News

Report: Photo kiosk expansion to continue

May 19, 2002

BOSTON -- The photo kiosk sector will continue to grow through the year 2006, but at a slower rate than expected a year ago thanks to economic factors, according to digital imaging research firm InfoTrends Research Group.

According to the organization's 2002 report "Photo Kiosk and Retail Digital Photofinishing Forecast," the number of installed photo kiosks in North America grew from about 26,000 in 2000 to 28,000 last year. Steady growth will continue, with 2006 estimates set at 33,000 units, but that is a far cry from last year's prediction of 150,000 units by 2006.

"We really scaled it back this year due to the economy and because a lot of photo kiosks vendors (last year) were expecting high growth," InfoTrends research analyst Kerry Flatley said of the estimate. "We were more conservative this year."

Flatley said those estimates are liable to change, especially if industry initiatives to place photo kiosks in resorts, hotels, and airports prove successful.

"A lot of vendors will try to enter `non-traditional' markets," she said, "and if that's successful that number might grow."

While InfoTrends is taking a conservative approach to growth, the organization is bullish on the impact of digital technology on the market.

According to this year's report, nearly half the photo kiosks shipped during 2002 will be digital exclusive, as compared to 16 percent last year. Faster print speeds, the placement of kiosks in more convenient locations, and connectivity to the Internet are all expected to attract more customers to photo kiosks, according to the report.

This year's report profiles 21 top photofinishing retailers and key players in the marketplace, including Agfa, Applied Science Fiction, Digital Portal, ePoint, Fujifilm, Gretag, Kodak, Konica, Noritsu, Olympus, Phoenix Imaging, and Pixel Magic.