The global automatic number plate recognition (ANPR) system market size was valued at USD 1.9 billion and is expected to grow with a CAGR of 6.8% over the forecast period, from 2019 to 2025. ANPR is a technology that uses optical character recognition to identify vehicle registration numbers by capturing the image of vehicles. The increasing incidence of vehicle thefts has imposed law enforcement agencies to adopt these systems. Moreover, growing concern about the rising usage of these vehicles for various crimes like robbery and kidnapping is expected to drive the market growth during the forecast period.
ANPR gives real-time insights by using Object Detection &Recognition (OCR) technology to recognize the license plate of vehicles. To identify this plate, several recognition techniques are used such as camera recognition, closed-circuit camera, and television. The ANPR systems help to increase the efficiency of traffic control, car theft, border crossing, and auto toll tax collection. The demands for these systems are projected to increase for access control application perimeter security during the forecast period.
Processing technology development coupled with technological advancement in recognition devices and digital cameras is expected to have a positive impact on ANPR system market growth. The deployment of the ANPR system by law enforcement agencies plays an important role in vehicle inventory management. Additionally, the growth of the automobile sector worldwide is anticipated to propel the demand on a large scale for automatic number plate recognition systems. Further, government agencies are focusing on integrating unmanned aerial vehicles for the development of the ANPR system network; thereby expected to drive the market growth over the forecast period.
The ANPR system is majorly used to identify traffic law enforcement, speeding cars, and automated toll collection centers. Unregistered number plates are the major issue for road safety. Identifying such vehicles is becoming a burden. However, several initiatives have been taken by the government across the globe, especially in developing regions for smart city developments which include traffic management systems and intelligent transportation systems; thereby expected to drive the market growth in the next few years.
On the other hand inaccuracy in reading by the ANPR system is expected to hamper the market growth to some extent. Further, the plate cloning problem is faced by ANPR systems. Thieves are using car cloning techniques to avoid recognition by ANPR devices. In-car cloning, thieves are using a registered number plate to hide the identity of the stolen cars. Another restraint of these systems is data privacy, as there is less assurance for the security of images captured by systems.
Based on components, the market is fragmented into portable and fixed automatic number plate recognition systems. In 2018, the fixed ANPR system segment dominated the market and accounted for the largest market share. The high revenue market share is attributed to rising demand by defense forces and traffic police. Rising awareness regarding fixed systems benefits like constant surveillance in heavy traffic areas is expected to surge the segment growth. In addition, these systems allow real-time insights for toll violators, which are expected to contribute a positive impact on market growth.
The portable system is projected to gain popularity and is expected to exhibit the fastest CAGR from 2019 to 2025. These systems are extensively used by law enforcement agencies due to flexibility in usage and cost-effectiveness. For speed enforcement, these systems are also widely used by public safety agencies. Governing bodies across the globe are emphasizing providing contracts to ANPR system providers such as Siemens, TattileSrl, and NDI Recognition Systems and provision for portable ANPR systems. For example, the U.K. government has done a contract with NDI Recognition Systems for purchasing portable ANPR systems.
By component, the market is segmented into hardware, software, and services. In 2018, the hardware segment held the largest market share and expected to retain its leading position over the forecast period. The cloud-based application and IoT technology have enabled rapid integration of hardware which is a key driver to augment the growth of this segment. In addition, the rising demand for ANPR cameras for installing them into Unmanned Aerial Vehicles, patrolling vehicles, and aircraft is boosting the segment growth. Advancement in Field Programmable Gate Arrays (FPGAs) and Digital Signal Processors (DSP) have improved the performance of ANPR devices.
The software in these systems helps to character and image recognition through GUI, database, and OCR. The companies are engaged in developing web-based ANPR software which is expected to propel the growth of the software segment. For example, in 2013, VAXTOR TECHNOLOGIES introduced web-based ANPR software with naming VaxALPRAcceso with access control equipment. The rising demand for ANPR software that supports ANPR device cameras by several OEMs is boosting the software segment growth.
Governments in several countries including Panama, Peru, and Argentina are dealing with market players such as NDI Recognition Systems and Kapsch Group for incorporating available systems with their ANPR software. For example, in 2017, Kapsch Group has awarded three contracts by Panama, Peru, and Argentina governments for integrating their urban traffic management software with their available traffic management systems and it includes over 150 ANPR cameras.
Application-wise, the automatic number plate recognition system market is fragmented into parking management, security & surveillance, traffic management, toll management, and others. In 2018, the traffic management application dominated the global market and is expected to witness significant growth during the forecast period. The ANPR systems help to control the flow of traffic by exchanging information. Several automotive market players are concentrating on ANPR network integration along with Global Navigation Satellite Systems, vehicle-to-vehicle networks, and Global Positioning Systems (GPS). Additionally, these systems offer information about travel speed, origin and destination, and traffic counts. Furthermore, the rising demand for these systems for congestion charging is also expected to have a significant impact on the growth of this segment.
