Automatic Number Plate Recognition Market

Automatic Number Plate Recognition Market Outlook (2024 to 2034)

The global automatic number plate recognition market is expected to be valued at US$ 4.34 billion in 2024 and is forecast to expand at a CAGR of 11.4% to end up at US$ 12.78 billion by 2034.

Automatic number plate recognition (ANPR) camera manufacturers are developing high-performance models. Blue chip businesses and the public sector are using these ANPR systems extensively to keep an eye on both authorized and unauthorized visitors. Business owners are strongly favoring the automatic logging of vehicle numbers into their system's database. To enable unlimited vehicle plate registration, businesses are innovating ANPR cameras with fast shutter speeds and variable intensity infrared (IR) lamps.

Consistent upgrade of the 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. Use of sophisticated ANPR systems is removing the need for manual plate recording, which is expected to boost demand for the technology soon.

Key Market Growth Drivers

• The thriving automobile sector around the world is projected to contribute to the automatic number plate recognition market size in the coming years. Additionally, government authorities are focusing on developing integrated unmanned aerial vehicles (UAVs) for the deployment of an ANPR network throughout the city.
• Rising penetration of big data technologies, cloud computing, and other advanced technologies are prompting automatic number plate recognition system providers to transform services to a whole new level.
• Changing compliance and governance requirements are also widening the scope for automatic number plate recognition services.
• In various sectors such as government, law enforcement, defense and security, and commercial, demand for automatic number plate recognition systems increased at a noteworthy pace.
• The market is set to benefit during the forecast period from growing demand for ANPR in automated toll collection centers and traffic law enforcement. Drivers' increasing awareness of highway speed limits is driving up demand for ANPR sensors in the automotive industry.
• Increasing funding by governments for intelligent transport systems is playing an important role in driving automatic number plate recognition market growth.

Report Attribute	Detail
Automatic Number Plate Recognition Market Size (2024E)	US$ 4.34 Billion
Forecasted Market Value (2034F)	US$ 12.78 Billion
Global Market Growth Rate (2024 to 2034)	11.4% CAGR
North America Market Share (2024E)	25%
East Asia Market Value (2024E)	US$ 986 Million
Security and Surveillance Segment Value (2034F)	US$ 3.83 Billion
Hardware Segment Value (2034F)	US$ 2.6 Billion
Key Companies Profiled	Bosch Security Systems; Digital Recognition Systems; Appalachian Regional Healthcare; Genetec; NDI Recognition Systems; LLC Kapsch TrafficCom AG; Q-Free ASA; Vigilant Solutions Inc.; Siemens AG; Tattile Srl; Q-Free ASA; Kapsch TrafficCom AG; Jenoptik Traffic Solutions.

Why is There Increase in Sales of Automatic Number Plate Recognition Systems?

“ANPR Systems Contributing to Crime Tracking and Investigation”

An automatic number plate recognition system is specifically designed to read automotive license plates. This system is used to track traveling criminal and terrorist organized crime groups. Law enforcement agencies are using automatic number plate recognition services to collect proof and lines of inquiry in the investigation of crime. Agencies such as the police force, traffic management facilities, toll agencies on pay-per-use roads, and parking management services are using automatic number plate recognition.

This system is playing a major role in locating the stolen vehicles. Automatic number plate recognition cameras are installed throughout the city to ensure clear monitoring. End users are utilizing mobile-based automatic number plate recognition systems to ensure better security, surveillance, and traffic regulation.

E-challans are also gaining popularity in developing countries such as India. Automatic number plate recognition system manufacturers in India are offering surveillance products at toll gates that make it easier to charge the car associate for non-compliance.

What Challenges are Impeding Market Growth?

“Inconsistency in Number Plate Designs and Data Privacy Concerns”

Key challenge faced by the developers of automatic number plate recognition systems worldwide is the inconsistency in number plate designs. It is becoming 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 sometimes misreads registration numbers, which leads to problems in security and surveillance activities. Different illumination conditions, vehicle shadow, the non-uniformity of license plate characters, different fonts, and background colors are affecting the performance of automatic number plate recognition systems.

Market growth is expected to be hampered by inaccuracies that result in false-positive readings. Moreover, thieves have gotten around automatic number plate recognition systems by using car cloning techniques. Concerns about data privacy are also anticipated to be a contributing factor to the market's slow growth during the forecast period.

Country-wise Insights

North America is poised to account for 25% of the global automatic number plate recognition market share in 2024. The market in Asia Pacific is projected to expand at a remarkable pace during the forecast period due to rapid infrastructure development and increasing government support to manage traffic congestion.

The European market is driven by rising demand for automatic number plate recognition systems for law enforcement applications, growing sales of automobiles, a rising population, and the need to ameliorate traffic management in regions. The increase in the use of automatic number plate recognition systems in security and surveillance applications is driving market growth in Europe.

What Purpose Do the ANPR Systems Serve for Law Enforcement Agencies in the United States?

“ANPR Systems Improving Operational Effectiveness and Public Safety”

Attribute	United States
Market Value (2024E)	US$ 466.9 Million
Growth Rate (2024 to 2034)	10.7% CAGR
Projected Value (2034F)	US$ 1.29 Billion

Law enforcement agencies in the United States are frequently using automatic number plate recognition systems for tracking and vehicle identification. They are supporting traffic law enforcement, identification of stolen vehicles, and location of vehicles of interest. Law enforcement's need for ANPR systems is also fueling market expansion as organizations are looking to improve operational effectiveness and public safety.

Traffic management systems are also using ANPR technology to enforce tolling, monitor, and control traffic flow, and identify infractions such as speeding and running red lights. ANPR systems are used by municipalities and transportation authorities to enhance traffic safety, reduce congestion, and enhance the infrastructure supporting transportation.

What is Driving Sales of Automatic Number Plate Recognition Systems in Japan?

“Extensive Use of Automatic Number Plate Recognition for Efficient Parking Management”

Attribute	Japan
Market Value (2024E)	US$ 284.9 Million
Growth Rate (2024 to 2034)	13.1% CAGR
Projected Value (2034F)	US$ 977.3 Million

Road safety and effective traffic management are highly valued in Japan, which is a key automatic number plate recognition market trend. To control traffic in urban areas, enforce traffic laws, and monitor traffic flow, ANPR systems are essential. On Japanese roads, increased traffic efficiency and safety are facilitated by ANPR systems' automatic detection and processing of license plate data.

To effectively manage parking facilities in urban areas with a limited supply of parking spaces, ANPR systems are implemented. By automating entry and exit procedures, keeping an eye on parking availability, and enforcing parking rules, these systems maximize parking utilization and generate income for parking operators.

Category-wise Insights

Security & surveillance and traffic management segments together are set to account for more than half of the global market share. In fixed ANPR systems, cameras are positioned at fixed locations, including street lights, buildings, signboards, or highway overpasses, to provide continuous high-traffic area surveillance and monitor high criminal activity areas at a safe distance.

How is Modern ANPR Hardware Enhancing Vehicle Monitoring and Security?

“Advancements in Camera Technology and Image Processing”

Attribute	Hardware
Segment Value (2024E)	US$ 2.6 Billion
Growth Rate (2024 to 2034)	11% CAGR
Projected Value (2034F)	US$ 7.41 Billion

Demand for more security in parking lots, public areas, roadways, and residential areas is rising. Hardware ANPR systems enhance monitoring and security by automatically capturing and recognizing vehicle license plates, offering strong surveillance capabilities. Hardware ANPR systems have evolved in response to advances in camera technology, image processing algorithms, and hardware components. Modern ANPR cameras have improved accuracy and dependability due to their ability to process data quickly, capture high-resolution images, and work well in a variety of lighting scenarios.

Which Application Accounts for Substantial Revenue Streams?

“Widespread Use of Automatic Number Plater Recognition for Security & Surveillance”

Attribute	Security & Surveillance
Segment Value (2024E)	US$ 1.21 Billion
Growth Rate (2024 to 2034)	12.2% CAGR
Projected Value (2034F)	US$ 3.83 Billion

By application, demand for automatic number plate recognition systems for surveillance and security is projected to grow at a significant rate in the years to come. As the automatic number plate recognition system reduces traffic congestion and improves traffic safety, the segment is set to account for a significant revenue share.

Market growth is attributed to the need for a proper flow of traffic amidst the increasing sales of automobiles throughout the forecasted period. As the data provided by automatic number plate recognition products includes traffic count, travel speed, and proven origin and destination, these can be helpful in proper traffic management.

Competitive Landscape

Key players in the automatic number plate recognition industry are developing high-performance ANPR cameras. Such ANPR systems are being widely adopted in the public sector and by blue-chip companies to monitor authorized and unauthorized visitors. The automatic logging of vehicle numbers into the system’s database is highly preferred by company owners. Companies are innovating in ANPR cameras with variable intensity infrared (IR)-lamps and fast shutters to deploy unlimited registration of vehicle plates.

• In January 2024, the Delhi government introduced AI-powered cameras to detect traffic violations, enhancing road safety. These cameras, capable of identifying 19 violations, such as mobile phone usage while driving and invalid PUCC, aim to improve traffic management.
• In July 2023, Mangalore International Airport (MIA) introduced the automatic number plate recognition (ANPR) system, enabling seamless entry and exit of vehicles to and from the airport. The ANPR system uses e-payment technology like FASTag, which takes care of the payments for the end user, a release from MIA said on Saturday.

Fact.MR provides detailed information about the price points of key manufacturers of automatic number plate recognition systems positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of ANPR Market Research

• By Component :

  • Hardware
    • ANPR Cameras
    • Frame Grabbers
    • Other
  • Software

• By Application :

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

• By End User :

  • Government
    • Homeland Security
    • Traffic Departments
    • Defense
    • Others
  • Commercial
    • Entertainment & Recreation Facilities
    • Dedicated Car perks
    • Others

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa