Automatic Number Plate Recognition System Market Size and Share Analysis by Type (Fixed, Mobile, Portable), Component (Hardware, Software), Application (Traffic Management, Law Enforcement, Electronic Toll Collection, Parking Management, Access Control), End User (Government, Commercial) - Global Industry Demand Forecast to 2030

Market Overview

The global automatic number plate recognition system market size is estimated to have valued at USD 3,219.9 million in 2023, and this number is expected to increase to USD 6,010.8 million by 2030, advancing at a CAGR of 9.5% during the forecast period (2024-2030). This is attributed to its growing usage by agencies, including toll plaza, parking, police force, and traffic management; the burgeoning trend for pay-per-use roads; the developing automotive sector; the high capital investments particularly in emerging nations; and the surging adoption of advanced technology and systems by several governments to manage traffic.

Demand for Portable Systems Will Witness the Fastest Growth

The portable systems category will witness the highest growth rate during the forecast period, advancing at a CAGR of around 10%. This can be because such systems are widely used in automating access control and security including the detection of robbed vehicles in real-time, and in police patrolling cars and identifying vehicles that are used for checking over speeding of vehicles on roads or highways. Moreover, these devices are extensively implemented by law enforcement and public safety agencies, due to their flexibility of usage and cost-effectiveness.

Whereas, the fixed systems category accounted for the largest revenue share in the market in 2022, and it is further expected to maintain its dominance during the predicted period. This is due to the rising usage of such systems for traffic management; highly deploy in interstate borders and areas with heavy congestion and traffic; the surging modernization in road infrastructure; and the burgeoning requirement for automated parking management systems. In addition, advantages offered by such technology including continuous surveillance in major density traffic locations and allowance of real-time enforcement for recurrent toll violators are some other factors responsible for the market growth in this category.

Traffic Management and Security & Surveillance Applications Drive the Industry

Nowadays, the acceptance of ANPR systems in traffic management and security & surveillance applications is rapidly increasing to identify frauds and crimes in toll collection, check stolen vehicles and expired insurance policies, and monitor terrorist activities. Additionally, law enforcement agencies employ ANPR services to collect evidence and lines of inquiry in crime investigations. In addition, ANPR cameras are installed across the city to achieve clear monitoring. Also, several end users are using mobile-based ANPR systems for guaranteeing enhanced surveillance, security, and traffic legislation.

Due to these factors, in numerous sectors including law enforcement, government, commercial, and defense and security, the demand for such advanced technologies is increasing. Additionally, several governments increasing their funding for intelligent transport systems, and offering initiatives and supporting traffic rules to improve road safety by implementing such technology are fueling the market demand.

Government Holds a Major Share

The government category accounted for a larger revenue share in 2022, and it is also expected to maintain its dominance during the predicted period. This is ascribed to the increasing number of government infrastructural projects; the surging adoption of advanced technologies by public safety agencies due to the rising vehicle-related crimes including hit-and-run, theft, reckless driving, and wallet snatching; the mounting need for traffic surveillance; and high investments by governments to develop effective vehicle surveillance systems and congestion-free roads.

Whereas, the commercial category will register faster growth in the coming years. This can be due to the rising count for shopping malls, commercial complexes, and luxury apartments, where such technology is employed for parking management; highly utilized by premise security agencies; and the surging infrastructure growth in the retail and commercial sectors.

Traffic Management Accounts for Significant Revenue

The traffic management category contributed significant revenue to the market in 2022, and it is further expected to maintain its position during the predicted period. This is due to the rising incidence of vehicle jams or congestion, owing to a large number of vehicles on roads and the occurrence of vehicle collisions; the surging need for solutions for the measurement of section-related traffic data; the rising trend of smart cities across the globe where effective traffic management is primarily needed; and the increasing traffic authorities’ requirement for real-time actions or immediate attention to address accidents.

Moreover, operators, authorities, and end users can use fully-fledged solutions including intelligent transportation systems and intelligent traffic management systems, to control and analyze vehicle movement and automatically identify numerous types of violations, which further contribute to the growth of the automatic number plate recognition system market.

