Action Camera Market Trends

Growth Drivers:

• Integration of advanced technology: One of the major growth factors for the action camera market is the integration of AI and other premium imaging technologies. One of the most recent examples is Hero Electronix's release in May 2022, the Qubo Smart Dashboard Cam Dashboard Cam with AI capabilities for easy movement detection and data storage. Thus, such technological development is increasingly popular among consumers opting for intelligent and responsive devices that serve functionality and safety.
• Rising consumer interest in capturing 360-degree content: Consumer interest in capturing 360-degree content is rising day by day, and this is perpetuated by platforms such as Facebook and YouTube that support 360-degree videos. One such trending camera is the Insta360 X3 announced in September 2022, with 5.7K 360-degree recording and AI-powered reframing. As a result of that trend in growing interest, there has been a rapid spike in month-on-month increase in 360-degree video uploads, with engagement for such videos standing higher than regular videos. These aspects have, in turn, been driven by the rise of vlogging and video content creation on YouTube.

Challenges:

• Competitive pricing as a challenge to market entry:   One of the central challenges in the action camera market is the price war and competition among manufacturers. Companies that have already accessed the market have to lower their action camera prices to be competitive with other companies or new entrants who produce similar products but involve lower prices for their purchases. This step leads to the reduction of the company's profitability.
• Regulatory and compliance challenges: Another challenge is the legislative development in the use of electronics and the management of electronic waste. When an industry grows, loads of waste with electronics emerge. For the camera manufacturing industry, the problem becomes more pronounced as they produce more and more action cameras in their new models. According to a UNITAR report as of January 2024, the global e-waste produced by obsolete use and throw-away cameras and other electronic gadgets is expected to grow by 5% every year. As a result, governments introduce new regulations and frameworks to mitigate the influence of e-waste on the environment, which makes it difficult for industry players to comply.