Canon Recommits to Compact Cameras, Will Up Production to Meet Demand

Alongside releasing its financial results today, Canon also delivered a detailed presentation, where additional information was shared, including details about camera sales and market trends.

Canon notes that throughout 2024, its revenue from camera sales increased 6.5% year over year, while the sales of “network cameras and others” jumped 12.8%. The fourth quarter’s performance was robust, rising 14.6% for standard cameras compared to the same period in 2023. Operating profit increased 3.9% for imaging.

As for the sales growth rate for cameras, Canon says it was up 0.4% in 2024, although the fourth quarter saw an 11.9% jump. Canon expects its camera sales growth to increase by 9.3% in 2025.

While this hard data is interesting, it’s incredibly illuminating to hear what Canon has to say about general market trends and consumer behavior as it relates to cameras.

“As for interchangeable lens cameras, demand is stable thanks to needs of professionals and people who enjoy shooting still images as well as the needs of social network sites (SNS) users to shoot video,” Canon explains. “Additionally, demand was stimulated by the investment of each company to expand sales. As a result, the size of the market in 2024 was 6.3 million units, which exceeds last year. And in 2025, we expect it to be around the same level.”

While this is a far cry from where the global camera market was 15 years ago, it is reassuring to a degree that the camera market has stabilized, putting a stop to what was years of decline.

For its part, Canon cites the popularity of the EOS R5 II and EOS R1 among enthusiasts and professionals. The company also initiated sales promotions for its entry-level models.

“As a result, net sales of cameras in the selling season fourth quarter increase 14.6%, resulting in a 6.5% increase for the full year,” Canon says.

As for the entry-level models, while selling many units is great, it has a relatively minor impact on revenue compared to selling higher-end cameras. Canon says it plans to expand sales of its full-frame models, like the R5 II and R1, “which will raise our average selling price and lead to an increase in RF lens sales.” It stands to reason that higher-end cameras will have higher lens attachment rates than entry-level models, typically sold in a kit with a versatile zoom lens.

Canon’s presentation also touches on compact cameras, a topic avoided in its other new financial result documents.

“Additionally, due to the spread of SNS, the popularity of compact cameras that can easily capture images that differ from those of smartphones is growing among young people,” Canon explains, echoing sentiments that have been repeatedly seen in broad market trends. “As a result, we are seeing a buildup of orders, mainly for higher priced models like the PowerShot G7 X Mark III. We aim to expand overall camera sales by 8.4% through increased production and supply.”

This promise of increased production lines up with reports earlier this month that Canon was considering outsourcing manufacturing to cut costs, particularly regarding compact camera manufacturing.

It is also interesting to note the mention of the G7 X Mark III in particular, as it is not only old, difficult to track down due to limited supply, but also a relatively expensive compact camera, with an MSRP of $799.99. As far as Canon’s PowerShot cameras go, the G7 X III is relatively high-end. It has a 20.2-megapixel Type 1.0 stacked image sensor, 24-100mm equivalent f/1.8-2.8 lens, and Canon’s once-high-end DIGIC 8 processor. The camera was rather impressive at its release.

If Canon wanted to return to this well of semi-premium compact camera, it certainly has the technology to do so. Although some users may be seeking the cheapest possible camera to chase some sort of nostalgia, many photographers, new and veteran alike, are clamoring for more options when it comes to the high-end compact all-in-one camera market. People are calling; it is up to Canon whether or not it will pick up.

The new financial presentation offers hope. If Canon wants to answer the demand for compact cameras and increase the average price of the cameras it sells, it stands to reason it should focus on mid-range and high-end compact camera development and production.

Image credits: Featured image created using an asset licensed via Depositphotos.