The current DSLR Market

Here is an interesting article by TWICE on the digital camera market. As indicated by the huge growth and profit of the top two digital SLR camera manufacturers Canon and Nikon, the growth of the digital SLR market is set to continue. Here are some interesting supporting quotes:

"Some categories that were hot in 2005, such as camera/printer bundles, have cooled considerably, while others, such as compact models and digital SLRs have continued to burn, said Liz Cutting, NPD imaging analyst. "

“Overall, growth is starting to slow,” said Fred Lerner, Ritz Interactive president. “But the growth in digital SLRs has taken everyone by surprise — it's still at double digits, driven by some really spectacular products.”

"Through May, digital cameras (including SLRs) were up 17.5 percent in units and 12.1 percent in dollars vs. the same period in 2005, Cutting said. The category has also come off its single best week during the run-up to Mother's Day, suggesting that the gloomier forecasts may be a bit too pessimistic — at least for 2006. “We don't see a downturn until 2008,” Cutting predicted."

One bright spot, predicted to weather the slowdown in compact camera sales and provide a healthy dollar volume, is digital SLRs. “We don't see d-SLR sales slowing until past 2009,” Cutting said.

Will more consumers embrace pricier digital SLRs than film consumers of old snapped up 35mm SLRs? Delis think they might. In their heyday, film SLR cameras rarely broke the 2 million unit mark. NPD predicts close to 2 million d-SLRs will be sold this year, at a time when d-SLRs are still relatively expensive. All firms predict the strong growth in this category to continue long after compact digital camera sales slow.

Inexpensive d-SLRs have spurred more use of photography in business, Delis said. “During the film era, 3 percent of all cameras purchased were used for business. Today it's 10 percent.”

“There is a very high satisfaction level with digital cameras in general and that has helped drive d-SLR sales” as consumers look to upgrade, Lerner said.

There are an estimated 308 camera models on store shelves from over a dozen manufacturers. The strong growth in d-SLRs has tempted other manufacturers to forge partnerships to get a piece of the action. How long can the market bear the competition?

“There will be a shake-out. We can't continue to support all these manufacturers,” Lerner said.

“There's no room for the old and new entrants,” said Chris Chute, imaging research manager, IDC. The consumer electronics brands have to prove themselves in the d-SLR category where strong photo brands dominate, Chute added. “The real question is whether they take share away from Canon.”

Source: TWICE