Automatic Number Plate Recognition Market

Automatic Number Plate Recognition Market Outlook (2022-2032)

The global automatic number plate recognition market was valued at US$ 3.1 Billion in 2021, and in 2022 to be valued at US$ 3.5 Billion. During the 2022-2032 period of assessment, demand is expected to rise at an 11.5% value CAGR, likely to reach US$ 10.4 Billion by the end of the said forecast period.

Report Attributes	Details
Anticipated Base Year Value (2021)	US$ 3.1 Billion
Expected Market Value (2022)	US$ 3.5 Billion
Projected Forecast Value (2032)	US$10.4 Billion
Global Growth Rate (2022-2032)	11.5% CAGR
Growth Rate of the U.S (2022-2032)	12.1% CAGR
Expected Market Value of China (2032)	US$ 1.1Billion
Dollar Opportunity in Japan (2022-2032)	US$ 389.3 Million
Key Application Transformation Service Providers	Bosch Security Systems, Digital Recognition Systems, Appalachian Regional Healthcare, Genetec, NDI Recognition Systems LLC Kapsch TrafficCom AG Q-Free ASA

Overall, the automatic number plate recognition landscape is poised to yield an absolute dollar opportunity worth US$ 10.4 Billion until 2032. Sales of number plate recognition integration services will continue to flourish, with a documented CAGR of 12.0% from 2015-2021. Moreover, large enterprises will continue to remain the primary beneficiaries of automatic number plate recognition services, likely to register a CAGR worth 11.5% from 2022 to 2032. US will remain at the forefront, generating an opportunity worth US$ 12.1 Billion during the forecast period.

Automatic Number Plate Recognition Market Revenue Analysis 2015-2021 vs. Future Outlook 2022-2032

Rising penetration of big data technologies, cloud computing and other advanced technologies have prompted automatic number plate recognition system providers to transform services into a whole new level. As per market research and competitive intelligence provider Fact.MR, the market for automatic number plate recognition witnessed a staggering 12% CAGR from 2015 to 2021. As enterprises strive to attain a competitive edge, automatic number plate recognition is a necessity.

Consistent upgradation of automatic number plate recognition system to provide a seamless user experience is the need of the hour. By incorporating avant-garde breakthroughs, service providers are not only able to reduce operational costs, but also enhance their returns on investment. Furthermore, changing compliance and governance requirements are also widening the scope for automatic number plate recognition services.

In the future, as more businesses rely on digital transformation, they are continuously innovating their approaches, ushering in efficiency, enhancing quality and improve client experience. Whether it is to migrate, transform or build, deploying the right application strategy can work miracles. From 2022 to 2032, the automatic number plate recognition market is forecast to grow 1.9x.

Prominent Automatic Number Plate Recognition Industry Growth Drivers

Increasing use of automatic number plate recognition system for security and surveillance purpose.

Automatic number plate recognition system is specifically designed to read automotive licence plates. This system can be used to track travelling criminal and terrorist organised crime groups. Also the law enforcement agencies use automatic number plate recognition services to collect the proof and lines of enquiry in investigation of crime.

Also the agencies such as the police force, traffic management facilities, toll agencies on pay-per-use roads, as well as parking management services use automatic number plate recognition. The system plays major role in locating the stolen vehicles. Automatic number plate recognition cameras are installed throughout the city to get clear monitoring. End users are utilizing mobile-based automatic number plate recognition systems for ensuring better security, surveillance and traffic regulation.

Increasing government funding on intelligent transport system.

In various sectors such as government, law enforcement, defence and security, and commercial increased demand for automatic number plate recognition system. Government increasing funding on intelligent transport system plays an important role in driving the market growth.

Furthermore, reinforcing traffic regulations and government initiatives to enhance road safety by increasing the implementation of Automated Number Plate Recognition system. Automatic number plate recognition is the intelligent transport technology useful in traffic management.

Key Challenges Prevalent in the Global Automatic number plate recognition Market

Inconsistency in number plate designs to pose a challenge

A major challenge faced by the developers of automatic number plate recognition systems worldwide is the inconsistency in number plate designs. It becomes difficult to construct an algorithm that would read all fonts without any discrepancy as number plates differ in terms of their size or fonts in every part of the world.

