Trends in digital photography

2012 has been an interesting year for digital photography. Three major trends that will shape the coming years have emerged. Let's discuss them one by one:

The use of smartphones as digital cameras
Smartphone cameras are getting better and better and have become the camera of choice for millions of casual shooters, even though compact cameras still offer better image quality and more flexibility than most smartphones. The main reasons for this are: Smartphone cameras are always there and ready when needed, they are already paid for / do not require an additional purchase, they run a multitude of third party software packages such as photo editors and filters, they are connected. This is a megatrend that will fundamentally change the compact camera market. Very low price low quality compact cameras will all but disappear, and higher quality cameras will have to work closely with smartphones and tablets. The main advantages of compact cameras over smartphones are optics and to a lesser degree sensor size. Good smartphones are light and compact, good lenses are large and heavy. These two things do not go well together. It is only a matter of time before major smartphone manufacturers will offer separate cameras with larger sensors and better lenses as wireless accessories for their smartphones. This will bring the image quality of smartphones on par with compact cameras while retaining the advantages of a connected, open system. Additionaly, having the sensor and lens separate from the rest of the camera will open up new creative possibilities. Traditional camera manufacturers could theoretically participate in this market, but they will need to speed up innovation cycles to keep up with the pace of the smartphone industry. Of the major camera manufacturers, Canon seems to be the only one recognizing this trend and opportunity. The PowerShot N might very well turn out to be one of the most important product launches of Canon's imaging division in 2012.

Large sensor mirrorless system cameras
Introduced in 2008, Micro Four Thirds paved the way. Sony's NEX family followed in 2010, and  2011 brought the Nikon 1 system. Finally, in 2012 Canon joined this new and rapidly expanding segment of the digital camera market with the EOS M system. This is the future of consumer cameras. A couple of years from now, entry-level DSLRs will be a thing of the past. It's hard to predict which system will be most successful, but it's safe to say that APS-C sensors will play a central role in this camera category. Sony seems to be in the best position to offer a prosumer or even a professional mirrorless camera, but Canon's EOS M might be good for some surprises too.

The advance of full frame sensors
Enthusiast and prosumer cameras are going full frame. We expect to see one more APS-C enthusiast camera from both Nikon (D7100) and Canon (70D), but after that only entry-level DSLRs will sport crop sensors. 35mm is back for good.