I don't see high end cameras taking a significant hit any time soon. If we look back to the film days, the system cameras have been around for a long time and were typically only used by the enthusiasts and pros. But on the consumer side, there first was the rangefinder and eventually the zoom point and shoot. In the digital world, we still have the system cameras and we have the point and shoot... and we have the smartphones.
The smartphone will largely take over the low end point and shoot market. Lots of the low end cameras have tiny sensors and not so good lens... The smartphones take similar image and are much more practical. I think there is still room for higher end point and shoots like the Sony rx100 series - people who aren't photography nerds but like to take good pictures and always carry a camera with them. You can print those images quite large, they have a decent zoom range and are much easier to handle.
I think the system camera market will change as well. Looking back a few years everything was striving to be a flagship DSLR, the less money you spent, the more features would be removed. What we're seeing now is much more specialization. We're at a point where the crop sensors are actually good enough for many people and FF isn't the be all/end all it once was. Lots of enthusiasts are interested in the smaller mirrorless cameras, which coupled with decent lens are really quite good. In the higher end, we're also seeing a clear division between sports/action/journalism cameras and studio/landscape cameras. Medium format is also dropping in price where I think more pros might go for it instead of only the elite. Video also throws a wrench in there. I'm hopeful we can see several companies strive in their own niche.
I also think the demand for high quality pictures is going up if anything. Social media has created a need for lots of high quality images that wasn't there just a few years ago. I also see lots of young people really interested in photography. Looking at the numbers for cameras sales from 2009 to 2013. The number of interchangeable cameras sold per year doubled from 2009 to 2012 year per year before taking a dive in 2013 (not too sure what has happened since then). Looking back, 2009 to 2012 saw lots of innovation in the camera market. DSLR video and mirrorless being big trends. Since then, we haven't seen much other than small incremental upgrades. The market is starting to look like smartphones, tablets and computers in general. Innovation is slowing down so demand slows down as well.
The smartphone will largely take over the low end point and shoot market. Lots of the low end cameras have tiny sensors and not so good lens... The smartphones take similar image and are much more practical. I think there is still room for higher end point and shoots like the Sony rx100 series - people who aren't photography nerds but like to take good pictures and always carry a camera with them. You can print those images quite large, they have a decent zoom range and are much easier to handle.
I think the system camera market will change as well. Looking back a few years everything was striving to be a flagship DSLR, the less money you spent, the more features would be removed. What we're seeing now is much more specialization. We're at a point where the crop sensors are actually good enough for many people and FF isn't the be all/end all it once was. Lots of enthusiasts are interested in the smaller mirrorless cameras, which coupled with decent lens are really quite good. In the higher end, we're also seeing a clear division between sports/action/journalism cameras and studio/landscape cameras. Medium format is also dropping in price where I think more pros might go for it instead of only the elite. Video also throws a wrench in there. I'm hopeful we can see several companies strive in their own niche.
I also think the demand for high quality pictures is going up if anything. Social media has created a need for lots of high quality images that wasn't there just a few years ago. I also see lots of young people really interested in photography. Looking at the numbers for cameras sales from 2009 to 2013. The number of interchangeable cameras sold per year doubled from 2009 to 2012 year per year before taking a dive in 2013 (not too sure what has happened since then). Looking back, 2009 to 2012 saw lots of innovation in the camera market. DSLR video and mirrorless being big trends. Since then, we haven't seen much other than small incremental upgrades. The market is starting to look like smartphones, tablets and computers in general. Innovation is slowing down so demand slows down as well.