IDC researchers claim the digital camera market will peak in 2010. This year the camera sales will grow 8 percent to 114 million units, the market will continue to grow in 2008 and 2009 but in 2010 sales will start declining.
"We predict a slowdown, driven by a complete saturation of all regions, creating 2 percent negative growth in 2011," said IDC analyst Christopher Chute.
The exception is with digital SLR (single-lens reflex) cameras, which are bulkier and more expensive but offer better performance and a variety of interchangeable lenses. Digital SLR shipments will increase 9 percent to 8.5 million units in 2011, IDC forecast.
To tap into new markets, camera makers will have to adapt marketing and distribution for customers in China, Russia and the diverse countries of Latin America.
But cameras should withstand the arrival of cell phones that can take snapshots, IDC forecast.