; wholesalers have also supported retailers with diminishing physical footprints. Improvements in communication infrastructure, like 5G implementation, have made online operations easier and pushed consumers to purchase new devices. Additionally, the recent surge of interest in artificial intelligence has raised spending on relevant components like GPUs. These factors are estimated to raise revenue at a CAGR of 1.9% to $514.0 billion through the end of 2024, with growth of 3.4% forecast during the current year.
Trends and Insights
- Improvements to communication infrastructure has led to increased demand. Consumers have largely upgraded to 5G-compatible devices, supporting demand for related parts and equipment.
- Communications equipment outsell the rest. The ubiquity of mobile phones, the advent of 5G and the nature of modern business drive high demand for communications equipment.
- Access to imports is essential for wholesalers. Since many of the popular products this industry sells are imports, easy access to them helps wholesalers save.
- Direct from manufacturer sales cut out the need for wholesalers. Wholesalers provide a wide variety of products and convenient services to remain relevant.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 1.9 % over the past five years, to reach an estimated $513.7bn in 2024.
Trends and Insights
Wholesalers benefit from rapid technological innovation
- Overhauls to traditional communication infrastructure with the advent of services, the Internet of Things and 5G, require large quantities of communications equipment. This trend has also pushed consumers and businesses to constantly purchase new gear to access state-of-the-art technology.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Overhauled communication infrastructure will push businesses to modernize
- Communications companies will continue to expand 5G infrastructure, creating extensive demand for communications products. This trend will entice consumers to upgrade to products that seamlessly integrate more complex technology and take advantage of the Internet of Things (IoT).
Biggest companies in the Electronic Part & Equipment Wholesaling in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Arrow Electronics Inc. | 11,763.0 | 497.6 | 4.2 | |
Avnet, Inc. | 5,886.1 | 214.7 | 3.6 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Communications equipment, Semiconductors and Integrated circuits. Communications equipment is the largest segment of the Electronic Part & Equipment Wholesaling in the US.
Trends and Insights
Communications equipment is in high demand
- Communications equipment includes routers, modems, fax machines and navigational equipment. This segment also notably includes phones, a necessity for modern life. The variety of applications of communication equipment ensures demand.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Electrical Equipment Wholesaling in the US
Complementors
- Computer & Packaged Software Wholesaling in the US
- TV & Appliance Wholesaling in the US
- Heating & Air Conditioning Wholesaling in the US
International industries
- Electronic Part & Equipment Wholesaling in Canada
- Telecommunications and Other Electrical Goods Wholesaling in Australia
- Telecommunications Goods Wholesaling in New Zealand
- Electronic & Telecommunications Equipment Wholesaling in the UK
- Information and Communication Equipment Wholesaling in Ireland
Table of Contents
About this industry
Industry definition
Companies in this industry wholesale electronic parts and equipment. Products include antennas, broadcasting equipment, communications equipment, computer chips and boards, radio and radar equipment, electronic condensers and connectors, integrated circuits, modems and navigational equipment. Wholesaling activities exclude electrical apparatuses and equipment, wiring supplies, construction material, electrical appliances, TVs and radio sets.
What's included in this industry?
Broadcasting equipmentCommunications equipmentRadar equipmentTelegraph equipmentTelephone equipmentComputer boardsSemiconductor deviceIntegrated circuitsCompanies
Arrow Electronics Inc.Avnet, Inc.Purchase this report to view all 2 major companies in this industry.
Related Terms
SEMICONDUCTORLONG-TERM EVOLUTION (LTE)OFFSHOREIndustry Code
NAICS 42369 - Electronic Part & Equipment Wholesaling in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Improvements to communication infrastructure has led to increased demand. Consumers have largely upgraded to 5G-compatible devices, supporting demand for related parts and eq...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Communications equipment outsell the rest. The ubiquity of mobile phones, the advent of 5G and the nature of modern business drive high demand for communications equipment.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Access to imports is essential for wholesalers. Since many of the popular products this industry sells are imports, easy access to them helps wholesalers save.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Direct from manufacturer sales cut out the need for wholesalers. Wholesalers provide a wide variety of products and convenient services to remain relevant.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Smaller, regional wholesalers remain successful due to the convenience they provide. National companies can’t attend to every small market at the same level local wholesalers...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Arrow Electronics Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Avnet, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Arrow Electronics Inc., and factors influencing its performance in the industry
- Description and key data for Avnet, Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The price of semiconductors sways the price of tech as a whole. Lower-cost components and finished products enable wholesalers to turn a greater profit.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Wages as a percent of revenue will drop. Higher skilled labor is required to increase efficiency, but reliance on automation has enabled wholesalers to be less reliant on lab...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Electronic Part & Equipment Wholesaling in the US industry in United States in 2024?
The market size of the Electronic Part & Equipment Wholesaling in the US industry in United States is $513.7bn in 2024.
How many businesses are there in the Electronic Part & Equipment Wholesaling in the US industry in 2024?
There are 11,389 businesses in the Electronic Part & Equipment Wholesaling in the US industry in United States, which has declined at a CAGR of 1.4 % between 2019 and 2024.
Has the Electronic Part & Equipment Wholesaling in the US industry in United States grown or declined over the past 5 years?
The market size of the Electronic Part & Equipment Wholesaling in the US industry in United States has been growing at a CAGR of 1.9 % between 2019 and 2024.
What is the forecast growth of the Electronic Part & Equipment Wholesaling in the US industry in United States over the next 5 years?
Over the next five years, the Electronic Part & Equipment Wholesaling in the US industry in United States is expected to grow.
What are the biggest companies in the Electronic Part & Equipment Wholesaling in the US market in United States?
The biggest companies operating in the Electronic Part & Equipment Wholesaling market in United States are Arrow Electronics Inc. and Avnet, Inc.
What does the Electronic Part & Equipment Wholesaling in the US in United States include?
Broadcasting equipment and Communications equipment are part of the Electronic Part & Equipment Wholesaling in the US industry.
Which companies have the highest market share in the Electronic Part & Equipment Wholesaling in the US in United States?
The company holding the most market share in United States is Arrow Electronics Inc..
How competitive is the Electronic Part & Equipment Wholesaling in the US industry in United States?
The level of competition is high and increasing in the Electronic Part & Equipment Wholesaling in the US industry in United States.
