UK distribution ahead of European market in Q2 - CONTEXT
The market saw strong momentum across corporate, SMB reseller, and e-tailer business channels, a first since Q3 FY24
The UK tech distribution market recorded a 6.5 per cent year-on-year growth in Q2 2025, according to research from market intelligence firm CONTEXT.
Despite a national backdrop of economic contraction, inflationary spikes, and employment strain, the country’s performance ranked second only to Spain among European markets.
UK disties outperformed the aggregated European index by nine points in week 28, driven by a positive year-on-year evolution across the corporate, SMB reseller, and e-tailer business channels.
The distribution sector posted a 17 per cent surge in June within the SMB reseller segment, supported by the organic demand for PC refreshes and a shift toward new software solutions.
The consumer channel, which accounts for about 20 per cent of UK distribution revenues, grew 26 per cent compared to the same period in 2024.
CONTEXT attributes this to continued refresh cycles, as well as solid performance in categories such as monitors, gaming graphics cards, and software.
Retail sales have been through their five consecutive quarters of growth, reflecting rising demand, higher ASPs, and an appetite for performance upgrades in graphics and components.
While the e-tailer business channel’s overall share is smaller, it rose 27 per cent in April and 21 per cent in June.
“Businesses and households are clearly facing strong financial headwinds, from rising fuel and freight costs to new tax pressures and declining payroll employment,” said Nick Westcott, UK country manager at CONTEXT.
“Yet the UK channel continues to demonstrate remarkable agility and depth.
“Strong growth across all three business channels has driven this upward momentum, and it’s the first time since Q3 2024 that we’ve seen that kind of synchronised performance.”
This comes shortly after recent research from the company declared that UK desktop PC revenues soared 22 per cent, propelled by a positive evolution across both commercial and consumer segments.