Automatic Number Plate Recognition System Market Size, Share and Trends 2024 to 2034

Automatic Number Plate Recognition System Market Size and Forecast 2024 to 2034

The global automatic number plate recognition system market size is calculated at USD 3.79 billion in 2024 and is predicted to reach around USD 9.27 billion by 2034, expanding at a notable CAGR of 9.36% from 2024 to 2034. The rise in the demand for the technologically equipped traffic management system boosts the growth of the automatic number plate recognition system market. 

Automatic Number Plate Recognition System Market Key Takeaways

• North America dominated the global market with the largest market share of 38% in 2023.
• Asia Pacific is expected to grow at the fastest CAGR of 10.83% during the forecast period.
• By type, the fixed ANPR systems segment contributed the highest market share of 58% in 2023.
• By type, the portable ANPR systems segment is anticipated to grow at the fastest CAGR of 9.74% during the forecast period.
• By component, the hardware segment captured the biggest market share of 53% in 2023.
• By component, the software segment is expected to expand at the fastest CAGR of 10.63% from 2024 to 2034.
• By application, the traffic management segment accounted for the largest share in 2023.
• By application, the security and surveillance segment is anticipated to grow at the fastest CAGR from 2024 to 2034.
• By end-use, the government segment generated the major market share in 2023.
• By end-use, the commercial segment is projected to expand rapidly during the forecast period. 

How Can AI Impact the Automatic Number Plate Recognition System Market?

Artificial intelligence helps in improving the automatic number plate recognition system market, it helps in recognizing the license plates on parked and moving cars. AI algorithms offer real-time insights, alerting and recording all the logs of number plates. AI enhances the video quality and recognition system.

• In October 2024, DRB® launched the AI-enhanced license plate recognition (AI-LPR) system to upgrade its advanced LPR technology. The technology revolutionizes the accuracy, operational efficiency, and customer satisfaction at carwashes.

U.S. Automatic Number Plate Recognition System Market Size and Growth 2024 to 2034

The U.S. automatic number plate recognition system market size is exhibited at USD 1.01 billion in 2024 and is projected to be worth around USD 2.52 billion by 2034, growing at a CAGR of 9.59% from 2024 to 2034.

North America dominated the automatic number plate recognition system market in 2023. The growth of the market is attributed to the rising numbers of commercial and residential buildings in the countries and the increasing number of vehicles on the road that drives the demand for the installation of the automatic number plate recognition system in the buildings for maintaining safety standards. The region is the early adopter of technology, and the high presence of the major technology leaders is driving the growth of the market. The regional government is imposing strict rules on traffic management, road safety, and surveillance.

• There are 1,327,307 units of new vehicles sold in the United States in October 2024, with a 9.5% increase from the last month. 
• The sales of light trucks are 1,078,579 units, with an increase of 11.7% year-over-year growth, while the sales of passenger cars were 248,728 units, with an increase of 1% year-over-year growth. 
• As per the report by The National Highway Traffic Safety Administration (NHTSA) latest projection for traffic fatalities in 2023, the agency predicts that 40,990 people died in motor vehicle traffic crashes in 2023. 
• The FHWA collaboratively works on advancing the implementation of the National Roadway Safety Strategy (NRSS), which is the U.S. DOT’s plan to decrease the serious injuries and fatalities on America’s roads. The system uses the safe system approach, a strategy for building multiple layers of protection around road users.

Asia Pacific expects the fastest growth in the market during the forecast period. The growth of the market is attributed to the rising population and the increasing number of automobiles due to the rise in economic stability and the disposable income in the population, which is driving the efficient traffic management system and security system, which is driving the growth of the automatic number plate recognition system. The rising technological integration in road safety and detection and monitoring of speed and traffic.

• The annual production of automobiles in India was 25.9 million vehicles in FY23. The total production of passenger vehicles, two-wheelers, three-wheelers, and quadricycles was 23,58,041 units in April 2024. 
• The passenger car market in India was valued at USD 32.70 billion in 2021 and is predicted to reach a value of USD 54.84 billion by 2027 with a CAGR of 9% between 2022-27.

Market Overview

The automatic number plate recognition (ANPR) system is designed to recognize the vehicle license/number plate. It is used to store and capture the images captured by the camera. The system is equipped with detecting cameras, infrared lighting, and others. The system provides real-time alerts for coming vehicles. Car parking management, toll booths, intelligent transport systems, and retail park security are the leading users of the automatic number plate recognition system.

Automatic Number Plate Recognition System Market Growth Factors

• Increasing automobiles: The rising global population and the rising disposable income are shifting lifestyle preferences, and higher consumption of the automobile by the population is driving the demand for efficient transportation systems and speed detection systems, which is driving the growth of the automatic number plate recognition system market.
• Rising urbanization: The increasing economies around the world and the rising urbanization, increasing population, and rising traffic conditions are driving the demand for road safety and surveillance accelerating the demand for the market.
• Government adaptation: The government's rising intervention in traffic management, the imposing of stringent regulations on road safety, and further advancements in the technologies associated with the automatic number plate recognition system.

Market Scope

Market Dynamics

Driver

Awareness of the associated benefits

Technological integration in the traffic management system to improve efficiency, automation, and accuracy in identification is driving the growth of the automatic number plate recognition system market. The system helps in enhancing the security system, minimizing labor costs and manual work, and helps in aiding law enforcement, traffic management, border control, and security, parking management, and electronic toll collection.

Restraint

Lack of accuracy

Automatic number plate recognition systems that have accuracy issues in conditions like high speed, poor lighting, or dirty license plates are collectively restraining the automatic number plate recognition system market growth.

