Summary
- Japan's METI reports a recovery in digital camera and photographic lens production since 2025
- Worldwide digital camera shipments increased by 11.2% in 2025
- Built-in lens compact cameras grew by 29.6%
- Mirrorless shipments increased by 12.5% while DSLRs declined by 30.7%
- CIPA forecasts a further 13.6% increase for compact cameras in 2026
- From the smartphone collapse to recovery
- CIPA figures confirm the change
- Compact cameras are proving to be the big comeback
- 2026 is expected to strengthen compact cameras further
- Europe is participating in the recovery
- Recovery does not mean a return to 2010
- The smartphone may now be creating new photographers
- What we think
- Frequently asked questions
Japan’s government is now reporting clear signs of recovery in digital camera production, with compact and mirrorless cameras at the centre of the change.
Japan’s Ministry of Economy, Trade and Industry (METI) has published a new analysis of the photography industry’s trajectory, noting that after the major decline caused by the spread of smartphones and the shock of the pandemic, production of digital cameras and photographic lenses has been recovering since 2025. The picture is particularly positive for built-in lens compact cameras, while the interchangeable-lens segment continues its transition from DSLRs to mirrorless cameras.
The development is significant because it is not based simply on the sales of a popular model or a temporary trend. It coincides with official worldwide CIPA figures showing double-digit growth in digital camera shipments during 2025 and even stronger growth for compact cameras, while CIPA itself forecasts further expansion of the category in 2026.
From the smartphone collapse to recovery
The history of the camera market over the past two decades is directly connected to the rise of the smartphone.
METI’s analysis compares digital still and video camera production with smartphone penetration in Japan. Digital camera production began declining around 2008, at roughly the same time smartphones started gaining a mass-market presence.
The result was one of the most dramatic contractions ever experienced by a consumer electronics sector. A standalone camera gradually stopped being an essential purchase for the average consumer, as phones became capable of handling everyday photography without requiring a second device.
The pandemic delivered another shock. According to METI, production of digital cameras and interchangeable lenses fell sharply during the second quarter of 2020 and then moved without a consistent direction for several years. Since 2025, however, the trend has begun to change, with production showing clearer signs of recovery.
CIPA figures confirm the change
The global picture is even clearer.
According to CIPA’s final figures, 9,438,876 digital cameras were shipped worldwide in 2025, compared with 8,490,227 in 2024. That represents an 11.2% increase in a single year.
The breakdown shows where the real momentum is coming from:
- Built-in lens cameras: 2,436,911 units, up 29.6%
- Interchangeable-lens cameras: 7,001,965 units, up 5.9%
- Mirrorless cameras: 6,311,054 units, up 12.5%
- DSLRs: 690,911 units, down 30.7%
The contrast is striking. DSLRs continue their long-term decline, but mirrorless cameras are not only replacing much of that lost volume — they are still growing. The shift is even more dramatic among compact cameras.
PTTL had already analysed the major comeback of compact cameras during 2025, when CIPA data showed that the category had become the fastest-growing type of digital camera.
Compact cameras are proving to be the big comeback
For years, compact cameras were considered perhaps the biggest victim of the smartphone.
Basic low-cost point-and-shoot cameras virtually disappeared once smartphone cameras became good enough for most everyday uses. That did not mean, however, that demand for small standalone cameras disappeared completely.
The new demand appears to have different characteristics. Users are looking for small size, optical zoom, a distinctive visual look, physical controls and a photographic experience that feels different from using a smartphone.
METI believes part of the recovery may be linked to relatively younger users who are using cameras to create content for social media and video-sharing platforms.
The trend is also visible at retail level. In May 2026, for example, the Fujifilm X100VI returned to the top of MAP Camera’s sales ranking, while the Canon PowerShot G7 X III, Panasonic Lumix TX3 and Ricoh GR IV also appeared in the top ten. PTTL reported on the MAP Camera ranking and the strong presence of compact models.