On the other hand, the electronic toll collection category will witness the highest growth in the coming years. This can be because such systems help owners of vehicles to pass through toll plazas without stopping their vehicles and toll tax will be deducted from their respective accounts, which makes them efficient enforcement tools for tolling systems. Additionally, these systems are faster and make highways or roads congestion-free.

In addition, the parking management category contributes significant revenue. This is ascribed to the surging need for parking spaces and their effective management; the increasing requirement for efficiency, profitability, and convenience of vehicle parking at premises in the public and private sector; the rising need to record accurate readings of vehicle number plates with no human intervention; and the high implementation of car parking systems by commercial complexes and shopping malls.

Software Category To Show Higher Growth

The software category will register faster growth in the coming years, advancing at a CAGR of more than 9.5%. This can be ascribed to the growing usage of optical character recognition (OCR) technology; the increasing need for online congestion control; the surging demand for vehicle tracking in homelands, parking lots, and during patrolling; development of road-rules enforcement; the rapidly growing IT industry; and the mounting emphasis of organizations on the development of web-based ANPR software.

Whereas, the hardware category accounted for a higher revenue share in 2022, and it is further expected to maintain its position during the forecast period. This is due to the emergence of IoT devices into hardware; the quick integration of hardware components into cloud-based software solutions; the rising demand for innovative devices such as intelligent traffic cameras, frame grabbers, and relay cards; the burgeoning trend of integrating such devices into UAVs and patrolling vehicles; the growing need to enhance the existing systems with cutting-edge technology; and the surging government spending for the installation of such systems.

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North America Is Holds Significant Share

North America accounted for the significant revenue share, of 25%, in 2022, and it is expected to maintain the same trend during the forecast period as well. This is ascribed to the surging number of on-road vehicles or increasing car ownerships, high vehicles per capita, the growing automobile industry, the rising road infrastructure, the burgeoning digitalization, and the presence of government favorable policies and key industry players in the region.

• The U.S. contributes the majority of revenue to the regional market. This is attributed to the presence of a large number of industry players and IT giants developing ANPR solutions; high investment by companies to advance their product offerings; and the increasing IoT-enabled approach for automatic number plate recognition equipment configuration in the country.

Whereas, the APAC market will witness the fastest growth in the coming years. This can be ascribed to the rising urbanization; the mounting standard of living coupled with increasing per capita income; the easy availability of sensors used in such systems due to the presence of a well-developed electronics industry; the increasing number of vehicles; the growing IT infrastructure; continuous research and development activities for the employment of advanced ANPR devices; and the implementation of strict regulations for traffic control and parking management, in the region.

• Nations like China, India, and South Korea generate the majority of revenue in the regional market. This is due to the mounting demand for developing smart cities; the increasing government efforts regarding road transportation; the modernization of roadways; and the rising number of traffic congestion incidents owing to the high population base in these countries.

Europe held the largest revenue share in 2022 and is expected to maintain its position in the coming years. This is ascribed to the increasing need for high-resolution number plate imaging technology, the growing count for infrastructural development projects, and the implementation of strict road transportation legislation in the region.

• Germany accounts for a major revenue share in the regional market. This is due to the well-established automobile sector; a high rate of acceptance of innovative technology; the enhanced transportation infrastructure; a high count for ANPR system installers and maintenance providers; and the extensive usage of such technology in commercial spaces, in the country.

Top ANPR System Providers Are:

• Kapsch TrafficCom AG
• Siemens AG
• Hangzhou Hikvision Digital Technology Co. Ltd.
• Genetec Inc.
• Adaptive Recognition Hungary Zrt.
• JENOPTIK AG
• Axis Communications AB
• Nedap N.V.

Market Size Breakdown by Segment

This fully customizable report gives a detailed analysis of the automatic number plate recognition system market from 2017 to 2030, based on all the relevant segments and geographies.

By Type

• Fixed
• Mobile
• Portable

By Component

• Hardware
• Software

By Application

• Traffic Management
• Law Enforcement
• Electronic Toll Collection
• Parking Management
• Access Control

By End User

• Government
• Commercial 

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.