Digital Camera Sales Booming

SAN FRANCISCO, California (Reuters) December 17, 2004 - Digital camera sales worldwide will reach $24 billion in 2004 and rise 29 percent to reach $31 billion in 2009, a research group said Thursday.

The top three regions for digital camera sales in the world in 2004 are Europe, the United States and Japan, according to a study by market research firm InfoTrends/CAP Ventures.

The study said that sensor resolution, represented in megapixels, remains the top specification relied on by consumers when choosing which camera to buy.

"Even though resolution does not always equate to image quality, it is an easy metric for consumers to compare," said Michelle Slaughter, an analyst at InfoTrends/CAP Ventures.

This year, digital camera makers introduced several 7 megapixel and 8 megapixel models, and, by 2009, cameras of that resolution are expected to be mainstream segments for point-and-shoot cameras, the research firm said.

Digital cameras having resolution of 4 megapixels to 5 megapixels are currently the mainstream for point-and-shoot cameras used by amateur photographers.

As resolution increases, camera makers must also advance image processing speed to handle the larger files, InfoTrends/CAP Ventures said.

"Consumers recognize the need for speed when they complain about shutter lag and click-to-click speed," Slaughter said. "As a result, manufacturers are trying to raise brand awareness of their image processors, and consumers may eventually learn that image processors are also a key component influencing their satisfaction."

Digital cameras are not as quick at taking images and shooting multiple frames as traditional film cameras.

The top five worldwide market leaders in digital camera sales in 2004 are, in rank order, Canon Inc., Sony Corp., Olympus Corp., Eastman Kodak Co. and Fuji Photo Film Co., the firm said.

Those companies are expected to remain in the top five next year, although their rank may change, InfoTrends/CAP Ventures said.