Automatic Number Plate Recognition (ANPR) System Market Size - By Component (Hardware, Software, Services), Type (Fixed ANPR Systems, Portable ANPR), End Use (Government, Commercial), Application, Regional Outlook & Global Forecast, 2024 - 2032

Automatic Number Plate Recognition System Market Size

Automatic Number Plate Recognition (ANPR) System Market size was valued at USD 3.2 billion in 2023 and is estimated to register a CAGR of over 9% between 2023 and 2032. The surge in global investments in smart cities is propelling the market growth. As cities worldwide prioritize advanced technologies for urban development, these systems facilitate intelligent transportation, security, and surveillance. The growing emphasis on efficient traffic management, law enforcement, and smart infrastructure within these smart city initiatives significantly contributes to market growth.
 

According to the India Investment Grid Organization, the Smart City Mission in India encompasses 1,130 projects across multiple states, amounting to a significant investments of USD 26.37 billion as of October 2023. Focused on urban development, these projects aim to enhance infrastructure, technology integration, and the overall quality of life in designated cities, fostering sustainable and intelligent urban growth.

The integration of smart parking technology and tolling applications is driving the automatic number plate recognition system market size. As cities and organizations adopt advanced solutions for efficient parking management and seamless toll collection, these systems play a crucial role in automating these processes. For instance, in July 2023, Mangaluru International Airport (MIA) implemented the Automatic Number Plate Recognition (ANPR) system, facilitating frictionless entry and exit for vehicles. Integrating e-payment technologies, such as FASTag, streamlines payment processes for users, thereby enhancing efficiency.
 

The ANPR system market faces challenges due to the inconsistency in number plate designs. Varied plate formats, fonts, and colors across regions make it difficult for ANPR systems to interpret data uniformly and accurately. This diversity hampers the system's effectiveness, leading to potential errors in identification. Standardizing number plate designs poses a hurdle, necessitating advanced recognition algorithms to cope with the variability and ensure reliable performance in these systems across diverse locations.
 

Automatic Number Plate Recognition System Market Trends

Advancements in recognition algorithms are an emerging trend in automatic number plate recognition (ANPR) systems. Continuous research & development efforts focus on refining algorithms, enabling systems to adapt and interpret varied formats, fonts, and colors. This evolution ensures improved identification capabilities, elevating the overall efficiency and reliability of these systems. Such innovations contribute to the adaptability of these systems across regions with different number plate standards, fostering a more versatile & effective technology.
 

For instance, in May 2023, Hanwha Vision unveiled the TNO-7180RLP high-speed ANPR camera, featuring 3 MP Global Shutter technology. Specifically designed for rapid identification, it can detect number plates on vehicles moving at speeds of up to 200 km/h (125 mph) across two lanes of traffic, offering enhanced efficiency in real-time number plate recognition.
 

Cloud-based automatic number plate recognition systems are gaining traction in the automatic number plate recognition (ANPR) systems market. Cloud integration allows for efficient data analysis, facilitating instant and centralized access to information. This trend enhances operational efficiency by minimizing on-site infrastructure requirements and promoting cost-effectiveness. The scalability of cloud-based automatic number plate recognition systems ensures adaptability to varying workloads and evolving needs, making them a dynamic & resource-efficient choice for organizations seeking advanced and flexible vehicular identification and management solutions.
 

Automatic Number Plate Recognition System Market Analysis

Based on type, the fixed ANPR systems segment generated a market revenue of around USD 2.18 billion in 2023, due to its wide applications in law enforcement, traffic management, and security. With an increasing focus on public safety and the need for continuous surveillance, fixed ANPR systems provide a reliable and stationary solution for accurate vehicle identification. Their consistent monitoring capabilities make them integral for applications, such as toll collection, parking management, and urban planning, driving the anticipated expansion of this market segment.
 

Based on application, the traffic management segment held over 32% of the automatic number plate recognition system market share in 2032, owing to the escalating demand for advanced solutions in urban planning and transportation. Automatic number plate recognition systems play a pivotal role in monitoring and optimizing vehicular movement, enhancing traffic flow, and enforcing regulations. As cities globally invest in intelligent traffic management systems, the adoption of this technology is expected to surge, contributing to segment growth, and ultimately fostering more efficient & well-organized urban transportation networks.
 

North America automatic number plate recognition system market accounted for 30% of the revenue share in 2023. The advanced transportation infrastructure in North America plays a pivotal role in propelling the market demand. The region's focus on enhancing urban infrastructure and smart city initiatives has propelled the adoption of ANPR systems for efficient traffic management, parking solutions, and overall public safety.
 

The increasing concern for security and the need for advanced surveillance technologies have led to widespread use of ANPR systems in law enforcement applications, aiding in the identification and tracking of vehicles for various security purposes. Moreover, the region's well-established toll collection systems leverage ANPR technology to streamline operations and enhance the user experience on highways and expressways. The growing trend of smart transportation and the integration of ANPR systems with intelligent transportation systems (ITS) further contribute to the market's expansion.
 

Automatic Number Plate Recognition System Market Share

Bosch Security Systems, Inc., Hikvision Digital Technology and Kapsch (Kapsch Trafficcom AG) hold a majority of 28% in the market. The key companies are poised for dominance through strategic initiatives and technological advancements. Their global presence and robust distribution networks ensure extensive adoption of ANPR solutions. Moreover, collaborations and partnerships with various law enforcement agencies enhance market penetration. The integration of Artificial Intelligence (AI) and cloud-based solutions further solidifies their market positions, providing scalable and real-time capabilities.
 

As ANPR systems are becoming integral to smart city initiatives focused on comprehensive solutions, from traffic management to security applications, establishing themselves as key contributors to market growth. Investments in emerging markets, adherence to privacy regulations, and a commitment to sustainability propel these companies toward market dominance in the dynamic and competitive landscape of the market.
 

Automatic Number Plate Recognition System Market Companies

Major companies operating in the automatic number plate recognition (ANPR) system industry are:

• Avigilon
• Axis Communications
• Bosch Security Systems, Inc.
• Conduent Genetec Inc.
• Digital Recognition
• Genetec Inc.
• Hikvision Digital Technology
• Kapsch (Kapsch Trafficcom AG)
• Q-Free ASA.
• Vivotek
   

Automatic Number Plate Recognition System Industry News

• In October 2023, Qatar Airways, in association with SpaceX's latest Starlink in-flight Wi-Fi system, announced that it will offer Wi-Fi, up to 350 Mbps, free to all passengers on specific aircraft and routes. The One-Click-Access connection ensures swift speeds, supporting activities such as gaming, VPN access, sports streaming, and more.
   
• In May 2023, Hanwha Vision introduced a high-speed AI-enabled ANPR camera for license plate detection applications. The camera can recognize license plates and vehicles traveling at speeds of up to 200 km/hr across two traffic lanes.
   

The automatic number plate recognition (ANPR) system market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Component

• Hardware
  • ANPR Computer/Processor
  • Camera
  • Frame Grabber
  • Relay Cards
  • Others 
• Software
• Services
  • Installation & Deployment
  • Training & Consulting
  • Testing Service

Market, By Type

• Fixed ANPR Systems 
• Portable ANPR

Market, By Application

• Security & surveillance
• Toll management
• Parking Management
• Traffic Management
• Others

Market, By End Use

• Government
• Commercial

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Singapore 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • UAE
  • Saudi Arabia