The global ANPR system market is projected to generate $6,010.8 million revenue by 2030, advancing at a CAGR of 9.5% during 2024–2030. This can be ascribed to a rise in the number of on-road vehicles, an increase in the need for traffic control solutions, technological advancements in ANPR devices, rapid urbanization coupled with digitalization, and governments’ high spending on road transportation and road safety specifically in emerging nations.
Based on component, the market is bifurcated into hardware and software. Of these, the hardware category held a larger revenue share, of 65%, in 2022, and it is further expected to maintain its dominance during the forecast period. This is due to the rising demand for reliable and cost-efficient hardware including ANPR cameras, frame grabbers, triggers, and others; the surging demand for IoT-enabled devices; and the increasing need for system maintenance.
The fixed category, based on type, contributed the largest revenue to the market in 2022, and it is also expected to maintain its position in the coming years. This is ascribed to the rising demand for these systems for monitoring traffic and collecting data in several locations such as parking spaces, highways, and bridges; and the increasing demand for enhancing monitoring of vehicles.
Based on application, the market is categorized into traffic management, law enforcement, electronic toll collection, parking management, and access control. Among these, the electronic toll collection category holds a significant revenue share. This is due to the improving road or national highways infrastructure, the increasing demand for automated tolling solutions, and the surging need to reduce manpower at toll plazas.
Based on end user, the market is bifurcated into government and commercial. Between the two, the commercial category will register a higher growth rate in the coming years. This can be because ANPR systems are highly adopted by several agencies such as toll collection, driver and vehicle licensing, vehicle and operator services, and premise security; the expanding road networks; the increasing number of shopping complexes and commercial car parking spaces, where such systems are used extensively; and the rising need for vehicle management in luxury apartments.
Geographically, the APAC market will register the highest growth rate during the forecast period. This can be due to the improving road transportation infrastructure as a result of high government spending, the rising number of on-road vehicles, the increasing consumer spending associated with rising per capita income, the surging need for traffic control solutions, and rapid urbanization in the region. Moreover, China, India, and Japan contribute the majority of revenue to the regional market, owing to the emerging economy, high investment by governments for the development of roads and highways, and the increasing trend for smart cities in these countries.
North America held the largest revenue share in 2022 and it is expected to maintain its dominance during the forecast period as well. This is ascribed to rapid digitalization, the advancement in existing traffic control systems, the rising demand for human-free intervention traffic monitoring devices, and the presence of strict legislation implemented by the federal government for traffic control and road safety.
Additionally, the U.S. contributed the majority of revenue to the regional automatic number plate recognition system market in 2022, and it is also expected to maintain its position in the coming years. This is due to the presence of prominent players and high R&D investment for the development of innovative devices, in the country.
Some of the major players in the market are Kapsch TrafficCom AG, Siemens AG, Hangzhou Hikvision Digital Technology Co. Ltd., Genetec Inc., Adaptive Recognition Hungary Zrt., JENOPTIK AG, Axis Communications AB, and Nedap N.V.