How Has the Automatic License Plate Recognition Market Size Evolved in Recent Years?
The automatic license plate recognition market has seen considerable growth due to a variety of factors.
• The market size for automatic license plate recognition has seen fast-paced growth in the last few years. The market is projected to expand from a size of $8 billion in 2024 to around $9.08 billion in 2025, indicating a compound annual growth rate (CAGR) of 13.5%.
The growth witnessed in the historic period occurred due to its use in toll collection, managing parking requirements, dealing with traffic management issues, preventing vehicle theft, addressing security worries, and meeting law enforcement needs.
What Are The Predictions for The Automatic License Plate Recognition Market in the Coming Years?
The automatic license plate recognition market is expected to maintain its strong growth trajectory in upcoming years.
• In the upcoming years, the market size for automatic license plate recognition is anticipated to witness a swift growth, with projections pointing to $14.89 billion by 2029, progressing at a compound annual growth rate (CAGR) of 13.2%.
Factors driving this growth throughout the predicted period include increased infrastructure investment, legislative requirements for vehicle identification, efforts to manage traffic congestion, the launch of 5G networks, and a surge in the need for vehicle tracking and retrieval. Key trends for the predicted period encompass the growth in business applications, partnerships with the car industry, concentration on AI and machine learning, the use of cloud-based systems, and integration with IoT and smart city solutions.
Which Drivers Are Accelerating Growth In The Automatic License Plate Recognition Market?
The automatic license plate recognition market is being spurred by the surging demand for traffic management. This entails the purchase, control, and planning of transport services crucial for physical vehicle and freight movement. One of the main reasons for the increased call for traffic management comes from a desire to address traffic congestion, boost mobility, and establish safer transportation networks. Key to traffic enforcement and monitoring, automatic license plate recognition systems automatically identify and capture license plate numbers. The merging of automatic license plate recognition technology with superior traffic management solutions is likely to significantly enhance road safety and lower the rate of road accidents. To illustrate, the Americas Traffic Safety Crisis Report released by National Transportation Research (TRIP), a non-profit organization based in the US, revealed that in June 2023, road deaths in the United States surged by 19%, up from 36,096 in 2020 to 42,795 in 2022. Additionally, there was a 22% rise in the fatality rate per 100 million vehicle miles traveled in the US from 1.11 in 2021 to 1.35 in 2022. Therefore, increasing concerns regarding traffic management contribute to the growth of the automatic license plate recognition market.
What Are The Core Segments Of The Global Automatic License Plate Recognition Market?
The automatic license plate recognition market covered in this report is segmented –
1) By Product: Mobile, Fixed, Portable
2) By Application: Traffic Management, Law Enforcement, Electronic Toll Collection, Parking Management, Other Applications
3) By End-User: Government, Commercial
Subsegments:
1) By Mobile: On-Vehicle ALPR Systems, Mobile Enforcement Units
2) By Fixed: Fixed Camera Systems, Fixed Roadside ALPR Units
3) By Portable: Handheld ALPR Devices, Portable Camera Units
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What Emerging Trends Are Influencing The Growth Of The Automatic License Plate Recognition Market?
Leading firms in the automatic license plate recognition (ALPR) market are making strides towards the creation of novel products including mobile apps equipped with license recognition features designed to augment operational effectiveness and public safety. Swift identification of vehicles and access to essential data is made effortless for law enforcement and security staff through these apps, ultimately boosting public safety and hastening response times. Taking the example of Flock Safety Inc., a tech company based in the U.S., they inaugurated the Flock Safety Mobile App in October 2023. The app is focused on increasing public safety and making law enforcement operations more efficient through the use of sophisticated technology. Features like real-time license plate recognition alerts and audio detection are integrated into the app, which enables officials to respond promptly to potential risks. It also allows quick access to crucial data such as vehicle specifics and audio clips related to crime, facilitating rapid suspect identification and increased situational awareness.
Who Are the Key Players In The Automatic License Plate Recognition Market?
Major companies operating in the automatic license plate recognition market are:
• Siemens AG
• Neology Inc.
• Motorola Solutions
• Axis Communications
• Verint Systems Inc.
• ParkingEye Limited
• Vivotek
• Genetec Technology
• Kapsch TrafficCom
• Bosch Security Systems
• Euro Car Parks Limited (UK)
• GeoVision Inc.
• Senstar Technologies
• TagMaster AB
• Tattile S.r.l.
• NDI Recognition Systems
• Quercus Technologies
• Petards Group Plc
• Shenzhen AnShiBao
• Digital Recognition Systems Ltd.
• PlateSmart Technologies
• Sighthound
• Rekor Rank One Computing
• NEXCOM
• Flock Safety
What Are The Regional Insights Into The Automatic License Plate Recognition Market?
North America was the largest region in the automatic license plate recognition market in 2024. The regions covered in the automatic license plate recognition market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
