Digital camera has gradually replaced the traditional camera. The digital cameras sales grow rapidly as the price of digital cameras are getting cheaper. But, what happen with the digital camera sales since global economic recession hit the global market in 2008?

The Camera and Imaging Products Association (CIPA), which represents the various Japanese camera manufacturers, predicted that total digital camera sales will decrease by 0.7% in 2009, with point-and-shoot models suffering a 1.3% decline, while DSLR sales will actually increase by 6.8%.

President of CIPA, Tsuneji Uchida, announced that the total shipments of digital cameras in 2008 (the cumulative total of shipments from January to December) exceeded the performance in 2007 when shipments broke through the 100 million unit mark for the first time since CIPA began compiling statistics. A total of 119,757,000 units were shipped, representing an increase of 19.3% on the previous year’s performance based on volume.

CIPA are blaming “the rapid economic slowdown since the autumn of 2008″ for 2009′s tough outlook, with better digital camera sales expected for 2010 and 2011.

According to market research firm International Data Corporation (IDC), U.S. digital camera sales declined even more sharply than expected in the fourth-quarter holiday season, falling 12% to 15 million units.

The consumers became more price sensitive these days. “The right strategy was high volume and low price“, said IDC market analyst, Chris Chute. This strategy helped Eastman Kodak Co., reclaim the No. 1 spot for market share in the fourth quarter. Canon Inc. jump down to No. 2, and Nikon Inc. captured the No. 3 spot.

Overall, IDC predicts that digital camera sales will drop 10% to 11% this year and a further 4% to 5% in 2010.