Research: Professional Camera Market to Hit $812M By 2017Lower prices will hurt revenue growth for professional camera vendors in the TV and cinema sectors, predicts Frost & Sullivan 11/12/2013 08:04:14 PM Eastern
A new study from Frost & Sullivan is predicting very slow growth in the market for professional cameras in the TV and cinema sectors in upcoming years, with vendors seeing only a 1.4% compound annual growth rate between 2012 and 2017 in total revenue, when it will hit $811.9 million.
The report finds that "expansion is driven by continued digitization and the launch of new channels world over, especially in high-definition (HD) and 4K, which requires high-resolution content," but that rapidly falling prices and weak economies "currently…stifles profits of most vendors in the market, including large participants such as Sony and Panasonic."
Frost & Sullivan researchers report finds that rapid price declines of upwards of 50% to 70% have pushed down the average price of a camera to "a little more than $7,700. While such price drops help push volumes, they restrain total revenue growth and curtail profitability."
Bright spots include the digital cinematography camera segment, the adoption of higher than HD resolution 2K and 4K cameras and the success Canon and others have had with the use of DSLR products being used for HD productions.
"Constant technological innovation can prop up the market," observed Vidya S. Nath, research director, information and communication technologies at Frost & Sullivan, in a statement. "For instance, versatile cameras that shoot in multiple formats and resolutions, and triax and fiber supporting cameras that enable quicker transmission of high resolution content fuel productions, leading to more business for professionals in all segments."
"Suppliers must be innovative and price-competitive, focusing on customer convenience and evolving to meet the creative demands of professional camera users," he added. "Larger vendors, in particular, must match the strategy of smaller suppliers to widen their market presence. Finding the sweet spot that juxtaposes flexibility, adaptability, form factor and price is crucial for success."