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 [link no longer available] 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

Sony Favorability Results 2019 on Feb 06, 2019
Sony Favorability amongst integrators improved moderately compared to their 2017 favorability results, with a modest net positive...
Avigilon Launches 'Renewed Products Program' on Mar 19, 2019
There are lots of 'pre-owned' cars but pre-owned IP cameras? While such programs are common in other industries, in video surveillance, they are...
Verkada Gets Half Billion Dollar Valuation on Apr 26, 2019
Last week, when we profiled Verkada (The Fastest Growing Video Surveillance Sales Organization Ever - Verkada), we predicted they would raise $40...
OpenALPR Doubles Prices on Jun 06, 2019
There is no 'race to the bottom' in cloud / AI video surveillance. In May, Verkada increased their prices. Now, OpenALPR is doing the same with a...
Bosch Integrating Sony Video Security Sales And Marketing Team on Jul 03, 2019
What is the future of Sony in video surveillance? In 2016, Bosch and Sony announced an atypical 'partnership'. Now, Bosch tells IPVM that they...
Fujifilm Expanding Into Video Surveillance on Jul 26, 2019
While Sony continues to fade out of the video surveillance market and Canon continues to make huge investments into acquiring video surveillance...
Vivotek Revenue Soars on Aug 05, 2019
Vivotek's revenue has soared so far in 2019, growing 45%. Inside this note, we examine import records and see who is driving Vivotek's growth...
Hanwha Announces 32MP Camera + AI Line on Sep 10, 2019
In the first rise in maximum megapixel resolution in 5 years, Hanwha has announced a 32MP / 8K camera directly competing with Avigilon's H4 30MP /...
Resideo Stock Plunges 37%, CFO Ousted on Oct 23, 2019
The horrible year for the ADI / Honeywell Home spinout, Resideo, just got worse, with their stock plunging another 37% today. Not even a year...
2020 Video Surveillance Cameras State Of The Market on Jan 03, 2020
Each year, IPVM explains the main advances and changes for video surveillance cameras, based on our industry-leading testing and reporting. This...

Most Recent Industry Reports

"Hikvision Football Arena" Lithuania Causes Controversy on Jan 24, 2020
Controversy has arisen in Lithuania over Hikvision becoming a soccer team's top sponsor and gaining naming rights to their arena, with one local MP...
Axis and Genetec Drop IFSEC 2020 on Jan 23, 2020
Two of the best-known video surveillance manufacturers are dropping IFSEC International 2020, joining Milestone who dropped IFSEC in 2019. The...
Multipoint Door Lock Tutorial on Jan 23, 2020
Despite widespread use, locked doors are notoriously weak at stopping entry, and thousands can be misspent on locks that leave doors quite...
Avigilon Shifts Cloud Strategy - Merges Blue and ACC on Jan 23, 2020
Avigilon is shifting its cloud strategy, phasing out its Blue web-managed surveillance platform as a stand-alone brand and merging it with its ACC...
Verkada Paying $100 For Referrals Just To Demo on Jan 22, 2020
Some companies pay for referrals when the referral becomes a customer. Verkada is taking it to the next level - paying $100 referrals fees simply...
Camera Analytics Shootout 2020 - Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision, Uniview, Vivotek on Jan 22, 2020
Analytics are hot again, thanks to a slew of AI-powered cameras, but whose analytics really work? And how do these new smart cameras compare to top...
Intersec 2020 Final Show Report on Jan 21, 2020
IPVM spent all 3 days at the Intersec 2020 show interviewing various companies and finding key trends. We cover: Middle East Enterprise...
Vehicle & Long Range Access Reader Tutorial on Jan 21, 2020
One of the classic challenges for access control are parking lots and garages, where the user's credential is far from the reader. With modern...
Clearview AI Alarm - NY Times Report Says "Might End Privacy" on Jan 20, 2020
Over the weekend, the NY Times released a report titled "The Secretive Company That Might End Privacy as We Know It" about a company named...
Favorite Camera Manufacturers 2020 on Jan 20, 2020
The past 2 years of US bans and sanctions have shaken the video surveillance industry but what impact would this have on integrators' favorite...