The nightmare that is GoPro(GPRO) - Get Report continues for investors as what was once a Wall Street high flier has lost about 86% of its market capitalization in less than a year.

Shares hit an all-time low of $8.79 last Thursday, and a turnaround doesn't appear to be anywhere in sight.

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The action-camera market size is anticipated to grow at a compound annual growth rate of more than 22% through 2023. As of last year, more than 7 million units had been shipped worldwide.

The increasing popularity and usage of social-networking sites will fuel the industry growth over the next several years. The personal-action-camera market share equated to about 75% of the total action camera industry's revenue last year. 

And GoPro accounted for more than 45% of action-camera industry sales that same year. But industry growth could, in fact, make things worse for the suffering camera maker.

With a rapidly growing industry comes increased competition. An industry that once had GoPro sitting atop all by itself, is now seeing a flood of competition that will surely eat away at the company's market share.

Electronics giant LG Electronics recently introduced the LG Action CAM, the first action camera to be available globally with LTE connectivity built-in, allowing users to stream directly to sites such as YouTube Live without a smartphone. The camera will launch in South Korea next month, followed by key markets in Europe and North America soon thereafter.

Not much is known about LG's new camera, but it seems cool, and it will certainly steal sales away from an already slumping GoPro that had a 49% decrease in first-quarter year-over-year revenue.

"Introduction of new players in the industry is expected to benefit customers," according to TechStockInsider.com

Although this may be true, it doesn't bode well for GoPro, a company whose once-innovative action-camera product line is beginning to look outdated, overpriced and lacking in desirable features. And to make matters worse, the company is delaying its heavily hyped Karma drone launch until later this year.

Other companies breathing down GoPro's neck in the action-camera market include Garmin, LifeClips, Sony, TomTom, Xiaomi and even Polaroid. This is why expanding GoPro's product lines is so important to the company's future.

But the delay of the Karma drone could cost GoPro its first-mover advantage.

Consumers are demanding features that aren't standard with GoPro models such as an internal gyroscope for greater image stabilization, built-in motion detection for activation, and a 16 mega-pixel image camera, all standard features on LifeClip's SoloVu 4k action camera.

Increased competition is forcing GoPro's hand to update technology and diversify product lines, but whether the company is able to execute is an open question that will leave investors with very little to cheer about for the foreseeable future.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.