Worldwide Digital Camera Market to Break $5.4 Billion by 2002,
According to IDC and Future Image - 09:21 a.m. Aug 31, 1998 Eastern
FRAMINGHAM, Mass., Aug. 31 /PRNewswire/ -- Digital cameras are becoming a
serious alternative to traditional photography in a number of different environments,
including personal, business communications, and business/Internet publishing.
According to a new research study published jointly by International Data
Corporation and Future Image, as desktop systems become increasingly more
powerful, quality and affordability of photo/near- photo quality inkjet printers gain
prominence, and Internet bandwidth steadily increases, the worldwide digital camera
market will reap tremendous rewards, reaching $5.4 billion by 2002.
Numerous external inhibitors have impeded the adoption of digital cameras, and now
internal changes are needed for this market to reach its full potential. From the
beginning, high sensor costs have posed a serious hurdle for digital cameras. Now as
fierce price wars drive sensor prices down, megapixel digital image capture has
dropped well below the $1,000 price point. "Simplified conversion of DRAM
manufacturing plants to CMOS manufacturing sites in Ireland, Korea, and Taiwan
will drive price points well below $500 in 1998," said IDC's Ron Glaz. "Customers
will no longer have to sacrifice image quality, which defines the usability of images,
for a lower price." Cost reductions are also being spurred by
the proliferation of advanced chipsets solutions pioneered by
LSI Logic's DCAM-101, which integrated numerous previously discrete
components onto a single chip. As the need for additional chips
diminishes, so does price.
Digital cameras range in price from $130 to $45,000 and capture anywhere from
77,000 pixels to 49 million pixels per exposure. Beginning in 1999, however, the
market will be dominated by the megapixel (more than one million pixel resolution)
camera and this segment will capture 95% percent of worldwide shipments by the
year 2000, and 98% percent by 2002. "Megapixel class cameras are breaking
through previous barriers to adoption, in terms of image quality and
features-for-dollar. The next generation of products will do even better," said Alexis
Gerard of Future Image. "Now the industry needs to focus on issues of usability and
standardization. There is tremendous momentum behind solving those challenges
before the end of the decade, which in turn will drive the market's next stage of
growth."
Key Findings
-- Internet penetration of SOHO and home markets will help drive the
digital camera market and is already at almost 80 percent penetration
of PC households
-- The megapixel category, which featured six models in the fall of 1997,
reached 35 models by July 1998
-- The worldwide digital camera market will experience a 67.8 percent CAGR
in shipments from 1997 to 2002
-- Worldwide revenues will grow from $1.2 billion in 1997 to $5.4 billion
in 2002
-- Soft display cameras continue to fade in popularity, while photo
quality units experience tremendous growth
-- Mobile prepress-class cameras are intended to replace film cameras in
professional applications with high-output quality requirements where
rapid on-location image capture is the rule
-- In 1998, 23 percent of point-and-shoot cameras were shipped into the
home and 65 percent were shipped into the business environment
-- In 1998, 15 percent of point-and-shoot cameras were shipped to camera
dealers and 12 percent were shipped to computer superstores.
The Digital Camera Market Review and Forecast, 1996-2002 contains worldwide
forecasts and detailed analysis for five digital camera segments. It also presents
shipments by application, distribution channel and user segment. The report is
available for purchase from IDC (contact Cheryl Toffel at 508-935-4389 or at
ctoffel@idc.com) or Future Image (contact Renata Fried at 650-579-0493 or at
RFFuture@aol.com.
Digital Cameras and Scanners are among the 100+ IT markets IDC tracks. The
service analyzes these markets from user-requirements and supplier and technology
perspectives. For additional information on IDC's Digital Cameras and Scanners
research, please contact Patrick Gorman at 508-935-4369 or by e-mail at
pgorman@idc.com.
About IDC
Headquartered in Framingham, Mass., International Data Corporation provides IT
market research and consulting to more than 3,900 high-technology customers
around the world. With a global network of 375 analysts in more than 40 countries,
IDC is the industry's most comprehensive resource on worldwide IT markets,
products, vendors, and geographies.
IDC/LINK, an IDC subsidiary, researches and analyzes the home and small business
computing markets, leading-edge technologies in telecommunications and new media,
and the convergence of computing and consumer electronics.
IDC's World Wide Web site (http://www.idc.com) contains additional company
information and recent news releases, and it offers full-text searching of recent
research.
IDC is a division of International Data Group, the world's leading IT media, research,
and exposition company.
About Future Image, Inc.
Future Image, Inc. is a research and information firm specializing in digital
photo-imaging, with offices in San Mateo (CA) and Atlanta (GA). Its founder and
president is Alexis Gerard. He is executive editor of the Future Image Report, a
monthly publication about the digital photo-imaging industry. He has authored or
directed major research projects on the market dynamics of new imaging
technologies, ranging from Photo CD to digital cameras to Royalty-Free Stock.
Future Image's web site is www.futureimage.com.
All product and company names may be trademarks or registered trademarks of
their respective holders. SOURCE International Data Corporation
Copyright 1998, PR Newswire
o~~~ O |
