At the EDS Leadership Summit in May, DigiKey forecast 2025 as a year of measured, sustainable growth. Now, as the year draws to a close, Tim Carroll, Global Head of Digital Business at DigiKey, discusses how those projections have unfolded.
In this exclusive interview with Paige Hookway, Managing Editor, Electronic Specifier/Procurement Pro, Carroll explores current trends in AI and data centre demand, evolving procurement patterns, and the company’s expanding customer base. He also looks ahead to 2026, considering how DigiKey’s digital-first strategy is set to define the next phase of its digital transformation and support the global engineering community in an evolving market.
Reflecting on the company’s trajectory this year, Carroll explained that while the first quarter of 2025 proved slower than anticipated – affected by wider market caution, new governmental policies, and tariff uncertainties – the second quarter marked a notable turnaround. DigiKey’s targeted adjustments in inventory, pricing, and marketing helped the company outpace expectations.
“The e-commerce side of our business, which serves prototype and design engineers, grew almost 30% year over year in the second half,” Carroll said. “That exceeded even our most ambitious forecasts, and we’re optimistic that this strength will carry into our production-focused operations.”
Growth across end markets
Discussing sector dynamics, Carroll noted that DigiKey’s growth was broad-based rather than confined to any single segment. While AI and data centre markets continued to perform well – driven by strong demand for power management, cable, and wireless components – industrial automation saw particularly rapid expansion, up 38% online in the latter half of the year.
Automotive, electric vehicle, and medical technology markets also recorded high double-digit growth. Carroll added that platforms once known for hobbyist use, such as Arduino and Raspberry Pi, were evolving into professional and B2B applications, reflecting the deepening complexity of modern engineering projects.
Shifting procurement patterns
With signs of revived order activity, Carroll said that post-pandemic inventory surpluses were easing, and many customers had returned to more traditional ordering habits.
“Some companies are placing smaller, more frequent orders to remain flexible amid tariff uncertainty,” he noted. “That works well for us because our extensive inventory and fast logistics mean customers can rely on timely delivery even when lead times from other suppliers stretch from eight weeks to 16.”
Nearing a major customer milestone
DigiKey is also approaching a significant achievement: one million total customers. As of early November, Carroll said the company had reached 900,000 unique customers for the year, with over 300,000 new accounts added in the past twelve months.
“Europe and Asia have been major drivers of that growth,” he added. “We’ve seen strong traction beyond our traditional base in the Americas, which reinforces the strength of our global strategy.”
Outlook for 2026 and beyond
Looking ahead, Carroll said DigiKey’s 2026 planning assumed an overall industry growth rate of 4-6%, but the company aimed to once again double that pace. Its forecast accounts for continuing volatility but builds on renewed market confidence and operational resilience.
Pursuing a ‘frictionless’ digital future
Carroll concluded by reaffirming DigiKey’s long-term commitment to digital transformation. The company, he said, had invested early in online systems and now relied on AI and analytics across its operations – from marketing and pricing to inventory and customer engagement.
“Our vision is a frictionless digital experience,” Carroll said. “We want engineers and procurement professionals to move seamlessly from research to purchase, with intuitive tools that anticipate their needs and make complex sourcing simple.”
As DigiKey’s global digital strategy matures, its focus remains clear: sustained growth, deeper customer engagement, and a continued evolution of the online experience that has long defined its success.
Watch the full interview below:
