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Moreover, many are upgrading to more powerful cameras, IDC claims in its "Updated Worldwide Digital Camera Forecast."

Global digital camera shipments are expected to grow by about 15% this year, double IDC's previous forecast of 7.5%, reversing a trend of declining growth seen over the past four years.

IDC analyst Chris Chute said cameras are becoming a fashion item, a trend made popular by tiny mobile phones and Apple's iPod.

Similarly, the digital camera has become a personal, low priced item, whose sales are now more driven by impulse than utility, especially in the US, Japan and Europe, Chute claims.

"This year

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was the first that we had a lot of [different case] colour cameras, a lot of them under $200," Chute says, noting the trend toward more choices than just black or silver gadgets. "I think that is resonating with consumers."

Chute also notes that single-lens-reflex (SLR) cameras, favored by professionals and photography enthusiasts, will be more of a driver of the total market than previously thought as prices decline.

At the same time, the report showed that the average number of cameras in each camera-owning home has remained flat from 2006 at 1.4. IDC says that suggests consumers are replacing their cameras at a faster rate than expected.

Average prices for all digital cameras, ranging from entry level point-and-shoots to SLRs, are expected to slip about 13 percent this year to $307 from $352 in 2006.

Chute added that demand for digital cameras, primarily those made by market leaders, Canon , Sony and Eastman Kodak, should remain strong for the critical Christmas shopping season.

IDC said it boosted its growth outlook through 2011, with total units shipped seen at 138 million, up from an earlier expectation of 123 million. Prices are expected to decline to about $250 on average, he claims.