The DSLR Market Is on the Rise

According to an InfoTrends/CAP Ventures report, the digital camera unit sales reached 22.5 million units in Western Europe in 2004 and the market is expected to grow by 32% in 2005, reaching 29.8 million units by year end.

Although average selling prices for digital cameras declined in 2004, revenues increased by a staggering 42%. Revenues are expected to continue to increase by 29% in 2005 to total just over �10 billion. This makes Western Europe the largest digital camera market worldwide in terms of units sold and revenue.

Household penetration of digital cameras remains quite low, reaching 26% in 2004. First time buyers dominated the market, representing 85% of all digital camera purchases. In 2005, the market will shift from the early adopter stage to an early majority market as household penetration of digital cameras reaches 39%.

Although only a small proportion of the overall market, the digital SLR market was the fastest growing segment of the Western European market in 2004. The segment is expected to grow by 264% in 2005. Canon and Nikon's consumer digital SLR cameras have been selling well, and the consumer digital SLR segment represents growth opportunities for vendors in a market that is rapidly changing from being highly profitable to one where profits are squeezed. In 2005 and 2006 new models and new players are expected to emerge in this segment

The top digital camera players were Canon, Sony, and Olympus in rank order for Western European 2004 unit sales. Canon is expected to maintain its position as the market leader in 2005. Olympus and Sony can expect to lose some market share in 2005 to an aggressive Kodak, which is expected to focus its efforts in the European market this year.


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