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Automatic Number Plate Recognition System Market

Automatic Number Plate Recognition Systems to Gain Traction as Efficiency in Law Enforcement and Toll Collection Becomes an Urgent Need

Automatic Number Plate Recognition System Market by Type (Mobile ANPR Systems, Fixed ANPR Systems, Portable ANPR Systems)

Automatic Number Plate Recognition System Market Outlook (2022 to 2032)

The Global Automatic Number Plate Recognition System Market registered a valuation of US$ 3.1 billion in 2022. Between 2022 and 2023, a robust 8.2% CAGR is likely to accelerate the market. This should culminate in a US$ 6.8 billion for the market in 2032.

Automatic Number Plate Recognition (ANPR) leverages optical character recognition. The purpose of this technology is to generate vehicle location data on the basis of registration plate readings. A variety of cameras such as road-rule enforcement cameras and closed-circuit television are used to make the technology work.

The use of ANPR is predominant for law enforcement, where it can be used to check the licensing or registration status of a vehicle. The technology is also helpful for highways agencies, which use it to catalog traffic movements and collect electronic toll.

ANPR dates back to the late 20th century, when it was invented by Britain’s Police Scientific Development Branch. However, it took until the 1990s for ANPR’s adoption to be widespread. In 2005, ANPR’s prominent role in law enforcement became public knowledge after the technology facilitated the solving of a murder case in the United Kingdom’s Bradford.

ANPR software requires the following algorithms for license plate identification:

  • Plate localization, which finds and isolates license plates on pictures
  • Plate sizing and orientation, which compensates for plate skew and performs dimension adjustments based on requirements
  • Normalization, which adjusts image contrast and brightness
  • Character segmentation, which identifies plates’ individual characters
  • Optical character recognition
  • Geometrical/Syntactical analysis, which checks positions and characters against country-specific regulations
  • Recognized value averaging, which produces accurate results

Persistence Market Research (PMR) believes that there will be plenty of lucrative opportunities for players in the market for automatic number plate recognition systems. However, PMR expects certain challenges to restrain market acceleration as well, such as:

  • Blurry images caused by motion blur
  • Low-quality image resolution
  • Reflection, overexposure, and/or shadows that result in low contrast and poor lighting
  • Obscured license plate
  • Lack of inter-state coordination regarding rules and regulations
  • Circumvention techniques
  • Font issues

Attributes

Key Insights

Automatic Number Plate Recognition System Market Estimated Size (2022)

US$ 3.1 billion

Projected Market Valuation (2032)

US$ 6.8 billion

Value-based CAGR (2022 to 2032)

8.2%

USA Value-based CAGR (2022 to 2032)

7.0%

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2017 to 2021 Automatic Number Plate Recognition System Market Outlook Compared to Demand from 2022 to 2032

From 2017 to 2021, the market for automatic number plate recognition systems exhibited a positive 8.8% CAGR. In comparison, the 8.2% CAGR predicted by PMR between 2022 and 2032 reflects a marginal decrease in the rate of market acceleration. In 2021, the market reached a value of US$ 2.8 billion.

China is set to dominate the global market in the years ahead in terms of acceleration as it is likely to register a 9.1% CAGR. This should spur the market to a US$ 582.1 million in 2032.

The rate of acceleration is also set to remain high for the South Korea market. PMR expects the South Korea market to propel to a US$ 274.3 million valuation owing to 8.6% CAGR from 2022 to 2032.

The United Kingdom and the United States are also likely to feature prominently and contribute to global market expansion. PMR believes the value of the United Kingdom market will surpass US$ 315.8 million in 2033. The United States market should register a valuation of US$ 2.1 billion in 2033.

All in all, the global market is set to generate an absolute dollar opportunity amounting to around US$ 3.7 billion from 2023 to 2033. It’s safe to say that the future looks promising for both prominent and emerging market participants.

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Top Automatic Number Plate Recognition System Market Trends Listed by Persistence Market Research

  • Governments are fueling automatic number plate recognition system demand by promoting them for vehicle tracking.
  • Automatic number plate recognition systems are being increasingly leveraged for toll collection, road safety, and overall traffic management.
  • Necessity for accident and crime prevention is also spurring automatic number plate recognition system sales.
  • Law enforcement-oriented use of automatic number plate recognition systems is skyrocketing across the United Kingdom, Australia, India, and Dubai.
  • Other countries contributing to the acceleration of the market include the United States, France, Sweden, Denmark, Saudi Arabia, and Hungary.
  • In September 2022, the Government of India announced that it would begin ANPR trials.
  • If ANPR systems are leveraged across India, they would offer more convenience and efficiency than the existing Fastag system.
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Which Region is Projected to Offer Substantial Opportunities to Players in the Market for Automatic Number Plate Recognition Systems?

