Automatic Number Plate Recognition (Anpr) System Market size was over USD 3.56 billion in 2024 and is poised to exceed USD 10.53 billion by 2037, witnessing over 8.7% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of automatic number plate recognition system is evaluated at USD 3.81 billion. In the year 2024, the industry size of automatic number plate recognition (ANPR) system is assessed at USD 3.52 Billion. The major factor attributed to the market expansion is the rapid expansion of the automobile industry. With the expansion of the automotive industry, the production rate of vehicles is expected to grow which in turn is anticipated to increase the utilization rate of automatic number plate recognition (ANPR) systems in vehicles and aid in the expansion of the global automatic number plate recognition (ANPR) systems. The global automotive industry is expected to reach approximately USD 9 trillion by 2030 as per the newest data.
In addition to the aforementioned factors, the various advantages offered by automatic number plate recognition (ANPR) systems are expected to fuel market growth. It aids an efficient way of managing high-speed traffic management at parking areas along with the availability of the facility of automatic access control systems making it an ideal feature to get integrated into the vehicles for enhancing the driving experience. Furthermore, the huge investments in the IT sector by the government for developing novel systems including automatic number plate recognition (ANPR) systems for vehicles to make the drivers’ experience worthwhile is also fueling the growth of the global automatic number plate recognition (ANPR) systems in the upcoming years. Furthermore, the growing demand for smart cars coupled with electric vehicles and rising disposable income is projected to escalate the demand for automatic number plate recognition (ANPR) systems in the upcoming years.
Growth Drivers
Growing Incidences of Road Accidents Across the Globe – Recently, the number of road accidents has grown considerably which has surged the demand for vehicle safety. As automatic number plate recognition (ANPR) systems are effective in improving security and law enforcement measures in urban cities, it is an efficacious way for avoiding deaths owing to traffic crashes. According to the statistics data revealed by the World Health Organization (WHO), more than 1.2 million deaths occurred owing to road traffic crashes throughout the world in 2018.
Rising Preference for Advanced Systems in Vehicles – With the rising personal disposable income, people are propelled to adopt technologically advanced systems for their vehicles to enhance their driving experience along with safety. Thus, vehicle manufacturers are integrating developed features such as radars and sensors for efficient automatic number plate recognition (ANPR) systems for systemic driving processes. For instance, it is observed that in a modern vehicle manufactured today, there are over 70 sensors in total throughout the whole car.
Escalation of Smart and Electronic Vehicles – The rising demand for smart vehicles with advanced traffic control features improves in-vehicle safety and comfort. This factor is expected to propel the demand for automatic number plate recognition (ANPR) systems for producing efficient vehicles in the forecast period. For instance, it was found that by 2025, almost 70% of new vehicles sold in China is expected to be smart vehicles with high-level driving-assist functions.
Increased Demand for Connected Vehicles - For instance, there were over 200 million connected cars in 2021, and this ratio is expected to expand to nearly 400 million connected cars by 2025 worldwide.
The Surge for Requirement of Connected Vehicles – Recent statistics reveal that the sales of connected vehicles are expected to exceed 300 million in 2035 in the United States, making it the biggest industry for connected vehicles.
High Demand for Electric Vehicles – From the recent data, it is being revealed that the global sales of electric vehicles from 2012 to 2021 were calculated to be approximately 17 million electric vehicles worldwide. This figure is further expected to be around 150 million electric vehicles on the roads of the world by 2030.
Challenges
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
8.7% |
Base Year Market Size (2024) |
USD 3.56 billion |
Forecast Year Market Size (2037) |
USD 10.53 billion |
Regional Scope |
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Application (Traffic Management, Law Enforcement, Electronic Toll Collection, Parking Management, Access Control)
The global automatic number plate recognition (ANPR) system market is segmented and analyzed for demand and supply by application in traffic management, law enforcement, electronic toll collection, parking management, access control, and others. Out of these, the traffic management segment is attributed to holding the largest share by the end of 2037. The major factor attributed to the growing segment is the rising concern of traffic congestion over the world which requires efficient systems such as automatic number plate recognition (ANPR) system. Recently, it was declared that in 2021, an American driver lost almost 36 hours owing to congestion on a daily average. This figure has increased by 10 years from the previous year. Moreover, the rising number of deaths in traffic crashes coupled with increased cases of traffic violations and rash driving cases is also anticipated to bring lucrative growth opportunities for the adoption of automatic number plate recognition (ANPR) systems in vehicles to efficiently mitigate traffic congestion in the next few years. A report published by the Ministry of Road Transport and Highways in 2022 stated that approximately 1.5 million people die on Indian roads owing to accidents annually.
Software (ANPR Cameras, Frame Gabbers)
The global automatic number plate recognition (ANPR) system market is also segmented and analyzed for demand and supply by software into ANPR cameras, frame grabbers, and others. Out of these three segments, the ANPR cameras segment is projected to hold the most significant share by the end of the forecast period with a notable CAGR value. As automatic number plate recognition (ANPR) systems are integrated with a technology capable of reading vehicle number plates, quickly and automatically, without any human intervention through using photo or video footage from its cameras, it is estimated to fuel segment growth. Furthermore, the addition of cameras in vehicles for varied purposes is also estimated to increase the utilization rate of ANPR cameras during the forecast period.
Our in-depth analysis of the global market includes the following segments:
By Type |
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By Software |
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By Application |
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By End-user |
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APAC Market Statistics
The Asia Pacific automatic number plate recognition (ANPR) system market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2037. Asia-Pacific region is anticipated to witness the highest growth over the forecast period owing to rapid economic growth in the region and increasing government initiatives towards adopting intelligent transportation systems, along with increasing usage of sophisticated security and surveillance technologies. In addition, with the escalating sale of vehicles along with the rising production of vehicles in the region and expansion of the ASEAN and India Automobile industry is estimated to expand the market size in the forecast period. For instance, in India, the auto industry produced around 22,933,000 vehicles from April 2021 to March 2022. In addition, to the presence of burgeoning electronic component manufacturing operations, nations such as Taiwan, Malaysia, South Korea, and Thailand have considerably contributed to the market expansion in the region. Further, the presence of a strong automobile network in the region, and the rapidly growing penetration of vehicles, are also anticipated to contribute to the market growth in the region.
Europe Market Forecast
On the other hand, the market in Europe is also projected to emerge as the dominating region in the global market on the back of the increasing adoption of ANPR systems for law enforcement and traffic management applications in the region. Furthermore, the sales volume of automobiles is also very high in Europe backed by the growing inclination of population toward the luxurious cars and escalated requirements for passenger vehicles.
Traffic service vehicles in the City of Cape Town got ANPR technology installed for identifying cloned and duplicate license plates. This technology helped traffic service officers make nearly 2000 arrests for drunk and reckless driving, impound over 6500 public transport vehicles, and recorded more than 2.6 million offenses from July 2020 to June 2021.
Hanwha Techwin launched their AI-based ALPR cameras, Wisenet Road AI, which is capable of recognizing the make, model, and color of vehicles along with providing traffic statistics. This system also supports black/white list notifications and up to 10,000 detailed records.
Author Credits: Abhishek Verma
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