Sales in the camcorder category in 2005 were up significantly across all product segments because consumers are embracing digital technologies such as Hi-8/Digital-8, Mini DV and DVD camcorder. Increased sales also are being fueled by consumer demand for name brand products. In addition, continued consumer-friendly pricing of camcorder hardware is stimulating increased consumer consumption. This in turn has a direct positive impact on camcorder media sales as well as on sales of camcorder batteries and accessories. Sales of camcorders continue upward in 2006, particularly in the digital technologies: Mini DV and DVD camcorder.

The camcorder category is being driven by the digital formats: Digital-8, Mini DV and DVD.  As new camcorder formats have been introduced to the market, they have expanded the category, bringing in new camcorder consumers and graduating established consumers up from analog to new digital formats. A prime example of the category naturally extending itself is the introduction of the DVD camcorder format.

The DVD camcorder format has proven appealing to consumers because of product quality, advanced videography features and the editing options that are available. Overall, camcorder category sales will continue to show solid growth, due to a continued high level of consumer demand and increased household penetration for camcorders, which is now just above 45 percent. To capitalize on these consumer trends, retailers need to offer a complete assortment of branded camcorder products that addresses all available formats.

CEA predicts camcorder sales of 4.5 million units in 2006. Dollar volume is forecast to $1.4 billion in 2006, which was about the same as 2005. While camera phones and digital cameras are moving into video, camcorders are beefing up digital still features as well. Two-megapixel digital still functionality is getting a boost in 2006 with three-megapixel digital still resolution now prevalent among many suppliers. JVC hit the market with a hard-disk-based camcorder offering five-megapixel still resolution in its Everio camcorder in 2005. JVC introduced enhanced versions to that product line in 2006.  Other camcorder suppliers such as Canon, Panasonic and Sony also have rolled out new digital models in 2006.