Automatic Number Plate Recognition (ANPR) System Market Size, Share & Industry Analysis, By Component (Hardware and Software), By Type (Mobile and Fixed), By Application (Law Enforcement, Traffic Management, Toll Collection, and Others), and Regional Forecast, 2024-2032

The global automatic number plate recognition (ANPR) system market size was valued at USD 2.79 billion in 2023. The market is projected to grow from USD 2.96 billion in 2024 to USD 5.95 billion by 2032, exhibiting a CAGR of 9.1% during the forecast period. The Asia Pacific dominated the Automatic Number Plate Recognition System Market with a share of 40.14% in 2023.

The Automatic Number Plate Recognition (ANPR) system is a technological innovation in the field of video surveillance. The technology utilizes an optical character recognition engine to read the vehicle registration plates or license plates from captured videos or images to create vehicle location data stored in its database. It has witnessed steady growth through expanding its technological applications in law and enforcement sectors and in smart city infrastructure, border security, parking systems, and a few more.

The increased number of COVID-19 cases resulted in a high alert situation in various countries worldwide. This resulted in temporary shutdowns of all major and minor sectors except the healthcare industry to retain the impact and lower the virus spread. Thus, many nations globally halted manufacturing industries and suspended work-related operations. The temporarily suspended operations had long-term repercussions as the global supply chain was disrupted, and logistics and inventories suffered significantly, creating inflammation and a rise in the cost of raw materials.

The increased demand for efficient road security and surveillance, transportation with minimal traffic violations and reduced road congestion are some of the major concerns that the Automatic Number Plate Recognition systems address. The technology is increasingly used in road and safety applications due to its efficiency in detecting road and traffic violations. In addition, the increasing focus of various governments to integrate IoT in city infrastructure is further expected to drive the adoption of ANPR cameras.

Automatic Number Plate Recognition (ANPR) System Market Trends

Integration of ANPR technology in Smart Parking is a Growing Tech Trend

Smart parking management has reformed the issues with urban parking spaces, and the automatic number plate recognition system further enriches the overall parking experience. ANPR cameras are highly beneficial in parking management systems as they provide real-time data monitoring of vehicles and parking spaces. The data, such as vehicle license plates and available spaces, is further utilized to minimize congestion and reduce the hassle of parking. Rising awareness among consumers, mall owners, and shopping plazas toward the availability of smart parking systems is further expected to yield higher market penetration for ANPR camera technology.

The ANPR technology also addresses the parking payment solution by introducing boom barrier access control integrated with smart parking management and ANPR technology. As vehicles approach the entry or exit points, ANPR cameras capture license plate information swiftly and accurately. The boom barriers then automatically grant or deny access based on authorized plate numbers, eliminating the need for manual intervention. Furthermore, ANPR technology also unlocks the ability to track parking and patterns, peak hours, durations, and many other insights, which provide a better understanding of the traffic, allowing efficient results. Thus, the integration of ANPR technology in smart parking systems is a growing trend expected to shape Automatic Number Plate Recognition system growth.

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Automatic Number Plate Recognition (ANPR) System Market Growth Factors

Increasing Road Traffic Violations and Fatalities Drive Automatic Number Plate Recognition System Market Growth

Automatic number plate recognition technology has proven to be highly efficient in detecting traffic violations and breaking road safety laws. This system successfully captures license plates of vehicles using optical character recognition and registers and stores the information in the software for analytics and insights. Growing government focus on strengthening road and safety laws is set to propel the market growth during the upcoming period.

ANPR technology also provides an easy solution for measuring section-related traffic and can predict vehicle speed and detect speed limit violations on the road. Some of the other significant applications of ANPR in the civil enforcement system include bus lane infringements, red light violations, average speed, and a few others. This eliminates the need for civil enforcement officers at every junction without compromising security. Thus, as more traffic violations and road congestion increase in urban areas, this system is expected to witness higher demand to tackle urban and metropolitan traffic congestion problems.

Rapid Integration of IoT and Data Analytics in Urban Cities to Propel Market Growth

Major economies in the world are actively integrating various electronic methods and sensor systems for various public use cases in metropolitan cities to analyze traffic, populace data, peak times, and other factors responsible for congested roads, civilian safety, and other urban city issues. Integrating Internet of Things (IoT) and sensor-based technologies eliminates the need for physical representation. It promotes data-driven decisions, which improves transportation efficiency and results in less congested roads and a more traffic-abiding population.

