Demand for photography services will rise as disposable income increases.
New York, NY (PRWEB) September 07, 2014
The Photography industry struggled during the past five years due to low demand for consumer-oriented product segments; indeed, disposable income did not return to growth until 2011, and then it only grew a meagre 0.2%. This factor kept demand for industry services low, forcing the industry to contract in 2010. “However, in the years following, the industry experienced increasing demand due to high advertising expenditure and healthier disposable income levels,” according to IBISWorld Industry Analyst Lucas Isakowitz. As a result of these factors, industry revenue is anticipated to increase an annualized 0.8% during the five years to 2014 to reach $699.1 million in revenue. In 2014, as advertising expenditure is set to increase 4.8%, industry revenue is anticipated to increase 0.6%.
The advent of digital cameras lowered barriers to entry for the industry during the past five years, resulting in a substantial number of nonemployer operations entering the industry. Consequently, the number of industry operators is anticipated to increase an annualized 2.9% in the five years to 2014, almost excessively in the form of sole properties. “As the number of industry operators increased, price competition intensified among photography operators, pressuring average profit margins,” says Isakowitz. However, increasing demand, particularly from the commercial photography segment, allowed operators to charge higher rates for services when compared with 2009.
The industry is expected to experience slow but steady growth in the five years to 2019. As disposable income, consumer confidence and advertising expenditure all increase, demand for photography services will rise. Armature photographers will continue to capitalize on low-cost, high-quality digital cameras to enter the industry, increasing the number of industry enterprises and further intensifying internal competition.
For more information, visit IBISWorld’s Photography in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry provides still, video or computer photography services. Industry operators specialise in particular fields of photography, such as aerial photography, commercial and industrial photography or portrait photography. This report excludes all movie, television and video production (IBISWorld report 51211CA).
Industry Performance
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