Global Electronic Equipment Market to Reach $1.47 trillion in 2007: iSuppli

The global revenue for all types of electronic equipment will increase by 6.7% to reach $1.47 trillion in 2007, maintaining the 6.6% growth in 2006 for global revenues of $1.37 trillion, driven by expansion in data processing, consumer electronics and wired communications segments, according to iSuppli.  

The fastest-growing segment of the market in 2007 will be data processing, which is also the largest single part of the industry, representing 28.8% of total electronic equipment revenue for the year. 

  • Data processing (largest segment with 28.8% share) revenue will rise to $421.7 billion in 2007, up 9.1% from $386.6 billion in 2006.
  • Wired communications, which will expand to $101.4 billion in 2007, up 7.2% from $94.6 billion in 2006. 
  • Consumer electronics will see revenue increasing to $327.2 billion, up 6.4% from $307.6 billion in 2006.
  • Wireless communications segment will cool considerably, growing by only 4.9% in 2007, after the 8.7% expansion of 2006. 
  • Automotive will grow by 4.5% in 2007, down slightly from 4.8% surge in 2006
  • Industrial will grow by 5.7% in 2007, down 7.5% growth in 2006
  • PC shipments will increase to 262.9 million units in 2007, up 10.2% from 238.5 million in 2006.
  • Video-game console unit shipments will be up by 20.6% in 2007 to reach 35.4 million units for the year.

The primary factor behind the accelerated growth of the data processing market will be a rise in unit shipments and Average Selling Prices (ASPs) for the segment’s primary product: PCs. iSuppli believes 2007 will see a higher growth rate than 2006 due to the increased penetration of dual-core microprocessors and the availability of a Microsoft Corp's new Vista operating system.

Of all electronic equipment segments, the biggest positive swing in growth between 2006 and 2007 will come in the wired communications segment. Revenue growth will amount to 7.2% in 2007, a 3.4 percentage point swing from the 3.7% rise in 2006, when accounting for rounding.

A significant contributor to the accelerated expansion of the wired communications gear market is the continued strong growth of broadband and broadband services, driven by spending on wired communications infrastructure equipment by service providers that want to offer triple-play services, i.e. suites of multimedia offerings consisting of video, voice communications and broadband Internet access.

Growth in the consumer-electronics market will accelerate in 2007 due to the arrival of compelling products, including Sony Corp.’s PlayStation 3 and Nintendo’s Wii video-game consoles and Apple Computer Inc.’s Internet Television (iTV).

The introduction of the two next-generation products will drive video-game console unit shipments up by 20.6% in 2007 to reach 35.4 million units for the year. This compares to 10.7% growth in 2006.

“The electronic equipment market will hit on all six cylinders for the year, with all major segments of the industry—data processing, wired communications, wireless communications, consumer, automotive and industrial—expanding in 2007,” said Gary Grandbois , principal analyst with iSuppli. “This will underpin the broad-based growth in the market.”

For more information, check iSuppli’s upcoming report, Electronic Equipment and Semiconductor Forecast—Q1 2007 at  http://www.isuppli.com/catalog/L2_qfct.asp

 

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