TAITRA Industry Backgrounder:

Ten Major IT Trends in 2007

Source: Topology Research Institute, 2006/11

The year 2007 has the makings of a benchmark year for progress in function-enhanced IT products. The year beckons a Quantum leap for product enhancements over the four major fields of: computers, telecommunications, consumer electronics, and digital content.

This year is also shaping up to be one of the fastest growth periods in IT history and market opportunities, spurred on by new products are highly anticipated. These products are expected to add greater dynamism to the industry especially a fresh wave of low-price IT products, which includes Vista & Santa Rosa, Wii & PS3, 40 to 52 inch LCD TV and LED Backlight, N95 & iPhone and 3.5G Cellular Phone, iTV and a wide variety of STB, YouTube video sharing sites, the OLPC Scheme launched by MIT, VIA PC-1 and GODSON CPU.

 Meet the 10 Trend setting stars rising in 2007!

The following are 10 major product trends expected to lead the way in 2007.  

Trend 1:  It’s Vista! Microsoft’s new version of operating systems was released in January 2007. There’s also Intel’s next-generation Centrino Desktop Platform – Santa Rosa, that’s due out in the first quarter of 2007. The dual launch of Vista and Santa Rosa will yet again achieve another peak of growth in the PC market representing the first time that PC software and hardware have made significant updates. 

Trend 2:  TV Game Consoles carry out an alternation of generation every five years. Xbox 360 that was launched in 2005 form a compelling triad with PS3 and Wii, which made their back-to-back releases last November 2006.

2007 will be a decisive year of competition where new-generation game consoles slug it out to win the market. Relevant businesses are constantly producing products to support its consoles. And console manufacturers are increasingly mastering products that suit their own regional markets, as well as building up multiple enhancement abilities. Expect 2007 to be a battleground year of synchronal competition between the three major game consoles.

Trend 3:  Although the output volume of LCD TVs in 2006 is not even that a third of CRT TV, it is expected that there will be massive output of 40 or 42 inch LCD TV by the five LCD manufacturers by the second half of 2007. That output will enhance the six Sixth-Generation LCD factories, already largely manufacturing 32 inch LCDTVs, and production will soar to meet incredible demand. The phenomenon of LCD TV taking over CRT in 2007 has become more and more obvious. North America is going to succeed after Japan, becoming the world’s second region where LCD TV’s output volume is higher than CRT TV.

Trend 4:  It was not until the second half of 2006 when 3.5G cellular phones slowly went into production. But with the setup of 3.5G networks in 2007, output of 3.5G cellular phones is expected to soar to supply heated market demand. With increase model selection, upgraded technology, and expanded digital contents, 3.5G Cellular Phone is going to be an important driving force in spurring growth throughout the cellular phone industry. It will also consolidate double-digit growth across the cell phone market. 

Trend 5:  2007 will be welcoming a wide range of technologies with support internet download transmissions including HomePlug, MoCA, HomePA, Wi-Fi, UWB and Bluetooth. The year will particularly focus upon wireless capability that consists of High Speed Transmission Bandwidth, Wi-Fi 802.11n, and UWB (Ultra-Wide-Band). As the standard of 802.11n is due to qualify in 2007, the Wi-Fi Alliance’s testing on the inter-operability of 11n is expected to be finished. Under the synchronal boost of Intel’s Santa Rosa, Apple’s iTV and Microsoft’s Vista, 2007 is going to be a record year for 802.11n and UWB.

Trend 6:  With continuous growth in the number of home broadband users and increasingly abundant internet resources, demand for home internet multimedia is overwhelming. To boost its competitive advantage, Apple’s iTV applies a simple, user-friendly operating interface. Plus iTune’s download stream has turned from music to movies and television programs. iTV is expected to stand out in the fierce competition of digital home entertainment. This endeavor will also promote the home entertainment market for Microsoft and Intel.

 Trend 7:  60% of today’s Internet flow are P2P video contents. In the next three to five years, video is going to become the key element of success for technology manufacturers, products and services. Meanwhile, video multimedia fever is about to surge in 2007. Markets with video such as Video on Demand, Video Download, and Online Video Commercial will demonstrate astounding growth.

Trend 8:  Emerging markets will be the hottest topic for the PC Industry in 2007 and beyond. Products and schemes are being launched one after another targeting emerging markets such those in the rural parts of China, India, Brazil, and Mexico. A wave of low cost computers will spark a “Market Revolution” to sweep the world. MIT has launched its 100 dollar “OLPC” scheme (One Laptop per Child), Microsoft FlexGo scheme, AMD 50 x 15, VIA PC-1 and GODSON CPU computers are about to promote ultra low cost computers targeted at emerging markets. Though these schemes cut down the number of digits, by sheer volume they will come out ahead with billions.

Trend 9:  Under EU environmental regulations, LED is becoming the most popular large size LCD Backlight Source. LED appliances have advanced from mere backlight sources for cell phones, break and dashboard lighting and are now used in 7-inch auto DVDs. In the future, LED’s primary application will be in NB backlight source. Taiwan has excellent growth ability in LED production. As technology improves, LED applications will extend to the backlight source of LCD TVs, large-size billboards, and even general lighting devices.

Trend 10: There is only one way to go in the future, Green Technology! Energy-saving tech will greatly boost the growth of emerging industries. That can be seen in Power Control IC that’s designed to reduce electricity consumption and in white light LED modules that provide energy-saving car lamps, backlights, and related lighting. That trend toward smart power will continue to grow into battle soaring energy costs.