Canon’s 2026 Integrated Report includes a small but highly revealing statement about the camera market. After years in which smartphones were blamed for destroying the compact camera segment, Canon now says compact digital cameras are once again attracting attention. The reason is simple. Young creators want photo and video tools that go beyond smartphones, and compact cameras have become part of the social media aesthetic. According to Canon, this new demand is especially strong among younger users, who see compact digital cameras as both creative devices and fashion statements.

Canon says the smartphone effect has eased

For more than a decade, the industry narrative was clear. Smartphones absorbed the casual photography market, compact cameras declined, and camera manufacturers shifted their focus toward higher-end mirrorless systems, lenses, cinema cameras, and professional imaging tools. However, Canon’s latest report suggests that the story is changing. The company states that the contraction caused by smartphones has eased, and that new user segments focused on video and social media photography are helping the camera market grow again.

Compact cameras become creator tools again

Canon specifically highlights compact digital cameras as a renewed growth area. The company says there is a growing need among social media users, especially young people, for photo and video capture capabilities that go beyond smartphones. It also says that owning a compact digital camera is now seen as a fashion statement by the younger generation. As a result, Canon says the compact camera market is expanding again.

PowerShot V1 shows where Canon is going

The PowerShot V1 appears in Canon’s report as the clearest example of this strategy. Canon places it alongside the PowerShot G7 X Mark III ($1,499 on Amazon) , PowerShot SX740 HS ($840.21 on Amazon) , and IXY 650 ($359.99 on Amazon) , showing that compact digital cameras remain part of its broader imaging roadmap. However, the V1 is different because Canon defines it as a model primarily designed for video.

The Imaging Group is growing again

Canon’s Imaging Group had a strong 2025. Sales increased by 12.5% to 1,054.9 billion yen, crossing the 1 trillion yen range. Cameras account for approximately 60% of the Imaging Group’s sales, while network cameras and video solutions also contributed to growth. Canon says it expanded sales of interchangeable lens cameras, especially entry-level models, amid an increase in camera users, particularly young people. The company also boosted compact digital camera sales by increasing production. Canon also says it has held the top market share in interchangeable lens cameras for 23 consecutive years. In 2025, it boosted sales through new mirrorless models, including the EOS R50 V and EOS R6 Mark III ($2,799 on Amazon) . Canon is seeing growth from both ends of the imaging market. Entry-level mirrorless cameras are attracting new users, while compact cameras are gaining attention as social media-friendly devices.

Video is now central to Canon’s camera strategy

Canon’s report makes it clear that video demand is one of the main reasons the camera market is growing again. The company says it will continue strengthening products across a wide range of categories, from cinematography equipment to mirrorless cameras and compact digital cameras. It also says its RF lens lineup reached 63 models in 2025, supporting its goal to maintain top market share and further increase sales.

Final thoughts

Canon’s report confirms what has been visible across social media for a while. The compact camera is returning, but not as the same product category it once was. It is coming back as a creator device, a video tool, and a cultural object. Canon sees young users, social media photography, video demand, and compact camera aesthetics as part of a growth opportunity.