The camera market is growing, the giants are faltering – the photo news

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Sometimes the photo industry feels like a patient who has been predicted to die soon from all sides for years. "The smartphone has won," "Nobody buys cameras anymore," "Everything is far too expensive" – the eulogies had long been written. And then, in the middle of the funeral service, the patient blinks briefly, sits up, and asks if there's any cake left. That's exactly what happened this week: The latest figures from the industry association CIPA are out, and they paint a picture that many thought was no longer possible.

Two Years of Growth: The Walking Dead Live Longer

The most important news first: Worldwide camera shipments have increased for the second consecutive year in 2025. This hasn't happened since 2007, a time when the first iPhone saw the light of day and "mirrorless" still sounded like a vampire problem. After years of steady decline, this is more than just a glimmer of hope – it's a tangible trend.

What's particularly fascinating is who the drivers of this growth are. Surprise number one: Compact cameras! Yes, you read that right. The small point-and-shoots with fixed lenses, which were considered the first casualties of the smartphone's triumph, saw a whopping 30 percent increase in shipments. Apparently, there's a growing number of people who consciously want to use a dedicated camera without having to lug around a whole arsenal of interchangeable lenses.

Surprise number two: Cameras with smaller sensors (APS-C and Micro Four Thirds) have gained ground, while the holy grail of full-frame has seen a slight decline in shipments for both cameras and lenses. The years-long mantra of "full-frame or nothing" is showing cracks. Manufacturers like Fujifilm, who consistently focus on APS-C, should feel vindicated. It seems that many photographers realize that a lighter system with excellent lenses is often worth more than the last five percent of image quality that you buy with kilos of glass.

Sony: Cameras Solid, But Sensors Are the Real Star

Given these positive market data, one might think that industry leaders are basking in sunshine. However, a look at Sony's quarterly report for the third quarter of fiscal year 2025 (which ended on December 31, 2025) reveals a more nuanced picture. The "Entertainment, Technology & Services" division, where cameras are housed, saw a decline in both revenue and profit.

But before Sony fans reach for their tissues: The report explicitly notes that demand for system cameras is strong worldwide and that the new full-frame camera Alpha 7 V is selling exceptionally well. So the problem lies elsewhere. Much more exciting, however, is a look at the "Imaging & Sensing Solutions" division. Here, where Sony manufactures its image sensors and, it seems, sells them to the whole world – including the smartphone competition – the numbers are exploding. Revenue and profit reached record highs.

My comment on this: This is Sony's dirty little secret. While we debate the merits of the latest Alpha camera, the company is making a fortune supplying the sensors for the very smartphones that are supposedly displacing cameras. You can hardly imagine a more ingenious business strategy. Sony plays on both sides of the field and always wins.

Nikon Struggles with Headwinds and Declining Margins

Things are less rosy in the yellow camp. Nikon's quarterly figures are, to put it mildly, sobering. Both revenue and profit in the camera business have declined year-on-year. Even more concerning is that Nikon has drastically revised its profit forecast for the full year downwards. Projected sales figures for cameras and lenses have also been reduced.

The company cites intense competition, high advertising costs, tariffs, and – crucially – a shift in the product mix towards lower-priced models as reasons. Ouch. This means Nikon is selling cameras, but not the ones that generate significant profits. While the overall market is growing, Nikon seems to be struggling to benefit significantly. Although the new digital cinema camera, the ZR, is mentioned as a bestseller, it's apparently not enough to offset the weakening margins in the photo sector. It shows that in this competitive market, it's not just about building good cameras, but also about selling them profitably.

So what do we learn from this week? The camera market is more alive and dynamic than ever. Old certainties are crumbling, new trends are emerging, and even the biggest names have to stretch themselves considerably to stay in the game. For us photographers, this is actually good news: more competition, more choice, and the realization that a good camera doesn't necessarily need a full-frame sensor and a high five-figure price tag.

(tho)