This Frost & Sullivan research service titled North American Photo Kiosk Markets provides insights on the major industry trends as well as the install base and revenue growth data. In this research, Frost & Sullivan's expert analysts thoroughly examine the business done at photo kiosks in the traditional mass retail markets and the emerging nontraditional, cafe style photo kiosk settings.

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Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

By Kiosk Model:

• Stand-alone with printer enclosed photo kiosk
• Order station photo kiosk

Digital Camera and Camera Phone Sales Spur Photo Kiosk Use

Over the last several years, the emergence of photo kiosks as viable solutions for retail printing has solidified their presence in retail and led to unprecedented install base growth. What is more, both digital camera and camera phone sales continue to grow in the U.S. market and this fact bodes extremely well for the photo kiosk industry. According to the Photo Marketing Association (PMA), more than half of U.S. households currently own at least one digital camera. In another PMA survey on U.S. family camera phone adoption rates, 35 percent of responding families said that they own camera phones, which was a 26 percent increase from the previous year. Hence, as both digital cameras and camera phones become increasingly ubiquitous, the number of images captured and subsequently printed will also increase.

However, this robust growth is offset by the public's tendency to print only a fraction of images captured. According to the PhotoImaging Manufacturers and Distributors Association (PMDA), less than 20 percent of images captured on digital cameras and also camera phones are printed. "Frost & Sullivan feels that this is the single biggest restraint to the photo kiosk industry and expects this restraint to be a formidable obstacle over the next seven years," notes the analyst of this research service. "However, the good news is that even with less than 20 percent of digital images captured ever making it to the print form, the sheer volume will produce billions upon billions of prints from photo kiosks over the next several years."

Growth of Gifting and Creative Product Mix Stokes ROI for Retailers

Even in light of the tremendous growth of digital cameras and camera phones, the commoditized 4x6 print has highlighted the photo kiosk market's greatest challenge; how to get customers to print more of their captured images, and what other printing forms can be offered?. Pressure from this challenge and consumer demand has given way to two promising aspects of the photo kiosk market, the emergence of the gifting and creative product mix and the arrival of the nontraditional settings. Combined, these two trends provide the most promising signals of things to come in the U.S. photo kiosk market and are sure to boost market revenues on several fronts, including transaction prices and install bases.

Going forward, revenue growth will be significantly bolstered by the boom in the gifting and creative segment that will cause a powerful shift in the photo kiosk product mix. The segment is anticipated to capture 20 percent of all kiosk transactions by 2013, and this in turn will raise the average transaction price from $10.83 in 2006 to $16.69 in 2013. "Further revenue growth will be achieved by shifts in transaction patterns," says the analyst. "Frost & Sullivan predicts the number of daily transactions per photo kiosk to increase from the current average of 8 per day to 12 per day by 2013."

Chapter 2

• Total Photo Kiosk Market: Market Drivers Ranked in Order of Impact (U.S.), 2007-2013
• Total Photo Kiosk Market: Market Restraints Ranked in Order of Impact (U.S.), 2007-2013
• Total Photo Kiosk Market: 4x6 Print Transaction Data (U.S.), 2003-2013
• Total Photo Kiosk Market: 5x7 Print Transaction Data (U.S.), 2003-2013
• Total Photo Kiosk Market: 8x10 Print Transaction Data (U.S.), 2003-2013
• Total Photo Kiosk Market: Gifting and Creative Product Mix Transaction Data (U.S.), 2003-2013
• Total Photo Kiosk Market: Percent of Revenues by Product Type (U.S.), 2003-2013
• Total Photo Kiosk Market: Percent of Revenues by Vertical Market (U.S.), 2003-2013
• Total Photo Kiosk Market: Installed Base by Vendor (U.S.), 2003-2007
• Total Photo Kiosk Market: Unit Shipment Forecasts (U.S.), 2003-2013
• Total Photo Kiosk Market: Vendor Competitive Structure (U.S.), 2006
• Total Photo Kiosk Market: Retailer Competitive Structure (U.S.), 2006