How a Chinese smart imaging hardware startup embraces sports industry opportunities

In 2015, when Liu Jingkang, Chen Yongqiang, and their team began developing panoramic cameras (360-degree VR cameras), they could hardly imagine that their startup, Insta360, would evolve into a significant player in the sports industry.

Since 2021, Insta360's revenue has doubled year-on-year for two consecutive years, nearing four billion yuan (about 550 million U.S. dollars) by 2023. By 2024, its market share in the action camera segment is poised to rival GoPro, a company that has led the field for over a decade.

When Insta360 entered the smart imaging hardware industry, its products had no direct connection to sports. The company's breakthrough came from tapping into a rapidly growing, albeit niche, segment - sports videography.

Chen recalled that Insta360 initially aimed to meet the panoramic and VR filming needs of educational and conference livestreams.

In 2016, the company launched its first consumer-grade panoramic camera, the first in its class to capture and transform an instant panoramic image, winning the Consumer Electronics Show (CES) Innovation Award in 2017. However, from a commercial perspective, the product was less than successful.

"After the cameras were sold to distributors, they didn't quickly reach consumers. Though initial sales hit 20 million yuan a month, they soon dropped to a few million yuan, mainly because consumers didn't fully grasp the concept of panoramic cameras at that time," Chen explained.

In 2016, the global market for consumer-grade panoramic cameras was valued at just 300-400 million U.S. dollars. This prompted Chen and his colleagues to realize that, in order to grow, they needed to find a larger and differentiated market.

By 2017, videos of outdoor sports like skiing, cycling, and surfing were gaining traction on social media, and the number of participants in these sports was growing rapidly. Chen and his colleagues saw a clear demand for cameras capable of capturing and sharing these experiences.

The global action camera market was worth over 1.4 billion U.S. dollars at the time, but it was dominated by GoPro.

Insta360 saw an opportunity. Rather than imitating GoPro, the company leveraged its panoramic imaging technology to fill gaps that GoPro had overlooked.

Traditional action cameras like GoPro required athletes to focus on framing shots while engaging in their sports, often causing them to miss key moments or compromise safety.

Insta360's panoramic imaging technology provided a solution, enabling users to capture footage first and frame it later. The company also perfected essential action camera features like image stabilization.

"GoPro had already popularized the action camera among extreme sports fans," said Liu.

Chen explained, "For example, the invisible selfie stick was achieved following our deep communication with skiing enthusiasts. In the past, when skiers needed to record their movements, the process was complex and expensive, often requiring an additional cameraman with heavy equipment. So we thought of making the selfie stick invisible, as it would allow 360-degree footage with the same effect as a follow-cam or drone shot without extra cost."

This innovation was just one example of how Insta360, through direct feedback from users, continuously developed new features like smart data meters and "bullet time" effects. These features have since become popular on social media.

Insta360 has reshaped how extreme sports enthusiasts capture video, transforming the creative process for adrenaline-driven athletes worldwide.

According to industry research by Frost & Sullivan, Chinese action camera brands are beginning to replace their Western counterparts due to greater innovation and closer alignment with consumer needs.

Other Chinese action camera manufacturers, such as DJI and AKASO, have also gained consumer approval in this field.

"As outdoor sports like skiing, cycling, and surfing gain popularity, especially in China in recent years, we are confident that both panoramic and action cameras will continue to thrive," Chen concluded.