Action Camera Market Lacks Action Sales Slump
In a blow for Go Pro demand for action cameras is falling with cheap feature rich models now attracting buyers attention over the more expensive model.
According to Futuresource, the average retail price of action cameras dropped overall by 9% in 2017, driven by a variety of factors. These included the increased availability of higher specification Chinese models in the $50 to $100 range sold on global e-tail sites such as Amazon. Market leader GoPro responded by reducing their camera prices and other brick-based retailers were seen to reduce shelf space for this category.
From a regional perspective, Asia-Pacific is predicted to become the largest region for global shipments in 2018, with consumer interest and adoption of action cameras being encouraged again by falling prices. Currently, household penetration for these devices is just 1% in Asia-Pacific, compared to 8% in North America and 5% across Western Europe.
Go Pro’s response has been to drop prices with retailers responding by reducing shelf space for action cameras.
The report claims that manufacturers will now have to lift their game by introducing new features that lure customers into buying a replacement action camera.
Futuresource claims users can expect to see 4K, 60 frames per second shooting become the norm across the market in the near future.
These extra features are aimed at attracting professionals such as law enforcement, security, TV production and in-car use. Thus far, professional adoption has been slow, only making up 15 per cent of the worldwide action camera market.
Projections indicate that this professional adoption will start increasing in the coming years, with Futuresource estimating the professional market will make up a third of global action camera demand by 2022.
There’s been further pain for Go Pro with the low uptake of 360 degree camera, despite consumer awareness. Other makers have been hurt as well, with Samsung heavily discounting their range.
Slow adoption can be credited to the poor quality of the image with current technology and a high price tag.
Arun Gill, Senior Market Analyst at Futuresource Consulting, commented on how social media can drive adoption by saying “Video sharing trends via social media platforms is also key to stimulating the action camera market,
“Currently Instagram, which has become the most popular social sharing platform of choice for millennials, does not support native 360 video.
“Once support for native 360 becomes wide-ranging across all social sharing platforms the market will see significant improvement.
“Despite significant barriers facing 360 cameras, the outlook for the market remains positive”.