The automatic number plate recognition software may misread registration numbers, which may lead to problems in security and surveillance activities. Different illumination conditions, vehicle shadow, the non-uniformity of license plate characters, different fonts, and background colours affect the performance of automatic number plate recognition systems.

Maintaining Good Image Quality a Constant Challenge

A good camera image quality is essential during all weather and lighting conditions. Cameras on highways often have to deal with rugged conditions, there are several instances where they failed to give continuous clear visuals.

Too far or too near camera placement would result in images that are not useful.

Automatic number plate recognition software may face difficulty in rain, fog, dust other such condition and visuals may have blurred this increases difficulty in recognising the number plates.

Region-wise Analysis

Europe accounts for largest share in market

Europe market is driven by the rising demand for automatic number plate recognition for law enforcement applications, growing sales of automobiles, rising population and the need to ameliorate traffic management in regions. Due to increase in use of automatic number plate recognition system security and surveillance application Europe accounts for highest share in the automatic number plate recognition market.

Additionally, the rising travel and tourism industry in the region is expected to further propel the need for ANPR for efficient traffic monitoring. Meanwhile, North America is anticipated to hold a considerable share in the market due to the rapid digitalisation of traffic monitoring devices in the region increase the market size through forecasted period.

Asia Pacific is expected to register fastest revenue CAGR during the forecast period

Asia Pacific is expected to register fastest revenue CAGR during the forecast period, attributed to rapid infrastructure development and increasing government support to manage traffic congestion.

Growing demand for automatic number plate recognition systems by law enforcement agencies to curb criminal activities is causative of steady market growth in the region.

Country-wise CAGRs for the Automatic Number Plate Recognition Industry

Country	CAGR
U.S	12.1%
U.K	7.7%
China	14.2%
Japan	13.2%
India	17.3%

Category -wise Insights

Security and Surveillance Systems to Document Maximum Growth

By application automatic number plate recognition for surveillance and security is expected to register a CAGR of 11.1%. As the automatic number plate recognition system can lower the traffic congestion and improve traffic safety the segments accounts for highest revenue in the market. The market growth can be attributed to the need for a proper flow of traffic amidst the increasing sales of automobiles through forecasted period.

As the data provided by automatic number plate recognition product include traffic count, travel speed, also proved origin and destination these can be helpful in proper traffic management. The market will further be aided by the growing trend of congestion charge, which is levied on the drivers violating the laws in heavy traffic areas.

Implementing ANPR Cameras to widen automatic number plate recognition Deployment.

Fixed ANPR system provides the cameras to fulfil the requirement of different applications. ANPR automatically reads the number plate of vehicle and maintain its records of entry and exit time of the vehicle this will helps in issuing parking charge notice to the vehicle.

Thus the ANPR cameras broadly used in pay and display parking and car parks and electronic permit scheme. In fixed ANPR systems cameras are positioned at fixed locations, including street lights, buildings, signboards, or highway overpasses to provide continues high traffic area surveillance, monitoring high criminal activity area at safe distance. Moreover, fixed ANPR systems are a cost-effective method to monitoring moving or parked vehicles.

Competitive Landscape

The global automatic number plate recognition system is fragmented with large no of players. Major players deploying new and advance technologies in market. Prominent manufacturers of automatic number plate recognition system are eyeing technological innovations in order to provide the most accurate and precise system to their customers. As the threat of automatic number plate recognition increased over the world, companies are forging collaborative agreements with government entities to enhance their presence across major geographies.

• In March 2020 a mobile automatic number plate recognition system was introduced by Genetec named as Auto Vu ShapeZ3 which offer innovative insight on vehicle awareness and analytics.
• Petard Group LLC have agreement with Telematics technology LLP In May 2020 for intellectual property rights, associated inventory of NAS Box (Nexus ANPR Smart Box)

Key Segments Covered in the Automatic Number Plate Recognition Industry Report

• By Application

  • Security and Surveillance
  • Vehicle Parking Traffic Management
  • Toll Enforcement
  • Others

• By Component  

  • Hardware
    • ANPR Cameras
    • Frame Grabber
    • Other
  • Software

• By End User

  • Government
    • Homeland Security
    • Traffic Department
    • Defense
    • Others
  • Commercial
    • Entertainment and Recreation Facilities
    • Dedicated Car perks
    • Others

• By Region

  • North America
  • Europe
  • Asia Pacific
  • Middle East & Africa
  • South America