Leica has seen continued growth on the back of creating the world’s first AI fraud proof imaging system.
Leica Camera Group released its FY 2022/2023 results on February 20. Sales rose for the third year in a row and the company is forecasting further growth in FY 2023/2024. Continued growth is driven in part by Leica’s Content Credentials feature, which confirms that the photo under question was indeed made with this camera at a certain time.
Record breaking sales
Leica reached new heights in total revenue. Sales reached 485 million euro in 2022/2023, versus 444 million euros in 2021/2022. This is 9 percent growth following approximately 15 percent growth in 2020/2021.
In FY 2022/2023, monobrand own stores saw sales climb by 16 million euro, or 13 percent, year-on-year. The group’s sport optics sported record sales.
Leica Camera AG CEO Matthias Harsch pointed out in particular to the importance of the technology behind the M-11P, which was released in October 2023, as a driver or further growth. Hasch noted that Leica’s Content Credentials feature was an important step for manufacturers and news sites trying to correctly confirm that an image was not created by AI or faked.
Harsch stated that, “Thanks to increased engagement in forward-looking fields of technology, an innovative product portfolio and the consistent expansion of the global sales network, we now also expect positive developments in our sales revenues for the current financial year.”
The importance of Content Credentials
Leica is not alone in the creation of the Content Credentials metadata format. The Content Authenticity Initiative (CAI), which created the format, was co-founded in 2019 by Adobe, though, as an open-source project, does not require a connection with Adobe. Currently, Adobe, AFP, the Associated Press, Arm, the BBC, Getty Images, Intel, Microsoft, Reuters, The Wall Street Journal and more than 2000 other members have joined the initiative.
Other camera makers including Nikon and Canon have attempted to create their own metadata standards, but both attempts have been hacked. The CAI effort remains intact, and with the launch of the Leica M11-P, may gain traction in the general photography market. Leica’s first-mover status in the CAI effort also becomes an important point for claiming that Leica is still pushing technological development and is not merely a luxury brand.
Industry beating growth
Leica has been ahead of the photographic equipment market recently in terms of growth. According to trbc.info, The general market is expected to grow 6.1 percent CAGR to $43.01 billion in 2024. Further growth is seen as well, with the general photographic equipment market forecast to rise to $53.06 billion by 2028.
Regarding that luxury brand label
While Leica is driving forward with new technology, including the first-ever digital cameras with dedicated black & white sensors, the status market for the manufacturer remains, and drives a significant portion of its in-house used camera business.
Moreover, as Leica’s own press release regarding the 2022/2023 financials noted: This was confirmed in the past financial year by a rare Leica 0-Series camera from 1923/24, which achieved the world record price of 14.4 million euros (including the buyer’s premium) at the 40th Leitz Photographica Auction and became the most expensive camera of all time.
