Global Automatic Number Plate Recognition Market Report and Forecast 2024-2032

Global Automatic Number Plate Recognition Market Size

The global automatic number plate recognition market stood at a value of around USD 3.36 billion in 2023. The market is further expected to grow at a CAGR of 10.3% in the forecast period of 2024-2032 to reach USD 8.13 billion by 2032.

Automatic Number Plate Recognition Market Outlook

• As per industry reports, the automatic number plate recognition systems are commonly used in China, where average recognition rate is 95.05% on Shanghai number plates, 92.17% on Shenzhen plates, and 93.23% on Beijing plates.

• Latest algorithms like YOLOv3, YOLOv7, and Mask R-CNN help identify different vehicle types (car, bus, truck, etc.) with high accuracy.

• Advanced Optical Character Recognition (OCR) algorithms like Tesseract and MaskOCR are used to extract alphanumeric characters from licensed plate images.

• Integration with AI and IoT technologies can improve ANPR system efficiency and accuracy.

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Automatic Number Plate Recognition Market Growth

Automatic number plate recognition (ANPR) can be defined as a system that is capable of reading vehicle number plates without any human intervention. It is a highly accurate system, which provides benefits like high-speed image capture with supporting illumination, detection of characters within the images, and character recognition to convert those images into text.

The automatic number plate recognition market expansion is driven by the rising congestion on roads due to traffic and the increasing demand for enhanced surveillance systems for efficient traffic management, especially in emerging economies. In addition, the demand for ANPR is expected to increase owing to its ability to provide 24/7 monitoring without human intervention, cost-effectiveness, and accuracy. The ability of ANPR to provide evidence in case of criminal activities is expected to further aid the automatic number plate recognition market in the forecast period. The rising instances of reckless driving, theft, robbery, accidents, terrorism, and snatching are anticipated to bolster the market growth by generating a significant demand for high-quality ANPR systems.

Key Trends and Developments

Rising integration of AI and IoT, use of number plate recognition by law enforcement agencies, and rising traffic rates are trends influencing the automatic number plate recognition market development

June 2024

Delhi Police has enhanced traffic surveillance by installing 535 automatic number plate recognition (ANPR) software. The advanced systems, developed by Vehant Technologies, are being deployed at strategic locations identified by Delhi Police based on crime mapping.

April 2024

The Lagos State Government (LASG) has reported that 53 automatic number plate recognition (ANPR) cameras captured 850,000 traffic violations across the state, over a 15-month period. This showcases the effectiveness of technology in improving road safety and reducing traffic congestion.

March 2023

The Malaysian Highway Authority (MHA) announced that the Multi Lane Fast Flow (MLFF) toll system will use both radio frequency identification (RFID) and automatic number plate recognition (ANPR) technology for smoot traffic flow at the Sungai Besi Expressway.

September 2022

EUR 400,000 worth of number plate recognition system was set up across Suffolk, United Kingdom. The new system helped police tackle crime and improved road safety by identifying vehicles. The technology enhanced the efficiency of law enforcement efforts in the region.

Integration of AI and IoT in ANPR systems

ANPR system providers are integrating artificial intelligence (AI) and the Internet of Things (IoT) to enhance vehicle detection, license plate recognition, and data analysis, while IoT enables real-time data sharing and remote system management. The UK's Transport for London (TfL) has implemented an AI-powered ANPR system to monitor traffic flow and optimise traffic signal timing.

Expansion through mergers and acquisitions

Companies are expanding their product portfolios through mergers, acquisitions, and product launches. Neology acquired tolling and automated license plate recognition (ALPR) business of 3M’s Traffic Safety and Security Division to expand its ANPR offerings, while Q-Free launched its new ANPR camera, the Q-Free ANPR 3.0, to enhance its product line.

Adoption in emerging markets

Asia Pacific is contributing to a favourable automatic number plate recognition market outlook as the Chinese government has implemented ANPR systems to manage traffic congestion in major cities like Beijing and Shanghai, track parking operations, and facilitate seamless toll collections.

Increasing use in law enforcement

ANPR systems are being increasingly used by law enforcement agencies to monitor vehicle movements and identify stolen or uninsured vehicles. The US Department of Homeland Security uses ANPR to monitor and track vehicles at borders and ports of entry.

