US digital camera market to reach $6.8 bln in 2006

According to NPD Group, US digital camera market will generate close to $6.8 bln in revenue and sell a record-breaking 29.5 mln units in 2006. The digital camera market is expected to increase by 8% in revenue and 17% in units over 2005. Point and shoot digital cameras, which represented 73% of 2005 digital camera revenue, are expected to reach $5 bln in revenue in 2006, an 8% increase over 2005, while unit sales will account for 95% of the digital camera market, exceeding 27 mln, a 16% increase over the same time period.

The NPD Group expects sales will begin to slow down in 2007, when the point and shoot market is expected to peak, but even with this change point and shoot cameras will remain the dominant technology, representing more than 70% of revenue through 2008, followed by a dip to slightly below 70% in 2009 and 2010 . Unit sales will account for 90% of the digital camera market through 2009, and dip just slightly below 90% in 2010. The average selling price (ASP) for point and shoot digital cameras will drop in 2006 to approximately $182, a 7% decline from 2005, and only fluctuate within $5 through 2010.