Arecont Vision Revenue and Growth Examined

By: John Honovich, Published on Aug 23, 2011

In this note, we examine the revenue and growth of US megapixel manufacturer Arecont Vision - a company whose growth has clearly been impressive, even relative to the fast overall growth of the megapixel IP camera market. Inside, we look at the specifics of their growth, what is driving their growth and how Arecont Vision compares to ACTi, Axis, Mobotix and Vivotek.

Let's start with some basic financial facts of Arecont Vision:

  • Arecont reports $51 Million USD 2010 annual revenue.
  • Revenue is up from $9 Million in 2007, an increase of 416% over a 3 year period.
  • Arecont's compounded annual growth rate (CAGR) over the last 3 years is 71%
  • The overall IP camera market CAGR is generally accepted to be in the 20%-30% range during that time (remembering the dip during the 2009 recession)

Let's contrast this to 2010 revenue for other large IP camera manufacturers:

  • Axis: ~$460 Million with solid growth over the last 18 months
  • Mobotix: ~$90 Million with solid growth over the last 2 years
  • Vivotek: ~$60 Million with fast growth over the last 2 years
  • ACTi: ~$40 Million with flat growth over the last 2 years

All of these companies are generally considered among the top 10 largest sellers of IP cameras. Compared to them, Arecont's revenue is competitive, except of course for Axis. However, Arecont's growth rates over the past 3 years is significantly higher than all of these companies (other companies growth rate is closer to 100% range significantly below the 400%+ of Arecont's).

Analysis

Undoubtedly, Arecont Vision's growth is impressive and formidable. From a product perspective, we see two main drivers of this growth:

Focus on low cost, bare-bones cameras: Even more so than the Taiwanese manufacturers, Arecont has vigorously reduced the cost of MP cameras (their compact series enhancements are a good example of this). Unlike almost every other IP camera manufacturer, Arecont cameras come with no bells and whistles - no audio, no on board storage, no analytics, no auto focus, no WDR, etc. While there are certainly drawbacks of such products, the major upside is that people who want low cost, high resolution cameras have a clear choice. There's no real direct competitor for this especially as ACTi and Vivotek push upmarket with their respective 4MP and Supreme series.

Multi-imager cameras: Arecont Vision is one of only a few manufacturers offering multi-imagers cameras (i.e. their 180 and 360 Surround View 8MP and soon to be 20MP lines). Our sources indicate very strong sales for these products which we find to be quite believable. 

  • They are relatively cheap (about $1300 online for an 8MP camera).
  • They are easy to integrate as no special dewarping SDK is needed (unlike panoramic fisheye cameras).
  • Providing multiple lower resolution imagers/lenses provides better image details than a single higher resolution imager/lens.
  • Very few competitive options - the largest manufacturer with a rival product is Avigilon whose offering is proprietary and JPEG2000 only.

We see Arecont Vision having a strong position in the market. No one seems committed to competing against them head to head for low cost, bare bones cameras. This may change but we do not see anyone yet. As for the multi-imager cameras, we think it would make a lot of sense for rivals to enter, especially to differentiate themselves in the crowded HD camera market. However, we have not seen any strong rivals enter this segment yet (the Axis P5544 is a novel camera but no threat to Surround View applications due to much higher pricing and different product design - incorporated PTZ).

At the same time, beyond the relative lack of features, we do find a number of weaknesses with Arecont relative to other top manufacturers:

  • Image quality suffers significantly when faced with strong lighting (no WDR) or low light
  • Bandwidth consumption spikes very high in low light
  • Reputation for poor quality (that the company strongly disputes)
  • A shoddy and buggy VMS offering that is needed for majority of camera configuration options

For us, despite the company being American, we view Arecont Vision more as a honorary Taiwanese/Chinese company - very attractive pricing but lots of headaches when dealing with the cameras. That noted, the company has the potential to continue to grow nicely as long as it stays the course and competitors do not attack its lower cost, bare bones market position.

1 report cite this report:

Low Cost Professional IP Cameras Comparison on Oct 23, 2011
"Too expensive" is probably the most frequent complaint about IP cameras. While IP cameras have clearly come down in price in the last few years,...
Comments : PRO Members only. Login. or Join.

