ID: MRFR/SEM/6294-CR | February 2020 | Region: Global | 139 pages
Market Research Future (MRFR) presumes the Global Automatic Number Plate Recognition Market size to exceed USD 1.100 Million with a healthy CAGR from 2018 to 2023 (forecast period). Market growth can be related to the implementation of strict traffic laws. An increasing vehicle parc worldwide requires the introduction of advanced traffic management systems. Traffic authorities are installing ANPR systems as a long-term and cost-effective solution that enables the enforcement of strict traffic laws.
As a result of the outbreak of COVID-19, millions of people stay at home as part of lockdown measures to mitigate the spread of the virus. As more people stay at home, traffic congestion in megacities has decreased relative to 2019. Restrictions on travel due to the COVID-19 pandemic are boosting ANPR system market growth, as this system allows law enforcement professionals to keep an eye on the roads. The adoption of these systems will also increase the implementation of social distancing norms at toll collection booths, borders, and other places. Furthermore, in the COVID-19 scenario, the need for traffic monitoring to ensure road safety has risen due to an increase in illegal activities. As such, demand for automatic number plate recognition systems has increased across regions.
Deployment of ANPR systems in security and surveillance and traffic enforcement applications
The rate of adoption of ANPR systems in security & surveillance and traffic enforcement applications has grown in the recent past for monitoring terrorist activities, fraud, and criminal cases. The ANPR system plays a vital role in locating vehicles that have been stolen, are involved in criminal offenses, have violated traffic laws, have been on the defaulter's toll collection list, and have expired insurance policies. Developed nations like the United States and the United Kingdom are actively using fixed and mobile ANPR systems for security & surveillance and traffic enforcement applications.
Inconsistency in number plate design
The inconsistency in number plate designs is a significant issue facing the developers of ANPR systems worldwide. Number plates differ in size or font size in every part of the globe, making it challenging to construct an algorithm that would read all fonts without any discrepancy. If the ANPR software is not precise, it may misread the registration numbers, which may cause security and surveillance problems. Certain factors, like different illumination conditions, vehicle shadow, non-uniformity of license plate characters, different fonts, and background colors, have an impact on the performance of ANPR systems.
Increase in the use of cloud-based storage services
There had been a substantial increase in the use of cloud-based software in the ANPR system. These services make it easier to store ANPR data directly in the cloud. In addition to direct connectivity, these services also provide cost-effective and scalable storage solutions and services. Cloud-based storage will attract traction in the future due to its low cost, flexibility, and scalability and can be viewed as one of the significant opportunities for the ANPR system market.
Misinterpretation of unclear characters on the number plate
The ANPR system, which uses a camera and software, is designed to read vehicle number plates and store information in the database. The camera identifies passing vehicles and captures images that are then processed. The Optical Character Recognition (OCR) algorithm is used to identify the full string and is checked for international plate syntax for the country of origin. One of the main drawbacks of this system is the misinterpretation of unclear characters on the number plate. For example, it sometimes reads 0 instead of O, H instead of II, or B instead of 8. Such instances may cause problems in security and surveillance operations.
By type, the fixed ANPR system to garner the largest market share
The fixed ANPR system segment accounted for 42.5% of the market share in 2017, with a market value of USD 258.7 million. In addition, the segment is expected to have a CAGR of 9.1% during the forecast period. In fixed or stationary ANPR systems, cameras are placed at fixed locations such as signboards, street lights, highway overpasses, or buildings. Fixed ANPR systems are considered to be a cost-effective solution for monitoring parked or moving vehicles.
By component, the ANPR cameras to lead the global market
The ANPR cameras segment held the largest market share and was valued at USD 185.5 million in 2017. During the projected period, the segment is expected to rise at a CAGR of 10%. Cameras are a key component of ANPR systems used to capture images of fast-moving vehicles. Advances in camera technology have boosted the credibility of ANPR cameras. Sharpness, image resolution, and range are crucial aspects considered before selecting an ANPR camera unit.
