The global automatic number plate recognition (ANPR) system market is estimated to garner nearly USD 7 Billion in revenue by 2031 by growing at a CAGR of ~10% over the forecast period, i.e., 2022 – 2031. The growth of the market can be attributed to increasing deployment of ANPR systems for security and surveillance, and traffic management applications. Besides, increasing initiatives by governments for the development of smart cities, including smart transportation and traffic management systems are driving the growth of the market further. By 2025, the total smart city revenue worldwide is forecasted to cross USD 240 billion.
Automatic number plate recognition is a technology capable of reading vehicle number plates, quickly and automatically, without any human intervention. It can capture and identify any number plate through using photo or video footage from its cameras. ANPR is contributing towards smart transportation systems and is eliminating the need of human interaction. ANPR systems are increasing being used for examining the free flow of traffic – facilitating smart transportation approach.
One of the main drawbacks of this system would, however, is the inaccuracy and misinterpretation of unclear characters on the number plate, resulting in false readings. Furthermore, there are data privacy concerns related to these systems that provides less assurance on the security of the data captured and stored. These factors are likely to restrain the growth of the global ANPR system market.
The market is segmented by type into mobile ANPR systems, portable ANPR systems, fixed ANPR systems, out of which, the fixed ANPR systems segment is anticipated to hold the largest market share by growing at a significant rate during the forecast period owing to high demand by traffic and toll collection managements since it can be customized as per any application and individual equipment that can be configured for multi-lane coverage. Mobile ANPR systems are expected to witness fastest growth on account of their wide usage in police and law enforcement agencies for security and surveillance purposes.
Based on component, the market is segmented into ANPR cameras, ANPR software, triggers, frame grabbers, and others, among which, the ANPR cameras segment holds the largest share of the market. This segment is expected to remain so over the forecast period by growing at a CAGR of ~11%. Cameras play the most significant role in making ANPR systems effective and prudent. The ANPR software segment is also projected to grow significantly on account of increasing incidences of vehicle theft leading to the requirement of real-time identification and tracking operations.
The market is further segmented on the basis of application into traffic management, law enforcement, electronic toll collection, and parking management and access control. The law enforcement segment holds the largest market share and is expected to witness significant growth over the forecast period on account of its increasing usage in homeland security and securing public events. Traffic management application segment is anticipated to witness the highest growth during the forecast period to be the dominating segment owing to increasing adoption of stringent government regulations over traffic and vehicular management. ANPR systems are widely used in electronic toll collection because of their lower provisioning costs since these systems are capable to recognize the registered number plate with no additional transponder requirements. This is expected to further the market value of electronic toll collection segment modestly.
Get more information on this report: Request Sample PDF
The never-ending growth in internet accessibility around the world along with numerous technological advancements comprising 5G, blockchain, cloud services, Internet of Things (IoT), and Artificial Intelligence (AI) among others have significantly boosted the economic growth in the last two decades. As of April 2021, there were more than 4.5 billion users that were actively using the internet globally. Moreover, the growth in ICT sector has significantly contributed towards GDP growth, labor productivity, and R&D spending among other transformations of economies in different nations of the globe. Furthermore, the production of goods and services in the ICT sector is also contributing to the economic growth and development. As per the statistics in the United Nations Conference on Trade and Development’s database, the ICT good exports (% of total good exports) globally grew from 10.816 in 2015 to 11.536 in 2019. In 2019, these exports in Hong Kong SAR, China amounted to 56.65%, 25.23% in East Asia & Pacific, 26.50% in China, 25.77% in Korea, Rep., 8.74% in the United States, and 35.01% in Vietnam. These are some of the important factors that are boosting the growth of the market.
Regionally, the global automatic number plate recognition (ANPR) system market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Europe is projected to emerge as the dominating region in the global market on the back of increasing adoption of ANPR systems for law enforcement and traffic management applications. For instance, according to the Government of UK, ANPR grabs 35 to 40 million reads a day and to 30 billion a year in the country.
Asia-Pacific region is anticipated to witness the highest growth over the forecast period owing to rapid economic growth in the region, and increasing government initiatives towards adopting intelligent transportation systems, increasingly using sophisticated security and surveillance technologies.
The global ANPR system market is further classified on the basis of region as follows:
Our in-depth analysis of the global ANPR system market includes the following segments:
FREQUENTLY ASKED QUESTIONS
Increasing deployment of ANPR systems for security and surveillance, and traffic management applications, and initiatives by governments for the development of smart cities, including smart transportation and traffic management systems are the major factors driving the market growth of the global automatic number plate recognition (ANPR) system market.
The market is anticipated to attain a CAGR of ~10% over the forecast period, i.e., 2022-2031.
Inaccuracy and misinterpretation of unclear characters on the number plate, resulting in false readings, and data privacy concerns providing less assurance on the security of the data captured and stored are estimated to hamper the market growth.
Asia-Pacific region is expected to provide significant business opportunities for the growth of the global automatic number plate recognition (ANPR) system market.
The major players in the market are Kapsch TrafficCom AG, Siemens Mobility Global, Bosch Security Systems Ltd., Q-Free ASA, Genetec Inc., Conduent, Inc., Motorola Solutions, Inc., Axis Communications AB, and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by type, component, application, and by region.
The fixed ANPR systems segment is anticipated to hold largest market size in value and is estimated to grow significantly over the forecast period.
Select License Type
Direct access to analyst to help you understand the market in a better way to handle your critical question
Citing your business specific requirement our consultant would assist you ensuring targeted goal is achieved
Get 10% free customization