The ANPR technology significantly promotes the safety and security of urban areas as it provides real-time data visualization, allowing civil enforcement to act based on analytics and data-driven decisions. The integration of ANPR technology streamlines the law and enforcement search and recovery process for stolen vehicles. Moreover, the Automatic Number Plate Recognition system’s ability to automate operations such as tracking vehicles, traffic violations, and suspicious vehicle activities further benefit the entire smart infrastructure architecture. As more and more urban and metropolitan cities shift toward IoT-enabled operations, ANPR technology is expected to witness high demand.

RESTRAINING FACTORS

High Risk of Data and Security Breaches May Hamper Market Growth

Automatic number plate recognition has proven to be highly beneficial and efficient for tackling modern-day road and traffic issues faced by various major cities. However, the technology is highly exposed to cyber-related attacks, which have witnessed increased growth as the world further depends on technology-driven day-to-day operations. The ANPR systems require robust framework and server security solutions to avoid any sort of data breaching and data hacking. Access to this sensitive information can significantly cause fatal damages. This technology entirely functions digitally and can be accessed through data breaches and server hacks. Thus, robust firewall and safety systems play a crucial role in strengthening these digital technologies to prevent any cyber-attacks. However, poor safety and security systems integrated with this technology might lead to cyber-attacks, further hampering product adoption.

Automatic Number Plate Recognition (ANPR) System Market Segmentation Analysis

By Component Analysis

Hardware Segment Dominates Due to Increasing Demand for High-Resolution Camera Systems

Based on component, the market is segmented into hardware and software.

The hardware segment dominated the Automatic Number Plate Recognition system market share in 2022. The growth can be attributed to the high demand for higher resolution camera systems to capture multiple moving objects with minimum image discrepancies accurately. The increased set-up costs and labor costs associated with hardware systems further contribute to the market share of the hardware segment.

The software segment is expected to expand at the highest CAGR owing to advancements in Artificial Intelligence (AI) and software analytics, which is expected to drive product demand during the forecast period. Growing focus from various startups and major players to introduce numerous features into the software to provide additional insights to the vehicle monitoring applications is further expected to propel the segment growth during the forecast period. The increasing demand for various road analytics and insights is further expected to increase the demand for software solutions.

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By Type Analysis

Fixed Segment Leads Due to Growing Integration of Fixed ANPR Cameras in Urban Cities

Based on type, the market is segmented into mobile and fixed. The fixed ANPR system held the largest market share in 2022 and is expected to continue its dominance during the forecast period. The demand is attributed to the increasing integration of ANPR cameras at various signals, highways, tolls, and other places. In addition, increasing integration of fixed ANPR cameras in urban cities with high traffic congestion areas to further reduce traffic violations and promote safe driving are some of the prime factors driving the segment growth.

The mobile segment is expected to grow at the highest rate owing to the additional benefits offered by mobile ANPR cameras, as they can be integrated with police and law enforcement agencies to track vehicles that are involved in traffic violations conveniently, vehicle chase pursuits, and suspicious vehicle activity tracking. The ease of integration of mobile ANPR cameras with law enforcement vehicles is further expected to drive the segment growth.

By Application Analysis

Traffic Management Segment Takes Center Stage as Governments Embrace Traffic Management Systems for Smoother Urban Transmit

Based on application, the market is segmented into law enforcement, traffic management, toll collection, and others. The traffic management segment held the major market share in 2022 and is expected to continue its dominance throughout the forecast period. Governments from various nations worldwide are highly focused on introducing traffic management systems across their metropolitans and highly congested urban areas to provide a streamlined solution for urban traffic situations while eliminating traffic violations to minimize road fatalities. Thus, these factors are expected to significantly drive the segment growth during the forecast period.

The others application segment is expected to register the highest CAGR as a result of the increasing implementation of ANPR technology for various applications such as commercial spaces, smart parking spaces, vehicle tracking, border security, and other applications.

