Digital cameras back on track globally

Emerging markets driving demand while mature regions favour smartphones

Digital camera sales may be on track for a global recovery, but that demand is primarily driven by emerging markets.

James Wells, research consultant at Futuresource, confirmed that digital camera sales grew eight per cent globally in 2010, up from four per cent in 2009, and should rise another seven per cent this year.

"Our new report covers all key markets across the globe and shows that demand is shifting from the developed markets of Western Europe, the USA and Japan," said Wells. "We're now seeing rapid growth within emerging economies such as Brazil, Russia, India and China, where just two per cent of the population currently own a digital camera."

The average BRIC trade price was above the global average, as demand came from a much smaller and wealthier segment of the region's population. Some 25 per cent ($6.6bn) of the total global market value came from just 20 per cent of what was sold, added Wells.

Developed markets have achieved nearly 80 per cent household penetration. According to Wells, vendors are now trying to shorten the upgrade or replacement cycle, as well as differentiating digital cameras from smartphones.

"The primary opportunity for digital cameras is as a 'one in every household' device, as opposed to one in every pocket," said Wells. "Despite lacking the imaging capabilities of most digital cameras, the smartphone will satisfy the personal role."

Smartphone penetration across Western Europe, Japan and the USA is expected to grow from 44 per cent in 2010 to 74 per cent by 2015.

Wells added that the emerging compact system camera (CSC) category has helped the interchangeable lens segment, with many being bought by existing fixed-lens users enticed not only by the interchangeable lens, but also by functionality, stylised looks, ease of use and the smaller form factors compared with a DSLR.