Security & surveillance is expected to register the fastest CAGR during the forecast period. The increasing number of terrorist attacks worldwide has enforced public safety & intelligence agencies like Transport Research Laboratory to boost their surveillance networks. Moreover, over the past few years, the adoption of a vehicle-borne improvised explosive device by terrorists has increased. For example, in 2019, an Indian military convoy attacked with vehicle-borne improvised explosive devices kept in SUV that led to around 40 soldier’s death. Thus, to avoid this incidence, ANPR systems are widely used by law enforcement agencies to find out suspicious vehicles.
In 2018, the government segment has dominated the market and held the largest market share in terms of revenue. The growing number of automobile crime incidence hit & run, barbaric attacks, vehicle robberies, and reckless driving has enforced public safety and government agencies to adopt advanced systems to avoid such crimes. ANPR technology helps to deter & disrupt crime incidence at several levels. This system supports monitoring the movement of terrorists, traveling of criminals, and organized crime groups. In addition, this system enables an inquiry line, and evidence in investigation scenarios. Therefore, the government is a major end-use segment that deploys ANPR systems.
The commercial segment is projected to have the fastest growth from 2019 to 2025. In the commercial sector, the ANPR systems are majorly deployed by driver and vehicle licensing agencies, Vehicle and Operator Services Agencies (VOSA), toll collection agencies, premise security agencies, and Vehicle and Operator Services Agencies (VOSA). Over the last few years, the demand for electronic toll collection systems due to the development of road networks. Moreover, the growing number of commercial parking facilities, real estate agencies, and shopping malls implement advanced technology for the management of parking.
In 2018, North America held the largest market share due to the digitalization of traffic monitoring devices on bridges, tunnels, and highways. The emergence of IoT technology in the ANPR system for traffic monitoring devices is gaining traction for regional market growth. In addition, the rising demand for auto traffic monitoring devices is expected to drive market growth in this region. Constant R&D activities for the development of radar-based ANPR systems in North America are projected to surge the demand for fixed systems.
The Asia Pacific is expected to grow with the highest growth rate from 2019 to2025. Automatic number plate recognition devices are widely deployed for traffic enforcement, parking regulations, and traffic control in several countries such as Indonesia, South Korea, Vietnam, and China. In addition, increasing focus on highway patrolling in this region is projected to drive the regional market growth over the forecast period.
The global ANPR system market has been negatively impacted due to the outbreak of the COVID-19 virus. During lockdowns, government across the globe has restricted movements and traveling which has hampered the demand for automatic number plate recognition systems.
However, it is expected to surge the demand for ANPR systems post-lockdowns due to increasing awareness about the benefits of these systems and shift towards advanced technologies. The ANPR system is capable of reading vehicle number plates more accurately without human interference by the high-speed image capturing with supporting illumination. This advantage will help operators to recognize automatic vehicle number plates which adhering to social distancing guidelines imposed by governments worldwide. Therefore, ANPR system demand will increase post-pandemic.
Siemens; Axis Communications AB; VAXTOR TECHNOLOGIES; Kapsch Group; NDI Recognition Systems Ltd.; Genetec Inc.; ARH, Inc.; TattileSrl; Selex ES Inc., and Robert Bosch GmbH are the prominent players included in this market. Several companies are focusing on R&D investments to develop technologically advanced products. For example, in 2017, Siemens introduced a new ANPR camera naming Sicore II that enables the scanning of 2,000 vehicles in an hour. Moreover, various manufacturers are engaged in obtaining long-term contracting from law enforcement agencies and the government to deliver these systems. For example, in 2017, Genetec Inc. took a contract from the University of British Columbia for installing the ANPR systems in the parking facility.
The base year for estimation
2014 - 2017
2019 - 2025
Revenue in USD Billion and CAGR from 2019 to 2025
North America, Europe, Asia Pacific, Latin America, and MEA
U.S., Canada, U.K., Germany, China, India, Japan, Brazil, and Mexico
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Million Insights has segmented the global automatic number plate recognition system market report based on type, component, application, end-use, and region:
• Type Outlook (Revenue, USD Billion, 2014 - 2025)
• Fixed ANPR Systems
• Portable ANPR Systems
• Component Outlook (Revenue, USD Billion, 2014 - 2025)
• ANPR Computer/Processor
• Frame Grabber
• Relay Cards
• Installation & Deployment
• Training & Consulting
• Testing Service
• Application Outlook (Revenue, USD Billion, 2014 - 2025)
• Security & Surveillance
• Toll Management
• Parking Management
• Traffic Management
• End-Use Outlook (Revenue, USD Billion, 2014 - 2025)
• Regional Outlook (Revenue, USD Billion, 2014 - 2025)
• North America
• the Asia Pacific
• Latin America
• Middle East & Africa
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