U.S. Camera Accessories Market To Hit $1 Billion
U.S. Camera Accessories Market To Hit $1 Billion
Dealerscope, PA
The camera accessories aftermarket in the U.S. is expected to peak at $1 billion in 2008, despite some price erosion, according to a new report by Understanding & Solutions. Combined camera accessory sales in the U.S. and Western Europe are currently $1.7 billion.
“Although we’re actually seeing a slowdown in the number of digital cameras being sold across Western Europe and the States, with eight percent growth last year and a projected two percent decline in 2007, camera vendors’ and retailers’ future profits will be bolstered by targeting the accessories market,†said David Watkins, Research Analyst with Understanding & Solutions.
The report focuses on the top five camera accessories: lenses, bags, flashguns, supports and dedicated camera batteries. The popularity of digital SLR cameras has been a boon to the accessories market. An average of $260 is spent on accessories for each digital SLR camera, compared to just $2.38 for each digital compact camera. Digital SLR accessories accounted for more than 80 percent of total camera accessory revenue last year. That revenue is expected to rise to 90 percent by 2011.
“In trade value terms, the total accessories aftermarket last year was worth $1.7 billion (€1.4 billion) in Western Europe and the USA combined and we expect the market to peak in 2008 in the USA at $1billion (€800 million) and 2009 in Western Europe at $1.3 billion (€1.1 billion).â€
Lenses are taking a leading role in the boom, accounting for $878 million last year, up from $600 million in 2005. Understanding and Solutions expects lenses to remain the most lucrative product segment and will account for almost 60 percent of the total aftermarket value by 2011.
Camera bags are also driving sales, with 22 million shipped in the U.S. and Western Europe last year, representing nearly 30 percent of the total accessory market. The less profitable compact camera pouch market accounted for more than 80 percent of bag sales. Sales of Digital SLR bags, however, rose more than 50%, reflecting the growth of Digital SLR cameras and the need for cases to protect a high-value investment, even though unit prices are falling.
The camera dedicated battery market the U.S. and Western Europe grew eight percent in 2006, reaching 47 million units. Flashgun shipments topped the million mark, with 1.1 million shipped, totaling sales of $185 million. Early adopters have helped to drive initial growth in the market as high prices kept this a niche product. But prices are falling and, when combined with an increasing installed base of digital-SLR cameras, will continue to drive grow until 2008.
Tripods and monopods have traditionally sold to professional and high-end enthusiast digital SLR users, but aggressively priced retailer own branded products are now driving sales to a wider user base. Over 1 million digital camera supports were shipped in 2006, representing 52% growth from 2005. Understanding & Solutions research shows the market will expand further over the coming years, peaking in 2009 at 1.6 million units.
More than 90 percent of high-end accessories are sold through photo specialists. But the high margins, typically 30 to 40 percent) those products generate have lured more mass merchant retailers and etailers into the game. Mass are branching out into the digital-SLR and accessory markets, with brands such as Canon, Nikon and Olympus becoming increasingly visible within that channel.
Add comment March 22nd, 2007