By application, the law enforcement segment to exhibit strong growth
The law enforcement segment accounted for 31.1% of the market share in 2017, with a market value of USD 189.1 million. The segment is expected to post high growth during the forecast period. ANPR systems are widely used in law enforcement activities and are often implemented to help homeland security and secure public events.
By end-use, the government to foster the global market
The Government segment accounted for 71.7% of the market share in 2017 and was valued at USD 436.2 million. In addition, the segment is projected to have a CAGR of 10.6% during the assessment period. This is primarily owing to the increased use by government bodies of the AMPR system for law enforcement purposes.
Europe to dominate the global market
In 2019, Europe earned the largest market in the ANPR system. In Europe, ANPR systems are commonly used in law enforcement applications. Increasing government initiatives regarding the adoption of ITS and the growing population in this region are boosting the need for an efficient transport system, which, in turn, is spurring the development of the ANPR system market.
The COVID-19 outbreak and the shift of the epicenter from Wuhan (China) to Italy and later to other European countries, such as the United Kingdom, France, Spain, and the Netherlands, resulted in a massive loss of lives and brought the European region to a standstill by having a large impact on the economy. The outbreak caused serious disruption in various industries, like automotive, travel and tourism, aerospace and defense, agricultural, electronics, and telecommunications.
This is a difficult period for public transit operators as the ridership is down and, as a result, revenue is under pressure. As the lockdown is eased, operators may face the problem of adapting their networks to minimize the risk of infection. Moving ahead, transit operators will need to address the restoration of both profitability and passenger confidence.
In addition, border lockdowns and different government guidelines in countries will have a stronger impact on the supply chain, leading to delays in ongoing transport projects. In addition, due to border lockdown and safety concerns, the footfall of tourists in the region will see a decline in the coming 1–2 years, which is expected to have an impact on the growth of the ANPR system ecosystem.
Competition in the global ANPR market is fierce, with smaller enterprises adopting aggressive growth strategies to increase their foothold. Several Tier 1 and Tier 2 companies are collaborating with domestic vendors to raise brand awareness and tap new markets. Companies are engaged in collaboration and partnerships to boost in-house development with more funding.
In July 2020, Conduent Transportation, a part of business process services and solutions company Conduent Incorporated, stated the selection of the Ohio Turnpike and Infrastructure Commission to modernize and support the Ohio Turnpike’s toll collection system along the 241-mile interstate. The company will also use its patented Automated License Plate Recognition technology for vehicles using E-ZPass lanes without a transponder.
In March 2020, Genetec Inc. confirmed the immediate availability of its next-generation mobile license plate recognition system. The new AutoVu SharpZ3 differs from the traditional license plate identification and brings new insights into vehicle analytics, situational awareness, and accuracy.
This study examines critical factors, constraints, and threats in the global ANPR market as well as geographic and segment revenue forecasts and evaluations. The base year is 2018; the projection period is 2018-2023.
|Market Size||USD 1.100 Million|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Component, Application, End-User|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Siemens AG, Kapsch TrafficCom AG, Vigilant Solutions, Tattile SRL, Leonardo Company, Neology Inc., Genetec Inc., Jenoptik Group, Conduent Inc., Financial Overview, Bosch Group|
|Key Market Opportunities||Substantial increase in the use of cloud-based software in the ANPR system.|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The earning worth USD 670.7 million in 2018 is expected to be increased to USD 1,100 million by 2023.
A resilient CAGR is anticipated to propel the market in the coming period.
The market in the European region is leading the development of the market at a CAGR of 10.5% in the forecast period.
Application, Type, Component, and End-User are the segments in the market.
Kapsch TrafficCom AG, Vigilant Solutions, Siemens AG, Leonardo Company, Financial Overview, Neology, Inc., Genetec Inc., Tattile SRL, Jenoptik Group, Conduent Inc. and Bosch Group, are the notable opponents in the market.
The lesser pace of development in the market is expected to open up new avenues for growth.
The credibility of the surveillance provided is expected to motivate the market in the coming period.