The report also noted that digital print volumes eclipsed film print volumes for the first time in 2006. The market will contract, however, in 2011, InfoTrends said.

"We are expecting market growth in the near future, but each year slightly more people either stop printing photos entirely or only print when they have to," said David Haueter, InfoTrends associate director.

Haueter also noted that growth in digital printing has largely come from new camera owners. Existing owners are actually printing less than they used to, he said. "We've seen the number of prints per household decline," Haueter said. He attributed the decline to the proliferation of devices like iPods and digital frames that display digital images.