Automatic Number Plate Recognition Market Trends

Moreover, the government bodies are encouraging the use of ANPR owing to the growing concerns of reckless driving, accidents, robbery, snatching, and hit and run cases, among others. Thus, the rising demand for ANPR for militating criminal activities and poor driving is expected to be the major factor propelling the automatic number plate recognition market growth over the forecast period.

Meanwhile, the product demand is likely to grow in the commercial transportation sector as well, which can be attributed to the growing adoption of ANPR by commercial vehicles operation services agencies, particularly in emerging economies. ANPR is a crucial management system component, which can also be used in private parking facilities, toll collection agencies, and premise security agencies, among others, thus, contributing to the market growth.

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Automatic Number Plate Recognition Industry Segmentation

The EMR’s report titled “Automatic Number Plate Recognition Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Fixed

• Mobile

• Portable

Market Breakup by Application

• Traffic Management

• Fast Pyrolysis

• Law Enforcement 

• Electronic Toll Collection

• Others

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Automatic Number Plate Recognition Market Share

Growing demand for fixed ANPR systems for traffic management to bolster the market’s growth

Based on type, the fixed ANPR segment accounted for a significant share in the market and is likely to grow significantly in the forecast period as well. This can be attributed to the rising application of fixed ANPRs in traffic management and toll collection. Over the forecast period, the rising demand for fixed systems from the security and defence sector to achieve enhanced surveillance is likely to propel the segment’s growth.

As per automatic number plate recognition market analysis, the market will further be aided by the requirement of real-time enforcement for frequent toll violators. Meanwhile, the portable ANPR segment is likely to gain traction in the forecast period, owing to its wide adoption by the law enforcement sector due to the cost-effectiveness and flexibility of usage of the product.

Thriving traffic management segment to augment the market revenue, driven by rising automobile sales

Based on application, the traffic management segment accounted for the largest automatic number plate recognition market share and is anticipated to remain dominant in the forecast period as well. The market growth can be attributed to the need for a proper flow of traffic amidst the increasing sales of automobiles. The data provided by the product, which includes traffic counts, travel speed, and origin-destination, is vital for the proper traffic management. The market will further be aided by the growing trend of congestion charge, which is levied on the drivers violating the laws in heavy traffic areas.

Leading Companies in the Automatic Number Plate Recognition Market

Market players are focused on integrating new technologies such as artificial intelligence (AI) and the Internet of Things (IoT) to improve the efficiency and accuracy of ANPR systems

Bosch Security Systems B.V., founded in 1886 and headquartered in Gerlingen, Germany, is a leading provider of security and safety systems. The company offers CCTV, public address systems, and access control solutions. It also provides repair and maintenance services as well.

Siemens AG, founded in 1847 and headquartered in Munich, Germany, focuses on industrial automation, energy management, and building technologies, including security and safety systems. The company offers solutions for infrastructure projects, including consulting, engineering, and maintenance.

Kapsch Aktiengesellschaft, founded in 1892 and headquartered in Vienna, Austria, specialises in intelligent transportation systems, including traffic management and toll collection solutions. The company provides consulting, engineering, and implementation services for transportation infrastructure projects.

Conduent Inc., founded in 2014 as a spin-off from Xerox Corporation and headquartered in New Jersey, United States, is a business process outsourcing and technology services company. The company offers transportation and logistics solutions and technology services, such as consulting, implementation, and maintenance.

Other key players in the global automatic number plate recognition market include Jenoptik AG, among others.

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Automatic Number Plate Recognition Market Analysis by Region

Europe accounts for a significant share in the market, driven by rising tourism and need to reduce traffic violations

The market in Europe in being driven by factors like the rising demand for automatic number plate recognition for law enforcement applications, growing sales of automobiles, rising population, and the need to ameliorate traffic management in regions like the UK, France, Germany, and Spain.

Moreover, according to automatic number plate recognition market report, the rising travel and tourism industry in the Asia Pacific, North America, and European region is expected to further propel the need for ANPR for efficient traffic monitoring, further enhancing the experience of the tourists. Meanwhile, North America is anticipated to hold a considerable share in the market in the forecast period due to the rapid digitalisation of traffic monitoring devices in the region.

Key Highlights of the Report

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Automatic Number Plate Recognition Market Report Snapshots

Automatic Number Plate Recognition Market Size

Automatic Number Plate Recognition Market Growth

Automatic Number Plate Recognition Market Trends

Automatic Number Plate Recognition Market Share

Automatic Number Plate Recognition Companies

Automatic Number Plate Recognition Market Regional Analysis