2026 is expected to strengthen compact cameras further
CIPA does not expect a return to the enormous market volumes of the past, but it does forecast continued growth.
For the whole of 2026, it projects 9.59 million digital camera shipments, an increase of 1.6% compared with 2025.
The more interesting story is in the category breakdown.
Built-in lens cameras are forecast to reach 2.77 million units, representing another 13.6% increase.
Interchangeable-lens cameras, by contrast, are forecast to decline slightly to 6.82 million units, down 2.6%.
This means that, according to CIPA’s forecast, overall camera-market growth in 2026 is not being driven by a broad sales boom. A significant part of the growth is expected to come from the continued return of compact cameras.
Europe is participating in the recovery
The change is not limited to Japan.
Digital camera shipments to Europe increased from 1,992,767 units in 2024 to 2,117,229 units in 2025, a rise of 6.2%.
Larger increases were recorded in other regions, including China at 16.3% and the Americas at 12.7%, but the European market also moved higher.
CIPA does not publish a separate figure for Greece, so no reliable conclusion can be drawn for the Greek market specifically. The European trend nevertheless shows that increased interest in dedicated cameras is not exclusively a Japanese phenomenon.
Recovery does not mean a return to 2010
There is an important distinction.
The market is recovering from the much lower level at which it stabilised after the rise of smartphones. It is not returning to the era when almost every household bought a separate digital compact camera.
In 2010, worldwide digital camera shipments exceeded 121 million units. In 2025 they stood at 9.44 million, while the forecast for 2026 is 9.59 million.
PTTL has previously explained why this enormous contraction in market volume has also contributed to the rising price of modern cameras. Manufacturers now sell to a much smaller number of buyers and increasingly focus on products with higher value and more clearly defined audiences.
Today’s recovery therefore describes a smaller but more stable and more differentiated market.
The smartphone may now be creating new photographers
Perhaps the most interesting part of METI’s assessment is that the smartphone is no longer presented solely as the “killer” of the standalone camera.
A new generation of users learns photography and video creation through a phone. Some of those users, when they want more zoom, better image quality, a different look or greater control, may eventually look for a dedicated camera.
That partly reverses the relationship between the two products. Smartphones still account for the overwhelming majority of everyday photographs, but they also provide millions of people with their first experience of image creation.
Camera makers appear to recognise this. Small mirrorless bodies, premium compacts, film simulations, fast smartphone connectivity and features focused on video and social sharing are aimed directly at this audience.
What we think
METI’s new analysis matters not because it signals a return to the golden age of digital cameras, but because it suggests that the dramatic decline may finally have evolved into a new equilibrium.
CIPA’s figures reinforce that picture. Mirrorless cameras have effectively won the battle against DSLRs, while compact cameras — a category that looked almost doomed only a few years ago — have become the strongest driver of growth.
The most interesting point is that the recovery may not be happening despite the smartphone, but partly because of it. If younger creators begin with a phone and later move to a dedicated camera, the photography industry may have found a new audience — far smaller than the one it had in 2010, but potentially large enough to support a healthier market.
Frequently asked questions
Is the camera market really recovering?
The figures show a recovery from the low levels of previous years. Worldwide digital camera shipments increased by 11.2% in 2025, while METI reports a recovery in production since 2025.
Which camera category is growing the fastest?
Built-in lens cameras recorded the strongest growth in 2025, rising by 29.6%. CIPA forecasts a further 13.6% increase for the category in 2026.
What is happening with mirrorless cameras and DSLRs?
Mirrorless shipments increased by 12.5% worldwide in 2025 to 6.31 million units. DSLR shipments, by contrast, fell by 30.7% to 690,911 units.
Will the market return to pre-smartphone levels?
Current figures do not suggest that. The market remains dramatically smaller than at its 2010 peak, and today’s growth represents a new, more limited market with different products and users.