North America is expected to be a significant market for automatic number plate recognition systems market. The region’s market size was around US$ 1.13 billion in 2021 and US$ 1.24 billion in 2022. It is likely to expand to a worth of US$ 2.73 billion in 2032.

As per the international association of Chiefs of Police, seven in ten crimes happen in a vehicle. In July 2022, Flock Safety, a reputed manufacturer of ANPR systems in the United States pointed out that 2000 communities across the country use its ANPR technology.

The manufacturer’s ANPR systems help in solving around 600 to 700 crimes each day which is around 3% of all reported crimes in the United States. Several ANPR systems have also been adopted across private premises and they are also playing their part in helping law enforcement agencies solve crimes.

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Country-wise Analysis:

Why is the United States Likely to Cement Itself as a Burgeoning Market for Automatic Number Plate Recognition Systems?

PMR expects the United States market for automatic number plate recognition systems to accelerate at a healthy 7.0% CAGR from 2022 to 2032. This should result in a US$ 2.1 billion market valuation in 2032. Between 2022 and 2032, the United States market should generate an absolute dollar opportunity worth US$ 1.1 billion.

For instance, in June 2020, Tuxen & Associates announced the launch of the ANPR Lumo from Nedap. The advanced ANPR system featured generational advances in optical character recognition technology that promised unparalleled accuracy.

How are Automatic Number Plate Recognition System Sales Expected to Augment in the United Kingdom?

Automatic number plate recognition system sales across the United Kingdom should result in a US$ 315.8 million in 2032. The market is also likely to generate an absolute dollar opportunity amounting US$ 160.1 million. Between 2017 and 2021, the United Kingdom market exhibited a healthy 7.6% CAGR. From 2022 to 2032, a steady 7.3% CAGR should keep the country’s market ticking.

For instance, In May 2021, Conduent Transportation, a United States based ANPR systems manufacturer and transportation solutions provider announced that it had signed a mammoth deal with Highways England. The aim of the deal is to manage and implement charging solutions and provide ANPR systems for the Dartford to Thurrock crossing on the river Thames east of London.

What is the Outlook for the China Market for Automatic Number Plate Recognition Systems?

The China market for automatic number plate recognition systems market should surpass a US$ 582.1 million in 2033. Between 2022 and 2032, a positive 9.1% CAGR should accelerate the market and generate an absolute dollar opportunity worth US$ 338.1 million.

For instance, In June 2021, HikVision, a China based manufacturer of video camera surveillance systems acquired Mexico based security systems distributor Syscom. This will help HikVision distribute its ANPR systems in Mexico.

Why is the Automatic Number Plate Recognition System Demand Set to Soar in Japan?

PMR expects a US$ 498.1 million for the Japan market for automatic number plate recognition systems in 2032. From 2022 to 2032, the market is likely to generate a US$ 255.4 million absolute dollar opportunity. Between 2022 and 2032, a steady 7.0% CAGR should augment demand for and sales of automatic number plate recognition systems in the country.

For instance, In June 2022, NEC Corporation, a Japan based electronics manufacturer and IT solutions provider announced that its Indian subsidiary NEC India has signed an agreement to build Silvassa smart city project in India.

As a part of the project, the company promised to provide ANPR systems, adaptive traffic control systems, 5 smart parking systems and 400 cameras across the city for surveillance.

Category-wise Insights

Which Component of Automatic Number Plate Recognition Systems is Projected to Witness Significant Expansion?

ANPR software is the top component which is expected to witness significant expansion in the years ahead. A robust CAGR of 8.7% surged this segment from 2017 to 2021. Between 2022 and 2032, the segment should register further acceleration owing to a likely 8.1% CAGR.

For instance, Adaptive Recognition, a Hungary based ANPR systems manufacturer has developed ANPR software which are available in API, application, cloud API and SDK. Carmen Freeflow, Carmen GO, Carmen Nano and Carmen Cloud SaaS are among the reputed software solutions that the company has developed so far.

