Canon says people buy compacts for some surprising reasons

Canon executives Tetsushi Hibi, Manabu Kato, Go Tokura, Kazumasa Yoshikawa, and Yoichi Sato. Photo: Mitchell Clark

"The biggest trend for us in the market that we see is the entry of the new generation into the camera industry," says Manabu Kato, Executive Officer of Canon's Imaging Business Operations. "And, of course, that is why we are going to provide the services and products that will satisfy the needs of the younger generation."

Focusing on a new generation of photographers is a recurring through-line for Canon's leadership. At the recent CP+ Expo in Yokohama, Japan, we met with senior executives from Canon's camera division, including:

• Go Tokura: Executive Vice President and Head of Canon's Imaging Group
• Manabu Kato: Executive Officer, Imaging Business Operations
• Kazumasa Yoshikawa: Unit Executive, IMG Development Unit
• Tetsushi Hibi: Unit Executive, IMG Optical Business Unit
• Yoichi Sato: Senior General Manager, IMG Products Development Center

In a wide-ranging interview, we discussed a variety of topics, including the growing influence of compact cameras, the challenge of maintaining affordability in the current global economy, whether we can expect any changes to its licensing approach for the RF mount and more.

The state of the camera market

While an emerging generation of photographers is clearly a focal point of Canon's strategy, Go Tokura confirms the continued shift toward mirrorless cameras and expresses optimism about the market's stability.

"90% has now become mirrorless," he says. "And it's almost all occupied by Japanese makers. Last year, shipments from Japan totaled about 7 million units. In other words, the market grew slightly by about 6% or so. And we consider that this current market trend is going to continue, and there's not going to be a sudden plunge."

Canon says the biggest trend it sees in the camera market is the emergence of a new generation of photographers, many of whom are interested in compact cameras. However, mirrorless models remain the core of its camera business. Photo: Richard Butler

However, Tokura points to the compact camera segment as a surprising area of momentum, noting that much of the growth is not being captured by traditional Japanese manufacturers.

"The compact camera market is gaining more and more momentum. Last year, the compact camera market was not really dominated by Japanese makers; about 50% of them came from other manufacturers outside of Japan. And we assess that the market size is going to be about 4 to 5 million units of the market because last year the shipment from Japan totaled about 2.4 million."

Why compact cameras continue to gain popularity

The drivers of this growth are complex, and Tokura admits there isn't a single defining factor he can point to. However, he suggests that supply constraints may be masking the market's true strength.

"From the result of the shipments, we see that the compact camera market has grown about 25% or so. And I have to say that supply is not fully satisfying the demand yet, and this situation is still continuing. We are enhancing our production capacity; what I mean is that the actual market strength can only be seen after we reach the actual production capacity that meets the demand."

The Canon PowerShot G7 X Mark III remains popular and hard to find, even seven years after its launch. Canon says it plans to increase its production capacity. Photo: Dan Bracaglia

Canon's view of the smartphone's role in the market has also evolved. Rather than replacing cameras, they believe smartphones are acting as a gateway for that younger generation to discover photography and seek out dedicated tools, particularly compact models.

"In the past, we thought smartphones should be good enough because everyone's taking photos on smartphones, right? But apparently, it was not the right prediction because many people started to have different tools: smartphones in one hand and a camera in the other hand, and they decide which one to use depending upon the use case."

"So they started to find the joy of using cameras. When they choose a second device after the smartphone, are they going to use the mirrorless camera? Possibly not, because it's a bit large and also it's pricey as well. That's why the compact camera is there for their choice, so this is a totally new need we see."

"In the past, we thought smartphones should be good enough because everyone's taking photos on smartphones, right? But apparently, it was not the right prediction..."

For many of these photographers, the experience a camera provides can outweigh any technical superiority it might have.

"What we observe," Tokura says, "is that the determining choice, when they decide which camera they are going to buy, is not just because of the performance, but how fashionable it is to own it, or how much joy they can feel."

"Of course, we have to increase our production capacity. That's the first thing we're going to do," he continues. "But as I mentioned before, the current customers of compact cameras are not really our past customers or existing customers... So the role of the next compact camera that we will release will be to satisfy these customers by offering new technologies or new applications." He adds that the company would like to review and restructure its full compact lineup.

The challenge of affordability

As global costs rise, Canon says it relies on its manufacturing philosophy, monozukuri, to keep products accessible to enthusiasts.

"We consider affordability as one of the major aspects for us," Kato says. "The world is full of negative aspects in terms of cost, labor cost, and also tariffs as well. That is why we are pursuing high-productivity monozukuri, or manufacturing, and this is the area we are proud of."

Canon points to the recent RF 45mm F1.2 STM as a result of this effort. "As part of that, it was only last year we released the RF 45mm F1.2 STM, and that was enabled through our excellent product planning. This kind of planning will also be continued, and this is part of Canon's role."

A portrait captured using Canon's RF 45mm F1.2 STM lens. Canon says this fast prime lens is an example of its commitment to creating affordable products for enthusiast photographers. Photo: Richard Butler

Affordability also explains Canon's continued production of DSLRs for cost-sensitive emerging markets. "We have been continuing mass production of DSLRs, and market trends indicate that sales are still strong," says Tokura. "I hope we can sell more."

Image quality and the role of AI

When asked where Canon is looking for future breakthroughs in image quality, Tokura emphasizes the balance between hardware and software while maintaining strict ethical boundaries regarding artificial intelligence.

"Utilizing artificial intelligence or deep learning technology in the field of image rendering is something we have to be careful of. We are fine to use AI or deep learning technology for correcting distortion that results from optical aberration… Having said that, we will never use such technology to create something that doesn't exist. This is where we draw the line."

Canon has utilized AI technologies in cameras like the EOS R1 to reduce noise or increase resolution, but says it's firmly against using AI to "create something that doesn't exist." Photo: Dale Baskin

To push the limits of what can be done to improve image quality, however, Tokura suggests the only real constraint is investment. "Yes, there are so many things we can do to advance technology and achieve higher performance. That is why no huge vault can satisfy our needs of spending money in a casual manner. We need a bigger vault. That's what I mean."

Lens development and the elephant in the room

Finally, we addressed Canon's conservative approach to third-party licensing for the RF mount and whether current restrictions necessitated the development of niche first-party lenses, such as the RF 14mm F1.4 VCM.

"We listened to market feedback," says Tetsushi Hibi. "There was demand from the market for a large aperture and a wide lens. That is why we released this product."

Tokura adds, "Let me just use more precise words. We said that in order to respond to the customer feedback or in order to meet the customer's demand, but the word I actually want to use is to exceed the customer's demand. So this is what we, from the planning side, aim for."

Canon has allowed third-party lens makers to manufacture several lenses for its APS-C cameras, like the EOS R7 (above), but has been much more restrictive when it comes to full-frame lenses. Based on our conversation with Canon executives, it doesn't sound like that will change soon. Photo: Dan Bracaglia

Pressing further on the possibility of more broadly opening the RF mount to licensees, we noted that in 2025, Tokura told DPReview's Richard Butler, "I think one day we're going to be sitting here again and saying the environment has changed and the situation has changed."

"My answer is the same as last year," he says. "But you know, we have released so many lenses last year, and now we have like 60, almost 70 kinds of lenses. So this is part of the change of the environment you mentioned. So we will carefully watch and listen to the customers' feedback and make the strategic decision."

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This article is based on an interview by Dale Baskin and Mitchell Clark at CP+ 2026. It has been edited for clarity and flow.