Worldwide consumer digital camera sales to reach nearly 53 million in 2004.

A new study from InfoTrends Research Group, Norwell, Mass., projects worldwide unit sales of consumer digital cameras will reach nearly 53 million in 2004. Furthermore, digital camera sales are expected to experience a compound annual growth rate (CAGR) of 15 percent during the next four years,

"Digital cameras are becoming an essential communications device for consumers," says Michelle Slaughter, director of Digital Photography Trends at InfoTrends Research Group. "Consumers are becoming accustomed to the immediacy of digital photography and are integrating digital photos into their daily communications with friends and families, and for work. As a result, digital cameras have a higher intrinsic value to consumers than film cameras. This, in turn, paves the way for digital camera sales to exceed film camera sales, while maintaining a higher average selling price."

The three leading regions for digital camera penetration are North America, Japan, and Europe. The Asia Pacific region, China, and the rest of the world combined, currently account for 10 percent of worldwide digital camera unit sales.

By 2008, however, these regions are expected to account for 27 percent of the worldwide digital camera market in terms of unit sales. The growing middle class in developing countries, including China, will initiate the transition from film to digital in these countries during the forecast period between 2003 and 2008.

The digital camera market remains very competitive. The top five worldwide market leaders in 2003 are expected to be Canon, Sony, Olympus, Fuji, and Kodak, according to InfoTrends. The combined worldwide unit market share of these companies is currently almost 75 percent. These companies are expected to remain in the top five through 2004, although their individual positions may change.