The law enforcement and toll collection segment is also expected to increase at a significant growth rate owing to the ease and efficiency of operations by integrating ANPR technology.

REGIONAL INSIGHTS

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Asia Pacific Dominates Due to Growing Adoption of ANPR to Minimize Road Congestion

On the basis of region, the market is divided into Europe, Asia Pacific, North America, and the rest of the world.

Asia Pacific held the largest market share in 2022. The growing shift of populace in tier 1 and tier 2 cities due to higher employment rates and higher quality of living has resulted in road congestion. In addition, increasing traffic violations are a growing concern among the government as the growing number of traffic violations result in higher road fatalities. Thus, major Asian countries are actively introducing ANPR to address traffic violations and minimize road congestion.

Europe market for Automatic Number Plate Recognition system is expected to grow at the second highest growth rate during the forecast period owing to the increased focus of European governments to strengthen road regulations in order to promote safer driving practices. The increasing focus of European nations on integrating smart city solutions in their urban areas is further expected to propel the regional growth.

North American market and the rest of the world accounted for a significant growth rate in 2022 and are expected to show substantial growth during the forecast period. The high demand for ANPR technology for various applications such as parking management systems, toll collection, strengthening border securities and others fuels growth.

List of Key Companies in Automatic Number Plate Recognition (ANPR) System Market

Major players Focus on Procuring Large Contracts to Strengthen their Position

The competition landscape of the market consists of a few established key players along with numerous small market competitors operating on local and regional scales. The market is fragmented in nature, as all the leading companies have a strong presence in major countries and aim toward procuring large contracts. For instance, in June 2022, Jenoptik received a contract from the National Cooperative Purchasing Alliance (NCPA) for their highly advanced fixed and mobile License Plate Recognition (LPR) solutions.

Furthermore, the global market consists of key players such as Hikvision, Axis Communications, Motorola Solutions, and Siemens, which are some of the largest manufacturers of these systems. They majorly operate in global and regional markets with a lack of presence in small-scale markets. Other significant players operate in the regional and local markets, addressing the consumers who have small-scale demands for ANPR solutions. Some of the other prominent players operating in this market are Rekor Systems Inc., Kotai Electronics Pvt Ltd., Jenoptik AG, Milestone Systems A/S, and other players operating on similar ground.

LIST OF KEY COMPANIES PROFILED:

• Hikvision (China)


• Axis Communications AB (Sweden)


• Zhejiang Dahua Technology Co., Ltd. (China)


• Hanwha Group (China)


• Siemens AG (Germany)


• Motorola Solutions, Inc. (U.S.)


• Efkon (India)


• Omniq Corp (U.S.)


• IntelliVision (U.S.)


• Smart Parking Inc. (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• September 2023:  Hikvision introduced its advanced two new license plate recognition cameras suitable for a variety of applications, ranging from farms to parking lots and similar. The product launch features two 7-Series LPR Dome Cameras and a 4 MP LPR Bullet Solar-Powered Camera Kit.


• April 2023: Kapsch TrafficCom announced that it has released a major security update to its ANPR cameras software that includes Artificial Intelligence (AI) elements, resulting in a significant performance boost. The new update features well-trained AI software using techniques such as deep learning to identify number plates of hundreds of vehicles accurately.


• April 2023: The New Zealand Police Department released an Audit findings report on ANPR technologies, revealing the staff extensively examining over 350,000 ANPRs for review from 2018-2022. The department announced that the technology integration has further resulted in progress made to create safer roads and driving practices in the country.


• March 2023: The Indian government announced the introduction of additional automatic number plate recognition cameras to its highways and for toll collection. The government aims to introduce more ANPR camera systems and rely on ANPR software for toll collections, eliminate toll plazas, and promote smart road infrastructure.


• March 2022: The U.K. government introduced two new license plate rules, which involve the numbers displayed on the license plate utilizing dark black ink for the ANPR cameras to further assist in accurately identifying the characters on the plate. Along with this, the new number plates would further need to pass ten different tests, including a newly added abrasion test, which checks if they can withstand debris like road salt and dirt.

REPORT COVERAGE

The market research report provides a detailed analysis and focuses on key aspects such as leading companies, product types, and leading product technology. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market growth over recent years.

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