The interconnect market has seen a challenging second quarter of the year, which The Interconnect Technology Suppliers Association (ITSA) has dubbed “a period of two halves”.

Revenues have continued to decline, dropping 13% on the same period last year, 3% down on Q1 this year (2026). In turn, orders have recovered: going up by as much as 50% for some members on the same period last year and a 27% increase on Q1 this year, equivalent to 8% rise on last year’s Q2.

According to ITSA members, the big negative trend affecting them was from distribution, which dropped 28%, with some members reporting financial quarters at their lowest since 2021.

“Because the members distribution revenues represent 42% of the total this is a cause for concern,” states the latest ITSA report. “It
is not clear if this is due to destocking, realigning of inventories or running from excess stock, we’ll have to see.”

Overall the interconnect market remains resilient against all for the challenges from home and abroad.

In summary, whilst there has been quite a negative shift in revenues in Q2 the incredibly positive order intake should mean improvements in Q3/4.