Related Reports

Wyze Image Quality Tested vs Axis, Hikvision And Nest on Aug 27, 2019
With Wyze's new AI feature, it is strong at analytics, but how good is the camera's image quality? Is it just as good as incumbents like Axis,...
Hikvision 4K Camera Shootout on Aug 02, 2019
With their latest Smart Series 5 cameras, Hikvision is claiming cameras "fully loaded" with "state-of-the-art technology for high performance and...
ASCMA / Monitronics Declares Chapter 11 Bankruptcy on May 22, 2019
Monitronics is entering into Chapter 11 bankruptcy. The company, also calledĀ Ascent Capital Group Inc., aka ASCMA, aka Brinks Home Security,...
Dahua ePoE Long Distance UTP / Coax Tested on May 03, 2019
Dahua's Enhanced PoE (ePoE) line is claiming extended video and power transmission over 600m without repeaters, with devices interchangeable via...
Top Hikvision Proponent Nelly's "GoSwift" Elsewhere on May 03, 2019
Sean Nelson of Nelly's Security has made a name for himself and his company as a proponent of Hikvision, such as this notable 2017...
Milestone Execs on Financials, China and Future on Apr 29, 2019
Milestone has released a 44-page annual report for 2018, an atypical and unrequired move for a subsidiary of a large company, however, Milestone...
ADT Stock Drops After Announcing Loss And Amazon Delay on Mar 12, 2019
ADT's stock price dropped significantly after reporting heavy losses and delays in its Amazon partnership, as seen in the screenshot below: In...
Ubiquiti Favorability Results 2019 on Feb 18, 2019
Ubiquiti has quietly grown into a $1+ billion annual revenue company, with offerings across wireless, wireline network and video surveillance (see...
Hikvision 2018 Revenue Tops $7 Billion USD But Growth Slows To Low on Feb 15, 2019
Hikvision's annual revenue topped $7 billion for the first time in 2018, although growth slowed sharply. In this post, we analyze the latest...
Barnes Buchanan 2019: Despite 'Strange Narrative' Great Time To Be In Security on Feb 11, 2019
A "strange narrative" is being spun, said Michael BarnesĀ at the 2019 Barnes Buchanan Conference. However, despite that narrative, it is a "great...

Most Recent Industry Reports

ONVIF Suspends Huawei on Sep 20, 2019
Huawei has been 'suspended', and effectively expelled, from ONVIF so long as US sanctions remain on the mega Chinese manufacturer. Inside this...
Open Access Controller Guide (Axis, HID, Isonas, Mercury) on Sep 19, 2019
In the access control market, there are many software platforms, but only a few companies that make non-proprietary door controllers. Recently,...
Axis Perimeter Defender Improves, Yet Worse Than Dahua and Wyze on Sep 19, 2019
While Axis Perimeter Defender analytics improved from our 2018 testing, the market has improved much faster, with much less expensive offerings...
Directory of 68 Video Surveillance Startups on Sep 18, 2019
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known. 2019...
Uniview Prime Series 4K Camera Tested on Sep 18, 2019
Is the new Uniview 'Prime' better than the more expensive existing Uniview 'Pro'? In August, IPVM tested Uniview 4K 'Pro' but members advocated...
US Army Base To Buy Banned Honeywell Surveillance on Sep 17, 2019
The U.S. Army's Fort Gordon, home to their Cyber Center of Excellence, has issued a solicitation to purchase Honeywell products that are US...
Vivotek "Neural Network-Powered Detection Engine" Analytics Tested on Sep 17, 2019
Vivotek has released "a neural network-powered detection engine", named Smart Motion Detection, claiming that "swaying vegetation, vehicles passing...
Schmode is Back, Aims To Turn Boulder AI Into Giant on Sep 16, 2019
One of the most influential and controversial executives in the past decade is back. Bryan Schmode ascended and drove the hypergrowth of Avigilon...
Manufacturers Unhappy With Weak ASIS GSX 2019 And 2020 Shift on Sep 16, 2019
Manufacturers were generally unhappy with ASIS GSX, both for weak 2019 booth traffic and a scheduling shift for the 2020 show, according to a new...