Because there are so many on the market, finding the best camera for your needs can be quite tricky.
In fact there are hundreds of digital compact cameras out there, with advanced, superzoom and rugged camera options all being available.
The right choice, of course, depends on what you want from your compact digital camera. Maybe you're looking for a high-end compact camera to take the place of your SLR, or perhaps you want something more basic to get a few snaps on holiday.
Whichever compact digital camera you might be looking for, we've pulled together a selection of what we believe are the best compact digital cameras on the market now.
Best compact cameras: Advanced
Fuji X100S
Price: £1,100/$US1,300 (around AU$1,680)
Specs: 16.3MP APS-C format CMOS II sensor, EXR Processor II, Full HD video
Fuji's replacement to its popular FinePix X100 compact camera draws on user feedback to make improvements. The Fuji FinePix X100S uses the same APS-C format sensor, but with a 16.3 megapixel resolution and a new EXR Processor II and 6 x 6 RGGB filter array pattern.
We liked the retro design and control arrangement of the Fuji X100. Its image quality is also good, but it is surpassed by that of the Fuji X-Pro1, which is capable of producing pictures that aren't far off those from some full-frame cameras.
Read our Hands on: Fuji X100S review
Fuji X20
Price: £500/$US600 (around AU$760)
Specs: 12MP X-Trans CMOS II sensor, 6 x 6 RGGB filter array pattern, 7.1-28.4mm f/2-2.8 lens
The Fuji X10 was our favourite high-end compact camera of 2012, and combining it with the same sensor design as one of our favourite compact system cameras - the Fuji X-Pro1 - bodes very well.
Fuji says it's made 50 improvements on the X10 for the X20, including a new 2/3-inch X-Trans CMOS II sensor with 12 million effective pixels and a 6 x 6 RGGB filter array pattern, which combines with an EXR Processor II. The Fuji X20 also boasts a hybrid AF system and a Digital Trans Panel in the viewfinder.
Read our Hands on: Fuji X20 review
Canon Powershot G1 X
Price: £500/$US700/AU$650
Specs: Large 14.3MP CMOS sensor, 4x optical zoom, 1080p HD video, swivel LCD screen
Although the zoom range is limited when compared to other Canon G-series cameras, the trump card of the Canon G1 X is its unusually large sensor. A larger sensor has more surface area to receive light, improving image quality at high sensitivities and boosting dynamic range. Interestingly, Canon has opted to stick with the 4:3 aspect ratio, rather than 3:2 as most APS-C sensors are, even though the sensor in the G1 X is roughly the same height as APS-C format.
In order to make the most of what the sensor can offer, Canon has equipped the G1 X with the latest Digic 5 processor, which promises better control over noise at high ISO sensitivities, faster operation and smoother 1080p video recording.
The 4x zoom lens provides an angle of view equivalent to a 28-122mm lens on a 35mm camera, and the usual array of direct controls found on G-series cameras should make manual operation a pleasure.
Read our Canon G1 X review
Canon PowerShot G15
Price: £440/$US500/AU$520
Specs: 12.1MP CMOS sensor, 5x zoom lens, f/1.8 aperture
At first glance, the Canon G15 looks pretty similar to the Canon G12, but there are a few significant differences. The most notable of these is the stacked or overlapping mode dial and exposure compensation dials on the top, and a new f/1.8 lens with 5x zoom.
Canon has manufactured a high quality compact camera in the shape of the Canon G15. It is capable of producing great images with bags of detail, good punchy colours and pleasing shallow depth of field effects.
Read our Canon G15 review
Ricoh GR Digital IV
Price: £435/$US550 (around AU$665)
Specs: 10MP CCD sensor, 28mm (equiv) f/1.9 lens, 1,230,000 dot 3-inch LCD screen
A pocketable camera with a high quality lens, equivalent to a 28mm lens on a 35mm camera, and a fast f/1.9 maximum aperture. The GR Digital IV follows in Ricoh's tradition of producing high quality compact cameras that are ideal for street photography.
Despite the compact dimensions, manual controls are easily accessible and a 3-inch LCD screen with an extremely high resolution of 1,230,000 dots has been squeezed onto the rear. Images can be shot in raw formats too.
Strangely Ricoh hasn't followed the trend of including HD video capability, the GRD IV will record video, but only at VGA resolution.