Competitive Analysis

PMR expects leading players in the market to sign lucrative deals and contracts in the coming years to expand their global presence. New product launches look inevitable as well, as players continue to adopt technological advancements to improve on their previous generation solutions.

Prominent recent developments in the market for automatic number plate recognition systems include:

  • In June 2022, Honeywell Automation India, an integrated automation and solutions provider announced that it received a contract to deploy automatic number plate recognition systems in Karnataka along with 7000 cameras in 3000 sensitive locations across the state. This step is being taken by government of Karnataka with the help of the Government of India in order to reduce crimes against women and to improve road safety.
  • In November 2022, Flock Safety, a United States based company that provides ANPR systems announced in a press release that its systems have helped arrest a suspect driving a vehicle with a stolen license plate in Townsend Ways area.
  • In November 2022, Flock Safety announced a deal with Newark City Council valid for 2 years at a grant of US$ 128,400. Flock Safety decided to provide 26 cameras for Newark which will be used for law enforcement. The systems use ANPR tech, which uses snapped photos of vehicles and scans them through the national crime database.
  • In January 2021, Conduent Transportation, a United States based transportation solutions provider signed a contract with New York tolling agency worth US$ 1.7 million to US$ 2.1 million. Conduent is expected to be using ANPR software provided by Q-free, which is an ANPR systems provider in Norway. The contract is of 21 months and the system is expected to scan 200 million video based number plates per year.

Scope of the Report

Attribute

Details

Estimated Market Size (2022)

US$ 3.1 Billion

Projected Market Valuation (2032)

US$ 6.8 Billion

Value-based CAGR (2032 to 2032)

8.2%

Historical Data

2017 to 2021

Forecast Period

2022 to 2032

Quantitative Units

Value (US$ billion)

Regions Covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Middle East and Africa
  • Oceania

Key Countries Covered

  • The United States
  • Canada
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • BENELUX
  • Poland
  • Russia
  • China
  • Japan
  • India
  • Association of Southeast Asian Nations
  • Brazil
  • Mexico
  • Australia
  • New Zealand
  • Gulf Cooperation Council Countries
  • Türkiye
  • Northern Africa
  • South Africa

Key Companies Covered

  • Kapsch TrafficCom
  • Siemens
  • Conduent Inc.
  • HikVision
  • Q-Free ASA
  • Genetec Inc
  • Axis communication
  • Nedap
  • ARH Incorporation
  • Bosch security systems
  • Digital Recognition Systems Ltd
  • ELSAG North America LLC

Report Coverage

  • Revenue Forecast
  • Volume Forecast
  • Company Ranking
  • Competitive Landscape
  • Growth Factors
  • Trends
  • Pricing Analysis

Automatic Number Plate Recognition Systems Market by Category

By Type:

  • Fixed ANPR system
  • Mobile ANPR system
  • Portable ANPR system

By Components Type:

  • ANPR cameras
  • ANPR software
  • Frame grabbers
  • Triggers

By End User:

  • Government
  • Institutions
  • Commercial

By Applications:

  • Traffic management
  • Law Enforcement
  • Electronic toll collection
  • Parking management
  • Access control

By Region:

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East and Africa

- Companies Covered in This Report -

  • Kapsch TrafficCom
  • Siemens
  • Conduent, Inc
  • HikVision
  • Q-Free ASA
  • Genetec, Inc
  • Adaptive Recognition
  • Jenoptik Group
  • Axis Communications
  • Nedap

- Frequently Asked Questions -

The size of the market for automatic number plate recognition systems is worth US$ 3.1 billion right now.

The global market should reach a US$ 6.8 billion in 2032.

The CAGR exhibited by the global market from 2017 to 2021 was around 8.8%.

The projected CAGR for the global market between 2022 and 2032 is around 8.2%.

The fixed ANPR systems segment of the market is likely to expand exponentially at a CAGR of 8.0% from 2022 to 2032 based on type.

The ANPR software segment of the market should generate substantial demand for automatic number plate recognition systems and expand at a CAGR of 8.1%.

The United States is projected to reach a market valuation of US$ 2.1 billion in 2032.

Kapsch TrafficCom, Siemens, Conduent, Incorporation, HikVision, and Q-Free ASA are the key companies in the market for automatic number plate recognition systems.

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