Sales of digital cameras in the UK have broken the 20 million barrier for the first time, reports leading market research firm GfK. Introduced in 1997, two thirds of all households now own a digital camera. The market is worth almost £1 billion annually, with 3.3million digital cameras sold this year already.

GfK found that the market is far from saturated and reports rapid growth in the additional and replacement market as consumers either trade-up and replace their old digital camera or buy an additional piece of equipment. However, despite more feature packed cameras with greater megapixel power, manufacturers and retailers are finding it difficult to increase the price of a camera. In fact, since 1997, the average price of a digital camera has fallen from £464 to £169.

Growth has come at the expense of traditional cameras and film. The value of the analogue camera market has fallen 68% over the past year ending August 2006 with many retailers in Britain deciding to stop stocking analogue cameras in recent years. Traditional film sales have declined over 75% in the last since 1997. Furthermore, Single Use Camera sales declined by over 18% in the last year, as the use of mobile phone cameras becomes an increasing threat.

Anthony Norman, Account Director, GfK said: ?The combined growth of digital and decline of analogue is a constant reminder that we are now very much in the digital age of photography. With the decline in analogue cameras the traditional camera manufacturers will be looking to exert as much as possible out of the digital camera market before it too begins to decline.?