At embedded world 2026, Editor Mick Elliott speaks to Mike Slater, Vice President of Global Business Development at DigiKey.
According to Slater, DigiKey experienced solid double-digit growth across all major regions in 2025, with Europe leading the way. This rebound was driven in part by the easing of excess inventory that had weighed on the market in previous years, coupled with a resurgence in demand – particularly within the industrial sector. Encouragingly, this momentum has continued into 2026, with market conditions strengthening further and optimism growing across the business.
A key indicator of this recovery is the rise in engineering and development activity. Slater highlighted an increase in customers purchasing evaluation boards and low-volume components, signalling a renewed focus on design and innovation. DigiKey has capitalised on this trend by prioritising breadth of inventory and ensuring immediate availability of new products from suppliers – an approach that continues to attract new customers globally.
Growth has been broad-based across vertical markets, including industrial, medical, aerospace, and defence. While artificial intelligence and data centres dominate industry headlines, Slater emphasised the “halo effect” these sectors create, driving demand for supporting technologies such as cooling systems, connectivity, and IoT infrastructure. As a result, adjacent markets are also benefiting from the ongoing AI-driven boom.
However, this resurgence is not without challenges. DigiKey is already seeing lead times extend across most product categories, alongside a return to more frequent price increases. In anticipation, the company made significant inventory investments throughout 2025 to ensure product availability and mitigate supply chain disruptions. Transparency remains central to its strategy, with real-time lead time data provided via its website to help customers plan effectively.
From a technology perspective, semiconductors are currently outpacing other categories in growth, although all product segments are trending positively. Meanwhile, DigiKey continues to expand its automation and control offering – its fastest-growing segment – reflecting increasing demand for factory efficiency and digital transformation.
AI is also playing an expanding role within DigiKey’s operations, from enhancing product search and customer service to improving forecasting and inventory management. Combined with its strong e-commerce model, which remains the backbone of the business, these investments are helping streamline the customer experience.
Looking ahead, Slater remains confident. With continued investment in inventory, infrastructure, and digital capabilities, DigiKey is well-positioned to support a market that is not only recovering – but accelerating.
