• by Nina Lentini  @Nina_Lentini, March 12, 2007

Digital camera accessories--lenses, cases, batteries, speedlights, tripods, kits, docks, lens filters and adapters, powerpacks and chargers--are driving the growth in the digital imaging market, with unit growth of 29% and dollar volume surging 40% from 2005 to 2006, according to the NPD Group's retail tracking service.

Lenses were the focus of the most growth in 2006, with dollar volume increasing 56%. Camera cases were up 31%. NPD Senior Imaging Analyst Liz Cutting says in a statement that growth is exciting, since 75% of digital single-lens reflex (DSLR) cameras sold in 2006 came with one or two lenses. It shows that most DSLR buyers want to invest more in their initial purchase, she says.

"Americans really love long telephoto lenses," says John Owens, editor in chief of Popular Photography and Imaging and PopPhoto.com in New York. "The prices on those are pretty reasonable. Prices on DSLR cameras have dropped, while the quality and ease of use are high. For under $600, you can get a good DSLR and take professional pictures."

Camera buffs also invested in camera cases. The top four best-selling cases, based on dollar share, were made for DSLRs. The best-selling case sold for $71. The best-selling camera bag sold for just $9.

"As more cameras are geared toward particular lifestyles, there is opportunity both in low- and high-touch channels for point-of-purchase displays and consultative selling that helps consumers envision and buy what they will need for their imaging outfit," says Cutting. "As camera prices continue to decline, consumers may be more willing to spend a little extra to personalize and protect their camera and images."

Storage, while not accounted for in the imaging accessories total, is a category that is growing rapidly. According to NPD's consumer tracking service, 75% of memory cards purchased in 2006 were for digital cameras. NPD's retail tracking service shows that flash memory cards increased 32% in 2006, USB flash drives increased 57%, and external hard drives increased 73%.

"There is a real opportunity here for retailers and manufacturers to embrace the growing digital camera install base," says Cutting.