Opportunity

Adoption of governments

The increasing adoption of the automatic number plate recognition system by the different regional governments for increasing road safety and transportation and law enforcement. Additionally, the ongoing research and development activities in the expansion of technologies and innovations for further launch are driving the growth opportunity in the automatic number plate recognition system market.

Type Insights

The fixed ANPR systems segment dominated the automatic number plate recognition system market in 2023. The rising population tends to the increased number of automobiles on the roads. The fixed ANPR systems are generally installed in the traffic signals or toll booths to recognize the fast-moving vehicle number plate automatically. These types of systems are permanent settings and only deployed in some specific locations, such as official parking areas of commercial buildings, national toll booths, and access control points. This system has the capability of handling and monitoring high traffic conditions, which makes it ideal for the continuous monitoring of number plates.

The portable ANPR systems segment will grow rapidly in the automatic number plate recognition system market during the forecast period. The portable ANPR is the temporary setting for the automatic number plate recognition system, which can be deployed in any location and is easily movable between locations when required. These systems are used in temporary functions or events management, mobile operations, and temporary checkpoints. These are battery-operated and lightweight systems, which makes them easy to install. These systems do not need any specific infrastructure for installation, which makes them cost-efficient.

Component Insights

The hardware segment led the global automatic number plate recognition system market in 2023. There are a number of hardware that are used in the automatic number plate recognition system, including a frame grabber, ANPR computer processor, relay cards, and camera. The hardware plays a significant role in the efficient workflow of the automatic number plate recognition system. The rising population is causing the increased demand for commercial and residential properties, a number of vehicles, and rising awareness regarding security, which is driving the demand for the automatic number plate recognition system market. 

The software segment will grow at the fastest rate in the automatic number plate recognition system market during the predicted period. The increasing demand for advancements in technologies in automatic number plate recognition system software for the improvement of security and monitoring is driving the demand for the segment. The rising integration of artificial intelligence and machine learning into the advancement of the ANPR system software is contributing to the expansion of the market.

Application Insights

The traffic management segment accounted for the largest share of the automatic number plate recognition system market in 2023. The automatic number plate recognition system is widely used in traffic management systems and is highly used in automatically monitoring moving vehicles. It is mostly deployed in the toll booths and traffic signals to efficiently manage and detect the toll collection and speed limit of the vehicle. The stringent road safety laws possessed by the governments of several countries are driving the demand for the efficient traffic management system in which the automatic number plate recognition system are playing an efficient role in managing laws and road safety.

The security & surveillance segment is expected to grow at the fastest rate in the automatic number plate recognition system market during the forecast period. There is an increasing investment in road safety by deploying technologies for security and surveillance. The rising strict government regulations are driving the demand for automatic number plate recognition systems for security and surveillance.

End-Use Insights

The government segment dominated the automatic number plate recognition system market in 2023. Different countries' governments are increasingly demanding the automatic number plate recognition system for efficient security and surveillance of roads and people's safety. The rising population of different countries and the increasingly stringent policies in road security and surveillance and traffic management are driving the government sector's adoption of the automatic number plate recognition system.

The commercial segment is expected to show the fastest growth in the automatic number plate recognition system market during the predicted period. The rising population causes the rising demand for industrialization and commercialization, which drives the construction of commercial buildings such as industries, office buildings, malls, hospitals, schools, colleges, and others. These buildings have a large number of people in them, and the large number of vehicles and parking places boost the demand for the automatic number plate recognition system in commercial buildings. The rising stringent policies for the implementation of safety standards in commercial buildings are driving the growth of the market.

Automatic Number Plate Recognition System Market Companies

• Axis Communications AB
• Genetec Inc.
• Kapsch TrafficCom AG
• Robert Bosch GmbH
• ARH
• SELEX ES (Leonardo U.S. Cyber and Security Solutions, LLC)
• Tattile s.r.l.
• Siemens
• VAXTOR TECHNOLOGIES
• NDI Recognition System

Latest Announcements by the Industry Leaders

• In May 2024, Leonardo U.S. Cyber and Security Solutions, LLC, a subsidiary of Leonardo based in the United States, the leading global defense, aerospace, and security company, received patent U.S. 11,941,716 B2 on March 26, 2024, for SYSTEMS AND METHODS FOR ELECTRONIC SIGNATURE TRACKING.
• In January 2024, Vaxtor Technologies and VIVOTEK, a leading provider of IP surveillance solutions, comes into a strategic collaboration. This Vaxtor VIVOTEK LPR combines Vaxtor’s expertise in license plate recognition software with VIVOTEK's surveillance technology, especially highlighting the installation in the latest LPR camera series. 

Recent Developments

• In November 2024, The Land Ports Authority of India (LPAI) launched the Land Port Management System (LPMS) at Land Port Agartala on the 26th of November 2024. The event is the making of India's advancement efforts to modernize the cross-border trade at its land ports. 
• In November 2024, the Delhi government is considering involving a private organization in the installation of an AI-based automatic number plate recognition violation detection system on a revenue-sharing model. 

Segments Covered in the Report  

By Type 

• Fixed ANPR Systems
• Portable ANPR Systems

By Component 

• Hardware
  • Anpr Computer/Processor
  • Camera
  • Frame Grabber
  • Relay Cards
  • Others
• Software
• Service
  • Installation and Deployment
  • Training and Consulting
  • Testing Service

By Application

• Security and Surveillance
• Toll Management
• Parking Management
• Traffic Management
• Others

By End-use 

• Government
• Commercial

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa