GoPro accounts for over 35% of the action camera market
According to Statista estimates, unit sales of action cameras were 8.4 million in 2015 and 10.5 million in 2016. As per industry estimates, the action camera market is expected to grow at a compound annual growth rate of 15% between 2017 and 2023, indicating unit sales of over 12 million in 2017.
GoPro (GPRO) shipped 4.8 million units in 2016, indicating a share of over 45%. The company shipped 4.3 million units in 2017 and captured just over 35% of the action camera market.
Consumer and market research
GoPro is banking on consumer research to learn about customer requirements and refine its products accordingly. GoPro has already stopped the sales of its HERO Session camera and its Karma drone, and it has reduced the prices of its older products over the last few months.
GoPro also expects its portfolio of products to increase global sales, especially in Asia and Europe. In the previous article, we learned that GoPro wants to increase global marketing spending from any savings that arise in terms of its operational expenditure.
The company believes that an increase in marketing expenditure will increase awareness of its brand and products. GoPro has valued the digital imaging industry at $13 billion and is optimistic that its high-quality products will grow its market share significantly.