Read our Ricoh GR Digital IV review
Olympus XZ-2
Price: £420/$US550/AU$550
Specs: 12MP 1/1.7-inch CMOS sensor, i.Zuiko Digital lens, TruPic VI processor, Full HD video
The Olympus XZ-2 follows the popular high-end XZ-1, touting a 3-inch tilting touchscreen with 920,000 dots, 1080p Full HD movie capture and full manual and semi-manual exposure controls. It also boasts raw image capture and can share photos straight from the camera to social networks.
Its super-fast i.Zuiko Digital lens has to be this camera's standout feature, offering ultra-wide apertures and an impressive focal length range of 28-112mm, which sails past many of its hottest contenders, and produces sharpness straight out of the camera, which many of its peers fail to match.
Read our Olympus XZ-2 review
Nikon Coolpix P7700
Price: £390/$US400/AU$525
Specs: 12.2MP, 1/1.7-inch CMOS sensor, 7.1x zoom, 1080p video, 3-inch 921,000-dot variangle LCD
The Coolpix P7700 replaces the Nikon P7100 and sits at the top of Nikon's compact camera line-up. It's aimed at experienced photographers who want a smaller alternative to an SLR.
There's a liberal covering of control dials and buttons on the P7700's body giving quick access to features such as the shooting mode, sensitivity, white balance and exposure compensation to name just a few.
The lens offers an equivalent focal length range of 28-200mm in 35mm terms, and has a maximum aperture range of f/2.0-4.0.
Although the P7700 is capable of producing excellent images with lots of detail and nice colours, it is a little hampered by slow image processing making it unsuitable for shooting action.
Read our Nikon P7700 review
Sony RX1
Price: £2,600/$US2,800/AU$3,000
Specs: 24.3MP Xmor CMOS full-frame sensor, 35mm f/2.0 Carl Zeiss T* coated lens, Full HD video
On the Sony RX1, the manufacturer has stashed a 35mm format full-frame sensor and a fixed length, 35mm f/2.0 Carl Zeiss T* coated lens inside a compact body. It also features a new Bionz processor, which enables Full HD video recording and sensitivity capabilities from ISO 50 to ISO 102,400.
The Sony DSC-RX1 produces superb images, with a fantastic amount of detail, colour and dynamic range. It really is the best image quality you'll get in something of this size. Of course, you'll have to be prepared to pay a lot for this ultimate combination of quality and portability, not just in terms of asking price, but also in terms of inflexibility.
Read our Sony RX1 review
Sony RX100
Price: £480/$US650/AU$680
Specs: 20.2MP Exmoor CMOS sensor, 3.6x zoom, 1080p video, Bionz processor, f/1.8-4.9 lens
Though it's a relative small compact camera, the Sony RX100 has a larger than average sensor. In fact its 20.2MP 1-inch CMOS device is the same physical size as the one in the Nikon 1 V1 and Nikon 1 J1, which are compact system cameras.
We love the build quality of the RX100 and it provides all the controls that demanding enthusiasts expect, plus the ability to record raw files. We especially like the control ring around the 28-100mm (equivalent) f/1.8-4.9 lens that can be used to adjust a selection of features including aperture.
Our tests reveal that the RX100 performs well across the sensitivity range (ISO 125-6400) and it produces, bright punchy images that aren't excessively vibrant.
Read our Sony RX100 review
Samsung EX2F
Price: £260/$395/AU$450
Specs: 12.4MP, 1/1.7-inch CMOS sensor, 3.3x optical zoom, 1080p video, 3-inch, 614,000 dot variangle screen
The Samsung EX2F improves on the Samsung EX1 by adding Wi-Fi capability for easy image sharing, boosting the pixel count from 10MP to 12MP and increasing the maximum aperture of the 24-80mm (equivalent) lens from f/1.8 to f/1.4.
Two dials on the top of the camera make selecting the shooting mode and changing key settings such as the drive mode very quick and easy. The function (Fn) provides a quick route to most other important features.
Our tests found that the Samsung EX2F is a very capable compact camera that delivers high-quality images with plenty of detail at the lower sensitivity settings, and natural colour. It's Wi-Fi connectivity is also well integrated so its easy to set up and use. You can share images on Facebook in next to no time.
Read our Samsung EX2F review
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