Automatic Number Plate Recognition Market to reach Worth of US$4674.0 Mn by 2025, Garnering Ample Gains from Commercial Deployment
The global automatic number plate recognition (ANPR) market is characterized by a fairly fragmented vendor landscape, finds Transparency Market Research (TMR). Various players are increasingly focusing on introducing ANPR technologies and developing integrated systems to get a better foothold in the market. Several of these players are likely to focus on innovative optical character recognition techniques and image processing technology, in order to develop innovative products.
TMR expects that the ANPR engine manufacturing segment to witness a markedly high level of competition. Furthermore, the global market features a remarkable rivalry between system integrators and component manufacturers. To get over mounting competitive pressure, a number of players are shifting their attention to countries such as Malaysia, India, China, and Philippines as part of their expansion strategy.
Top players operating in the global automatic number plate recognition market include Viion Systems Inc., Siemens AG, Genetec, Inc., Vigilant Solutions, Q-Free ASA, Vaxtor Technologies, Bosch Security Systems, Inc., ELSAG North America LLC, ARH, Inc., Digital Recognition Systems, Ltd., and NDI Recognition Systems LLC.
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The global automatic number plate recognition market stood at US$2013.5 million in 2016 and is projected to rise at a promising CAGR of 11.1% from 2017 to 2025. Expanding at this pace, the market will touch a valuation of US$4674.0 million by the end of forecast period.
The various end users of ANPR are government and commercial, of which the former is sub-segmented into mainly homeland security, traffic department, and defense. Of the two, the government sector currently leads and held a major share of 70% of the global market in 2016. The proliferating demand for ANPR technologies in various government sectors account for its dominance. Geographically, Europe holds the sway and held a major share of 35.0% in the global market in 2016. The dominance of the regional market can be attributed to an extensive uptake of ANPR systems for effective traffic management.
Vast Deployment of Technology for Security and Surveillance by Government Sector Accentuate Growth
The drive for automatic number plate recognition technology and systems stems from the need for an efficient and automatic vehicle identification system based on its number plate. The substantial benefits of ANPR in the area of security and surveillance, parking management, toll enforcement, and traffic enforcement is a notable factor accentuating the market. The adoption of such automatic technologies for keeping a strict vigil on illegal activities by the transport departments of various countries is propelling the growth of the ANPR market.
Privacy and Limited Competence of Technology Key Concerns
The surge in investment of government and commercial institutions on advanced surveillance system is also providing a robust base for the expansion of the market. In addition, stringent implementation of regulations for vehicle driving in emerging nations is providing a robust boost to the market. However, the use of ANPR systems has raised spiraling concerns among law-abiding citizens who consider the technology as undue intrusion of their privacy at the cost of security. Moreover, the non-uniformity of number plate design tends to reduce the utility and performance of ANPR systems. Nevertheless, creating more awareness about the benefits of ANPR and keeping appropriate controls in place may do well to allay these concerns over the years.
Furthermore, the vastly rising demand for ANPR systems in commercial sector and the rapid deployment of installation technology in vehicle parking application are noteworthy trends expected to unlock lucrative avenues in the global market.