Global Automatic Number Plate Recognition Market is Estimated to Witness High Growth Owing to Increasing Use of ANPR Systems for Traffic Management and Rising Security Concerns
The global automatic number plate recognition market is estimated to be valued at US$ 45.31 Bn in 2024, exhibiting a CAGR of 11.7% over the forecast period (2024-2031). Increasing adoption of Automatic Number Plate Recognition systems for effective traffic management and growing concerns regarding security across regions are driving the market growth. Furthermore, advancements in ANPR technologies enabling high recognition accuracy even in adverse conditions is further fueling the market growth.
Market Dynamics:
Automatic Number Plate Recognition systems are increasingly being used by traffic authorities and law enforcement agencies to manage traffic effectively. These systems help authorities in monitoring traffic violations, enforcing congestion charges, and assisting with parking management.
Mounting security concerns across commercial and residential areas owing to rising criminal activities is prompting greater deployment of ANPR solutions. These systems provide automatic vehicle identification at secured areas and alert authorities if a suspicious vehicle is detected. This is bolstering their adoption across various end-use industries.
Increased Adoption of Intelligent Transportation Systems Drives the Demand for ANPR
One of the key drivers for the growth of the global Automatic Number Plate Recognition market is the increased adoption of intelligent transportation systems (ITS) across various countries. ITS refers to the integration of advanced communications technologies into transportation infrastructure and vehicles to improve safety and mobility. ANPR systems are a vital component of ITS as they help authorities to monitor traffic flow, enforce traffic laws, and detect stolen vehicles. Many governments are significantly investing in developing sophisticated ITS to tackle issues like congestion, pollution and road accidents. For example, the U.S. Department of Transportation allocates billions of dollars annually towards ITS initiatives. This growing focus on smarter transportation infrastructure is fueling the integration of ANPR cameras on roads, highways and city streets.
Use of ANPR for Law Enforcement Boosts Market Growth
Another major factor augmenting the Automatic Number Plate Recognition industry is the rising deployment of these systems for law enforcement purposes. ANPR technology enables authorities to identify vehicles associated with criminal activities and helps detect vehicles that violate traffic rules. It has proved effective for locating missing children, stopping criminals on the run, and detecting uninsured vehicles. Many law enforcement agencies across North America, Europe and Asia Pacific are incorporating ANPR into their surveillance systems. For instance, the U.K. government utilizes a national ANPR infrastructure comprising over 12,000 cameras for policing activities. This widespread adoption of ANPR for ensuring public safety and security is positively impacting the market expansion.
High Initial Equipment and Operating Costs Limit Adoption
One of the key challenges restraining the growth of the Automatic Number Plate Recognition market is the high initial cost of purchasing and installing the required hardware components. ANPR systems involve procuring expensive equipment like cameras, software, storage servers and networking infrastructure. There are also substantial costs associated with system integration, training personnel and ongoing maintenance. The operating expenses of ANPR solutions over their lifespan further increase the total cost of ownership. These high capital expenditures pose a barrier, especially for law enforcement agencies and municipal authorities in developing nations with limited budgets.
Dependencies on Third-party Vendors Reduce Customer Control
Another major restraint for the Automatic Number Plate Recognition market is the reliance of customers on third-party system integrators and technology vendors for setting up the systems. This makes them heavily dependent on external partners and reduces their control over the solutions. Any delays, technical glitches or contractual issues during implementation can severely impact operations. Moreover, agencies have little flexibility to customize or upgrade systems as per their evolving requirements. This lack of ownership and uncertainty in vendor support can discourage some potential adopters. Standardization efforts and more cost-effective bundled offerings are needed to address this challenge.
Integration of AI/ML Leads to Improved Functionality
A significant opportunity for ANPR vendors lies in incorporating advanced artificial intelligence and machine learning capabilities into their solutions. AI/ML technologies enable ANPR systems to gain deeper analytical insights from image and video data. They can boost plate recognition accuracy even in complex lighting/weather conditions and identify vehicle attributes beyond just license plates. This enhanced functionality through AI opens up new use cases like monitoring high-security areas, tracking hazardous goods transport and automated ticketing/attendance systems. It also addresses limitations of older ANPR technologies. Companies investing in AI R&D will be able to offer differentiated products with improved performance.
Growing Demand for Internet-of-Vehicles and Smart Cities Spurs Opportunity
Another key market opportunity for ANPR providers is the rising global emphasis on developing connected vehicles and smart urban infrastructures. Initiatives like Internet-of-Vehicles and Smart Cities envisage a future of seamlessly linked transportation networks, autonomous driving and intelligent management of city services. ANPR will play a vital role in enabling applications involving real-time vehicle monitoring, traffic analytics, automated tolling and intelligent parking. Governments worldwide are formulating favorable policies and making large investments to realize this intelligent transportation vision. This growing ecosystem of connected vehicles and cities presents a massive opportunity for ANPR vendors to capture new revenue streams.
Link: https://www.coherentmarketinsights.com/market-insight/automatic-number-plate-recognition-market-4863
Key Developments:
In May 2022, the Tamil Nadu Police, a leading law enforcement agency in India, announced the installation of Automatic Number Plate Recognition (ANPR) cameras across the state to locate stolen vehicles. This initiative is part of an integrated vehicle monitoring system that will utilize real-time data from the ANPR cameras to automatically detect and alert authorities when a stolen vehicle is identified. The system will also generate e-challans for traffic violations and track the routes of stolen vehicles by analyzing data from multiple ANPR cameras. This innovative approach aims to enhance vehicle security and curb criminal activities involving stolen vehicles in Tamil Nadu.
In December 2021, TagMaster, a prominent provider of identification and mobility solutions, announced an enhancement to its Automatic Number Plate Recognition (ANPR) technology. This upgrade aims to facilitate the management of site capacity at Household Waste Recycling Centers (HWRC) that experience high visitor volumes.
In November 2021, Bosch Security Systems, a leading provider of security and safety solutions, launched a video analytics software called Traffic Detector. This innovative software is designed for traffic applications, including number plate recognition, incident detection, and intersection monitoring.
In November 2020, TagMaster, a leading provider of identification and mobility solutions, launched the first camera in its new family of Automatic Number Plate Recognition (ANPR) cameras, known as TagMaster CT. This new IP-based camera family offers enhanced features such as onboard processing, dual cameras (IR and color), a dynamic OCR engine, and ease of integration into industry-standard protocols.
Key Players:
Adaptive Recognition, Anpr International, Arvoo Imaging Products, Bosch Security Systems, Clearview Communications, Digital Recognition Systems, EFKON, Genetec, Jenoptik, Kapsch TrafficCom, NDI Recognition Systems, Neology, Q-Free, Siemens, and Tattile
